Europe -  Athens

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Athens is the commercial and financial centre of Greece, situated in Attica on the southern tip of the Greek mainland. Given its rich history, monuments and buildings, the city naturally attracts the leisure segment, but it also attracts a substantial corporate market owing to its many government institutions. Athens has a somewhat broad seasonality whereby the strongest periods are spring and autumn, owing to business- and conference-related demand. The summer months are less busy as people travel to the country’s island destinations, and winter is a very low demand period.

Prior to the COVID-19 pandemic, the Greek economy had been continuing its recovery and experienced more than three years of expansion. In 2020, according to the International Monetary Fund, the Greek economy contracted by more than 9.0% owing to the pandemic, which affected the country’s tourism industry, given the weight of the tourism sector in Greece’s economy. However, the country’s economy started recovering in 2021 and continued into 2022, experiencing 8.3% and 5.2% GDP growth, respectively, after which it grew by 2.5% in 2023 and is expected to continue expanding at a moderate pace from 2024 onwards, fostered also by the continuing recovery of its tourism industry.

Between 2014 and 2019, Athens’ RevPAR grew at a compound annual rate of 7.0%, mainly driven by average rate increases, until the global setback in 2020. Visitation to the city showed a very positive trend, with total traffic at Athens International Airport reaching more than 25 million passengers in 2019, up 6.0% from 2018, thanks to robust growth in international passenger movements. Athens was in the top 15 European destinations of 2019, Following Covid, in 2022, hotel demand recovered to around 75% of the pre-pandemic volumes, while double-digit average rate growth led to RevPAR almost returning to historical levels in nominal terms. During 2023, RevPAR saw a boost of more than 30%, driven by a nearly full recovery of hotel demand and a further increase of more than 5% in average rate, which resulted in RevPAR surpassing the 2019 level by a staggering over 20% in real terms.

The Athens hotel pipeline consists of 11 projects, which are expected to increase the current hotel room supply by 7%, bringing around 1,200 additional rooms to the market. Part of the future supply includes three upscale hotels from the same operator, Brown Hotels Group: the 42-room House Sans Rival by Brown Hotels and the 63-room Brown Hotel Spices Athens, both opening in June 2024, as well as the 43-room Brown Hotel Domino Athens (September 2024). Other openings include the 75-room Graphe Autograph Collection Hotel (set to open in January 2025), and the 129-room ibis budget Athens and the 198-room ibis Styles Athens (both opening in March 2026).

Investment activity in Athens surged during the period of 2018-23, with dozens of buyouts of standalone buildings recorded. The transactions mostly pertained to abandoned hotels or offices which were in the process of being remodelled and converted into fresh lodging properties. The most recent hotel transaction in Athens recorded the sale of the 124-room Oscar Hotel in March 2022, which was sold for approximately €5.5 million (or €44,000 per room) by Indotek Group. There have been no hotel transactions since then.

Overall, our HVI analysis indicates a remarkable double-digit value increase of 11% per key in Athens in 2023 compared to the previous year, by far the higher value increase of all the cities analysed in our index. This represents a 7% nominal uplift on the 2019 values for this market. Interest in the market remains very strong, as low brand penetration and a relatively tired stock present multiple investment opportunities in the market. Athens also still presents good value for money if compared to other much pricier cities across Europe.

Change In Value For Market: (€Euro)

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
Managing Director
[email protected]
  • +44 0 2078787722 (w)
  • +44 0 7725781037 (m)
Julia Dzerkach
[email protected]
  • +44 0 2078787742 (w)
  • +44 0 7912240964 (m)
Clemence Sennavoine
Senior Associate
[email protected]
  • ++44 0 7736273439 (m)