Thessaloniki, Greece.
Greek hotels posted uneven results in the first half of 2025, with Athens showing signs of stabilization, Thessaloniki gaining momentum, and resort destinations generating more revenue despite slipping occupancy, according to the Greek Hospitality Industry Performance Q2 2025 report by GBR Consulting.
Athens: Signs of stabilization amid rising supply
Hotel performance in Athens began the year with strong results in the first quarter, as both occupancy and average daily rate (ADR) posted year-on-year gains.
However, by April, occupancy had declined by 5.6 percent, offset somewhat by a 4.6 percent rise in ADR, leading to a 1.3 percent drop in revenue per available room (RevPAR). May saw a rebound, but June closed the quarter with further declines: occupancy fell by 2.0 percent, and ADR dropped by 3.9 percent.
According to GBR Consulting, Athens’ hotel market appears to be entering a phase of stabilization following several years of robust post-COVID expansion. Hotel supply in the capital has grown significantly, with a strong pipeline of new developments also underway. At the same time, competition from the short-term rental (STR) sector continues to mount. In 2025, the number of STR units in Attica increased by 17 percent, contributing to downward pressure on hotel occupancy as STR prices also rose.
Preliminary figures for July point to further declines in both occupancy and ADR for Athens hotels, with weak demand driving pricing challenges. Projections for August remain similarly subdued.
Thessaloniki: Positive momentum
Thessaloniki’s hotel market posted healthy gains in the first half of 2025. Occupancy increased by 4.3 percent year-on-year, while ADR rose by 4.4 percent, suggesting steady demand growth in northern Greece’s largest city.
Resorts: Stronger revenue despite weaker occupancy
Greece’s resort hotel sector kicked off the 2025 season in April with a 4.1 percent year-on-year decline in occupancy. However, revenue metrics told a more positive story. Total revenue per occupied room (POR) surged by 25 percent, while the number of rooms available expanded by 27 percent compared to April 2024.
Despite soft occupancy throughout the second quarter, revenue performance remained resilient. Between January and June 2025, occupancy fell by 1.1 percent compared to the same period last year, but total revenue per occupied room climbed 10.3 percent. May was the weakest month in terms of occupancy, yet the sector overall saw RevPAR rise by 9.1 percent in H1 2025.
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