The potential foreign hotel buyers are usually large companies and not family businesses, which is the case with most hotels in Greece. The minimum requirements for purchasing a hotel, in order that the purchasers will be in a position to meet their operating expenses, would ideally be:
- Proximity to the sea;
- More than 200 beds;
- An annual return (yield) that is greater than 8 %;
- Its amortization (Payback period) in 10 - 12 years; and
- An average occupancy rate of 60 - 70 %
Note:
a) Where a hotel does not fulfil the above preconditions, it is essential that there is an adjacent site available for sale, so that there is a capacity for future development;
and
b) Any loans that may have been raised by the hotel business being sold are not a problem for the majority of the potential purchasers, as long as the loan agreement with the bank is upon favourable and not onerous conditions.
If you have a Hotel, Condo hotel or Hotel project (consists of the sale of the land with the building permit for a hotel) in Greece and you have the intention of selling it, domus inc. Real Estate in Greece can help bring you in contact with potential investors.
