Published on and written by Cyril Jarnias
Investing in a Hotel in Greece: An Extraordinary Opportunity
Investing in a hotel in Greece represents an extraordinary opportunity for many investors seeking lucrative ventures and Mediterranean beauty. However, such a project requires careful preparation and an evaluation of the essential steps to ensure a successful transaction.
Complete Checklist for Your Purchase
In this article, we offer a complete checklist to guide your purchase, covering:
- Local market research
- Legal and regulatory considerations
- Financing
- Management
Get ready to dive into the crucial aspects to make your dream a reality, while navigating the idyllic setting of the Greek islands or vibrant coastal cities.
Good to Know:
Investing in hotel real estate in Greece can offer attractive tax benefits, notably through the residence-by-investment program (Golden Visa).
Overview of the Hotel Market in Greece
The hotel sector in Greece holds a central place in the national economy, driven by growing international tourist appeal. The main tourist regions are:
- Athens: cultural and economic capital, major urban center.
- Cyclades Islands: Mykonos and Santorini, renowned for their luxury and international appeal.
- Crete: a popular destination for family resorts and varied seaside offerings.
- Rhodes, Kos, and Corfu: major hubs for mass tourism but also upscale travel.
Island destinations dominate the peak summer season (June to September), while cities like Athens or Thessaloniki attract more visitors off-season thanks to business or cultural tourism.
Current Trends:
- Continued growth post-pandemic, with a notable increase in international arrivals and tourist overnight stays (+3.2% in the first quarter of 2025 compared to last year).
- Massive investments in the hotel sector (over €500 million between October 2024 and January 2025) signaling sustained investor confidence in the profitability of the Greek market.
- Increased segmentation with the development of luxury hotels on flagship islands (Mykonos, Santorini), while budget hotels thrive on the mainland or lesser-known islands.
Supply & Demand:
| Period | Occupancy Rate | Average Rate/Night (€) | Average Length of Stay |
|---|---|---|---|
| High Season | High (>85%) | >220 | 5–7 nights |
| Low/Mid Season | Moderate (50–65%) | 80–150 | 3–4 nights |
The rise of rental platforms like Airbnb intensifies competition but also pushes the traditional hotel sector to innovate. The focus is now on personalized customer experience: enhanced digitalization (mobile check-in), integration of wellness/spa/high-end local gastronomy offerings, and adaptation to growing environmental requirements.
Expectations are shifting toward more pricing flexibility based on seasonality, and more integrated services from the booking stage—prompting the entire Greek hotel industry to continue its qualitative transformation while maintaining a strong overall volume.
Good to Know:
The hotel market in Greece is particularly dynamic, supported by the popularity of destinations such as the Cyclades islands, Crete, and the Peloponnese coast. Since the pandemic, tourism has shown robust growth, boosting hotel demand, with occupancy rates often reaching 80% during the peak summer season, while average nightly rates range between €70 and €200 depending on the type of establishment and location. Boutique and luxury hotels dominate the most touristy areas, like Santorini, while budget establishments are more concentrated on less crowded mainland destinations. The months from November to March characterize the low season, offering opportunities for renovations or attracting clientele seeking tranquility. However, the market faces challenges such as strict local regulations and increased competition from short-term rental platforms. There are opportunities to seize by focusing on authenticity and local experiences, highly valued by foreign visitors.
How to Evaluate a Hotel Purchase Opportunity in Greece
To evaluate a hotel purchase opportunity in Greece, it is advisable to structure the analysis around the following areas:
Key Financial Indicators to Examine
- Revenue per Available Room (RevPAR): a central indicator combining occupancy rate and average room price. For example, in Athens, RevPAR reached €107.96 in the first half of 2024 (+14.5% year-over-year).
- Average Occupancy Rate: measures the proportion of rooms occupied over a given period. In Athens at the start of 2024, it stood at 75.5%.
- Average Daily Rate (ADR): helps gauge the daily profitability of the property.
