Size and performance of the 5-star hotel chains in Greece (December 2018)

Hotel chains in the Greek market

According to the research 8% of all hotels and 27% of all hotel rooms are branded, which means that a hotel is part of an international brand with hotels in more than one country, a national brand with a presence in various geographic regions within Greece, a local brand with a presence in only one geographic area and / or a consortium, covering hotels that are part of a marketing partnership.

The analysis per hotel category is of interest: 59% of all 5-star hotels, 41% of all 4-star hotels and 4% of all 3-star hotels are part of a branded chain, while in terms of rooms the percentages are 70% of all 5-star rooms, 41% of the 4-star rooms and 8% of the 3-star hotel rooms.

The two largest national chains in Greece are Grecotel and Mitsis Hotels offering together 11,244 hotel rooms all over Greece, while the largest local hotel chains are H Hotels Collection, Koullias Hotels and Esperia Hotel Group and the leading consortia in terms of room count, are Tablet Hotel, Mr. & Mrs Smith and Leading Hotels of the World

The list of top international chains is dominated by the tour operators Tui (1st), Thomas Cook (2nd) and Der Touristic (4th). Marriott International is third on the list, while the Sani / Ikos group is fifth and is the only international chain of Greek origin in the top 5.

Most branded 5-star hotel rooms can be found in the Dodecanese

Based on the research, the most branded 5-star hotel rooms can be found in the Dodecanese followed by Crete (the regional units of Heraklion and Lassithi), Attica, Halkidiki, Corfu and the Cyclades.

In terms of brand penetration as a % of the total available 5-star hotel rooms in a region, Attica is leading with a percentage of 90%, followed by Lassithi with 84%, Halkidiki with 78% and the Dodecanese with 76%. It must be noted that there are other regional units with a high brand penetration but based on a limited number of 5-star hotels. These regional units are Larisa, Fthiotida, Ilia, Messinia and Argolida.

Market share and Revenue per Available Room

Based on collected published balanced sheets in the period 2014 – 2016, it is estimated that the total 5-star market had a size of € 2.5 B in 2016, € 2.1 B in 2015 and €1.9 B in 2014. The branded chains had a share of 78% in 2016, 79% in 2015 and 81% in 2014.

In terms of revenue, the highest Total Revenue per Available Room (TRevPAR) was achieved by those 5-star hotels that are part of a marketing consortium, followed by 5-star hotels part of an international chain.

Analysis per region shows that hotels located in the Cyclades had the highest TrevPAR of all regions in 2016 ( € 68,519), as a high percentage of the branded 5-star hotels are part of one or more marketing consortia.

The branded 5-star hotels in Macedonia follow with € 55,765, while branded 5-star hotels in Attica recorded a TRevPAR of
€ 49,353 (noting that these hotels are in operation all year round).

Investments

Based on a sample of 124 companies operating 24,639 5-star hotel rooms, a total Capital Expenditure of € 216 M was recorded for 2016. Nearly 92% of this total was invested by the hotel chains.

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