July 18, 2012
Greece's top hoteliers are facing choppy waters, as concerns about the nation's future in the euro zone have added turbulence to a tourism industry responsible for 16% of the country's gross domestic product.
Meanwhile, some private-equity investors see value in the sector because prices are depressed and hotels are largely supported by revenue from foreigners.
Average daily rates in Athens hotels tumbled nearly 16% in the first five months of this year compared with the same period last year and were down 8.6% in Thessaloniki, the country's second-largest city and another major tourist destination, according to Smith Travel Research. Athens's revenue per available room was down 27.8% on year to $59.62 in the first five months.
Questions from guests about conditions on the ground have led to more last-minute bookings, which translates into uncertainty for hoteliers about how much revenue they can expect, and have left operators, developers and investors wondering how long the malaise will persist.
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