Demand Boosts Thessaloniki Luxury Hotel Arrivals

Four- and 5-star hotels in Thessaloniki are on the rise replacing smaller 1- and 2-star units, according to a study released last week by the Thessaloniki Hotels Association (THA) in collaboration with GBR Consulting.

More specifically, data reveals that over the 2015-2022 period, the number of 4-star hotel units in Thessaloniki increased by 80 percent and 5-star facilities by 62 percent boosting the number of same-star rooms by 47 percent and 32 percent, respectively.

The 5-star Monasty Hotel, part of Marriott’s Autograph Collection, is one of the branded hotels that recently opened in the center of Thessaloniki. Photo source: Monasty Hotel

Main source markets supporting Thessaloniki hotels in 2022 were Israel, US, Germany, Romania, and Cyprus.

Study analysts attribute the increase to growing tourist demand for Greece and a series of infrastructure upgrades which stimulated investor demand.

Over the seven-year period under review, the northern port city’s hotel dynamic continues to grow with more international hospitality brands set to make their Thessaloniki debut soon.

GBR Consulting Managing Consultant Stefan Merkenhof presenting the results of the study to hoteliers in Thessaloniki. Photo source: Thessaloniki Hotels Association

Last year, a total of 149 hotels with a capacity of 8,467 rooms operated in Thessaloniki. Between 2015 and 2022, the number of hotels increased by 1 percent every year and the number of rooms by 2 percent.

Compared to rival cities, average room rate (ARR) in Thessaloniki increased by 14.6 percent to 90 euros.

In terms of revenue per available room (RAR), Thessaloniki recorded the lowest average room price in 2022 at around 50 euros, marking a 2 percent rise over 2019. The highest growth was recorded by Edinburgh (18.6 percent), Birmingham (17 .2 percent) and Glasgow (9.5 percent).