Hotel Acquisitions in Greece: Why It’s the Smartest Investment of the Next Decade

In the last few years, Greece has emerged as one of the most attractive hotel investment markets in Europe.
From boutique city hotels in Athens to luxury beach resorts on the islands, demand for high-quality hospitality assets has surged — and the pace shows no signs of slowing down.

Investors are increasingly turning to hotel acquisitions because the sector combines stable income, strong yields, high appreciation potential, and long-term resilience.

Here’s why hotel assets in Greece are positioned to dominate the next decade of smart investing.

1. Tourism in Greece is not cyclical — it’s consistently rising

Unlike many markets, Greek tourism has:

• record-breaking arrivals annually,

• rising average spending per visitor,

• extended tourist season (April–November),

• stronger inflows of high-income travelers,

• diversified source markets (Germany, UK, US, Israel, France, Scandinavia, Italy, Balkans, Middle East).

This diversification reduces risk and creates a resilient, demand-driven hospitality environment.

Tourism is not dependent on a single market — it’s a global magnet.

2. Hotels gain value from performance, not just real estate appreciation

A hotel is a dual asset:

• real estate

• operational business

This creates multiple value layers:

• cashflow

• reputational value

• brand potential

• management quality

• affiliation/upscale repositioning

• upsell & ancillary revenue

Unlike residential property, a hotel’s value increases not only with the building — but with its brand and performance.

That’s why hotels, especially boutique units and well-located city hotels, generate significant upside potential.

3. Yields in Greece are among the highest in Europe

Average net yields:

• City Hotels: 5%–7%

• Resort Units: 7%–10%

• Boutique Hotels with strong management: up to 12%

These returns outperform:

• residential rentals (3%–4%),

• office buildings (4%–5%),

• retail properties (3%–4%).

Hotel assets combine income + asset appreciation, making them ideal for long-term investors.

4. Boutique Hotels Are Exploding — Higher ADR, Lower CAPEX, Faster Payback

Global travel trends favor:

✔ personalized experiences
✔ design-driven accommodation
✔ small-scale luxury
✔ curated hospitality
✔ digital nomad–friendly spaces

Boutique hotels in Greece benefit from:

• lower construction & renovation cost,

• higher ADR (average daily rate),

• higher occupancy consistency,

• lower operational complexity.

Properties with 10–30 rooms in Athens, Cyclades, Crete, Pelion, or Evia show some of the highest returns.

5. Financing is easier for hotels than residential assets

Banks and investment funds show strong appetite for hotel financing because:

• tourism drives GDP,

• hotels provide predictable cashflows,

• operational assets are easier to evaluate,

• refinancing opportunities exist through brand upgrades.

Funding options include:

• bank lending,

• acquisition financing,

• renovation CAPEX loans,

• equipment leasing,

• co-investment structures.

This makes hotel acquisitions more accessible and scalable.

6. Limited new supply means rising asset values

New hotel development in Greece faces:

• strict zoning laws,

• limited coastal land availability,

• environmental protection zones,

• complex permit processes,

• height & coverage restrictions in urban centers.

This means that new supply cannot keep up with demand.

The result:
Existing hotels — especially well located — gain value faster.

7. Where the biggest opportunities exist today

✔ Athens – City Hotels

Strong demand from:

• business travelers,

• city break tourists,

• Americans & Israelis,

• digital nomads.

✔ Cyclades – Boutique Luxury

Unmatched ADRs and global appeal.

✔ Crete – Resorts & large units

High occupancy, long season, large scale.

✔ Northern Greece (Thessaloniki, Kavala)

Stable year-round demand + conference tourism growth.

✔ Evia – The next wave

Excellent opportunities for:

• design boutique hotels

• wellness retreats

• villa-to-suite conversions

• nature–based hospitality concepts

Evia combines proximity to Athens with low entry prices — making it a rising investment hotspot.

8. What professional investors analyze before buying a hotel

The real due diligence focuses on:

✔ ADR (Average Daily Rate)

The revenue power of each room.

✔ Occupancy

Seasonal and annual trends — real performance, not predictions.

✔ RevPAR (Revenue per Available Room)

The most important profitability metric.

✔ OPEX

Payroll, utilities, supplies, contracts.

✔ CAPEX

Renovation needs and future upgrade potential.

✔ Repositioning opportunity

The biggest profits come when a hotel can move from:

• 3★ → 4★

• 4★ → 5★

• unbranded → soft-branded (e.g., Marriott Tribute, Accor Handwritten)

Repositioning can increase value by 30%–70%.

9. Why 2026–2030 is the “Golden Window” for hotel investments in Greece

• Rising tourism demand

• Limited new supply

• Increasing international investor interest

• Undervalued assets vs Spain–Italy

• Growing demand for experiential travel

• Higher spending per visitor

• Greece’s strong international reputation

All indicators point to stable, long-term growth — with hotels offering the most resilient ROI in the real estate sector.

10. How Poli Real Estate Supports Hotel Investors

Poli Real Estate through her Real Estate Brokerage provides end-to-end support for hotel acquisitions, including:

• sourcing high-potential hotel assets,

• analyzing financial performance & ROI,

• evaluating CAPEX and renovation needs,

• identifying areas with strong occupancy & ADR growth,

• designing repositioning strategies,

• connecting investors with operators, funds, architects, and consultants.

Whether you are looking for a city hotel in Athens, a boutique unit on an island, or a resort with expansion potential, our team can help you secure the most profitable opportunity.