With a surge in strategic investments, the country added 12,000 new hotel rooms last year, including 8,500 in four- and five-star properties, according to data from the Hellenic Hoteliers Federation processed by INSETE Intelligence.
The European luxury hotel market saw a robust €10.95 billion in transactions across 137 deals involving four- and five-star hotels in 2024, as reported by Global Asset Solutions. Despite a volatile economic climate, the sector maintained strong momentum, with Greece standing out for its high-quality offerings despite fewer transactions.
Greece’s High-Value Deals
Greece recorded €438 million in investments across just four transactions, accounting for 4% of the EU’s total hotel investment market. The country achieved the highest average transaction value in Europe at €109.5 million and an impressive price-per-room of €332,000, surpassing nations like Sweden and Germany. A total of 1,321 rooms changed hands, with a focus on premium properties.
The standout deal was the acquisition of the Grand Hyatt Athens, a 548-room property that marked Europe’s largest hotel transaction by room count in 2024. This deal underscored Athens’ growing appeal as a hub for luxury hospitality investments. Other prime destinations like Mykonos and Santorini also attracted significant interest, reinforcing Greece’s reputation for “trophy assets” – iconic properties with premium valuations and strong growth potential.
Record-Breaking Room Additions
The Greek hotel sector saw unprecedented growth, with 24,649 new rooms added over 2023-2024, shattering previous records. In 2024 alone, investments in new constructions and renovations reached €2.805 billion, a slight 0.4% increase from €2.795 billion in 2023. After accounting for imported goods and services, net domestic investments stood at €1.688 billion in 2024, up 0.3% from €1.683 billion the previous year.
The broader tourism sector, including non-hotel accommodations like villas, contributed €5.063 billion in investments in 2024, with €2.440 billion in domestic value-added spending. Hotel revenues also rose by 8.8% to €11.5 billion, driven by stable high-season demand and growing off-season tourism, boosting occupancy and rates in year-round hotels.
A Bright Future for Greek Tourism
Greece’s focus on high-quality, strategically located properties has positioned it as a mature market for luxury hospitality. The country’s ability to attract selective, high-value investments highlights the resilience of its high-income tourism sector. As global investors continue to eye Greece’s iconic destinations, the nation is poised to maintain its competitive edge in Europe’s luxury hotel landscape.
Source: INSETE