Greece has emerged as one of the most profitable hotel markets in Europe, attracting growing attention from international investors. According to the latest report by the consultancy MKG Consulting, Greece now ranks second in Europe in terms of average revenue per available room (RevPAR), just behind Italy and ahead of major tourism markets such as Spain and France.
This strong performance underscores Greece’s appeal as a destination for hotel investment, with both domestic and foreign investors actively funding hotel renovations, upgrades, and new developments.
In May 2025, the average revenue per available room in Greek hotels rose to €154.70, marking a 14.9% increase compared to the same month last year, when it stood at €134.70. Italy led the European ranking with an average of €162, followed by Switzerland at €141, the Netherlands at €140, Portugal at €134.50, and Spain at €129.50. RevPAR, a key metric in the hospitality sector, reflects room-generated revenue and does not include income from other hotel services like dining or wellness.
Greece also posted the largest increase in hotel occupancy rates among 16 European countries surveyed by MKG Consulting, with a year-on-year growth of 9.8%. Despite this significant rise in occupancy, the country’s average daily room rates (ADR) remained nearly flat, recording a marginal decline of 0.3%. This national average, however, conceals substantial pricing gains in specific markets such as Athens, where hotel rates have surged. Earlier this year, CBRE Group highlighted Athens’ growing international appeal, predicting that continued demand for travel to the Greek capital will further strengthen its position as an emerging investment hotspot.
According to CBRE’s investor survey, there is heightened interest in hotel assets that offer opportunities for repositioning and value creation. Investors are particularly drawn to properties that can be upgraded to target higher-income guests, boosting both profitability and market status. Many cited favorable return prospects and the relative outperformance of hospitality assets compared to other property types as key reasons for choosing to invest in Greek hotels.
Against this backdrop, investment activity in Greece’s hotel sector remains robust. In 2025, the total value of investments in hotel construction, renovation, and upgrades is projected to match last year’s figure of €2.805 billion, according to data from INSETE, the Institute of the Greek Tourism Confederation.
