A day after Archbishop Chrysostomos took back the church-owned Sun Hall Hotel on Larnaca's sea front; staff said on Wednesday things were running smoothly.
And former managers Aqua Sol, whose contract had expired on March 31, are taking legal measures against the Archbishopric over the forced take over.
"The only change is that we have a new manager, his name is Michalis Evangelides and he has replaced Evripides Herodotou," a staff member told The Cyprus Daily.
"The hotel is running smoothly, there is a legal battle between the Church of Cyprus and former managers but we have no details on that," added the source.
Aqua Sol Hotels whose website said it is one of largest hotel companies in Cyprus with more than 20 properties on the island and Greece was not available for comment.
But reports said the landmark four-star hotel was recently renovated at their expense.
And that's when differences with their landlord - the church and Dianellio Orphanage in Larnaca which belongs to the Bishopric of Kiti - began.
Archbishop Chrystostomos rushed to the hotel escorted by associates right after morning mass on Tuesday to brief management and other staff himself about the new status quo.
"The Church wants no one to be fired, we have appointed a new manager but the rest of the staff will remain in their positions. Unless someone does not wish to work with us," Chrysostomos told journalists afterwards.
"We love the people working at the hotel, I've personally talked to them. They all want to work for us. As owners of property belonging to the Church we have to protect its best interests," he added.
The Archbishop said that if Aqua Sol believe the Church of Cyprus have violated any of their rights they could take legal action.
But he reminded that the contract had expired on March 31 and the luxury hotel now belonged to its rightful owners.
Insiders said Aqua Sol are refusing to give up Sun Hall and that they have trust in the island's legal system.