- Gross Operating Profit and Operating Margin.
| Indicator | Recent Value (Athens H1 2024) |
|---|---|
| RevPAR | €107.96 |
| Occupancy Rate | 75.5% |
Local Market Analysis
- Assess tourist seasonality (high summer influx in Greece).
- Monitor local and European economic trends influencing hotel demand.
- Analyze growth or saturation prospects for the sector in the target region.
Geographic Location
List of essential criteria:
- Immediate proximity to major tourist attractions.
- Easy access to transportation (international airport, seaport, etc.).
- Presence or absence of direct competition in the vicinity.
Current Hotel Reputation
Points to verify:
- Recent customer reviews on TripAdvisor/Google/Booking.com
- Overall ranking among local hotels
Repeated negative reviews may indicate necessary investments not visible during physical visits.
Legal and Regulatory Framework in Greece
Must be analyzed:
- Legal status of the property
- Administrative permits required for hotel operation or potential renovations
- Specific tax regulations for Greek hotels
Necessary Investments for Renovation or Improvement
Key points:
- Complete technical inspection to identify urgent needs (plumbing/electrical/insulation)
- Preliminary budget for compliance upgrades and modernization of common areas/rooms
Comparison with Recent Similar Transactions
To assess if the asking price is competitive:
- Analyze recent sales of comparable hotels in the same geographic area.
- Adjust based on the overall condition of the target property and improvement potential.
| Similar Hotel | Sale Year | Price/m² | RevPAR |
|---|---|---|---|
| Hotel A | 2023 | XXX €/m² | XX € |
| Hotel B | 2024 | XXX €/m² | XX € |
Consultation with Specialized Professionals
Should be systematically integrated into your decision-making process:
- Real estate agents experienced in local hospitality
- Lawyers specializing in Greek tourism real estate transactions
Complete evaluation = Financial Analysis + Local Market Study + Technical Inspection + Regulatory Audit + Transaction Benchmark + External Expert Advice
Good to Know:
To evaluate a hotel purchase opportunity in Greece, it is essential to examine financial indicators such as RevPAR and average occupancy to gauge the property’s potential performance. It is also crucial to conduct a local market analysis, considering tourist seasonality and economic trends, to anticipate demand. The hotel’s location must be strategically positioned relative to tourist attractions and transportation. The hotel’s current reputation can be assessed through customer reviews and online rankings, which is key to understanding its current brand image. Ensure you fully understand the legal requirements in Greece, particularly regarding building permits and taxes. Consider the necessary renovation investments to improve facilities. Compare the purchase price to recent transactions in the area for a comparative evaluation. Finally, expert advice from real estate agents and specialized lawyers can prove invaluable in this decision.
Due Diligence When Acquiring a Hotel in Greece
Due diligence is an essential and unavoidable step when purchasing a hotel in Greece. It allows the buyer to obtain a clear and detailed view of the property’s actual situation, anticipate potential risks, and validate the legal and operational compliance of the asset.
Key Points to Examine During Due Diligence:
- Legal Structure: Verification of the hotel’s legal status (legal entity or individual), as well as any restrictions related to the transfer of shares or equity interests.
- Compliance with Local Laws: Check the hotel’s adherence to applicable Greek regulations for the hotel sector (urban planning, health standards, fire safety).
- Operating Licenses: Confirmation that all authorizations necessary for hotel operation are valid and transferable.
- Required Permits: Verification of specific permits such as those for pools, restaurants, or other ancillary services.
| Dimension | Items to Verify |
|---|---|
| Legal | Articles of incorporation, ongoing litigation |
| Regulatory | Compliance with Greek laws |
| Licenses/Permits | Hotel operation & activities |
| Financial | Annual accounts, tax debts |
Evaluation of Tangible and Intangible Assets:
- Physical Infrastructure: Thorough inspection of the building’s overall condition, technical equipment (elevators, air conditioning), rooms, and common areas.
- Commercial Reputation: Analysis of online visibility (customer reviews), positioning in the local and international market.
- Intangible Assets: Registered trademarks, contracts with travel agencies or digital platforms.
