The Greek tourism sector is heading towards another record year this year, with international tourist arrivals, but mainly the revenues of Greek hotels showing a positive sign in the period January – September 2024, compared to the corresponding period last year. In this environment, notable hotel investments and agreements have been finalized.
In more detail, according to GBR Consulting’s latest monthly hotel performance report, which represents annual net revenues of €1.6 billion, revenues for the nine months were up 10.8%, international tourist arrivals up 10% and international tourist receipts up 2%.
According to the Civil Aviation Authority, international arrivals at Greek airports increased by 9% year-on-year in September 2024, compared to the same month in 2023.
However, as GBR notes, there was a notable decrease in international arrivals in July and August 2024, by 5% and 3%, respectively, compared to the same months in 2023.
“Although not all the data is yet available, tourists may have avoided the very hot and expensive summer months of July and August, opting instead to visit Greece earlier or later, if possible. Where this was not possible, some may have chosen cheaper holiday destinations,” GBR notes.
According to the report, shorter stays may also have been a strategy for travellers to exceed their holiday budget, resulting in lower receipts. Meanwhile, the wildfires that occurred over the summer may have negatively impacted travelers’ last-minute plans.
The main hotel transactions
In the middle of the summer there have been some very important hotel deals, including that of Blackstone and Hotel Investment Partners (HIP) for the acquisition of the 5-star Grand Hyatt Athens, from Hines and Henderson Park, for €230 million.
The 548-room hotel, formerly known as the Athens Ledra, was acquired by Hines and Henderson Park in 2017 for €33 million through an auction, and subsequently underwent a major renovation and expansion.
Recall that HIP, which was founded in 2015 and acquired by Blackstone-managed funds in 2017, owns a portfolio of 72 hotels in Spain, Greece, Italy and Portugal.
More recently, in September, Israel Canada Hotels, which is 68% owned by real estate company Israel Canada, announced the signing of two non-binding memorandums of understanding (MOUs) to acquire Brown Hotels, in Israel and Greece.
The first is for the lease agreements for eight Brown Hotels hotels in Greece, with a total capacity of 1,067 rooms, while the second is for the acquisition of the operation of Brown Hotels in Israel.
The total value of the two transactions is estimated at $26.5 million.
It is worth noting that Israel Canada Hotels currently owns 15 hotels: 12 in Israel and 3 in Greece (PLAY Theatrou Hotel and PLAY Psyri Hotel in Athens and PLAY Paros Hotel in Paros).
