Hotel owners in Greece
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.
