Greece: hotel reservation demand to peak in 20 years in 2022, according to Eurobank

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Hotel booking demand in Greece expected to peak in 20 years in 2022, according to Eurobank Deputy CEO and Head of Corporate & Investment Banking Konstantinos Vassiliou.

Speaking to reporters at an online press conference on Tuesday, Vassiliou said that despite the ongoing coronavirus (Covid-19) pandemic, Greek tourism performance has exceeded initial forecasts, mainly due to pent-up demand for hospitality services and the growing number of flights to Greece.

“Data provided by 140 hotels across Greece indicates that some hotels have already covered 40 to 50% of demand for 2022 via pre-reservations. If this strong momentum continues, pent-up demand could cover 70 percent the capacity in rooms and beds offered by Greek hotels by the end of February, ”he said.

Vasiliou added that the hotel prices remain at high levels – “higher than the prices of previous years, including 2019”.

Tourism revenue in 2021 will reach 10-12 billion euros

Meanwhile, Eurobank’s forecast for 2021 is in line with Greek government estimates for tourism revenue from 10-12 billion euros.

Greek tourism has returned to growth, according to Eurobank, surpassing initial revenue forecasts reaching 40-50% of 2019 levels.

The bank expects tourism revenues to reach 10 billion euros or 55% of 2019 levels in 2021. In a more optimistic scenario, tourism revenues could reach 12 billion euros or 67% of 2019, based on revenue for the last quarter.

It should be mentioned that during the August-September period, Tourism revenues reached 2019 levels, with the hospitality sector keeping pace and generating 48% of direct revenues.

Hotel revenue to reach 75.5% of 2019 levels

The hospitality sector is the engine of growth, with revenues expected to reach 75.5% of 2019 levels, said Eurobank.

The best performances were observed in four and five star hotels, as well as in hotel companies in the Cyclades Islands.

Higher category resorts are expected to recoup 81% of 2019 revenue, while the percentage is lower for city hotels – at 57%.

Eurobank based its data on a sample of 140 four and five star hotels (36,600 rooms), representing 17% of Greece’s hotel capacity.

New financing of 750 million euros

During the press conference, Eurobank also announced a new 750 million euros financing plan for the Greek hotel industry.

The funding envelope breaks down into:

275 million euros for the construction of new hotel units and the expansion of existing units;
225 million euros for upgrading existing hotel units; and
250 million euros for acquisitions and strategic refinancing.

The funding is expected to increase capacity to 2,000 rooms and modernize 4,700 rooms, primarily in four and five star hotels across the country.

Thirty percent of the hotels that have expressed interest in the program are located in the Dodecanese; 20 percent in Attica; 10 percent in Crete; 9% to Halkidiki; 8 percent in the Cyclades; 7 percent on the Ionian Islands and the rest in other parts of mainland Greece.

This is the second funding announced by Eurobank since the start of the pandemic. The bank launched in May 2020 an envelope of 750 million euros to support the Greek hotel industry.

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