The escalation of the Iran conflict from late February triggered an energy shock, with Brent crude prices exceeding $120 per barrel. Eurozone inflation rose to 3.0% in April, while energy inflation reached double-digit levels, creating a stagflationary environment.
In this context, the travel and hospitality sector faces increasing costs across energy, food and beverage, logistics, insurance and financing, while consumers are impacted by higher airfares and reduced discretionary income. Airlines remain particularly exposed due to fuel costs, influencing pricing, capacity and route decisions.
According to data from the Bank of Greece, inbound tourism recorded strong growth at the start of the year. International arrivals reached 2.13 million in January–February 2026, up 38.5% compared with the same period in 2025. Travel receipts excluding cruises increased to €994 million, marking a 72% rise year-on-year.
In Athens, hotel performance indicators improved, with occupancy and average daily rate increasing by 2.4% and 2.0% respectively, resulting in a 4.5% rise in RevPAR compared with the same period last year. However, March showed significant performance variation across properties.
In Thessaloniki, occupancy declined by 1.1% compared with Q1 2025, while average daily rate increased by 3.7%. RevPAR reached €60, representing a 2.6% year-on-year increase.
Nafplio illustrates the potential of secondary destinations. Visitor satisfaction remains high, with 98% of respondents stating they would recommend the destination and 92% indicating they would return, while the overall rating reached 8.4 out of 10.
Despite strong visitor sentiment, hotel performance remains moderate, with occupancy at 45% in 2025, while RevPAR growth was primarily driven by increases in average daily rate. Winter demand continues to be limited.
Recent investment activity includes the sale of the Radisson Blu Zaffron Resort in Santorini by Fais Holdings, the strategic agreement between PHĀEA Hospitality Group and Hotel Investment Partners for Phāea Cretan Malia, and the acquisition of a majority stake in Casa Collective by Domes Resorts.
Additional developments include the restructuring of G. Kypriotis & Sons and the transfer of Kipriotis hotels in Kos to Kos Holdings, as well as the recapitalisation of Ella Resorts and OB Streem by H.I.G. Capital.
Looking ahead, cost management remains a key challenge for 2026, as energy prices and regulatory requirements continue to influence the operating environment of the sector.
