Businesses are getting into tourism
A growing number of businesses from many different sectors are also turning to tourism in an effort to increase their profits thanks to the strong momentum exhibited by the sector. Companies unrelated to the sector and without previous involvement in it mainly acquire 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 told Kathimerini. “Sometimes they also aim for short-term profit, by downsizing and reselling the units.”
The latest example is Greece-listed toy company AS, which on Thursday announced the purchase of up to 60,000 square meters in Elounda, Crete, with the aim of developing luxury tourist accommodation. The total value of the transaction is estimated at 2.5 million euros.
“The company’s management, aware of the great opportunities presented in a rapidly changing business environment, considers it necessary to balance the prospects and the risks, with its involvement in the development of luxury tourist accommodation, taking advantage of the great comparative advantages that our country displays in the tourism sector,” AS said.
It’s not the first non-hotel business to venture into tourism in the past year: Ferry company Attica Group has been investing in the hospitality sector since 2021. It initially acquired through its new 100-year-old subsidiary % – Attica Blue Hospitality – the company that owns Naxos. Resort Beach Hotel, located in Agios Georgios Naxos, then this year 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 the hotel business for a long time. Elafonisos SA owns a plot of 610.00 m². property in Elafonissi, near Kissamos, also in Crete. The area has a license for soft tourist use and is located in an area of particular natural beauty.
Market sources believe that this trend will continue, especially since there are several units or relatively mature hotel unit development plans with cash flow problems.