-IHIF EMEA: Greece accounts for 43% of investor preferences, ahead of Italy, Spain and France
–5-star hotels and luxury properties are the focus of investment interest
Greece is emerging as the most attractive destination for hotel investments in Europe, according to the results of the IHIF EMEA Pulse Check, a survey conducted by Questex’s Hospitality Investor – the journalistic and analytical platform specialising exclusively in the investment capital markets of the global hospitality industry – which was presented at Europe’s leading hotel investment conference, to be held in Athens in November.
The data reflects a particularly optimistic investment climate for the Greek hotel market, as the country ranks highest in terms of investor preference amongst all European destinations, whilst investors are increasingly turning to high-quality, branded and luxury hotel properties. In fact, the research findings reflect the trends currently shaping the market and are expected to dominate discussions at the R&R Forum next November, as investment funds continue to focus on the European leisure hotel and tourist resort sector.
Greece tops the list of investment preferences
When asked about the preferred European investment destination, Greece received 43% of the responses.
They are as follows:
- Italy: 29%
- Spain: 14%
- France: 14%
This picture confirms that the Greek market is still regarded as one of the most attractive in Europe, both because of its strong performance in the tourism sector and the returns that high-quality hotel assets continue to offer.
Attention remains focused on Europe
The survey also shows that investors still regard Europe as the key region for capital investment.
Specifically:
- 82% state that their main geographical investment destination is Europe.
- 11% invests globally.
- Just 2% focuses on the US.
- 2% in the United Kingdom.
- 2% in the Middle East.
- 2% in more than one European region.
The conclusion is clear: rather than spreading their investments geographically, investors are increasingly concentrating their funds in the most mature and secure European markets.
Alexi Khajavi, President of Questex’s Hospitality & Operational Real Estate sector, said: “Greece has come a long way, from being a country hit hard by the 2008 financial crisis to becoming the top European investment destination for hotel funds, according to the Questex Investor Council. The market fundamentals are such that industry leaders are comparing it to Spain ten years ago.”.
The real question is no longer whether Greece is a “hot” hospitality investment market. The question is which investors are investing and what their investment strategy is: private equity firms investing with a view to selling, institutional investors with a long-term investment horizon, Greek family funds, or international hotel groups expanding their brands.
”Today, there are more funds seeking to invest in Greek hotel assets than there are high-quality assets available on the market to meet this demand."
Europe’s gateways are seen as an investment opportunity
The so-called European Gateway Markets are also viewed particularly favourably.
According to the research:
- 63% characterises them as a market offering significant investment opportunities.
- 26% as a moderate opportunity.
- 7% as low as possible.
- Just 4% say they actively avoid these markets.
Luxury hotels dominate
Luxury hotel properties are attracting the most interest.
Investors say that they are mainly looking for:
- 57% 5-star hotels under professional management.
- 29% 3-star hotels with the option of upgrading (value-added).
- 14% independent hotels.
- 0% urban hotels.
The data clearly shows that interest is centred on high-quality resorts and branded luxury products.
Moving up to the upper class
The situation is similar with regard to the hotel segments that investors are targeting.
The priorities are:
- Upper Upscale: 63%
- Upscale: 54%
- Luxury: 48%
- Upper mid-range: 41%
- Midscale: 37%
- Economy/Budget: 35%
- Independent hotels: 20%
The research shows a clear shift among investors towards higher-quality, branded and professionally managed hotels, which demonstrate greater resilience and stronger pricing power.
Geopolitical crises do not halt investment
One of the most interesting conclusions relates to the effects of international geopolitical instability.
Despite the conflicts and general uncertainty:
- No investor (0%) stated that they were suspending or freezing their investments.
- 57% are moving funds to safer European markets.
- 14%: increase selectivity and evaluation criteria.
- 14% believe that new opportunities are being created.
- 14% do not change their strategy at all.
This picture shows that the market has now factored in geopolitical uncertainty as a permanent feature and is adapting without scaling back its investments.
Funds are not leaving the market – they are simply changing direction
Despite the uncertain geopolitical environment, investor confidence in the fundamentals of the European hospitality industry remains strong.
None of the investors who took part in the Hospitality Investor The survey found that they were reducing or freezing their investment activities.
On the contrary:
- 57 % are transferring their investment funds to alternative or more resilient European markets, with Mediterranean destinations—and Greece in particular—being the main beneficiaries of this reallocation of capital.
An additional 14% maintain their existing investment portfolio, but apply stricter investment criteria (underwriting discipline), whilst another 14% state that they are actively increasing their investments, believing that current conditions are creating new opportunities in the market.
These figures are also supported by the investment trends recorded earlier in the year, which show that private equity funds continue to regard key European markets as important sources of investment opportunities, despite geopolitical uncertainty.
The conclusion is clear:
Experienced investment funds do not abandon the market. They adapt their strategy.
A market at a critical turning point
Hospitality Investor The data highlights three key structural trends that are reshaping investment in the European leisure hotel and resort sector.
Firstly, institutional funds are now choosing to focus on fewer markets rather than diversifying their investments, prioritising destinations that offer the highest returns relative to the risk taken, with Greece consistently topping this ranking.
Secondly, the premium for high-quality hotel properties is further reinforced, as investors turn to professionally managed hotels that boast strong international brands and are better able to maintain high prices.
Thirdly, the market is absorbing the geopolitical turmoil, as experienced investment funds adjust their strategy rather than withdraw.
For Greece, the convergence of all these trends marks a particularly significant turning point.
The country has everything that institutional investors are looking for today:
- luxury and high-end tourist resorts,
- assessed as a market with high growth prospects,
- authentic experiences that meet the modern needs of travellers,
- as well as a regulatory environment that is increasingly tailored to the needs of large international investments.
Statement by Dr Marinos Giannopoulos
Enterprise Greece CEO, Dr. Marinos Giannopoulos, stated: “The continued success of the R&R Forum and its return to Athens for the third year running highlights the ever-increasing importance of Greece as a leading destination for hospitality investment and international business collaboration.
Questex’s recent findings, which rank Greece first in terms of investment preferences for the European hotel industry, confirm the international investment community’s strong confidence in the country’s prospects.
”By bringing together leading investors, developers and industry leaders from around the world, the R&R Forum makes a significant contribution to strengthening strategic partnerships and further promoting Greece as a leading destination for both tourism and investment.”
The main conclusions of the research
In the final presentation, the organisers summarise the results in three key points:
- Investment capital is concentrated in Europe, with a particular focus on Greece (43%) and Italy (29%), rather than being geographically dispersed.
- The premium segment is growing stronger, as investors are flocking en masse to the Upper Upscale, Upscale and Luxury categories, gradually moving away from the more economical categories.
- Geopolitical turmoil does not halt investment, but leads to greater selectivity and a shift towards safer and more mature markets.
The conference in figures
According to the data presented:
- more than 500 participants
- 22% investors and owners
- 37% new investors
- approximately $30 billion in assets under management (AUM)
- entries from 32 countries
- 65 speakers
- 30 sponsors
The main categories of investors involved were developers, private equity funds and owner-operators.
The overall conclusion of the research is that Greece has now established itself as one of the leading European destinations for hotel investment. The sustained strong performance of the tourism sector, the growing presence of international brands and the high demand for high-quality hotel accommodation enhance the attractiveness of the Greek market, which continues to attract significant international capital despite the uncertain global environment.
Source: money-tourism.gr