Greece hotel market shifts toward luxury accommodations

The Greek hotel market has undergone a significant structural shift over the last decade, according to data from the Institute of Tourism Research and Forecasts (ITEP). Between 2015 and 2025, there has been a marked increase in high-end accommodations, while lower-rated establishments have declined.

Five-star hotels saw the most dramatic growth, with the number of units increasing from 412 to 869. Room capacity in this category also rose from approximately 63,000 to over 112,000. Four-star hotels followed a similar upward trend, growing from 1,331 to 1,932 units, with room capacity increasing from 101,000 to 133,000.

Conversely, lower-tier hotels have seen a reduction. Two-star hotels decreased from 4,116 to 3,215 units, and low-category hotels fell from 1,444 to 1,131 units. Three-star hotels experienced a slight increase, rising from 2,424 to 2,971 units. This shift suggests that investors are prioritizing higher-spending tourists to achieve greater revenue per room and better returns.