GBR report: Tour operators dominate Greek international brand landscape

Α Decrease font Enlarge font
GBR report: Tour operators dominate Greek international brand landscapeData on Greek Hospitality Industry Performance during Q3 2017 indicate that up to September 2017 arrivals increased by 4.9% y-o-y

International arrivals of non-residents at the Athens International Airport increased significantly during August and September compared to the same months last year, according to GBR Hospitality Quarterly Newsletter.

Data on Greek Hospitality Industry Performance during Q3 2017 also indicate that up to September 2017 arrivals increased by 4.9% y-o-y. Traffic from all main source markets of the airport increased, but a group of 6 countries – Israel, Lebanon, Belgium, Denmark, Turkey and Russia - recorded increases YTD August of up to 97% compared to the same period last year.  Because of the increased demand for Athens, performance of the Athenian hotel sector further improved with an increase of RevPAR of 8.5% y-o-y up to September 2017.

The airport of Thessaloniki received 11.6% more passengers during Q3 2017 compared to same quarter last year, leading to an YTD September 2017 increase of 14.8% y-o-y. The Thessaloniki hotel sector benefited and improved both occupancy levels and room rates. During Q3 2017 RevPAR increased 15.8% y-o-y, while up to September 2017 an increase of 11% y-o-y was recorded.

Except for Karpathos, all other airports at main resort locations increased the number of international arrivals during Q3 2017. During the first three quarters of 2017 international arrivals at the main airports of the Dodecanese increased 7.2% y-o-y (mainly due to Kos), Crete 7.2% y-o-y, Ionian Islands 9.6%  y-o-y and the Cyclades (airports of Santorini and Mykonos) 10% y-o-y. The Total Revenue per Available Room of the resort hotels in Greece improved by 10.1% y-o-y during Q3 2017, leading to a YTD Q3 2017 performance of 7.6% y-o-y. 

Performance of Southern Europe overall remains robust. Rome showed a decline of RevPAR during Q3 2017, but that was because the European Society of Cardiology congress was hosted last year during August, while the event was held in Barcelona this year. Madrid has improved its RevPAR by 19.1%  y-o-y up to September 2017, while also Cairo continues its upward trend both in terms of occupancy and ADR levels.

Changing brand landscape in the Athens hotel market

Today’s international hotel brand landscape in Athens consists of Accor (Novotel & Sofitel), Carlson Rezidor (Radisson Blu), Intercontinental Hotels Group (Crowne Plaza, Intercontinental & Holiday Inn), Starwood Hotels & Resorts (the Luxury Collection), Hilton Hotel & Resorts, Wyndham Hotel Group, Melia Hotels International, Best Western and Hapimag. In total, these brands operate currently 18 hotels in Athens with a total of 3,087 rooms. 

In September, it was announced that luxury hotel chain Four Seasons will undertake the management of the completely redeveloped Astir Palace located at the Athens Riviera. The new hotel will debut as the Four Seasons Astir Palace Hotel Athens in May 2018, right in time to host visitors of the international shipping exhibition Posidonia, which will take place in Athens during 4 – 8 June 2018. 

The new owners of the former 314room Athens Ledra hotel, Hines and Henderson Park and the Yiannis Daskalandonakis Group, are in discussion with various international brands. However, we could not confirm press reports of a deal with Hyatt, who indeed is looking for a presence in Athens as currently they only operate the Hyatt Regency in Thessaloniki.

Home Holdings, the new owners of the Athens Hilton, is also in discussion with international hotel brands for the operation of the hotel including brands of the Hilton Group. The contract with Hilton expires in March 2018. 

Finally, as is known for a year, Marriott returns to Athens as the 5-star Metropolitan hotel and Accor might open its first Ibis hotel opposite the archaeological museum.

Other deals and developments in Athens 

Lampsa SA (Laskaridi Group), owners of the Grande Bretagne and current operators of the adjacent King George hotel was the highest bidder in the tender for a long-term lease of a property located at Panepistimio St, near Syntagma with an annual lease of € 960,000 Astir Palace for 30 years plus an addition of 25%, if the annual turnover exceeds € 9 M.

