Increasing tourism flows and dropping prices are making Greek hotels an attractive investment choice with hospitality units on Santorini, Mykonos, Corfu and Paros winning over buyers.
According to a survey carried out in the first half of the year by Athens-based property and valuation services Geoaxis, prices for hotel properties are steady marking a minor decline for three- or four-star units not exceeding 0.4 percent.
Indicatively, Greek daily Kathimerini reports that Santorini hotels are the most expensive, with the average price set at around 300,000 euros per room for four-star units and 136,440 euros for the three-star facilities.
Mykonos follows, with the average sale price set at 270,300 euros per room for a four-star hotel. The selling price on Corfu is at 202,800 euros per square meter for four-star units while on Paros, the average is at 160,400 euros per room.
Speaking to Kathimerini, the head of Geoaxis Ioannis Xylas explains that the reason behind dropping prices despite stronger tourism performance is due to a greater supply compared to the demand, which to a large extent concerns five-star hotels. Xylas adds that overtaxation is also hindering investors.
“In a business environment where gross EBITDA for a four-star seasonal hotel comes to 20 percent of turnover, income taxation at 29 percent is considered unacceptably high for a unit’s survival,” he adds.