Konstantinos Antonakakis

POST-PANDEMIC INVESTMENTS IN THE HOTEL INDUSTRY AND THE PERSPECTIVE OF THE TOURISM SECTOR IN GREECE

The hotel industry in Greece recorded one of its most successful years in 2019. Our country welcomed almost 31 million visitors, and travel turnover amounted to 18.2 billion euros. Against this backdrop, there was strong investment interest from entrepreneurs in the industry, originating from domestic and international investment funds, and from tourism organizations, tour operators and their investment component. This coincided with the release and launch of the Hellinikon Project, a pivotal investment into Greek tourism infrastructure. Moreover, in 2019 the Greek State and the HRDF (Hellenic Republic Asset Development Fund) further promoted the privatization of important regional properties suitable for tourism investment, such as Gournes in Heraklion and Afandou in Rhodes.

In 2020, the excellent prospects of Greek tourism were interrupted by the the COVID-19 outbreak. However, industry insights predict a strong resurgence of investment from 2022 onwards and the continuation of investment projects which were postponed due to the pandemic. The pandemic has therefore provided a second chance to investors who thought they had missed the opportunity to enter the Greek market.

In the new, post-pandemic environment, investment options will have to be adapted in order to meet the new needs and behavioral traits of contemporary travelers and consumers.

The changes to traveler / consumer behavior can be summarized as follows:

Safety and hygiene valued above all
Prioritization of accommodation that is secluded, personalized and uncrowded
Restricted options for movement and transportation
The increased use of technology for financial transactions and trades (as opposed to human mediation)
Decrease in business travel and continuation of ‘remote work’ culture
Diversification of sales channels and a turn towards online distribution channels

With the reopening of Greece’s tourism industry, the investment interest is expected to develop in the following areas:

Continuation of large-scale tourism projects, the most important being the Hellinikon Project
Investments to adapt large Greek hotel groups to new customer standards in the post-Covid era, in particular investments
into technology, marketing, health & safety, sustainability, green investments and the renovation and reconstruction of F&B venues
Two-phase implementation of investment plans that had been postponed by the pandemic. Priority will be given to resorts at first, then hotels and tourist residences, followed by city hotels
Implementation of mature investment plans with approved financing, such as Enterprise Greece
Development of alternative destinations (Western Greece, North Aegean Islands, and smaller Cyclades and Ionian islands) with investments from tourism organizations and private investment funds
Acquisition of financially troubled hotel units through competitive bidding via banks

An important parameter for new investments into the Greek hotel industry is financing from the banking system. As it stands, banks seem willing to finance sustainable investment projects and have sufficient liquidity to support the industry.

We are moving forward to a new era: the post-Covid era. Therefore, the adaptation
of the tourism industry is both necessary and inevitable. Rising to the challenges of the new world, tourism will continue to be a leading sector, one that is essential to the development of the Greek economy, and a considerable investment option for both Greek and foreign investors.

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CEO

Konstantinos Alexopoulos has been a professional in the Greek hospitality industry for two decades with extensive experience in hotel
management, operation and consulting. He is the CEO of Domotel Hotels & Resorts Group, which has a history of more than 15 years in its current form and a heritage in the hospitality sector which began in 1964. Additionally, he holds the position of CEO at DHR Services,
supporting hospitality brands through his extensive know-how in the industry; both positions are reinforced by his ten years of experience in the construction sector in Greece and the Balkans, which furthered his knowledge of local markets. Having completed his Degree as a Civil Engineer at the Aristotle University of Thessaloniki, he continued with a Master in Science in “Construction Economics and Management” in UCL and a Master of Arts in Hospitality Management in Middlesex University. Furthermore, he has attended two complementary training programs in finance and management at the University of Macedonia. He is a member of the Board of Directors of the Greek Tourism Enterprises Confederation (SETE) and the treasurer of the Board of Directors of the Institute of SETE, a member of the Leadership Committee of the Hellenic – American Chamber of Commerce and holds positions in a number of Boards of Directors of other organizations.

Vice President

After completing her Bachelor in Business Administration (Minor in Science and Economy) at the American College of Thessaloniki, she continued with an MBA in Hospitality Marketing at Les Roches School of Hotel Management in Switzerland and a Diploma of Higher Education in International Tourism “The French approach” from the Universite Paris I Pantheon Sorbonne. She has been running the family owned hotel for almost twenty years, initially as an Operations Manager and later on as General Manager and CEO. She has been a member of the Board of Directors in Thessaloniki’s Hotels Association and has participated as a guest speaker in several lectures and seminars such as Yield Managementin Les Roches (Bluche, Switzerland), and Operations Management Principles and Housekeeping Principles in CMH (Paris, France).