Elie Milky - Vice President Development, Radisson Hotel Group

What do you see in store for the mobility of investments in the next 24 months in our country?

We expect investment activity in Greece to continue during the next two years. There will be an increase in foreign direct investments as more distressed assets and more attractive deals come to the market, leading to an increase in real estate transaction activity.

Do you expect to see a decline in investment levels in your field in 2021?

We do not foresee a decline in investment levels. However, continued lockdown measures as well as bureaucratic hurdles may cause some delays which could push some investment activity into 2022. It is also important to note that the existence of unrealistic seller expectations in the Greek market will continue to deter foreign investors who want to narrow that spread between the seller and the potential buyer. 

In your sector, what are the structural changes (legislative framework, infrastructure projects, etc.) that you think should be made within the next five years so as to increase tourism-related investments in Greece?

Bureaucratic hurdles in licensing and approvals and certifications should be streamlined, failing which investors may continue resorting to other investment hubs that are more business friendly. We believe the current government has the right attitude, approach and strategy to turn Greece into one of the most attractive hospitality real estate investment destinations in the Mediterranean.

How do you see demand per segment taking shape within the next two years (V-shape, U-shape, etc.)?

We see leisure demand taking the lead in recovery, which we have already started experiencing in our hotels globally, starting with a boost in domestic tourism in many markets. Greece with its resort offering will attract leisure demand this summer from various European markets as well as global travellers. Corporate demand is to follow gradually, with meetings and events demand to naturally recover last. Our Radisson Hybrid Meetings solutions which we launched last year will soften the transition phase.



Which areas of the country do you think will draw the most interest from investors and why?

Resort real estate products will be on the radar for many investors. These locations include resort destinations in the Peloponnese and Macedonia which are on the mainland, as well as island destinations such as Corfu, Crete, Mykonos, Santorini, Paros, Rhodes, Skiathos and other islands in the Aegean and Mediterranean seas.

Which aspect of the country makes it an attractive investment destination in the field in which you operate?

Greece has some of the most attractive real estate prices from an investor standpoint within the EU despite some select assets remaining over-priced. It is a country offering some of the most beautiful destinations in the world making it one of the most popular places to visit from a consumer perspective. Its business-friendly government and stable political climate makes Greece one of the best investment destinations in Europe today.

What do you think the investment landscape in our country will look like five years from now?

With the direction the government is taking, we would hope to see restrictions lifted, hurdles relaxed and investment activity continue to gain steam. The mentality is changing among independent hospitality owners in Greece, which is finally opening the doors to the idea of branding
their hotels under an international name. Such owners and the new generations taking over from their parents and grandparents now see the benefits of international standards, hygiene protocols instigated by the pandemic, global distribution channels, and more feeder markets, which such hotels never had access to historically. Foreign investors will also bring in more international hotel chains to run their real estate operations with the aim of increasing their asset values, therefore seeing more branded hotels in the country.

The current percentage of internationally branded hospitality real estate now stands below 1% of the total supply in Greece, which is the lowest across Europe. This is expected to double within the next 5 years, adding roughly 50 to 100 newly internationally branded products to the market because of growing demand for branded hotels and resorts. We will also start to see more demand for branded serviced apartments from investors and guests alike. Past recessions and this pandemic have highlighted even further the resilience and attractiveness of serviced apartments as
a less risky, more profitable hospitality investment model because of its low cost structure.

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