Hundreds of Family-Run Hotels in Greece Are Selling Their Businesses

A recently released report has revealed that hundreds of family-run hotels in Greece are now on the market because small business owners cannot keep up with rising costs and other economic stressors.

The report, released by E- Real Estates Panhellenic Network of Real Estate, indicates that over 200 three- and four-star hotels in Greece have been put on the market over the past month. Most of these hotels operate as small family-run businesses.

Most of the hotels have been acquired by a mixture of local and foreign investors looking to profit from the lucrative Greek tourist industry. Indeed, another report found that dozens of hotels in Greece changed hands over the past few months amounting to a total sum of €320 million.

Family-run hotels in Greece forced to sell

According to E-Real Estates, in the past month, a total of 204 hotel establishments have been added to property classifieds on the internet. The majority of these hotels available for sale are smaller, family-owned establishments with lower star ratings and a capacity ranging from 10 to 30 rooms.

According to Themistoklis Bakas, the president of E-Real Estates, the rise in sales, predominantly of small and medium-sized enterprises (SMEs), can be attributed to entrepreneurs’ struggles in coping with consecutive crises, loans, evolving regulations, escalating energy expenses, inflation, and the growing costs of goods in the supply chain. These factors have resulted in decreased incomes and increased expenses for business owners.

Further illustrating the scale of the issue, the online Eauction platform recorded a significant number of hotel auctions during the period from the start of the year until May 31. There were 111 auctions posted during that time in 2023.

Who is buying the hotels?

E-Real Estates reports that both foreign funds and local investors are acquiring sizable hotel properties in Greece and purchasing real estate and family-run hotel units that are struggling with their financial obligations.

Prominent regions witnessing a substantial number of hotel sales include Attica, where properties dating back to 1930 in areas like Kifissia, Votanikos, Plaka, Gazi, Omonia, Victoria Squares, and Psyri are being sold off.

Crete and the Peloponnese are also experiencing hotel sales, particularly in popular tourist destinations like Tolo, Loutraki, Nafplio, Ermioni, Kiato, and Xylokastro, with starting prices at around €500,000.

Furthermore, several islands, including Paros, Zakynthos, Santorini, Skiathos, Mykonos, Spetses, Kefalonia, Rhodes, Naxos, Skopelos, Syros, and Sifnos, are seeing hotel units put up for sale, with starting prices of approximately €620,000.

Lastly, mainland Greece, specifically areas such as Evia, which suffered significant fires in the summer of 2021, Halkidiki, Kamena Vourla, Ioannina, and Arachova, are also witnessing a significant number of hotel sales, with starting prices beginning at €650,000.