The 9-floor property of 13,244 sqm used to house the Agrotiki Bank and is planned to be converted into a 180-room 4-star hotel, to be opened in 2019. 

The Aviation Share Fund has reached a lease agreement with Stelios Ioannidis for the lease of the former 208-room La Mirage hotel at Omonia Sq. The lease agreement has a duration of 40 years and amounts € 28,000 per month. The property will re-open in May 2018 as a 4-star hotel.  

In August Grivalia Properties REIC announced that Grivalia Hospitality SA has reached a binding preagreement to acquire 80% of Nafsika SA to commercially exploit the Asteria property in the coastal southeast suburb of Glyfada in the "Athens Riviera", which was in operation until 1990. The property is owned by the Hellenic Public Properties Company (ETAD) and the deal will be finalised at the beginning of 2018.

Inestia Hospitality, part of the Kokkalis Group, has concluded a deal for the lease of a property located opposite the Old Parliament, central Athens. The agreement involves a monthly lease of € 40,000 for the first 20 years with an option for another 20 years. The 4,160 sqm property will be converted into a 45room boutique hotel and will be opened in 2019. In Athens, Inestia Hospitality also operates O&B Boutique Hotel in Psirri and the MET34 Athens Hotel at Mitropoleos St, central Athens. 

Probank is in the process to sell the former 5-star Iridanus Hotel, which is currently not in operation. The 39-room property located at Peiraios St has a minimum price tag of € 6.3 M. Probank is also selling a 2-star property of 24 rooms in Kypseli, further north of Athens. 

Finally, there are plans for a second hotel at the Athens International Airport. The new unit will be located next to Ikea in the retail park of the airport and will likely be a budget hotel. 

Tour operators dominate the Greek international brand landscape

Preliminary results of the 2017 Hotel Brands Report show that tour operators have enlarged their dominance in the Greek hotel market. In the top 5 of international brands Tui and Thomas Cook obtained the first and second position based on room count. 

The top position of Tui is based on properties carrying one of the brands of Atlantica, Tui Family Life, Sensimar, Club Magic Life, Club Marmara and Robinson. In August Tui announced that it acquired Stella Polaris SA, a subsidiary of the Greek Karatzis Group and owner of land on the southern coast of Crete, to open a third Robinson Club in Greece.  

Thomas Cook is active in Greece with its brands Sentido, Smartline, Sunprime, Sunwing and Casa Cook. After Casa Cook Kos and Casa Cook Rhodes, the tour operator announced that a third Casa Cook will be opened in Crete.  Cyprus based Louis Hotels operates 9 hotels in Greece of the 4-star category. Starwoord has 9 hotels carrying the brands Sheraton, The Luxury Collection and Westin, while the Intercontinental Group has 4 properties carrying Crowne Plaza, Holiday Inn and Intercontinental.  The largest national brand remains Mitsis Hotels with 18 properties and nearly 5,900 rooms, followed by Grecotel with 25 hotels and nearly 5,100 rooms and Aldemar with 7 resort hotels and 2,582 rooms. Helios Hotels is known of its 4 hotels in Crete, the Nafplia Palace and Amphitryon hotel in Nafplio and the Grand Resort Lagonissi in Attica. Sbokos Hotel Group operates 6 hotels in Crete and Rhodes. 

Substantial investments necessary to maintain course

Data up to August 2017 shows that tourism arrivals have increased 9.9% y-o-y, while tourism receipts increased by 9.1% y-o-y to a level of € 10.5 bn. It is likely that the target of € 14.5 bn of tourism revenues will not be achieved this year, but revenues will bounce back from the € 12.8 bn recorded in 2016, when a drop of 7.3% compared to 2015 was noted. Revenue in August was particularly strong with an increase of 16.4% y-o-y. 

