ICAP Study Foresees 8% Revenue Increase for Hotels

Five-star and 4-star Greek hotels will close 2005 with an 8% increase in sales, when compared with the year before, according to a recent ICAP study. The reason cited for the increase quite simply is the recovery of tourism movement to Greece during the past year.

The year before, which came on the heels of two years of continual drops in arrivals, total sales at the 3-  4- and 5-star hotel units remained stagnant, but we did see revenue increases at luxury hotel units, which were full during the Athens Olympic Games.

According to complete hotel economic data processed by ICAP, in 2004 luxury units posted a sales increase of 23.9% against the year before. Four-star units saw sales drop 5.8% during the same period and 3-star units a drop of 6.7% in sales.

The information and consulting company believes a dynamic development in the sector is around the corner thanks to a linkage between real estate and the hotel industry. The company cites a new model of tourism development planned for the next two decades, which includes business plans that link the construction of luxury hotel units with summer homes and special tourism infrastructure.

Separately, the Attica Hoteliers’ Association reports that occupancy rates for the period January-October at hotels in the area are down 1.2% when compared with the same period last year. However, it says occupancy for the full year will most likely be on the same level as the year before.

Revenue per room for the period, says the association, was down 23.3%. It says the only solution for the hotel trade is the creation of a conference center within the general area of the city.