Athens Hotel Performance Holding Strong in Q3

Syntagma Square, Athens. Photo © GNTO/Y Skoulas

Revenue and occupancy rates at Athens hotels are holding strong in the third quarter of 2018, with sights now set on the upcoming Athens Marathon next week, according to a report on Greek hospitality industry performance by GBR Consulting.

In contrast to rival city destinations, revenue per available room (RevPAR) at Athens hotels for the third quarter of 2018 increased by 7.2 percent compared to the same period last year and by 10.7 percent year-on-year (y-o-y).

Photo Source: AIA

According to GBR Consulting, RevPAR in Southern European cities decreased by 1.2 percent in Q3. Indicatively, RevPAR in Madrid declined by 1.1 percent, but grew by 1.1 percent in Rome.

The positive performance was driven in large part to the 15.3 percent y-o-y increase in the number of arrivals at Athens International Airport in Q3.

On the downside, GBR analysts note that occupancy levels have to some extent been impacted by home sharing practices as demonstrated by a 1.1 percent annual decline in occupancy levels.

However, they note, the rise in demand for Airbnb-style accommodation has not hindered large hotel chains from boosting their presence in the Greek capital. To the contrary, increasing tourism flows to Greece and stronger demand for Athens city break holidays have seen leading hospitality brands, such as Accor (Novotel, Sofitel), Best Western, Cocomat, Hapimag, Hilton, Hyatt, IHG Intercontinental (Athenaeum Intercontinental, Crowne Plaza & Holiday Inn), Libra Group (Aria), Marriott (Marriott, The Luxury Collection, Design Hotels), Melia Hotels International, Radisson Hotel Group, Somewhere, TUI (Club Lookea, Club Maramara) and Wyndham (Wyndham Grand, Wyndham Hotels & Resorts, Dolce and Ramada) – all seeking a share of the traffic.

To back its claim, GBR Consulting adds that in 2019, international brands Four Seasons, MGallery of Accor and Marriott Autograph are planning to set up shop in Athens, while companies like Rosewood Hotels & Resorts are currently reported to be in negotiations.

Hotel operations launching in Q3 include the five-star, 309-room Grand Hyatt Athens and the 47-room Coco-Mat Athens Jumelle in Kolonaki,

Thessaloniki, Greece. Photo Source@ Thessaloniki Travel – Thessaloniki Tourism Organization (Christian Vercruysse)

In Thessaloniki, meanwhile, city hotels saw RevPAR rise by 7.7 percent y-o-y, mainly due to increasing room rates driven by a strong 11.2 percent y-o-y rise in the number of international arrivals through its airport and an 11.9 percent increase to September 2018.

According to the GBR hospitality report, occupancy levels at Greek resort hotels dropped by 3.7 percent y-o-y in the third quarter of the year, due to a 7.5 percent decline in the number of international arrivals at airports in resort destinations. Total Revenue per Occupied Room however increased by 8.3 percent.