To maintain this growth path, the Greek Tourism Confederation has estimated that € 5 – 7 bn of new investments are necessary. According to press reports 250 project plans budgeted at € 900 M have already been submitted to the Ministry of Economy, while other projects of a total value of € 3.2 bn are in the pipeline. 

The tourism sector remains one of the Greek economy’s main drivers, but there is still considerable work to be done to ensure that Greece finally transitions to a durable and sustained recovery, and to make a clean exit from the current adjustment programme in August 2018, also opening the way for a further restructuring of Greek official debt.

Recent recovery of economy remains on track

Recent economic data suggests that in Q3 the economy will at least match the 0.5% quarterly pace of GDP growth recorded in the first two quarters of this year. The monthly industrial production data point to a solid expansion in production in Q3, while the Economic Sentiment Indicator noted a three year high at the end of Q3. Meanwhile, retail sales picked up sharply in the early summer. Based on this Oxford Economics forecasts a GDP growth of almost 1% in Q3.

However, this year sees further significant fiscal consolidation with tax rises and pension cuts, while the banking sector continues to struggle with € 102 bn of Non-Performing Exposures or 50.6% of total loans, of which half of these representing corporate exposures. Banks have committed to cut their overall NPE stock to € 66.7 bn by the end of 2019. 

As a recent example, we note that Eurobank will auction the 343-room Hydra Beach hotel in Ermioni on 15 November 2017 for a minimum price of € 19.2 M.  

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

 

 

Tornos
  1. 26/03 23:51

    St. Thomas Hellenic School honors 1821 and the Feast of the Annunciation in NJ

  2. 26/03 21:59

    PM at Economic Club of Canada: Greece is an attractive investment destination

  3. 26/03 17:56

    Greek State budget primary balance reaches a surplus of 3,378 million euros

  4. 26/03 11:45

    Ancient Messene to get upgraded visitors' facilities after approval by Council

  5. 23/03 17:43

    New requirements for 'Golden Visa' program to kick in on March 31

  6. 23/03 16:49

    Athenians continue to head out of the Greek Capital for March 25 long weekend

  7. 23/03 16:47

    Greek Parliament lights to be turned off for Earth Hour 8:30-9:30 pm

  8. 22/03 21:54

    US President on Greek Independence Day: Alliance with Greece stronger than ever

  9. 22/03 19:51

    High diplomacy and geopolitics at Delphi Economic Forum IX in Greece

  10. 22/03 19:32

    Tax authorities enable payments with foreign bank cards in Greece

  11. 22/03 14:19

    Greece to take part in Earth Hour on Saturday

  12. 22/03 00:24

    Greece ranks first on list of countries with fastest business environment progress

  13. 22/03 00:02

    Hellenic Police acquires first electric VAN-type highway patrol vehicle

  14. 21/03 22:41

    Greek Finance Ministry tightens Golden Visa rules

  15. 21/03 15:33

    Unseen Museum presents "The stele of the twin babies" exhibition in Athens

  16. 20/03 22:48

    Health Minister: 95% of Greek hospitals to perform afternoon surgeries

  17. 20/03 21:52

    Greek Deputy Minister of Justice meets delegation from US Embassy in Athens

  18. 20/03 21:44

    Greek Interior Minister to visit United States and Canada on postal vote

  19. 20/03 20:55

    Philadelphia Icarians mark 85th Anniversary and organize Apokriatiko Dance

  20. 20/03 18:01

    Development Minister: We continue the battle against high prices in Greece

  21. 19/03 22:28

    President of the Hellenic Republic meets her Ethiopian counterpart in Athens

  22. 19/03 20:57

    Greek Tourism Minιster meets Hellenic Chamber of Hotels

  23. 19/03 20:25

    FinMIn: Moody’s analysis records significant progress in the Greek economy

  24. 19/03 11:15

    Sector chiefs report: Good news for Greek tourism in 2024 at ITB Berlin

  25. 18/03 22:20

    American Hellenic Educational Progressive Association honors Past Supreme President

