Athens Hotels See Drop in August Occupancy, Room Rates and RevPar

Athens hotel occupancy levels, average room rates and revenues per room dropped in August compared to the same month in pre-pandemic 2019 following improved performance in June and July, said the Athens-Attica & Argosaronic Hotel Association this week.

According to the latest data released by the association in cooperation with GBR Consulting, occupancy levels declined by 3.4 percent in August compared to pre-Covid 2019 and by 2.5 percent in the January-August period.

Average occupancy levels in August reached 81.5 percent, the same with the 2022 figure for the same month and down on 2019’s 84.4 percent. In the eight-month period under review, occupancy levels reached 76.1 percent.

Average daily rate (ADR), meanwhile, came to 151.39 euros in August, up by 12.0 percent over the same month in 2022 and by 34.0 percent over 2019, while revenue per available room (RevPar) dropped to 123.39 euros.

RevPar for the eight-month period reached 104.79 euros, up by 33.1 percent compared to the same months in 2022 and by 26.0 percent over 2019. According to the association, competitors are reporting an average 54.8 percent rise in revenue per available room.

In the eight months to August, ADR came to 137.76 euros, marking a 14.3 percent rise compared to the eight-month period a year ago and a 29.2 percent increase over 2019.

Athens’ performance compared to rival city destinations

Compared to rival city destinations, Athens’ performance in the January-August period is good overall at 76.1 percent occupancy compared to Istanbul (63.2 percent) and London (78.7 percent).

However, average room rates are still lower than competitor markets in the eight-month period with ADR in Athens at 137.76 euros compared to Madrid (140.71 euros), Istanbul (147.68 euros), Barcelona (173.54 euros), Rome (228.56 euros), London (222.28 euros), and Paris (325.31 euros). Hotel room rates in Vienna were below Athens at 124.16 euros and in Berlin at 116.72 euros.

In August, ADR at Athens hotels was at 151.39 euros compared to Istanbul (158.50 euros), Barcelona (170.78 euros), Rome (207.13 euros), London (214.97 euros), and Paris (274.85 euros).

Hotel association against rise in ‘stayover tax’

Moreover, the Athens-Attica & Argosaronic Hotel Association said it was against the announced increase of the so-called “stayover tax”, a daily accommodation fee charged to hotel guests in the country.

“We are opposed to the increase of the already unfair ‘stayover tax’ measure, which was (initially) implemented to help the country exit the memorandums,” the association said.

The hotel association called for a “necessary dialogue” between the government and hospitality and tourism professionals in order for “a correct and fair solution” to be found.

In addition, the Athens-Attica & Argosaronic Hotel Association commented on the also recently announced new tax regulation concerning short-term accommodation rentals in Greece. According to the government’s latest announcement, income from Airbnb-style accommodation rentals will be taxed as of January 2024 applicable to operators of three or more properties.

“There are a number of modern, updated practices based on the current tourism reality that have been adopted and launched in leading tourist cities (such as New York) and countries (such as Portugal) for short-term rentals… We hope for the immediate adoption of corresponding measures to combat the social problem that has already started to become intense in Greece,” the association said.