Greek Hotel Profits

A recent survey by Stat Bank characterized the Greek hotel sector as a “two-speed industry” since 58 percent of hotels showed profits and 42 percent reported losses in 2007.

The survey, based on a sample of 795 hotels, revealed that last year 461 hotel businesses showed a profitable activity while 334 reported losses.

However, despite the losses the Greek hotel sector seems to be on a positive track.

According to Stat Bank, 795 large hotels had losses of some 23.2 million euros in 2005 but a year later they showed profits of some one million euros.

In 2007 those profits rose to 82 million euros, which shows a continued improvement in financial results over the past two years.

But the survey predicts that a large percentage of hotels will suffer in 2008 and, according to representatives of the industry, this is expected to lead to closure of businesses, mergers and acquisitions with other companies.