The outlook for Greek tourism and the hotel market is positive, according to the new 2025 Global Hotel Outlook report by CBRE Hotels. Greece is among the European destinations with a strong expected increase in international arrivals, confirming its continued attractiveness as a leading tourist destination.
At the same time, the country is among the markets where a favorable balance of supply and demand for hotel units is expected. The report estimates that Greece, along with France, Spain, and Italy, will add limited new hotel capacity by 2029, which, combined with the continued rise in international arrivals, strengthens the prospects for existing investments in the sector.
Positive outlook for Europe too – Asian market returns
At the European level, CBRE Hotels is optimistic about 2025, although the slight decline in US tourism demand is a cause for cautious concern. Strong domestic and global demand, however, is expected to support RevPAR (revenue per available room) growth, with strategic pricing and solid fundamentals supporting the industry’s momentum.
The International Air Transport Association (IATA) is forecasting a 5.5% increase in passenger traffic in Europe for 2025, while a full recovery in demand from Asian markets – and especially China – is expected by the end of the year, according to Tourism Economics.
Germany and the Netherlands stand out with an estimated increase of over 20% in international arrivals, while strengthening connectivity between source and destination markets is highlighted as a catalyst for maintaining the growth trajectory.
Investment mobility and limited new supply
The European hospitality market continues to show limited growth in hotel supply, with Ireland and Poland recording the largest increases this year. In contrast, new hotel development in markets such as Greece, Spain, and Italy remains low, which, according to CBRE, may increase the value of existing assets.
Investment interest in the hotel sector is expected to be strong, as the valuation gap between buyers and sellers narrows. Stabilizing yields, strengthening confidence in total returns, and reducing borrowing costs create favorable conditions for significant deals.
The trend of limited new development is also expected to boost interest in less saturated destinations, opening up new opportunities for both investors and hoteliers.
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations, Greek travel market, Greek tourism statistics, Greek tourism report
