TEMES S.A., the developer and manager of Costa Navarino, reported increased revenues, driven primarily by double-digit growth in its hospitality sector. Sales of luxury homes at the Messinian resort also contributed tens of millions of euros, despite some delays.
The company, led by Achilleas Konstantakopoulos and operating Costa Navarino in partnership with the Olayan Group, also has a major investment in the renovation of the former Hilton Athens (as shareholders of the property owner, Ioniki Hotels S.A.). TEMES reported consolidated adjusted revenues of €140.7 million in 2023, a 3.81% increase compared to €135.6 million in 2022. At the company level (excluding the Hilton project), revenues increased by over 7% to €135.6 million from €126.6 million. Adjusted EBITDA for the group was €18.8 million in 2023, down from €19.7 million in 2022. The company itself reported EBITDA of €20.4 million in 2023, compared to €25.1 million in 2022.
While hospitality revenues saw a significant increase, real estate sales decreased compared to 2022. This decrease is attributed to a notary strike in the last two months of 2023, which delayed many contract signings until 2024. This is expected to result in significantly higher real estate revenues for 2024.
Specifically, group revenues from hospitality, catering, and leisure services reached €96.27 million, a more than 23% increase compared to €78.11 million in 2022. Revenue from real estate sales and related services totaled over €43.8 million, down from €56.18 million in 2022. Real estate income includes sales of fully equipped tourist apartments in the Westin complex under sale-and-leaseback agreements, land sales by subsidiaries, and sales of properties under construction.
TEMES invested approximately €100 million in 2023, primarily for completing hotel investments in Messinia and renovating the former Hilton Athens. The total investment in the Athens property, which has been closed since 2022, is €340 million, with an expected opening in late 2025. The group’s operating losses decreased to €14.9 million in 2023 from €40.14 million in 2022.
New Winery and Other Investments
Following a recent share capital increase in Navarino Vineyards, TEMES is proceeding with the construction of a winery within Costa Navarino. This project aims to expand the Navarino Vineyards operations. TEMES has partnered with Premia Properties Real Estate Investment, which now holds a 50% stake in Ampelones Navarino. The new winery will span 4,000 square meters and is expected to increase wine production capacity to over 300,000 bottles from the current 50,000, with a focus on international markets. The project has received grant approval from the Ministry of Rural Development and Food, and Hellenic Wineries S.A. (part of the Sterner Stenhus group) will participate in the production and commercialization of the wines.
In September 2024, Pylos Special Purpose Marina SA, a joint venture between TEMES (30%) and D Marinas Hellas Monoprosopi S.A. (70%), signed a 40-year concession agreement with the Greek State and TAIPED for the operation and development of the Pylos marina.
Also in September, the National Bank approved a request from subsidiary Ioniki Xenodocheiaki to reduce the interest margin on a bond loan and to modify the definition of investment costs to include operating and other expenses incurred during the construction period. The maturity date of the loan was also extended by six months to May 3, 2037.
In early 2024, TEMES issued a bond loan of up to €100 million. As of the publication date, €86.5 million in bonds had been issued.