Greek Hotel Resort Sale, Santorini, Greece

Navigator Consulting advised the owners on the sale of a 5* hotel property in Santorini, Greece. The hotel is located near the black sand beach of Perivolos. 

 

Built in 1992 and renovated in 2007, the Greek Hotel Resort is a 5* delux property in Santorini near the black sand beach of Perivolos, one of the most popular swimming beaches on the Greek island.

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This hotel property includes 9 different hotel buildings around a central plaza and 2 swimming pools. The rooms comprise 16 suites, 74 rooms, and excellent amenities including a conference centre seating 150 people, a chapel for on-site weddings, a fitness centre, tennis court and other amenities. There are an additional 20 hotel rooms currently being used for staff housing. The hotel has a spa license.

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In preparation for the sale, Navigator implemented a detailed analysis of hotel operations and financial results. Our consulting services included:

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• Detailed hotel site analysis, including zoning and building cadastre; 

• Destination analysis of Santorini; 

• Historical analysis of guest arrivals, ADR, and other spending; 

• Historical seasonality analysis; 

• Yield analysis and overall financial analysis; 

• 5-year turn-around planning based on seasonality extension and rising ADR;

• Capex requirements to more closely suit a 5* hotel rating. 

 

Some key challenges found included: 

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• The hotel did not have a good distribution of online travel agent channels. Expanding these to include a broader range of specialist and generalists would enable a smaller loss of OTA commissions. 

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• The hotel did not use customer relationship management (CRM) and yield management to achieve repeat visits, direct sales or sales via customer referrals.

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• The hotel depends on room income: marketing of weddings, events, and other income categories is under-developed.

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The hotel also had a number of strategic advantages:

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• It is one of the few large hotel resorts on the island, serving tour operators, small groups, conferences and weddings.

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• It is one of the few hotel resorts with a full set of high standard amenities, including gardens, swimming pools, fitness centre, etc.

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• It is located 150 meters from the beach, close enough to walk, but far enough to avoid the noise of the summer months.

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At the time of the investment analysis, Santorini and Greece as a whole were suffering from the Greek financial crisis. A series of structural reforms in the tourist and wider economy led to a resurgence in tourism arrivals, which by 2019 saw a record of 33 million tourist arrivals in Greece. 

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Please do not hesitate to contact us regarding a hotel or property investment project in Greece. 

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