Report: Hotels in Athens Mark Strongest Value Growth in Europe in 2023
Hotels in Athens reported the strongest value growth among 33 cities in Europe in 2023 compared to 2022, according to the 2024 European Hotel Valuation Index released by global hotel consultancy HVS.
At the same time, the Greek capital was the only city in the survey to report double digit value growth in comparison to a year before generated by strong RevPAR as well as high investor interest.
According to the survey’s analysts, the market remains good value compared to most European gateway cities.
The average value of Athens’ hotels increased by 11.2 percent in 2023 compared to 2022 and by 6.2 percent over 2013.
Meanwhile, while other European markets experienced a slower recovery partly due to the ongoing Russia-Ukraine war, cities in Southern Europe such as Athens, Lisbon, and Rome are continuing the 2023 dynamic thanks to the steady rise in leisure demand.
Athens is also in the lead over other cities in terms of value of hotels compared to a decade earlier.
Other European markets marked single-digit increases in the value of their hotels and even at relatively low rates. Indicatively, the value of hotels in Florence, Dublin, Brussels, Barcelona, Paris, Madrid and Lisbon ranged between 3 percent and 5 percent due in large part to price increases.
According to the report, most markets remained below 2019 price levels, with only Amsterdam, Athens, Dublin, and Paris fully recovering to pre-pandemic prices.
HVS analysts add there has been a modest 1 percent uplift in hotel values across Europe which remains at around 97 percent of 2019 levels.
Lastly, according to the findings, hotels sales dropped in 2023. There were 17 fewer hotel sales compared to 2022, with their total value reaching 10.7 billion euros, recording a 19 percent year-on-year decrease. Overall, in terms of sales, Spain and France accounted for nearly 4.7 billion euros in hotel value or 44 percent of Europe’s total volume in 2023.
“There’s still global uncertainty in the year ahead, but we should see more stability in terms of price changes moving forward. The prospect of declines in interest rates coupled with modest RevPAR growth as demand volumes completely recover should bode well for 2024,” said report co-author Clemence Sennavoine, associate at HVS London.