Friday August 29, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Foreign funds eye investments in local tourism business sector

By Stathis Kousounis

Foreign funds are increasingly eager to enter the Greek tourism business market, having already proceeded with the acquisition of hotel units and with more expected to follow.

The first such move came from US fund Oaktree Capital Management, which struck a strategic partnership with hotel chain SANI to acquire Oceania Club Hotel and then bought Gerakina Beach Hotel in Halkidiki from National Bank. Another US fund, Hines, has been in advanced talks with Technical Olympic for the buyout of the Porto Karras resort, also in Halkidiki in northern Greece.

Jermyn Street Real Estate Fund, the preferred bidder for Astir Palace Resort at Vouliagmeni, south of Athens, is expecting the completion of the ale, while another fund, London-based Europa Capital has been waiting for over seven years for the end of the licensing process in order to invest some 1.5 billion euros at Atalanti, central Greece, through the Lokros venture.

Meanwhile, the Grace Hotels chain of the Libra group is planning to operate two brand-new hotel units in Greece from 2017. They will be Grace Kalamata, some 20 kilometers to the west of Kalamata in the southwestern Peloponnese, and Grace Kea, on the Cycladic island.

Hotel market representatives say that in most cases the funds negotiate on prices amounting to 10 times the earnings before interest, tax, depreciation and amortization (EBITDA) of the corporations. Hoteliers, especially in the last year when tourism has been on a rise, are said to be asking 20 or 30 times the EBITDA, resulting in the reduction of chances for many transactions.

Another element making investors more reluctant to agree to buy at high prices is the fact that the new investment incentives law on projects at popular destinations with demand for hotels, such as Crete and the Dodecanese, has reduced the subsidy rate for such investments compared with the previous status. This means that the investment buyers will need to implement after the transaction will entail a greater cost.

ekathimerini.com , Sunday Jul 13, 2014 (21:24)  
Loaded agenda for Paris talks
OPAP to make 40-mln bid for horse betting
Athens water utility´s net income falls to 15.6 mln euros
Greek stocks head south for fourth month in a row
Deadline for ENFIA tax pushed back to September 30
Parliament on Friday approved an amendment to the troubled single property tax (ENFIA), which means that taxpayers will not have to pay the levy’s first installment until September 30. Previ...
Three passengers missing from two migrant boats
A total of 138 undocumented immigrants were detained by coast guard officers on the southeastern Aegean island of Symi after their wooden boat foundered on rocks early on Friday in an appare...
Inside News
Tough draw for Greek sides in Europe League Greek stage
Following Thursday night’s high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
Iliadis triples up as Aguiar stuns Tcheumeo
Greek star Ilias Iliadis claimed his third world title in the under-90kg category in Chelyabinsk on Friday as Brazilian Mayra Aguiar and Colombian Yuri Alvear won gold in the women’s under-7...
Inside Sports
ANALYSIS
Greek quest for debt relief faces hurdles in Paris
As Greek Prime Minister Antonis Samaras tries to follow Ireland and Portugal out the bailout exit door, he faces a month of bargaining. For a nation that’s already gone through the biggest d...
COMMENTARY
Stifled dreams
At more or less the same time every year, we see the same images of high school graduates looking through the Education Ministry’s lists of those who passed and those who failed the national...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Deadline for ENFIA tax pushed back to September 30
2. Three passengers missing from two migrant boats
3. Data show rise in traffic accidents but fall in deaths in June
4. Independent MPs call on Nikolopoulos to quit group
5. Government reacts to Berlin declaration on FYROM name dispute
6. Two firefighters injured as warning is issued of blaze risk
more news
Today
This Week
1. Greek quest for debt relief faces hurdles in Paris
2. Strong undersea quake occurs off island of Milos, felt in Athens
3. Dozens of migrants intercepted in the Aegean
4. Rendi shootout leaves would-be hypermarket robber dead
5. Gov't jet carrying Venizelos back from Turkey conducts emergency landing
6. Finance Minister holds final preparatory talks before Paris meet with troika
Today
This Week
1. Brussels warns Greece over plans to allow construction near Korinos beach
2. Attack on gay couple in Athens leaves one man needing surgery
3. Merkel cites euro’s ‘construction flaws’ as economy sputters
4. Purification rituals
5. Second man held over double murder in Mani
6. The battle against progress
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.