Buying a Hotel in Greece

The Greek real estate market for small hotels (up to 30 bedrooms) is experiencing strong momentum, driven by a rapidly growing tourism sector, favorable business conditions, and increased international investment interest.

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Market Trends and Locations

Greece’s tourism sector continues to be one of the most dynamic in Europe, driven by its cultural heritage, island destinations, and year-round appeal. In 2024, the country welcomed 36 million international visitors, marking a 10.1% growth over the previous year and surpassing pre-pandemic levels. This influx of travelers has spurred demand for a wide range of accommodations, including boutique and small hotels.

While established destinations such as Athens, Santorini, Mykonos, and Crete remain dominant, emerging areas like Peloponnese, Thessaloniki, and lesser-known islands are gaining investor attention. These regions benefit from improved infrastructure, new flight connections, and a growing interest in experiential travel.

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Average Daily Rate (ADR) and Occupancy

The Greek hotel market recorded an average ADR of €156 in 2024, reflecting solid pricing power supported by high-season demand. The average occupancy rate across the country stood at 51%, though prime leisure destinations can see significantly higher figures during summer months.

In 2023, there were 147 million total overnight stays, with 76% in hotels, 22% in short-term rentals (STR), and 2% in camping sites. The combination of a relatively moderate national occupancy average and strong seasonal peaks offers opportunities for yield optimization through targeted marketing and dynamic pricing strategies.

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Transactions and Investments

Greece’s real estate and hotel investment climate is increasingly attractive, underpinned by tourism contributing 7.1% to GDP and the country’s streamlined business environment—only 4 days are required to start a business. Recent years have seen heightened investor interest from both domestic and international buyers, particularly in small- to mid-scale hotels catering to leisure travelers.

While transaction volume data for small hotels is less consolidated, the market dynamics mirror wider southern European trends, with institutional investors, boutique brands, and family-run operators competing for prime assets in high-demand locations.

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Tourism and Visitor Statistics

Greece’s visitor profile is diverse, with top inbound markets in 2024 including Germany (4.8M visitors), the UK (4.6M), and Bulgaria (2.9M). International tourism receipts reached €22.6 billion, with an average spend per visitor of €157 and an average length of stay of 4 nights.

With 1.1 million available beds nationwide, the country sees an impressive 33 international visitors per available bed annually. This high turnover per room capacity highlights the resilience and scalability of hospitality operations in Greece.

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In Summary, Greece’s small hotel sector is well-positioned for growth, fueled by a strong tourism rebound, competitive ADR levels, and steady international demand. Established resort islands and cultural hubs will continue to attract premium rates, while up-and-coming regions present value opportunities for investors seeking both yield and capital appreciation. Favorable business conditions, combined with the country’s global tourism appeal, make Greece a compelling market for small hotel acquisitions and developments.