The value of Athens hotels has surged by more than 40% over the past four years, placing the Greek capital at the top of the rankings for the highest percentage increase in hotel values among 31 European cities for the third year in a row, according to consultancy firm HVS.
This rapid growth is driven by three key factors: rising demand for new hotel units due to increasing tourist arrivals, high revenue per available room (RevPAR), and the continued interest of investors in Athenian hotels, which remain more affordable compared to other major European cities.
Athens also recorded the highest annual growth rate in hotel values between 2015 and 2024. Specifically, values increased by 5.1% in 2021 compared to 2020, followed by a sharp rise of 11.6% in 2022, approximately 11.2% in 2023, and 11.8% in 2024. Over the entire period from 2015 to 2024, the average annual increase in hotel value was 6.1%.
Lisbon and Madrid Follow in the Rankings
Lisbon ranks second behind Athens, experiencing a similar tourism boom with an average annual increase of 4.7% in hotel values between 2015 and 2024. Madrid follows in third place with a 4.3% rise over the same period.
While lower interest rates have driven hotel value growth across all markets, HVS notes that strong RevPAR growth has contributed to increases of 6% to 8% in Lisbon, Madrid, and Edinburgh.
Despite ongoing geopolitical and economic challenges, hotel values across Europe have risen by an average of 2%, supported by stable hotel profits and reduced borrowing costs.
Travel Demand Remains Strong
The appetite for travel remains robust despite economic challenges, with Europe maintaining its status as the world’s leading tourist destination. Overnight stays across the continent increased by 53.4 million compared to 2023, reaching 2.989 billion in total, a 2% rise according to Eurostat data.
