The Greek economic recovery was boosted by the announcement that Sentido Hotels, a division of Thomas Cook, purchased of 5 hotel properties in Greece. Sentido has already invested in Greek hotel properties in Kos, Rhodes, Crete, Corfu. Greece expects to break incoming tourism records with 20 million arrivals in 2014, with an increase of 10-15% expected in 2015.
The Greek tourism sector has seen a strong recovery from the low point of 2011-2012 and the outbreak of the Greek economic crisis. Tourism arrivals grew from 14.9 million and earnings of € 10 billion in 2009 to an estimated 20 million arrivals (not counting cruise ship arrivals) and € 16 billion in 2014.
As Olga Kefaloyianni, Greece’s Tourism Minister states,
"During the last two years, Greece has seen a great increase in tourism. For 2015, initial data shows the market will increase further and Greece will solidify its position among the 15 top tourist destinations in the world."
The new Sentido hotels include 817 rooms in 5 properties as follows:
Sentido Alexandra Beach (Zakynthos), 170 rooms
Sentido Louis Plagos Beach (Zakynthos), 161 rooms
Sentido Blue Sea (Crete), 225 rooms
Sentido Sun Beach (Crete), 115 roomsSentidou Elounda Blue (Crete), 146 rooms
Sentido’s hotel investments are concentrated in the 4*-5* segment. Main property features include all-inclusive, beachfront hotels within easy access of an international airport.
The Sentido hotel investment in Greece points to a rebound in the Greek hotel sector. Hotel occupancy in Athens increased by 19.2% to 88.2% in June 2014, according to STR Global. Revenue per available room night (RevPAR) grew by 31.1% in June, to € 108.10. According to STR Managing Director Elizabeth Winkle:
"Year to date, Greece's occupancy increased 20.2 percent, one of the highest increases for the region. It is nice to see healthy increases from Greece as there is a return of demand to the country."
Navigator offers a range of hotel due diligence and investment advisory services in Greece. Recent projects include our due diligence of the Evia Beach Hotel in 2014 and our valuation of the NM Resort in Santorini in 2013.
Please contact us for in full confidence for additional information or a consultation on investing in the Greek hotel sector.