Real estate investment companies (REICs) are increasing the share of hotels in their Greek property portfolios, with investments reaching 50 million euros so far in 2018. This figure does not take into account the debts and loans of those hotel businesses.

The trend of investing in hotels serves multiple purposes for REICs as they are expanding their activities into a promising industry with potentially higher returns than conventional property categories such as retail spaces and office buildings.

It also offers them access to the tourism industry – foreign investors’ top choice – and the opportunity to secure significant future capital gains, both for the REICs and the hotel businesses.

The latest move involved Dolphin Capital’s transfer of an 85% stake in luxury Amanzoe resort in Porto Heli to Grivalia Hospitality, the tourist investment arm of Grivalia Properties. The price paid was 5.8 million euros, but the buyer will also assume all of Amanzoe’s existing loan liabilities, which stand at 76.5 million euros.

The Grivalia-Dolphin deal includes the latter’s separate holiday resort in Ermionida, Kilada Hills. Grivalia, through Amanzoe, will acquire the hotel and 20 privileged plots in the resort for 10 million euros.

NBG Pangaea Real Estate Investment Co has also paid 18.2 million euros this year for two hotels in Thessaloniki and Nicosia, both of which are leased to companies owned by Zeus International, which is responsible for their management.

NBG Pangaea purchased Lazart Hotel in Thessaloniki for 7 million euros and acquired 100 percent of Lasmane Properties in Nicosia, a real estate firm which manages a hotel that used to be a Holiday Inn.

The latter has 140 rooms and is one of the biggest in the Cyprus capital. The deal is valued at 11.2 million euros, while another 4.5 million will be allocated for the property’s complete refurbishment.

Source: tornosnews.gr