Greek Hotel Performance Lags Neighbors

Hotels in Greece are facing a grim revenue picture even as hotels in other Mediterranean and southern European locations are showing signs of recovery, according to data published this week by Greek hospitality consulting firm GBR Consulting.

From January to April, revenue per available room dropped year over year by 5.2 percent in Athens and by 14 percent in Thessaloniki, the firm's quarterly newsletter reported. During the same period, RevPAR rose by 2.7 percent in Southern Europe, by 1 percent in Rome and by 1.9 percent in Madrid.

The report indicated that April was a particularly difficult month for Greek hotels, with cancellations due to air traffic controllers' strikes and the volcanic eruption in Iceland, though the volcano also gave a boost to some Athens hotels hosting stranded travelers. Rates and occupancy in Thessaloniki took a further hit with the opening of a new five-star hotel, now the second-largest in the city.

For the rest of the year, Greek hotels might begin to see signs of recovery due to last-minute reservations and the opening of the Athens seafront, according to the report. Performance also is dependent on "the avoidance of further violent demonstrations in Athens and extensive, and often unfair, coverage of them," the report said.