This study, conducted as part of the ‘RETOU’ research project, aims to provide a holistic understanding of adaptive reuse in the context of transforming heritage buildings into creative tourist accommodation units. To achieve the objective set for the current research, the methodology involved an in-depth exploration of the conceptual and theoretical evidence within the scholarly literature, followed by a SOAR analysis. The results have identified current strengths, and opportunities, as well as future aspirations and results specifically associated with adaptive reuse initiatives leading to tourist lodgings. The findings of this research endeavor contribute to the expanding body of literature on the adaptive reuse phenomenon. They provide valuable insights into the prevalent notion and understanding, particularly in the context of a tourist-centric urban destination. Furthermore, this research lays a solid foundation for sustainable policy measures planning, and practical implementation strategies development towards a circular economy transitioning action plan, well-serving objectives promoted by the agenda for sustainable urban development.