Prodexpo 2023

Global Chains and Greek Tourism: Opportunity or Overload?

Insights from Prodexpo Conference 2023

The Prodexpo Conference, Tsomokos Communications’ annual flagship event for the Real Estate industry, concluded its latest edition with resounding success. The bustling world of real estate, along with the tourism sector’s pivotal role, took center stage at this 24th edition of the conference. Held on October 25-26 at the Megaron Athens International Conference Centre in Athens, Greece, the event provided a compelling forum for industry leaders to gather and engage in meaningful discussions.

On the second day of the conference, Kostas Panagakis, Travelworks Principal, moderated the panel titled ‘Global Chains and Greek Tourism: Opportunity or Overload?’. The session welcomed esteemed voices from the hospitality sector, including Thomi Christodoulopoulou, Partner at KLC Law Firm; Raul Levis, General Manager of Mandarin Oriental, Costa Navarino; Vassilis Themelidis, Regional Director South & East Europe at Wyndham Hotels & Resorts; and Frank Reul, Vice President of Development for Accor Premium, Midscale & EconomyEastern Europe, Balkans, Italy & Greece at Accor Group. Each panelist contributed a wealth of knowledge and insight, fostering a dynamic dialogue on the interplay between global hotel chains and Greek tourism.

Thomi Christodoulopoulou
Partner at KLC Law Firm

Expansion of Global Hospitality Brands

“Significant industry players, such as Hyatt and Intercontinental, have expanded their stakes in the region, while Marriott has announced plans to double its portfolio of European hotels from 800 to 1600 in the upcoming years”.

Mrs. Christodoulopoulou, pointed out that luxury brands have notably increased their presence in cities like Rome and Budapest. In Athens, the exclusive offerings of the Four Seasons and One & Only Aesthesis indicate potential growth in this segment. However, she underscored areas requiring improvement to support this expansion, especially in licensing procedures. She drew comparisons, remarking, “We are faster than Italy, but slower than Spain and Portugal,” highlighting that these delays could deter investors.

Mrs. Christodoulopoulou also noted the need for further enhancements in tourism legislation, including updates to the time-sharing framework and the regulations that oversee the operation of hotel spas.

The Mandarin Oriental’s Impact and Technological Advancements

Raul Levis underscored the positive impact of prominent brands like Mandarin Oriental entering Greece, spurring tourism development through competition and strategic partnerships. He identified technology as an area ripe for advancement, contrasting the approximately 1,400 hotels and resorts in Italy offering virtual tours with the mere 40 in Greece. He also noted that renowned brands such as Mandarin Oriental have the unique capacity to attract new demographics to Greek shores—tourists who may not have previously considered the country as a travel destination. Yet, he acknowledged the integral role of small boutique hotels, advocating for a varied hospitality landscape.

In discussing specific locations, Mr. Levis lauded Athens as a “winner” in tourism and voiced enthusiasm for the forthcoming Mandarin Oriental in the Ellinikon area. For Mykonos, he envisaged potential for the Group’s growth, given the right strategic partnerships.

Raul Levis
General Manager of Mandarin Oriental, Costa Navarino

Vassilis Themelidis
Regional Director South & East Europe at Wyndham Hotels & Resorts

Wyndham’s Strategy and the Evolving Greek Hospitality Landscape

Vassilis Themelidis addressed the conference with optimism regarding the transformation of Greece’s reputation in relation to large hospitality brands. Highlighting a marked shift over the past 6-7 years, he noted how Greece is attracting significant institutional investments, welcoming prestigious hospitality brands that elevate the country’s profile. International chains are adopting a more flexible stance towards Greek hoteliers, fostering mutually beneficial licensing agreements.

Mr. Themelidis commended the benefits that global brands offer, such as widespread recognition and advanced loyalty programs, but underscored the critical role of well-trained staff in this growth narrative.

Wyndham’s expansion strategy extends beyond urban centers, targeting lesser-known regions with the intention to develop hospitality services. Echoing the sentiments of previous speakers, he expressed interest in investing in hotspots like Mykonos or Santorini, conditional upon finding the right local partner.

Accor’s Investment Outlook and the Post-Pandemic Recovery in Hospitality

Frank Reul highlighted the hospitality sector as one of the most promising and high-yielding real estate investment areas today. He noted that the sector stands out for its investment volumes and returns, thanks to a blend of traditional and innovative ventures that have emerged in recent years.

Mr. Reul underscored the swift recovery of the tourism industry after the pandemic, signaling the sector’s robustness. In this vein, he noted that Accor is actively seeking multiple investment opportunities across Europe. Specifically, Greece has demonstrated a strong recovery from the COVID-19 crisis, and Accor is set to further develop its tourism and business operations within the country.

Expansion efforts are underway in countries such as Croatia, Albania, and Montenegro. Additionally, Mr. Reul emphasized the significance of upgrades to the tourism product, which Accor extensively undertakes, positively impacting local communities and elevating the overall tourist experience.

Frank Reul
Vice President of Development for Accor Premium, Midscale & Economy, Eastern Europe, Balkans, Italy & Greece at Accor Group

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