Greece Sees Investment Boom in Luxury Resorts and Branded Hotels

The Naxos Resort Beach Hotel.

Despite the ongoing Covid-19 pandemic, Greece is seeing a good number of local and international players investing in the hospitality sector.

According to the latest report released by GBR Consulting and announcements by hotel enterprises, a number of new entries are expected in the Greek tourism scene following transactions and developments in the hospitality sector.

The Greek hospitality sector also expects the opening of luxury resorts throughout the country as well as branded hotels in Athens and the Greek islands in 2022 and beyond.

Rhodes

The Lindian Village Rhodes.

– In early February, the acquisition of the 5-star resort Lindian Village Rhodes (Svyriadis family) by the British company Zetland Capital Partners LLP was finalized. The deal was announced in October last year and involves an amount of 27 million euros. The Lindian Village, which has 188 rooms and suites, is located in front of Lardos beach, very close to Lindos, on the island of Rhodes and will open during 2022, according to SWOT that has undertaken the management.

– In the beginning of December 2021 the Hellenic Republic Asset Development Fund completed the conveyance of the Golf-North Afantou property on Rhodes to M.A. Aggeliades Hellas for 26.9 million euros after years of obstacles and delays. According to reports, Mitsis Hotels will enter into a strategic agreement for the acquisition and development of the area of 1,328 stremma. Within the framework of the Special Plan for the Spatial Development of Public Properties (ESCHADE) plans include: 3 hotels (a 5-star with 480 rooms, a 5-star boutique hotel with 100 rooms and a 4-star with 120 rooms), 20 villas, 90 villas/residencies, complete upgrade of the existing golf course and a marina.

Afandou, Rhodes. Photo Source: TAIPED

– Also, in June 2019 the Hellenic Republic Asset Development Fund completed the sale of the south Afantou property to T.N. Aegean Sun Investments of the Nikolaidis group for an amount of 15.2 million euros.

Cyclades Islands

– In the beginning of January, local media reports said that Mediterranean Hospitality Venture (MHV), a joint venture of Papalekas Group, Prodea Investments and Invel Real Estate, acquired the 4-star hotel Porto Paros for over 50 million euros. The hotel is located in Naousa on the island of Paros and features 263 beds and villas.

– At the beginning of December 2021, the newly formed company Attica Blue Hospitality, a subsidiary of Attica Group, acquired the owning company of the Naxos Resort Beach Hotel located in Agios Georgios, Naxos. The hotel features 88 rooms, swimming pool, restaurants, bars, meeting room, gym, spa, and parking. The total transaction was 6.5 million euros.

The Naxos Resort Beach Hotel.

– Also in December 2021, real estate investment company Everty announced the acquisition of the Iconic Santorini boutique hotel, which is located in Imerovigli on Santorini and consists of 19 cave suites and a restaurant. No transaction details were released.

– Openings in the Cyclades group this year, include: the Magma Resort Santorini, The Unbound Collection by Hyatt on Santorini in May 2022, the 5-star luxury NOŪS resort in Messaria, Santorini, by Yes! Hotels Group and the Yi Mykonos on Mykonos (owned by ORA Hospitality of the Sawiris Group) in July 2022.

Crete

– Through an electronic auction process conducted by the Hellenic Republic Asset Development Fund, REDS SA, a subsidiary company of the Ellaktor group, emerged as the highest bidder (40.2 million euros) for the development of a property at the former American base in Gournes, Heraklion,Crete.

The property concerns a coastal area of 345,567 sqm. REDS is planning for the development of hotels (4 and 5-star), conference-exhibition centre, holiday homes, shopping malls, marina, helipad and other uses.

REDS is also proceeding with the investment of the Cambas Park at the former winery Cambas in Pallini, Athens. The park will include areas of entertainment, culture, catering, shopping malls, offices, as well as hotels on a plot of 315 acres. The investment is budgeted at about 200 million euros.

An impression of the Ikos Kissamos on Crete.

