Tourism: the decline of luxury hotel chains in Greece – Economic Post Office

The destination of more and more “luxury” hotel chains is Greece, and Athens in particular, in recent years, as international ultra-luxury brands choose the capital and our country to expand their network.

luxury chains

The arrival of luxury hotel chains in the country also positively affects tourism revenues as it hosts high-income tourists, while at the same time the average room rate increases with the “withdrawal” of the most luxurious units and the rest in terms of room price. Evidence is that, according to the trivago Hotel Price Index, the average room price in Athens in May increased to €173 by 31.6% compared to last year.

As the outgoing President of the Association of Hellenic Tourism Companies (SETE), Mr. Yannis Ritsos, noted in response to a related question from ot.gr, many foreign luxury chains are in the country while others are preparing to come. Regarding prices, he added that the price “gap” between Athens and other European capitals in five-star and luxury hotel units has shrunk a lot in recent years. As such, the need to upgrade a hotel product is always relevant.

What are the new “arrivals”.

It should be noted that in recent years, a number of foreign luxury hotel chains have entered our country. For example, we should mention the Aman Resorts, which took over the management of Amanzoe in Porto Heli from August 2012, and the Four Seasons, which took over the management of Asteras Vouliagmenis in the spring of 2018. In particular, the second changed the positioning of the Greek hotel market.

Some of the world’s largest hotel chains have also developed or plan to develop their own luxury brands.

Hilton and Timis

For example, the Hilton Group, which has a large presence in Greece through the Curio Collection by Hilton, etc. The “names” of luxury Conrad Hotels & Resorts and Waldorf Astoria Hotels & Resorts have brought to life the renovated TEMES Hotel in central Athens (formerly Hilton Athens).

In Costa Navarino from TEMES I brought Marriott, which is already in our country with several brands (Autograph Collection Hotels, Marriott Hotels & Resorts, Westin Hotels & Resorts, etc.) the W hotel included in the category of luxury brands it owns

TEMES, which justifies the name “locomotive” of Greek tourism, is also the operator of other luxury chains in our country. So on the Costa Navarino, from this summer, another luxury and famous hotel chain, Mandarin Oriental, will operate, which will manage the new Costa Navarino resort located in Navarino Bay.

The award-winning Mandarin Oriental Hotel Group owns and operates some of the world’s most luxurious hotels, resorts and residences. It started its activity in Asia, and has evolved into a global brand, operating under its umbrella 36 hotels and 8 residences in 24 countries.

just one

Another arrival of the luxury brand is One & Only, which is expanding its offering in Europe after Montenegro, with three investments in Greece. One&Only Astesis will open in October 2023 in the former Asteria Glyfadas on the Athenian Riviera, on an area of ​​21 acres. It is an investment by Grivalia Hospitality, which will include 127 rooms, suites and private villas, while its facilities will include the Chenot Spa. The One&Only Kia Hotel on Geas Island is also expected to open in 2023, while the luxury villas surrounding it are already being sold. The company has already announced a new resort that will start construction in Mykonos.

Banyan Tree

In 2026, the world-renowned luxury chain Banyan Tree by Accor Group will make its debut across Greece in Europe, and indeed in Aitolloacarnania. This is the major investment in Farko Bay by RND Investments worth €182 million to be developed in Aktio-Fontsa Municipality, opposite Lefkada. The project includes a hotel with 116 luxury villas and 45 branded residential units. It will include three restaurants and bars, as well as a tourist marina with the possibility of mooring yachts up to 40 meters in height. The Banyan Group operates more than 60 hotels worldwide, with plans for more than 50 projects by 2025. Accor has a strong presence in the Greek hotel market with its Angsana hotel chains, MGallery Hotel Collection, Novotel Hotels, etc.

In the “Elounda Hills” investment project, which in its entire development will amount to 500 million euros, and includes hotels, villas, residences and other tourist facilities, and the first works will start soon, to be completed in 2027 and it is a big one. The hotel will be operated under the Starwwod Capital Group’s “1 Hotels” brand.

She’s not here yet

However, there are still many luxury hotel chains that do not operate units in our country, but they may appear in the coming years as a series of hotel projects in progress. For example, the companies that will take over the management of the two TEMES hotels in Elliniko are expected to be announced soon. According to estimates, it will be chains that do not yet have a presence in our country.

However, among the luxury hotel chains absent from Greece is the Ritz-Carlton, St. Ergas, JW Marriott, and EDITION by Marriott. Also absent is Rosewood Hotels & Resorts, which operates 30 one-of-a-kind luxury hotels in 18 countries with 25 new properties in the pipeline. The chain is expected to open in 2024, Rosewood Munich in Munich, Rosewood Amsteram, Rosewood Rome etc.

Even outside the Greek market, Six Senses, a well-known brand of the Intervontinental Group (IHG) which has a large presence in the Greek market along with other brands, is also famous.

More durable luxury tourism

It should be noted that according to hotel group executives, luxury tourism is the most resilient to difficult situations as found in the pandemic because it was the first market to recover. As LAMPSA Group President (Great Britain, King George, Athens Capital MGallery) Mr. Chloe Laskaridis said at the Delphi Forum, luxury tourism is the most resistant as found in the pandemic because it was the first market to recover and is one of the markets that is now still resistant to inflation.

“Athens has room for further development of a certain market, and there are not many high-end products. There is space. In terms of average city hotel prices, it is far behind. There is certainly a future. But the city will also have to change to attract customers. Certainly That Athena in the next five years will change dramatically in this market segment as well and there will be new product categories. Lascarides.

Faya Resorts

For her part, Mrs. Constanza Spocco Constantakopoulou, Managing Director of Faya Resorts, indicated that by switching to a more expensive tourism product, in luxury, we can obtain more efficient investments to increase revenues and turnover. Ms. Spocko also indicated that the concept of Greek tourism has changed today, and it has entered the map of luxury tourism. Infrastructures have improved somewhat and large companies are looking to Greece

Finally, it is estimated that Greece is in a more mature stage of developing its own luxury brands that will appeal to discerning travelers, who are looking for authenticity and not just luxury.