Hotel Groups Accor and Virgin See High Potential in Greece’s Hospitality Industry
Representatives of international hospitality groups see high potential in the Greek market and are interested in partnering with local hotel owners to expand their brands.
Participating in a panel discussion during the 7th International Hospitality Forum (IHF) “Greek Hotels: the day after” on Saturday in Athens, Accor’s Frank Reul and Virgin Hotels’ Will Dowling shared insight on how Greek hoteliers can plan for the future of their businesses in a climate in which travel trends are evolving.
Accor, a leading hospitality group offering experiences across more than 110 countries in 5,500 properties, already has 8 hotels in its portfolio in Greece (and another 8 in the pipeline), continues to look for new opportunities in the Greek market through partnerships (franchise agreements) with local hoteliers.
“Greece is doing very well and not only when talking about increase in RevPAR (Revenue Per Available Room) and ADR (Average Daily Rate) but since 2019 the country gained market share compared to international rivals which is impressive… Greece follows Turkey and Portugal but is ahead of many other countries,” Frank Reul, Midscale & Economy brands – Eastern Europe, Balkans, Italy & Greece at Accor, said.
Referring to Athens, Reul said the city is “well positioned” for the future, especially in the leisure market.
“I think the city of Athens has a tremendous potential and even to become stronger,” he said, adding that the Greek capital probably can take a leading position in Europe.
“We are very confident that with our partners we can also be part of that development,” Reul said.
Accor interested in further expanding in Greece
Referring to the possibility of Accor expanding further in the country, Reul said right now the company is “just touching the surface in Greece” as the country has many opportunities.
Already since the beginning of November, Accor has been scanning the islands as well as Athens in search of possible new locations with existing infrastructure for partnerships with local hoteliers.
“The development will happen only with local partners… We are looking for the right partner, the right location and the right product to make sure it can work sustainable since that is the key of how we want to develop,” he said.
“Today, if you cannot bring a 360 solution to owners, you’re not playing in the game of leading players…We have every intention to be the leading player in Greece as we are everywhere else in Europe,” he said.
Moreover, Reul said Accor is interested in investing in properties located in off-the-beaten-path destinations.
“As long as we see value for the owner, we are not afraid to go anywhere,” he said.
Virgin Hotels: We are ‘extremely bullish’ on Greece
Will Dowling, SVP Development – Europe, Middle East, Africa & Asia, Virgin Hotels, echoed Reul regarding off-the-beaten-path destinations, highlighting that Virgin Hotels is “fearless”, according to the company’s philosophy.
“We will go with you (a partner) wherever we think we can offer a phenomenal experience for the guest,” he said.
Although Virgin Hotels at the moment does not have a presence in the Greek hospitality market, Dowling said the company is “extremely bullish on Greece”.
“We actually are investing here on a group level with Virgin Voyages, which we are incredibly excited about with Athens as one of our main courts… We’re moving 3,000 people a week from Athens to Santorini, Rhodes, Bodrum and Mykonos and we are extremely open and interested in potentially exploring partnership opportunities to house those people,” he said.
Regarding destinations, Dowling said that non-tourist spots is potentially the most ideal scenario.
“Greece has so much raw natural potential that we would be happy to examine opportunities off-the-beaten-path,” he said, adding that Virgin would initially be interested in the management of properties.
“Virgin wants the power of the brand to be maintained at the highest level, so typically in Greece and many other Mediterranean markets we generate on expanding originally looking at a management contract,” he said.
“But we’re extremely flexible… We could start from a management contract and then explore what works between each party,” he said.
A luxury lifestyle hospitality brand created by Sir Richard Branson’s Virgin Group in 2010, Virgin Hotels is headquartered in the Unites States.
Organized by the Hellenic Chamber of Hotels and powered by Questex, the 7th International Hospitality Forum (IHF) was held on the sidelines of the HORECA 2024 hotel exhibition at the Metropolitan Expo Center.