  26. 16/03 13:01

    Greek Deputy Foreign Μinister meets her Slovenian counterpart in Athens

  27. 16/03 12:56

    Greek-Canadian Diaspora to welcome Greek Prime Minister to Toronto

  28. 16/03 11:28

    Greek Migration Minister visits refugee hosting facilities in Kavala, Drama and Serres

  29. 15/03 21:50

    Greek Minister announces conference on defence ecosystem in Athens from Lithuania

  30. 15/03 13:45

    PM: More than 80 hospitals and 156 health centres being upgraded in Greece

  31. 15/03 12:55

    Piraeus Port and Genoa Chambers of Commerce ink memorandum of cooperation

  32. 14/03 23:43

    President of Hellenic Republic meets Prime Minister of Slovakia in Bratislava

  33. 14/03 22:58

    American Express report highlights Global Travel Trends during 2024

  34. 14/03 22:52

    Four hospitals in Attica Region already organizing afternoon surgical procedures

  35. 14/03 22:49

    US Ambassador to Athens: More flights from the United States to Greece and Thessaloniki

  36. 14/03 22:43

    Greek archaeologists discover ten ancient shipwrecks off Aegean island of Kasos

  37. 14/03 19:32

    No new intubations for Covid-19 recorded in Greece for the first time

  38. 14/03 18:36

    Extra road safety measures adopted for Greek pre-lent carnival and Clean Monday

  39. 14/03 14:48

    HRADF eyes bidders for Lavrio Port majority share

  40. 14/03 12:54

    Electric buses to be deployed on the streets of Athens and Thessaloniki by May

  41. 13/03 22:23

    Chairman: 2023 was an exceptional one for AEGEAN Airlines

  42. 13/03 20:11

    Prices of basic lenten products either lower or equal to last year's in Greece

  43. 13/03 19:15

    US Ambassador to Athens: Greece secures NATO readiness via Alexandroupolis

  44. 13/03 17:19

    Greece shines at 1st European Cruise Exhibition

  45. 13/03 12:26

    Greece shows new costumes for revamped Olympic Flame-lighting ceremony

  46. 12/03 22:46

    Epirotes Society of Philadelphia ‘Omonia’ organized 16th Annual ‘Tsipourovradia’

  47. 12/03 21:38

    The President of the Hellenic Republic to visit Slovakia on March 13-15

  48. 12/03 20:29

    First afternoon surgeries in Greece kick off at Papageorgiou Hospital in Thessaloniki

  49. 11/03 23:58

    Greek Foreign Minister: We stand behind Montenegro's European perspective

  50. 11/03 23:47

    Visa Express for Turkish citizens to commence on five Greek islands in March

  51. 11/03 19:40

    Amadeus acquires travel payments expert Voxel

  52. 11/03 18:49

    Microsoft Data Center construction kicks off in Spata next to Athens Airport

  53. 11/03 17:53

    Dodecanese Federation marked 76th Anniversary of Unification with Greece

  54. 09/03 22:23

    The future of travel planning is multimodal and interactive

  55. 08/03 14:27

    Prime Minister: Radical change in Greek education and a brave reform for growth

  56. 08/03 14:24

    Traffic restrictions expected in Athens mid-morning to evening on Friday due to protests

  57. 08/03 14:24

    Applications to out-of-court settlement more than doubled in Greece in February

  58. 08/03 13:18

    Metro station 'Maniatika' near Piraeus Port to be closed on Saturday and Sunday

  59. 07/03 14:12

    Athens wins World Travel Award 2024 as the top city-break destination in Europe

  60. 06/03 22:51

    WTTC data show Greece and Portugal lead league for growth in tourist arrivals

  61. 06/03 20:28

    Greek Tourism Minister at ITB: 2024 will be another excellent year for sector

  62. 06/03 19:47

    Greek Foreign Minister to meet UAE Minister of Industry and Technology on Friday

  63. 06/03 18:43

    European Union actions of 274m euros to support cultural heritage in Greece

  64. 06/03 16:37

    'Odontotos' rack railway temporarily stopped until landslides issue is resolved

  65. 06/03 14:40

    Minister: Bringing about the return of Greeks abroad 'a moral duty'

