Greece sees hotel transactions worth €300 million in 2023

New data reveals that hotel transactions in Greece totaled nearly EUR300 million in 2023,
the third largest growth in Europe. According to the “Market Beat Europe – Hospitality Full Year 2023” report released by Cushman & Wakefield (C&W), the value of hotel transactions carried out last year in the country increased by 23% compared to 2022, amid strong investor interest in Greece.

Spain, France, and the UK were the most active markets, accounting for 59% of European volumes in 2023 with a total of EUR 10 billion (+7% vs 2022). Among the top-10 markets, Spain, France and Greece witnessed the largest increases over 2022. In Spain, the value of hotel transactions in 2023 reached EUR4.2 billion, marking a 44% increase on an annual basis. In France, the volume of sales reached EUR3.1 billion, up 26%.

Overall in Europe, 787 properties were sold comprising 106,000 rooms and totalling EUR 16.9 billion in value. This remains significantly below 2019 levels but is only 4% short of the 2022 total. In the last quarter of 2023, volumes reached EUR 5.4 billion, a 13% increase relative to Q4 2022 (EUR 4.8 billion).

In terms of the key urban markets, London, Paris, and Madrid continue to be on the top of the list for investors followed by Barcelona and Rome.

According to the research, portfolio transactions represented one third of the 2023 total volume (vs. 28% in 2022 and 45% in 2019). Most of these portfolio transactions were completed in the last quarter of 2023, representing more than half of the volumes transacted (56% in Q4 2023, vs 31% in 2022 and 35% in 2019). The key portfolio transactions were Equity Inmuebles, A&O and the sale of Blackstone’s 35% stakes in HIP.

“A strong final quarter saw hotel transaction volumes boosted but they are still somewhat short of the numbers seen in 2019 and very slightly down on last year. This is primarily due to increased cost of debt, putting pressure on asset values. Like last year, the premium and luxury segments of the market remain the most sought after, and we also continue to see a strong interest in acquiring properties in resort destinations or urban markets with strong leisure demand” Frederic Le Fichoux, Head of Hotel Transactions, EMEA, at Cushman & Wakefield, said.

“Early data for January 2024 indicate over 50% increase of the activity compared to 2023. This positive trend is likely to accelerate once the central banks start to reduce interest rates which is expected in the second half of this year”.

The supply growth in Europe has been mild in 2023, constrained by elevated construction and financing costs causing delays and cancellations. This is set to continue in most markets, with average supply growth for the top-20 largest markets at 2.1% CAGR by 2025. Dublin, Frankfurt, Vienna, and Lisbon are
expecting the largest pipelines, while markets like Barcelona, Amsterdam, and Milan have minimal hotel construction underway, the report reveals.