ICAP: Despite Growing Arrivals Greek Hotels Still Struggling

Despite the record number of arrivals to Greece, the country’s hotel sector continues to be struggling as data by business services group ICAP reveals.

According to the latest ICAP study of a sample group of 838 hotels, 2015 turnover for approximately 8.61 percent of the country’s hotels (9,730 according to the Hellenic Chamber of Hotels) marked a slight increase by 2.9 percent to to 1.94 billion euros from 1.88 billion euros in 2014, but profit before tax dropped by 31.4 percent to 73.34 million euros against 106.50 million euros in the respective period of 2014.

At the same time, ICAP data reveals a rise in long- and short-term debts for hotel enterprises as well as an increase in bank payment plans. Specifically, medium- to long-term debts came to 2.40 billion euros compared to 2.37 billion euros a year earlier, while short-term debts amounted to 1.64 billion euros against 1.61 billion euros a year ago, a 1.4 percent and 2.05 percent increase respectively.

Meanwhile, according to market insiders, a number of banks have entered talks with liable hotel owners in order to find ways to settle their debts.