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.
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.
In preparation for the sale, Navigator implemented a detailed analysis of hotel operations and financial results. Our consulting services included:
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:
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.
The hotel did not use customer relationship management (CRM) and yield management to achieve repeat visits, direct sales or sales via customer referrals.
The hotel depends on room income: marketing of weddings, events, and other income categories is under-developed.
The hotel also had a number of strategic advantages:
It is one of the few large hotel resorts on the island, serving tour operators, small groups, conferences and weddings.
It is one of the few hotel resorts with a full set of high standard amenities, including gardens, swimming pools, fitness centre, etc.
It is located 150 meters from the beach, close enough to walk, but far enough to avoid the noise of the summer months.
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.
Please do not hesitate to contact us regarding a hotel or property investment project in Greece.
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