The Cyprus hotel feared to be used as a base for spying on RAF

For the super-rich guests who frequent its casino and swimming pools, the City of Dreams Mediterranean in Cyprus is nothing more than a luxury hotel.

But security officials fear the sprawling 15-acre complex could have harboured visitors with a deeper agenda than topping up their tans and eating in the various gourmet restaurants.

The Chinese-owned hotel – a stone’s throw from the border of RAF Akrotiri, Britain’s military complex in Cyprus – allows guests a bird’s-eye view over one of the UK’s most critical overseas bases.

Several intelligence and military sources said that they feared foreign spies could have used the City of Dreams – which The Telegraph visited this month – as an observation post.

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