Athens Hotel Market: A European Leader in Property Value Growth
Athens, Greece – March 18, 2026 – The Greek capital, Athens, is solidifying its position as one of Europe’s leading hotel markets, with hotel property values experiencing a significant 5.5% increase over the past year. This places Athens second only to Copenhagen in terms of growth across the European continent, according to a recent study by the hospitality consulting firm HVS.
This impressive performance builds on Athens’ consistent double-digit growth in hotel values between 2022 and 2024, with increases of 11.6%, 11.2%, and 11.8% respectively. The sustained positive momentum is attributed to a combination of factors, including robust demand, a steady rise in revenue per available room (RevPAR), and a growing interest from institutional investors.
European Hotel Market Overview: A Mixed Landscape
While Athens and Copenhagen lead the charge, the broader European hotel market in 2025 saw property values remain largely stable, with a marginal increase of 0.2%. However, the HVS report highlights significant variations across different markets.
Alongside Athens, cities such as Bucharest and Madrid also demonstrated strong growth, primarily fueled by high demand and a limited supply of new hotel developments. Conversely, markets like Istanbul, Amsterdam, and Frankfurt faced considerable challenges. These difficulties were linked to political and economic uncertainties, escalating operating costs, and an influx of new hotel capacity, which collectively impacted their performance.
Investment Trends and Transaction Volumes
In terms of investment, the United Kingdom maintained its status as Europe’s most liquid market, accounting for a substantial 25% of all hotel transactions. Across Europe, 2025 witnessed a notable surge in investment activity, with 175 more hotel transactions compared to 2024. The total value of these transactions reached €22.6 billion, marking a significant 30% year-on-year increase.
Despite this substantial growth, transaction volumes in 2025 remained approximately 17% below the levels recorded in 2019, indicating a continued recovery towards pre-pandemic investment figures. Major deals contributing to this total included the sale of the Mare Nostrum Resort in Tenerife, the W London, the transfer of remaining shares in the prestigious Four Seasons Astir Palace Athens, as well as the sales of the Pullman Montparnasse in Paris and the Caesare Augustus in Capri.
What’s Driving Athens’ Success?
The consistent growth in Athens’ hotel market underscores the city’s increasing appeal as a tourist destination and a viable investment hub. The strong demand for accommodation reflects a vibrant tourism sector, while rising RevPAR figures demonstrate the industry’s ability to generate higher revenues per available room, a key indicator of profitability.
The growing interest from institutional investors further validates Athens’ potential, as these large-scale investors typically seek stable and high-growth markets for their capital. This influx of investment is likely to support further development and modernization of the city’s hotel infrastructure, enhancing its competitiveness on the global stage.
As Athens continues to attract both tourists and investors, its hotel market is poised for continued expansion, cementing its reputation as a dynamic and resilient player in the European hospitality landscape.
Source: https://www.tovima.com/tourism/athens-emerges-as-leading-hotel-market/
