Value of Hotel Investments in Greece Rises to €3bn in 2023

Photo source: Piraeus Bank

The value of investments made in Greece’s hotel industry in 2023 came to 3 billion euros, said the Chief of Corporate & Investment Banking at Piraeus Bank, Theodore Tzouros, during the 7th International Hospitality Forum (IHF) organized by the Hellenic Chamber of Hotels and held recently in Athens.

The investments contributed to the upgrade of the tourism offer in Greece reflecting an upward trend for the sector, which is supported in large part by Greek banks.

According to Tzouros, local banks have supported the development initiatives of the tourism sector even in times of complete lack of alternative solutions. Currently, their portfolio is valued at 10 billion euros or nearly 14 percent of total tourism industry loans.

Tzouros said that large hotel projects are implemented through project financing structures which require expertise and carefully prepared business plans.

(second from left) Theodore Tzouros, Executive General Manager, Chief of Corporate & Investment Banking, Piraeus Bank, speaking to Joe Stather, VP – Operational Real Estate, Questex, during a panel disucssion at the 7th IHF in Athens. He is accompanied by Eftichia Kasselaki, Partner & Consulting Services EY, People Consulting, Head of EY Private; and Panos Paleologos, President & Founder of HotelBrain Group. Photo © Greek Travel Pages (GTP)

He went on to add that in view of the currently high interest rates, the Greek banking system is tapping into RRF resources in order to ensure contracts worth over 1 billion euros are directed to hotel projects, securing low-interest loans.

The upgrade of hospitality options on offer in Greece following hotel upgrades by both large and medium-sized enterprises also includes improving corporate governance and strengthening labor force by hiring specialized executives in the fields of financial management, sales, and marketing.

Lastly, looking ahead, Tzouros said that despite the positive outlook for the sector, significant challenges remain, including finding and retaining qualified staff, the time-consuming and complex licensing system for new investments, and the lack of basic infrastructure, such as water supply, drainage, electricity, and port facilities at a number of tourist destinations.