Hospitality Newsletter

Greece retained its 5th position as a top hotel investment destination in CBRE’s 2025 Hotel Investor Intension Survey supported by strong tourism trends and a growing luxury hotel segment.

More specifically, as presented in February 2025 during an joint event of the Athens-Attica Hotel Association, GBR Consulting and the Athens International Airport, demand at Athens International Airport surged over the past two years. In 2024, international non-resident arrivals reached 7.9 million, up from 7.1 million in 2023 and 6.4 million in 2019, marking increases of 12% and 24%, respectively.

Since 2017, 11 additional international hotel chains have entered Attica, bringing the total to 23 hotel chains operating 40 brands in 2024. International brand penetration remains strongest in the 5-star segment, where 43% of hotels and 52% of rooms belong to an international chain. In the 4-star category, these penetration rates stand at 12% and 25%, respectively.

At the same time, we note that non-hotel accommodation sectors continue to expand. The short-term rental market in Attica increased by approximately 16% between 2023 and 2024 attracting primarily international guests. In December 2024, a new law was enacted prohibiting the issuance of new short-term rental licenses for the center of Athens (municipal units 1,2 and 3). Additionally, starting October 1st, 2025, new operational standards for short-term rental properties will come into effect.

In addition, it was revealed at the event that the number of rooms-to-let units in Attica based on data of the Ministry of Tourism increased by 37% in Attica, from 896 in 2019 to 1,231 in 2024. So 335 new tourist accommodation units were added during this period, mostly without a categorization but also 125 units carrying one of the 1 - 5 keys.

The increased demand did not negatively affect overall satisfaction levels. Visitors continue to rate their experience in Athens highly, with an average score of 8.3 out of 10, following an upward trend over the 20 years this survey has been conducted. While facilities continued to receive strong ratings, the perceived value for money has declined, primarily due to rising prices.

Key areas of concern remain public cleanliness, safety, and the condition of roads, pavements, and squares. While overall satisfaction ratings have remained stable, certain areas in central Athens fall below the city’s average standards, requiring improvement for both residents and visitors.

In February 2025 Domotel Hotel and resorts acquired the 4-star 29-room Golden Milos Beach hotel located at Provatas beach on the Cycladic island of Milos. The revamped hotel will re-open on May 15th as the Golden Milos Beach House by Domotel. Milos is rapidly developing as a new luxury destination with currently two 5-star hotels, the Milos Cove and the Domes White Coast Milos, but numerous new 5-star projects being announced and two projects under construction: in the area of the Golden Beach, Kanava SA of Antonis Iliopoulos is constructing a 5-star hotel on a peninsula and foreign private investors are constructing a new 5-star 33-room unit located south of the Domes White Coast Milos. Some of the planned projects face resistance and the construction of a unit near the Sarakiniko Beach has been suspended by the Ministry of Environment and Energy.

In March 2025 it was reported that AccorInvest sold the 4-star 196-room Novotel Athens located in an area between Omonia Sq and the Larissa central train station. AccorInvest announced that in 2024, 160 hotels exited the portfolio, including the disposal of 89 hotels for a total sale price of € 720 million, two assets swaps involving 61 hotels and 10 lease termination. The group's portfolio currently includes 576 hotels located in 24 countries, with a refocus on Europe and the economy and mid-range hotel segments. The valuation of AccorInvest’s portfolio is assessed at €7.8 billion as of December 31, 2024. At the end of April 2025 AccorInvest was rebranded into Essendi. The new owner – operator of the Novotel Athens is Kokari – Knossians of Yannis Daskalantonakis.

On April 1st Sani / Ikos Group (SIG) announced the acquisition of the three Goldman Sachs hotels consisting of the Athos Palace, Pallini Beach, and Theophano Imperial in Kassandra, Halkidiki. The investment plans of € 108 million through Goldman Sach’s platform Ousia Hospitality did not proceed, although it had been marked as a strategic investment. The properties consisting of more than 1,000 rooms will be redeveloped into the largest Ikos Resort to date with 750 rooms, suites and villas and 30 restaurants & bars located at a 600-meter beachfront. After a total strategic investment in excess of € 400 million, the resort is scheduled to open in April 2029 as the Ikos Kassandra, the first Ikos Grand Resort.

In February 2025, Greek shipping magnate George Prokopiou acquired the remaining stake of 66.25% held by Jermyn Street Real Estate Fund to become the full owner of the Four Seasons Astir Palace. Greek media mentioned that the transaction was valued at approximately € 700 million. It is noted that in 2016 Apollo Investment Holdco S.A., a special purpose vehicle set up by Jermyn Street Real Estate Fund IV LP, acquired 90% of Astir Palace Vouliagmeni S.A. through an international tender organized by the Hellenic Republic Asset Development Fund (HRADF) and the National Bank of Greece. Dogus Group had a 33.75% stake in Jermyn Street, which was sold in October 2024 to George Prokopiou. It is reported that George Prokopiou is now the sole owner of the Four Seasons Astir Palace, so it is likely that George Prokopiou acquired the remaining 10% over time.

At an event of the Thessaloniki Hotel Association, GBR presented the results of the Thessaloniki Tourist Satisfaction Survey and Hotel Sector Performance. Compared to 2023, hotel occupancy improved by 3% in 2024, while ADR increased by 6% surpassing for the first time the € 100 mark. RevPAR increased by 9%.

Stakeholders are optimistic with respect to the development of tourism in Thessaloniki. During the period 2019 – 2024 the number of 5-star hotels and rooms increased by 40% and 22% respectively and the 4-star segment by 19% and 7% respectively. Currently, 5 international hotel chains have a presence in Thessaloniki with 6 brands (all 5-star hotels), 13 national chains and 2 local chains.

The Short Term rental market has expanded further to approximately 4,600 units on average throughout 2024, an increase of 20 – 30% compared to 2023.

Meanwhile, the new metro line has been in operation since November 2024 and this year 5 new stations towards Kalamaria will become operational. Also the Thessaloniki Flyover is under construction, a major infrastructure project that is expected to alleviate traffic congestion on the city's Eastern Inner Ring Road.

The overall satisfaction of the experience in Thessaloniki stabilised at 7.8 out of 10, but 94% would recommend Thessaloniki to others, 92% would like to visit the city again and 85% feels that there is much more to see and do in Thessaloniki.