Economic bounce back

Greece has been on a successful economic path over the last few years. International investors have reevaluated Greek companies, due to the government's implementation of pro market reforms. The country is set to get around €55 billion from EU structural and recovery funds by 2027, which economists believe will contribute around 1 percentage point in growth annually.

The country’s government is investing heavily in infrastructure with expected upgrades in areas relating to tourism, energy and transportation.

“Greece is one of the fastest growing economies in the Eurozone,” said Hilda Alisandratou, investment promotion officer at Enterprise Greece

Greece shows resiliency

In 2023, Greece’s GDP grew by 2 per cent and it is expected to increase by 2.2 per cent in 2024 and in 2025 reach 2.3 percent. The improved outlook is likely to be supported mainly by exports, investments and private consumption. Foreign direct investment hit €5 billion in the first 3 months of 2024 an increase of 9.9 per cent show the development prospects of the country and the interest of outside capital.

Tourism investment

US hospitality players such as Wyndham, Hilton, Marriott, Hyatt, are well established in the Greek market as are investors like Blackstone and Hines, attracted by the growth of tourism in the country.

Notable recent hotel transactions and financing include:

In April, CBE Capital and the consortium of sponsors secured a €95 million senior bond loan facility from Piraeus Bank for the development of the Six Senses Hotel and branded residences in Porto Heli.

In February, Family-owned H Hotels spent a reported €74 million on acquiring the Titania Hotel in central Athens from L+R Hotels, marking its first acquisition outside the island of Rhodes.

In 2022, Spanish investor Azora bought the Sheraton Rhodes resort for a reported €43.8 million.

In 2023, Greece welcomed a record number of overseas visitors and collected €20.6 billion in travel receipts, and about 30 million in tourist guests. The numbers look good again this year and the country expects another record year in 2024.

Over the last three years, about €12 billion has been invested in the Greek tourism sector and, according to the World Economic Forum, Greece, ranks in the 21st place across all countries.

US interest in Greece

In 2023 there were more than 1.4 million arrivals from the US, an increase of 10 per cent perhaps more importantly the average per capita expenditure per trip is at least 50 per cent higher than any other nationality, according to the Kathimerini newspaper.

Today there are more and more direct flights going to Greece from the US. Norse Atlantic Airways, a low-cost airline based in Norway, announced a new route between New York's John F. Kennedy Airport (JFK) and Athens International Airport at the start of the year and there was also a new seasonal nonstop flights between Chicago O’Hare International Airport and Athens International Airport, operated by United Airlines.

“Suddenly, you hear Americans in Athens more than ever before,” said Dimitris Manikis president, Europe, Middle East, Eurasia and Africa (EMEA) at Wyndham Hotels and Resorts

With more Americans coming to Greece, the interest of the big international brands is growing. The US domestic market is more dominated by brands therefore they expect it when they travel abroad, and more importantly want to earn and spend their loyalty points. Hence why brands like Wyndham are opening up in the country via franchise deals.

Luxury growth

Another brand that is growing in the country is Mandarin Oriental.

The group’s first hotel in the country opened in 2023 in Costa Navarino. The beachfront resort comprises of 99 guest rooms, including 48 pool villas, all with outdoor terraces and sea views, along with five restaurants and bars.

The firm’s debut is being followed up by another hotel, this time in Athens, scheduled to open in 2027. It will feature 123rooms and suites, as well as 17 branded Residences, including waterfront villas and apartments.

“We are also looking at other opportunities within Greece,” said Maria Adamo, manager, global development at Mandarin Oriental Hotel Group.

Sponsored by: Enterprise Greece