Ongoing Contracts:
Non-exhaustive list:
- Supplier contracts for food or maintenance
- Agreements with technical service providers
- Contractual relationships with staff (individual/collective agreements)
All these documents must be examined to identify any clauses that could affect their continuity after the transaction (intuitu personae, termination clauses…).
Legal & Cultural Specificities of Greece:
- Administrative procedures are often lengthy; obtaining certain permits may take several months.
- Land titles must be carefully verified with the competent registry to avoid any subsequent property disputes.
- Local culture sometimes favors personal relationships in contractual negotiations; therefore, a respectful approach to local customs is recommended.
Recommendation:
It is strongly advised to engage a local firm comprising both specialized lawyers and real estate engineers to support this process. Their expertise will enable not only a thorough technical analysis but also an effective deciphering of the regulatory nuances specific to the Greek market.
Rigorous due diligence is a prerequisite for the lasting success of any hotel investment in Greece.
Good to Know:
Due diligence is a crucial step when acquiring a hotel in Greece, as it ensures the establishment’s compliance with local laws and secures a safe purchase. It is essential to verify the hotel’s legal structure, legal compliance, and the validity of operating licenses and necessary permits, which can vary by Greek region. Both tangible assets, such as the condition of infrastructure and equipment, and intangible ones, like the hotel’s market reputation, must be evaluated. Examining ongoing contracts with suppliers and employees is also fundamental to avoid surprises after the purchase. Greek legal and cultural specificities, such as tax and administrative aspects, often require the involvement of local experts to navigate these complexities. Engaging a lawyer or advisor familiar with Greek real estate and commercial law can be indispensable for a thorough due diligence.
Tourism Statistics and Trends in Greece
In 2024, Greece welcomed 40.7 million international tourists, a 12.8% increase compared to 2023. This growth is accompanied by a rise in tourism revenue, reaching nearly €21.6 billion.
Main Source Markets:
- European Union: accounts for 53.5% of international arrivals.
- Eurozone: +12.2%, approximately 14.5 million visitors.
- Other EU countries outside the Eurozone: +8.6% year-over-year.
- Europe remains the dominant market, but there is a steady increase in visitors from North America (notably the US and Canada) and a gradual emergence of Asian markets.
| Source Market | Estimated Share (2024) | Trend |
|---|---|---|
| Europe (EU) | ~54% | Strong growth |
| North America | ~10% | Steady growth |
| Asia | ~5% | Post-pandemic rebound |
Arrivals hit a historic low during the pandemic (April 2020) but have rebounded strongly over the past two years.
Regional geopolitical uncertainty can impact certain destinations like Santorini, which recorded up to –80% cancellations for Easter following a local event.
Opportunities & Challenges for Hotel Investment in Greece:
Opportunities:
- Sustained demand throughout the summer period with a gradual extension into the shoulder season thanks to cultural/eco-tourism.
- Steady increase in national tourism revenue (+12–13%/year).
- Growing diversification toward extra-European international clientele, offering significant potential for upscale establishments.
Challenges:
- Inherent sector volatility related to health/global crises or local geopolitical events that can abruptly impact certain flagship islands/regions.
- Increased competition in highly sought-after destinations requiring product/service innovation to differentiate.
For any hotel project, it will be essential to:
- Anticipate seasonal peaks to optimize occupancy rates;
- Adapt offerings to new expectations around sustainable development;
- Closely monitor weak signals related to each key source market;
- Remain flexible in the face of potential global/international economic or health fluctuations.
Good to Know:
Greece welcomes approximately 30 million tourists each year, with the main influx coming from Europe, followed by North America and Asia. The peak season runs from June to August, and the most popular regions are islands like Santorini and Mykonos, as well as historic cities like Athens. Ecotourism and cultural tourism are growing in popularity, which could influence demand for specialized accommodations. Tourists spend an average of seven to ten days in Greece and spend around €800 per trip, although these figures have fluctuated recently due to the pandemic. For those considering buying a hotel, these statistics highlight the importance of maximizing appeal during the high season and adapting offerings to emerging niches. However, it is crucial to prepare for challenges such as economic variations and changes in traveler behavior, by capitalizing on trends to diversify and increase profitability.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
