Every year the number of tourists visiting Athens increases. The city attracts tourists from North America, Europe, Asia and other parts of the world. This growing flow of tourists creates demand for various forms of accommodation, ranging from luxury hotels to more affordable options. Hospitality analysts predict that the Greek capital could welcome 5.5 million tourists or more annually.
Investing in the hotel sector in Athens
The advantages of investing in the Athens hotel industry have been appreciated by many well-known European and Middle Eastern companies. State structures provide assistance to investors. Currently, nine major hotel projects are planned or already underway in the historical centre of Athens.
1. A hotel in the neighbourhood of Klafthmonos Square
In Klafthmonos Square, near the Athens City Museum, there is a four-storey building belonging to the State Social Insurance Agency (e-EFKA). A tender for the lease of this property was announced in the summer of 2023. The winner of the tender will have to pay a monthly rent of at least €8,000, convert the building into a hotel by investing €2 million in the renovation, and operate the hotel for a minimum of 30 years. The results of the tender will be announced after 18 October 2023.
2. Renovation of the former Ambassadeur Hotel on Socrates Street (in Omonia)
Omonia is the heart of the historical centre of Athens. Here, on Socrates Street, is the building of the former Hotel Ambassadeur. From 1980 to 2000, the building was occupied by the Court of Appeal of Athens. The owner of the property, the State Social Insurance Agency (e-EFKA), is looking for a tenant willing to invest a minimum of €18 million to redevelop the building into a comfortable hotel.
3. The Radisson Hotel on Theatrou Square (in Omonia).
The government and city authorities are seriously committed to renovating the Omonia neighbourhood and returning it to its prestigious status. Now a new hotel of Radisson Hotel Group is being built on Theatrou Square. The hotel will be commissioned in 2024. It is planned that the hotel chain will not only manage the Radisson Theatrou Square Athens, but will also invest €30 million in the reconstruction of Syntagma Square, the central square of Athens, where the Parliament building is located.
4. Hotel in Schliemann Palace
The legendary Schliemann Mansion is located on Panepistimiou and Charilaou Trikoupi streets. The 1880 building is so luxurious and original that it is called a palace. It was the home of the iconic for Athenians "Ideal" cinema.
Now the historical monument is owned by the State Social Insurance Agency. The tender for the lease of the palace was won by Mitsis Hotels Group. The tenant plans to invest €36 million in the reconstruction of the building and promises to preserve the cinema. The administration of Mitsis Hotels is going to entrust the operation of the cinema to a major international entertainment operator, which, by preserving the aesthetics of the "Ideal", will increase its popularity. The cinema will be used as a theatre and conference centre to make the use of the space more efficient.
5. Boutique hotel on Zalokosta Street
The tender for the lease of the building on Zalokosta Street, owned by the State Social Insurance Agency, was won by the Lampsa hotel chain. According to the tender conditions, the company will pay a monthly rent of €34.5 thousand. Investments in the reconstruction of the building will amount to €2.5 million. A boutique hotel will be opened in the building, which will become part of the Athens Capital Centre - MGallery hotel on Panepistimiou Street.
6. Hotel complex on Patission Street
The building on Patission Street, which used to house the Athinaion Summer Theatre, belongs to the "Triantio" Vocational-Industrial School in Patras. The property has been leased by French group Accor, which plans to invest €33.5 million in the renovation. The new Ibis hotel complex will have 327 rooms, a restaurant, a bar, a swimming pool and its own car park.
7. Four-star hotel on Stadiou and Benaki streets
The historic nine-storey building on Stadiou and Benaki streets, built in 1959, will soon be transformed into a modern 4-star hotel. The new investment of €25 million was announced by Sirec Energy and the energy fund EuSIF, as well as major investor Blend Development, one of the property owners and developer of the new project. The building will be upgraded to energy class A and converted into a 4-star hotel with 117 rooms.
8. New Conrad Hotel
In 2024, TEMES and Olayan Group will manage a new Hilton hotel, to be renamed Conrad, with 280 rooms as well as 50 private residences. The investment, according to the budget, will exceed €130 million.
9. Reconstruction of the Esperia Hotel on Stadiou and Eduardo Lo streets
The renovation of the Esperia Hotel, which closed in 2010, costs €20 million. The investor was the Israeli company Fattal Hotels. The new 212-room modern hotel is called NYX Esperia Palace Hotel Athens.
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The flow of tourists to the Greek capital will increase year by year. Investing in the hotel business in Athens is a strategy that promises great profits in the long term. The main thing is not to miss the chance to make a successful investment now, when the construction boom of hotels in Athens has not yet reached its peak.