– In November 2021, the Sani/Ikos hotel group announced the development of a 5-star resort in the area of Kissamos in Chania, Crete, after finalizing land purchases, resulting in a total area of 200,000 sqm. The all-inclusive 5-star resort will carry the name Ikos Kissamos and will offer 400 rooms, bungalows and villas on a beach front of 600 meters. The construction of the new hotel will start in 2023 and it is estimated that operations will start in May 2025. The total investment is budgeted at around 125 million euros.

Corfu

– PALLI S.A., a Greek hospitality company, has signed an agreement with Wyndham Hotels & Resorts to develop a new TRYP by Wyndham hotel on Corfu. Expected to open in April 2022, the TRYP by Wyndham Corfu Dassia will follow the conversion and rebranding of the Corfu Palma Boutique Hotel, located 12 km northeast of the island’s main town.

– On Corfu, the Sani/Ikos group is proceeding with the development of the Ikos Odisia at the former Club Med near the Ikos Dassia. The new 5-star resort will open at the start of the 2023 tourism season.

Peloponnese

– Marriott International in January announced that it has signed an agreement with TEMES S.A., a leading developer and operator in high-end tourism and real estate, to debut the W Hotels Worldwide brand in Greece with the opening of W Costa Navarino. Expected to open in summer 2022, the new W Escape will be located in Navarino Waterfront, the newest integrated resort of Costa Navarino in Messinia, owned by TEMES.

– Messinia will also see the arrival of the first Mandarin Oriental property in Greece in spring 2023. Located at Navarino Bay, the new Mandarin Oriental, Costa Navarino will be introduced by the Mandarin Oriental Hotel Group and TEMES S.A. The resort will feature 99 guest rooms, including 48 spacious earth-sheltered pool villas.

– In Corinthos, Brown Hotels this year will open the doors of the five-star deluxe Brown Beach Corinthia in Agioi Theodoroi. Expected to open by April for the beginning of the summer season, the hotel will be developed in stages and include 166 design rooms and 110 bungalows (opening 2022).

Thessaloniki

– The Greek northern city of Thessaloniki will welcome the Monasty, Autograph Collection by Marriott International in the summer. Owned by Environmental Engineering, the new luxury hotel will open in July 2022 and be the first international branded hotel in the center of the Greek northern city.

– Thessaloniki will also see two properties of the Brown Hotels collection: the Brown Thessaloniki (former Vienna Hotel) and the Lighthouse Thessaloniki (former tobacco house). Both hotels are expected to open in Thessaloniki by 2023.

Athens

– The Athenaeum Hotels Group acquired the Eridanus Luxury Hotel on Piraeus Street in Athens for some 6.3 million euros through an auction organized by Probank at the end of 2021. The deal is expected to be finalized in the coming period. The 4-star hotel has 39 rooms with 81 beds.

– In January, the 3-star hotel Oscar Hotel Athens was acquired through an auction by Hungarian real estate company Indotek Group for some 5.5 million euros from NGB. The takeover of Oscar Hotel is the first real estate acquisition of NGB in Greece. Located near Larissa station, the hotel features 124 rooms with 207 beds.

Opening

– The Greek capital in March 2022 will welcome the Moxy Athens City (Marriott International’s playful brand). Owned by of Dimand and Prodea, Greece’s second Moxy hotel will have 200 rooms and open in the heart of Athens.

Hilton Athens under reconstruction

An impression of The Conrad hotel.

– At the end of 2020, Ionian Hotel Enterprises SA started the reconstruction of the Hilton Athens, which closed down completely on January 31, 2022. The hotel is expected to re-open at the end of 2024 under Hilton’s luxury brand Conrad, offering 280 rooms/suites and 50 luxury apartments, which will operate under the brands Conrad Residences and Waldorf Astoria Residences of Hilton. The top floor will be fully renovated and will host gastronomy and entertainment experiences, themed commercial spaces, entertainment and wellness facilities. The total cost of the investment is expected to exceed 130 million euros.

– In early February, Hilton announced plans to open the “Pentelikon Athens, Curio collection by Hilton” (117 rooms) in spring 2024, which will be the first hotel of the “Curio Collection by Hilton” brand in mainland Greece. The global hospitality company will also debut its “Hampton by Hilton” brand in the country with the “Hampton by Hilton Piraeus Mikrolimano” (83 rooms).