Athens-Attica Hotels Outperform Competitors with Strong Occupancy and Revenue Growth

The performance of hotels in Athens and Attica continues to show positive trends, even surpassing many of their main competitor cities. Despite slight dips in occupancy during certain months, the overall figures for 2024 reflect the robust dynamism of Athens’ hospitality sector.

Steady growth in occupancy and revenue

According to data from the Athens-Attica & Argosaronic Hotel Association, the average occupancy rate for Athens-Attica hotels in July 2024 reached 87.2 percent, showcasing the sector’s resilience. Although this was a slight decrease of 1.9 percent compared to July 2023, it still marked the second-highest monthly occupancy rate of the year. For the seven-month period from January to July 2024, occupancy averaged 77.2 percent, up 2.5 percentage points from the same period in 2023.

Among hotel categories, 3-star hotels in Athens-Attica led with an average occupancy rate of 84.1 percent, followed by 4-star hotels at 76.6 percent, and 5-star hotels at 72.4 percent. This strong performance reflects a balanced demand across all levels of accommodation, bolstered by an increase in both average daily rates (ADR) and revenue per available room (RevPAR).

Rate increases drive revenue growth

In July 2024, the average daily rate (ADR) for Athens-Attica hotels stood at 179.84 euros, reflecting an 8.3 percent year-on-year increase. Similarly, RevPAR rose by 6.3 percent, reaching 156.83 euros.

Over the first seven months of the year, the ADR was 149.09 euros, a 9.9 percent increase from 2023, while RevPAR grew by 12.7 percent, reaching 115.07 euros compared to 102.07 euros in the previous year.

Athens outperforms competing cities

The hotel performance of Athens-Attica remains highly competitive compared to other city destinations. The average occupancy rate in Athens (77.2 percent) surpassed Istanbul’s 65.8 percent and Madrid’s 76 percent, coming close to Barcelona’s 78.6 percent and London’s 79.1 percent, which led the market.

In terms of revenue, Athens-Attica hotels reported higher ADR and RevPAR than key competitors like Vienna and Berlin. Athens-Attica’s ADR of 149.09 euros and RevPAR of 115.07 euros were notably above Vienna’s ADR of 128.19 euros and RevPAR of 86.91 euros, as well as Berlin’s ADR of 125.99 euros and RevPAR of 89.58 euros. Istanbul’s performance also lagged, with an ADR of 132.24 euros and RevPAR of 87.1 euros.

For context, other major city destinations recorded the following figures for the first seven months of 2024:

– Barcelona: ADR 189.98 euros, RevPAR 149.32 euros
– Rome: ADR 238.68 euros, RevPAR 172.33 euros
– Paris: ADR 334.23 euros, RevPAR 243.65 euros
– London: ADR 224.94 euros, RevPAR 177.93 euros
– Amsterdam: ADR 177.33 euros, RevPAR 132.11 euros

Hoteliers: Short-term rentals impacting hotel occupancy

Despite these strong figures, the Athens-Attica & Argosaronic Hotel Association has raised concerns about the impact of short-term rentals, such as Airbnb accommodation, on traditional hotel occupancy.

The association highlighted that from 2014 to 2023, the capacity of short-term rentals in Athens increased by an astounding 770 percent, compared to a much smaller rise (16 percent) in hotel accommodations. This represents an annual growth rate of 24 percent for short-term rental beds, versus only 1 percent for hotel beds.

Moreover, the association has called on government authorities to introduce regulatory measures to ensure balanced and sustainable growth within the tourism sector, similar to restrictions implemented in other European destinations.