Athens and Thessaloniki See New Hotel Project Boom in Q1

A total of 170 hotel projects got the green light in Greece in the first quarter of the year (Q1) with occupancy levels in Athens and Thessaloniki picking up, found the Marketbeat Greece Hospitality report released by commercial property consultants Cushman & Wakefield Proprius this week.

More specifically, in the wider Athens-Attica region at least six hotel projects are moving ahead and nine in Thessaloniki reflecting the growing tourism dynamic in both cities, said Nicky Simbouras, founder and managing director at Cushman & Wakefield Proprius.

Major completed investments in Q1 cited by the report include two hotels in Argolis: 230-room AKS Hinitsa Bay and the 218-room AKS Porto Heli; White Coast Pool Suites on Milos (renamed  Domes White Coast Milos); and the 72-hotel Project Tethys.

Source: Cushman & Wakefield Proprius.

At the same time, data reveals that overall hotel occupancy for Q1 2023, increased by approximately 94 percent for upper-upscale properties in central Athens and by and 15 percent in Thessaloniki. Average daily rates (ADR) in the same period rose by 24 percent in the Greek capital and by 12 percent in the northern port city.

Report analysts note that the rise in both ADR and occupancy levels indicates that Athens is evolving into a more attractive and competitive destination, successfully meeting the growing needs and preferences of incoming travelers.

“Increased traffic along with high spending can propel the industry close to the 20-billion-euro mark for the first time,” the report said.

© AKS Hinitsa Bay Hotel.

However, looking ahead, the property consultants are warning that geopolitical tensions have not subsided yet.

“The industry continues to show remarkable post-pandemic recovery despite the fact that the Greek hospitality industry is facing staff shortages and rising operational costs. The recovery of tourism and hotel performance in Greece is accompanied by a significant increase in development activity and while there are ongoing geopolitical tensions and partial uncertainties, the hospitality industry in Greece is estimated to maintain its development trajectory,” it said.