STR Study: Greece Debt Crisis Impact on Hospitality

The Greek hospitality sector managed to withstand during the nearly decade-long economic crisis which gripped the country in 2009, according to a recent study carried out by data intelligence firm STR.

According to the findings of the report, starting in 2009 the crisis hit the hospitality sector with revenue per available room (RevPAR) dropping to 14.6 percent driven by a decline in occupancy and average daily rate (ADR).

At the same time, Greece suffered a drop in overnight stays with visitor numbers dropping by 6.4 percent year over year.

Meanwhile, come 12,930 hotel rooms across Greece closed with only 668 openings, the report found.

More specifically, according to STR, the impact of the 2009 crisis on hotel performance in terms of year-over-year change is outlined as follows: occupancy 59.3 percent (-7.5 percent); ADR 104.90 euros  (-7.6 percent); RevPAR 62.23 euros (-7.6 percent); room openings 13,598; and room closures 12,930.

The STR study goes on to note that over the 2014-2018 period the hospitality sector showed signs of recovery with an emerging trend for rising hotel room openings and a decline in closures. Inventory additions increased year over year in this period and closures dropped for four consecutive years.

At the same time, the improved economic climate also drove RevPAR up into 2019, stronger by 7.0 percent in the January-October period, and ADR up by almost 10.0 percent. Occupancy decreased 2.4 percent over the same period.