  66. 05/03 14:28

    Archdiocese of America Eparchial Synod to meet on March 14-17 in Florida

  67. 05/03 14:21

    The 'Lent Basket' to be launched in Greece on March 13

  68. 05/03 14:11

    ITB BERLIN 2024 opens with excellent bookings after global rise in travel in 2023

  69. 05/03 12:24

    Greek PM at Athens supermarket: Consumers 'can already see lower prices on the shelf'

  70. 04/03 22:02

    Greek Health Minister: Afternoon surgeries at state hospitals to begin shortly

  71. 04/03 21:47

    Holy Cross Greek Orthodox Whitestone Community marks 49th Anniversary

  72. 04/03 20:27

    Labor chief: Greece to train 500,000 workers in digital, green skills by 2025

  73. 04/03 19:44

    Foreign Ministry to organize event on 'Women, Peace, and Security' on Friday

  74. 04/03 15:12

    Athens Riviera | The summer experience with Athens as a background

  75. 29/02 22:54

    Consumers to see price cuts up to 18.1% in 3,000 Greek supermarket products as of Friday

  76. 29/02 21:44

    Greece and Germany set up Working Group on shipping cooperation

  77. 29/02 21:30

    Wyndham Rewards’ Member Month offers 5 weeks of deals, discounts, and bonus points

  78. 29/02 21:03

    Temple of Poseidon at Sounion near Athens to get new lighting system

  79. 29/02 21:02

    Greek Tourism Minister meets with Ambassador of Qatar

  80. 29/02 20:47

    Greece is represented by 60 firms at GULFOOD 2024 exhibition

  81. 29/02 19:58

    Greek government gives 1+1 month extension for cash register-integrated POS terminals

  82. 29/02 19:49

    Archangel Michael Church Dance Program shines at Folk Dance Festival in SF

  83. 29/02 15:39

    'Renovate-rent' programme to be launched, Minister tells Greek Parliament

  84. 29/02 12:39

    Rio-Antirrio ferry line in central Greece closed due to strong winds

  85. 28/02 21:34

    Weather with heavy rain and storms in Greece as of Sunday night

  86. 28/02 17:31

    CEO: The goal is for PPC to become a leading player in Southeast Europe

  87. 28/02 17:04

    New Wyndham Hotels Market Managing Director of Central and Eastern Europe

  88. 28/02 12:21

    Minister: Transactions with the Greek State will be further simplified in 2024

  89. 28/02 11:57

    24-hour strikes halt trains and ferries in Greece

  90. 27/02 17:25

    UN Tourism hails Saudi Arabia's historic milestone of 100 million tourists

  91. 27/02 15:00

    Greek Prime Minister: Relations with Armenia can become even more productive

  92. 27/02 14:26

    Wyndham: New growth cycle in Greece for the largest hotel chain franchise in the world

  93. 27/02 13:15

    Price cuts of up to 15% in important product categories in Greece after March 1

  94. 27/02 12:46

    Athens taxi drivers' protest rally in progress from Athinon avenue to Messogion

  95. 26/02 18:30

    Annual Summit of Women Political Leaders (WPL) to be held in Athens in April

  96. 26/02 18:27

    Culture Ministry: Schwartz Mansion in Ampelakia near Larisa to get new lighting

  97. 26/02 17:25

    Greek president organizes reception for diplomats at Presidential Mansion

  98. 26/02 16:33

    Trapped rack-railway passengers returned safely to Diakopto in Peloponnese

  99. 26/02 16:21

    Public transport, ferry and taxi strikes in Athens on Wednesday

  100. 25/02 12:30

    Greek island of Ikaria among the Blue Zones for Health Eating and Longevity