New Goldman investment in Greek tourism


Goldman Sachs is investing an additional 130 million euros in Greece for the acquisition and modernization of three hotel units of the GHotels group, which belongs to the Grigoriadis family, according to Kathimerini.

If completed, the takeover of these three hotels will add to a long series of foreign direct investments that major institutional investors have made in Greek tourism, such as Blackstone, Hines, Goldman Sachs Asset Management and others.

Forecasts for Greek tourism remain optimistic despite the pandemic and the war in Ukraine. With an annual tourism revenue target of €27 billion by 2030, up from €18.2 billion in 2019, interest in hotel properties in the country remains strong, market sources point out.

The brewing deal between Goldman Sachs and GHotels is for a five-star hotel and two four-star units at Kallithea in Halkidiki, which between them have a capacity of around 1,000 beds, sources told Kathimerini. Their combined value is estimated at 80-90 million euros, including their loan obligations. Goldman Sachs’ business plan foresees an additional 50 million euros for the upgrade and modernization of the three hotels. Recall that Goldman Sachs also holds a stake in the leading hotel group Sani/Ikos, also active in Halkidiki, in Central Macedonia.

The same sources explain that the Grigoriadis family will initially retain a minority stake, while Goldman will also obtain the right to acquire this stake later. Greek banks have been approached for financing to finalize the operation, particularly regarding the modernization program and the refinancing of the existing bonds of the three units. There now appears to be a tentative agreement with the lenders.

It is not yet clear whether the three hotels will immediately be transferred to new management. However, sources say a Greek entrepreneur was the matchmaker, who controls a hotel group with six units in central and northern Greece and a hotel in the northern suburbs of Athens – he will likely be involved in future management of the three units in Halkidiki.

GHotels controls three other units: a five-star hotel and a three-star unit in Halkidiki, and another three-star hotel in Crete.


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