By L. Karageorgos
[email protected]
A bevy of upscale market hotel purchases have been recorded in Greece over the recent period, with market analysts pointing to a surge in tourism arrivals to the east Mediterranean country over the last two-year period, and especially amid the continuing uncertainty in rival destinations in other regional countries, such as Turkey and Egypt.
According to reports, the number of four- and five-star hotels and resorts that changed hands in 2016, and over the first months of 2017, equaled the number of similar transactions recorded in the 2012-2015 period, despite the still “asphyxiated” state of Greece’s banking and credit system.
Nevertheless, a highly anticipated “tsumani” of investment in Greece’s all-important tourism sector, and especially in the purchase of hotels with a view towards their upgrading and renovation, awaits a revisions in Greek law to allow more flexible management of loan portfolios, including the sale of NPLs to distress funds.
Another issue that remains unresolved, despite standing demands and continuous pressure by Greece’s institutional creditors, is a legal framework extending immunity (from third party creditors) to bank executives that sign-off on debt restructuring programs for indebted companies and businesses.
At last estimate, according to HVS consultants, 10 major purchases in Greece have been recorded, eight of which involved units in operation, with a total outlay of 800 million euros.
Over the 2012-2015 period, only 12 purchases of four-to-five-star hotels were recorded.
The sale of the iconic Athens Hilton and the renowned Astir Pallas hotel within the Asteras Vouliagmeni resort, southeast of Athens proper, are included in the 2016 tally, which are listed in the HVS’s Hotel Transactions of 2016 list.
Beyond the two very well-known transactions, another three deal with units purshased by the Ikos Sani group (Corfu Chandris and Dassia Chandris on the Ionian island of Corfu, as well as the inactive Club Med Kefalos on Kos). The tally does not include the very recent transaction, which is pending an official announcement, of Thessaloniki’s Capsis Hotel — with the lien-holder, Eurobank, close to a sale of the unit to a local businessman.
