-IHIF EMEA: Greece accounts for 43% of investor preferences, ahead of Italy, Spain and France
–5-star hotels and luxury assets are at the center 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 by Questex’s Hospitality Investor, the journalistic and analytical platform specializing exclusively in the investment capital markets of the global hospitality industry, which was presented in the context of Europe’s leading hotel investment conference to be held in November in Athens.
The data reflects a particularly optimistic investment environment for the Greek hotel market, as the country has the highest preference rate among all European destinations, while investors are increasingly turning towards quality, branded and luxury hotel products. In fact, the research findings reflect the trends that are shaping the market today and are expected to dominate the discussions at the R&R Forum next November, as investment funds continue to focus on the European leisure hotel and tourist resort sector.
Greece first in 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 considered one of the most attractive in Europe, both due to the strong tourism performance and the returns that quality hotel assets continue to offer.
Interest remains focused on Europe
The survey also shows that investors still consider Europe as the key region for capital placement.
Specifically:
- 82% state that their main geographic investment destination is Europe.
- 11% invest globally.
- Just 2% focus on the US.
- 2% in the United Kingdom.
- 2% in the Middle East.
- 2% in more than one European region.
The conclusion is clear: instead of geographical dispersion, 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 made an impressive journey, from a country-victim of the 2008 financial crisis to the top European investment destination for hotel funds, according to the Questex Investor Council. The fundamentals of the market 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 with which investment strategy: private equity investing with the aim of selling, institutional investors with a long-term investment horizon, Greek family funds or international hotel groups expanding their brands.
Today there are more funds looking for Greek hotel assets than there are quality assets available on the market to meet this demand.”
Europe’s gateways are considered an investment opportunity
The so-called European Gateway Markets are also evaluated particularly positively.
According to the research:
- 63% characterize them as a market with high investment opportunity.
- 26% as a moderate opportunity.
- 7% as low.
- Just 4% say they actively avoid these markets.
Luxury hotels dominate
The greatest interest is being attracted to luxury hotel properties.
Investors state that they are mainly looking for:
- 57% 5-star hotels under professional management.
- 29% 3-star hotels with the possibility of upgrading (value-add).
- 14% independent hotels.
- 0% urban hotels.
The data clearly shows that interest is focused on quality resorts and branded luxury products.
Shifting to the upper class
The picture is similar with regard to the hotel segments that are the target of investors.
The priorities are:
- Upper Upscale: 63%
- Upscale: 54%
- Luxury: 48%
- Upper Midscale: 41%
- Midscale: 37%
- Economy/Budget: 35%
- Independent hotels: 20%
The research records a clear shift of investors towards higher quality, branded and professionally managed hotels, which display greater resilience and stronger pricing power.
Geopolitical crises do not halt investments
One of the most interesting conclusions concerns 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 reflects that the market has now integrated geopolitical uncertainty as a permanent condition and is adapting without abandoning investments.
Funds are not leaving the market – they are just changing direction
Despite the uncertain geopolitical environment, investor confidence in the fundamentals of the European hospitality industry remains strong.
None of the investors who participated in the Hospitality Investor survey stated 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 especially Greece—being the main beneficiaries of this capital reallocation.
An additional 14% maintain their existing investment portfolio, but apply stricter investment criteria (underwriting discipline), while 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 reinforced by the investment picture recorded earlier in the year, according to which private equity funds continue to consider key European markets as important sources of investment opportunities, despite geopolitical uncertainty.
The conclusion is clear:
Experienced investment funds don’t abandon the market. They adapt their strategy.
A market at a critical turning point
Hospitality Investor data highlights three key structural trends that are reshaping investment in the European leisure hotel and resort industry.
Firstly, institutional funds are now choosing to concentrate on fewer markets instead of diversifying their investments, prioritizing destinations that offer the highest returns relative to the risk taken, with Greece consistently at the top of this ranking.
Secondly, the premium for quality hotel units is further strengthened, as investors turn to professionally managed hotels that have strong international brands and a greater ability to maintain high prices.
Third, geopolitical turmoil is being absorbed by the market, as experienced investment funds adjust their strategy rather than withdraw.
For Greece, the convergence of all these trends constitutes a particularly important turning point.
The country has everything that institutional investors are looking for today:
- luxury and upper-upscale tourist resorts,
- assessed as a market with high growth prospects,
- authentic experiences that meet the modern demands of travelers,
- as well as a regulatory environment that is increasingly adapted 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 consecutive year underscores the ever-growing importance of Greece as a leading destination for hospitality investment and international business collaboration.
Questex’s recent findings, which rank Greece in first place in investment preferences for the European hotel industry, confirm the strong confidence of the international investment community in the country’s prospects.
By bringing together leading investors, developers and industry leaders from around the world, the R&R Forum contributes substantially 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 organizers summarize the results in three key points:
- Investment capital is concentrated in Europe, with particular emphasis on Greece (43%) and Italy (29%), rather than being geographically dispersed.
- The premium product is strengthening, as investors are turning en masse towards the Upper Upscale, Upscale and Luxury categories, gradually abandoning the more economical categories.
- Geopolitical turmoil does not stop investments but leads to greater selectivity and a shift towards safer and more mature markets.
The conference in numbers
According to the data presented:
- more than 500 participants
- 22% investors and owners
- 37% new investors
- approximately $30 billion under management (AUM)
- entries from 32 countries
- 65 speakers
- 30 sponsors
The main categories of investors that participated were developers, private equity funds and owner-operators.
The overall conclusion of the research is that Greece has now established itself at the top of European destinations for hotel investments. The maintenance of strong tourism performance, the growing presence of international brands and the high demand for quality hotel products enhance the attractiveness of the Greek market, which continues to attract significant international capital despite the uncertain international environment.
Source: money-tourism.gr