The Greek hospitality industry is undergoing a significant transformation as a recently released report sheds light on the increasing number of family-run hotels in Greece that are now up for sale. Small business owners in the sector are finding it challenging to cope with rising costs and various economic stressors, leading them to put their hotels on the market.
According to the report by E-Real Estates Panhellenic Network of Real Estate, more than 200 three- and four-star hotels in Greece have been listed for sale in the past month. The majority of these hotels are smaller, family-run establishments that have been operating as local businesses for years.
The surge in sales has attracted both local and foreign investors who see an opportunity to capitalize on Greece's thriving tourist industry. In recent months, dozens of hotels have changed ownership, amounting to a total transaction value of €320 million.
The report reveals that 204 hotel establishments have been added to online property classifieds, highlighting the growing number of family-run hotels available for purchase. These hotels typically have lower star ratings and offer a capacity ranging from 10 to 30 rooms.
Themistoklis Bakas, the president of E-Real Estates, attributes the increase in hotel sales, particularly among small and medium-sized enterprises (SMEs), to the struggles faced by entrepreneurs in navigating consecutive crises, managing loans, coping with evolving regulations, dealing with soaring energy expenses, and facing inflation and rising costs throughout the supply chain. These factors have resulted in reduced incomes and increased financial burdens for hotel owners.
The online Auction platform has also witnessed a significant number of hotel auctions, with 111 auctions posted between the beginning of the year and May 31, 2023, further underscoring the magnitude of the issue.
Both foreign funds and local investors are actively acquiring hotels in Greece, targeting properties and family-run hotel units that are grappling with financial obligations. Key regions experiencing a high volume of hotel sales include Attica, with properties in areas like Kifissia, Votanikos, Plaka, Gazi, Omonia, Victoria Squares, and Psyri being sold. Popular tourist destinations in Crete and the Peloponnese, such as Tolo, Loutraki, Nafplio, Ermioni, Kiato, and Xylokastro, are also witnessing significant hotel sales.
Moreover, several islands, including Paros, Zakynthos, Santorini, Skiathos, Mykonos, Spetses, Kefalonia, Rhodes, Naxos, Skopelos, Syros, and Sifnos, have seen hotel units being listed for sale, with starting prices around €620,000. Mainland Greece regions, including Evia, which experienced devastating fires in the summer of 2021, Halkidiki, Kamena Vourla, Ioannina, and Arachova, are also witnessing a substantial number of hotel sales, with starting prices beginning at €650,000.
The changing landscape of the Greek hotel industry presents both challenges and opportunities. While it highlights the economic pressures faced by family-run hotels, it also creates avenues for investors to acquire properties and breathe new life into the sector. The sale of these hotels may lead to renovations, rebranding, or the introduction of new concepts, ultimately reshaping the hospitality landscape in Greece.
