Greek Hotel Revenues Near €2bn in 2025, But Rising Costs Squeeze Profitability

• 11 February, 26

Greek hotels recorded another year of solid revenue growth in 2025, with earnings approaching 2 billion euros, according to the latest annual Greek Hospitality Industry Performance report by GBR Consulting.

However, the report warns that mounting operating costs and a heavy tax burden continue to erode profitability across the sector.

Based on GBR’s benchmark survey of city and resort hotels nationwide, total room nights sold reached 8.0 million in 2025, up slightly from 7.9 million in 2024 (+0.7 percent). Aggregate hotel revenue rose by 7.4 percent to approximately 2.0 billion euros, compared with 1.8 billion euros in 2024 and 1.6 billion euros in 2023.

According to GBR, the figures reflect sustained demand across Greece’s accommodation market, following a strong year for tourism in terms of arrivals and travel receipts.

Cost and tax pressures weigh on profitability

Despite higher revenues, GBR notes that Greek hotels face substantial cost inflation that is limiting bottom-line gains.

Operating expenses increased sharply in 2025, driven by volatile electricity prices, labor market tightening, national wage agreement, and persistent staff shortages in the sector.

Taxation is adding further strain, the report highlights. An INSETE study published in October 2025 underlines what it describes as a “structural disadvantage” for Greek hotels through a “yield displacement effect”.

Under a four-star model with a gross room rate of 150 euros, the total tax burden – including VAT, the new Climate Crisis Resilience Fee (which replaced the former stay-over tax in 2025), and social contributions – accounts for 29.8 percent of the room rate, nearly double the equivalent level in Cyprus (16.1 percent). This elevated “tax floor” constrains hotels’ ability to offset rising costs through price increases without risking competitiveness.

Resorts post strong rate-driven performance

Resort hotels maintained occupancy levels broadly in line with 2024, though first-quarter gains had limited impact on full-year performance. Total Daily Revenue per Occupied Room (POR) increased by 8.9 percent year-on-year, with the strongest improvements recorded in April, June, and September.

Total Daily Revenue per Available Room (PAR) rose by 8.5 percent to 273 euros, primarily driven by higher rates, with peak levels reached in July and August.

Athens demand shifts toward year-round travel

Beyond the nationwide performance picture, GBR notes that hotel demand trends are evolving most visibly in Greece’s major city destinations, particularly Athens, where seasonality is gradually smoothing.

Athens continues to strengthen its position as a year-round destination. Performance in 2025 was driven by strong growth during January–March and November–December, when occupancy rose by 5.3 percent and ADR increased by 5.4 percent. During the April–October peak period, occupancy edged down slightly by 1.2 percent, while ADR rose by 2.7 percent.

Athens International Airport (AIA) remains Greece’s main gateway, accounting for around 39 percent of international arrivals, with roughly 40 percent of visitors connecting onward to other destinations.

Thessaloniki captures limited gains despite arrival growth

Greece’s second largest city, Thessaloniki recorded the highest increase in international arrivals among Greek airports (+10.7 percent), yet hotel occupancy rose by only 0.9 percent, as supply expanded with the opening of September Hotel Thessaloniki and NYX Hotel Thessaloniki. RevPAR improved by 5.4 percent, supported by a 4.4 percent rise in ADR.

Revenue growth not yet translating into higher margins

GBR concludes that the combination of rising operating costs and heavy tax incidence is creating a “double squeeze” on hotel financial performance, meaning that revenue growth in 2025 has not translated proportionately into profitability expansion.

Cre: Greek Travel Pages