Foreign Investors Want, Can’t Get, Greek 5-Star Hotels

(Photo by ICONPRESS/CHRISTOS DOUDOUMIS.)

With foreign companies and investors snapping up foreclosed homes and properties cheap during crushing economic crisis, Greek hotels, especially the 5-star variety, are at the top of the list for being acquired but can’t be had yet.

Some 90 percent of foreign investors considering putting their money into the Greek bad loan for banks sector are looking at hotels, Kathimerini said, although most are of the cheaper type but the luxury resorts aren’t for sale.

With tourism booming, the wealthy are more and more looking to stay in top-quality and expensive accommodations and big resorts but those 5-Star hotels who do have debt problems are tied up with complex legal problems, unnamed bank officials told the paper.

Of the 9,800 indebted hotels in Greece, according to the latest statistics collected by PricewaterhouseCoopers and NAI Hellas, only 420 are in the five-star category while 1,340 are four-star units. Half of those are located on Crete and in the southern Aegean, though only a small number are expected to be sold or auctioned.

There are, however, hundreds of smaller and low-category (two- or three-star) hotels are on the market or set to be auctioned. But investors aren’t interested as the yield is far smaller than the cost of acquiring or fixing them to be attractive.

With investors seeking annual capital returns of around 9 percent, according to NAI Hellas, transactions are few and far between.