BUSINESS

Goldman’s further investment in Greek tourism

Goldman’s further investment in Greek tourism

Goldman Sachs is investing another 130 million euros in Greece for the acquisition and upgrading of three hotel units from the GHotels group, which belongs to the Grigoriadis family, Kathimerini understands.

If completed, the takeover of those three hotels will be added to a long series of foreign direct investments major institutional investors have made in Greek tourism, such as Blackstone, Hines, Goldman Sachs Asset Management and others.

Forecasts for Greek tourism remain optimistic despite the pandemic and the war in Ukraine. With an annual tourism revenue target of 27 billion euros by 2030, from €18.2 billion in 2019, buying interest in hotel properties in this country continues to be strong, market sources point out.

The brewing deal between Goldman Sachs and GHotels concerns a five-star hotel and two four-star units at Kallithea in Halkidiki, which between them have a capacity of about 1,000 beds, sources tell Kathimerini. Their combined value is estimated at €80-90 million, including their loan obligations. The Goldman Sachs business plan provides for a further €50 million for the upgrading and modernization of the three hotels. It is reminded that Goldman Sachs also holds a stake in leading hotel group Sani/Ikos, also active in Halkidiki, Central Macedonia.

The same sources explain that the Grigoriadis family will initially hold on to a minority stake, while Goldman will obtain the right to acquire that stake too later on. Greek banks were asked for financing to finish the deal, especially concerning the modernization program and the refinancing of the existing obligations of the three units. There now appears to be a provisional agreement with the lenders.

It is not clear yet whether the three hotels will be immediately passed on to a new management. However, sources say a Greek entrepreneur was the matchmaker, who controls a hotel group with six units in central and northern Greece and a hotel in the northern suburbs of Athens – he will likely be involved in the future management of the three units at Halkidiki.

GHotels controls three more units: a five-star hotel and a three-star unit in Halkidiki, and another three-star hotel on Crete.