Four billion euros foreign investments on luxury hotels

Greece is in fashion again and according to an article published by Wall Street Journal, Greece has attracted foreign investments of 4 billion euros on luxury hotels.

The article refers to the decline of Greek tourism, but it notes that now Greece is again a popular tourist destination.

“For 20 years, the building had been an empty eyesore on the shores of this picturesque bay. Unable to keep up with the changing times, the 1970s-era hotel went bust, was seized by creditors, and eventually shut its doors in the mid-1990s.” Wall Street Journal says referring to the area where now Nikki Beach Resort and Spa stands.

The luxury “hotel has only been open for a few weeks, but is already booked close to capacity for the rest of the summer, with rates ranging between $395 and $460 for a double room and up to $1120 for a rooftop suite”.

The article reports that Greek tourism gains now its previously lost prestige attracting many celebrities like fashion model Naomi Campbell and actor Russell Crowe. This is also confirmed by the number of investors who want to invest on Greece’s high-end hotel sector.

“Investors recently have purchased stakes in several resorts in recent months, including the Astir Palace hotel, a luxury beachfront property, and the Amanzoe, which overlooks the Aegean Sea”.

According to industry observers, “over € 4 billion of new investments are being planned, all of them in the four- and five-star categories”, says the article.

“What can I say? St. Tropez is out, Myconos is in,” said Andreas Andreadis, president of the Association of Greek Tourism Enterprises. “Greece is in fashion again,”.

From Corfu to Crete more than two dozen hotel projects are on track and are being financed by foreign companies like Oaktree Capital Management LP, while others firms, such as “Hilton Worldwide Holdings Inc., Four Seasons hotels, Abu Dhabi’s Rotana Group and trendsetting Nikki Beach Hotels and Resorts, are being courted to manage the properties”.

Also, the article mentions that the Greek government tries to cut red tape. Particularly, last year, the government fast-tracked a €267 million hotel investment of British interests on Crete that had been languishing for 16 years, whereas construction works are expected to begin next year.