Firms branch out into tourism
A growing number of businesses from many different sectors are also turning their attention to tourism in a bid to increase their profits through the strong dynamics presented by the sector. Companies unrelated to the sector and without any previous involvement in it are mainly proceeding with acquisitions of hotel complexes or land in order to develop hospitality units.
“Sometimes it’s a diversification investment strategy and sometimes it’s a cash management exercise,” real estate sources following the developments tell Kathimerini. “Sometimes they’re also aiming for short-term profit, by downsizing and reselling the units.”
The latest example is Greek listed toys company AS, which announced on Thursday the purchase of up to 60,000 square meters in Elounda, on Crete, with the aim of developing luxury tourism accommodation. The total value of the transaction is estimated up to 2.5 million euros.
“The company’s management, realizing the great opportunities presented in the rapidly changing business environment, considers it necessary to balance the prospects and the risks, with its involvement in the development of luxury tourism accommodation, taking advantage of the great comparative advantages that our country displays in the tourism sector,” the AS Company said.
It is not the first non-hotel company to enter tourism in the last year: Ferry firm Attica Group has been investing in the hospitality sector since 2021. It initially acquired through its new 100% subsidiary – Attica Blue Hospitality – the company that owns Naxos Resort Beach Hotel, located in Agios Georgios Naxos, and then this year the owner of Tinos Beach Hotel, located in Kionia, Tinos.
Three months ago, the bakery group Manna-N. Tsatsaronakis bought Elafonisos SA from AEGEK for 1.75 million euros, after planning its expansion into hotels for a long time. Elafonisos SA is the owner of a 610,00 sq.m. property at Elafonissi, near Kissamos, also in Crete. The area has a license for mild tourism utilization and is located in an area of special natural beauty.
Market sources estimate this trend will continue, especially as there are several units or relatively mature hotel unit development plans with cash issues.
