Greece Tops Europe for Hotel Investment, Survey Finds

Greece is now the leading European destination for institutional investors targeting the hotel sector, a new survey by Hospitality Investor reveals. The specialized publication, focusing on hospitality capital markets, found that 43% of participants ranked Greece as the most appealing investment spot in Europe, surpassing Italy (29%) and significantly ahead of Spain and France, which each garnered 14%.

These findings underscore Greece's substantial rise on the European investment map. The country is now considered a key destination for institutional capital seeking opportunities in the hotel industry. Alexi Khajavi, President of Hospitality & Operational Real Estate at Questex, noted that Greece has transformed from a nation heavily impacted by the economic crisis into a top choice for hotel investments. "The question is no longer whether Greece is an attractive hospitality market, but rather who is investing and with what strategy. Today, more capital is seeking Greek hotel assets than is available on the market," Khajavi stated.

The survey indicates a strong investor focus on high-end hotels. Specifically, 57% of respondents aim for professionally managed five-star hotels, while 29% seek three-star properties in tourist destinations with potential for value enhancement. Investment interest in urban hotels was notably absent.

This trend aligns with the broader European market, where investors increasingly favor luxury and upper-upscale hospitality segments. Greece, with its ongoing development of new branded hotels in the high-end and ultra-luxury categories, appears well-positioned to meet these market demands. Despite geopolitical uncertainties, investor confidence in the European hospitality market remains robust, with no survey participants reporting reduced or frozen investments. Instead, 57% are redirecting capital to more resilient European markets, with Mediterranean countries, particularly Greece, being primary beneficiaries.