Greek tourism: Historic buildings hand over the… baton to tourism

Iconic-historical buildings and properties in the center of Athens and Thessaloniki are preparing to change use and hand over the baton to tourism, strengthening the hospitality infrastructure with new luxury hotel units.

The Bodosaki Mansion, the most emblematic mansion of Syntagma Square, is looking for a tenant, while social security e-EFKA is also looking for an investor for the three-story listed building it owns on 58 Stadiou Street, in order to turn it into a luxury hotel. At the same time, one of the largest regeneration projects is underway in Thessaloniki, which concerns the reconstruction of the facilities of the former Fix brewery at the western entrance of the city.

Indicative of the dynamics that Athens has acquired in recent years as a tourist destination is the fact that between 2017 and 2022, 71 new hotels have made their debut in Athens, representing 20% of the units and 14% of the of rooms offered today in the Greek capital. In fact, according to the Institute of Tourism Research and Forecasting (ITEP), 72% of all hotels in Attica (not including the Argosaronic islands) are located in the central area of Athens. In total in Attica, at the end of 2022, based on data from the Hellenic Chamber of Hotels, the number of hotels reached 698, with a capacity of 34,577 rooms and 66,802 beds.

In particular, with regard to the emblematic Bodosaki Mansion located on 20 Amalia Avenue and 5 Souri Avenue, directly across from the National Garden, and considered one of the “landmarks” of the Constitution, the Bodosaki Foundation has assigned its lease to a real estate consulting company (Savills Hellas). The consultant has already issued a call for expressions of interest to prospective tenants (among them well-known hotel groups) for the historical and unique architectural building with a total area of 12,819 sq m, following the expiration of the contract with Eurobank at the end of this year . The bank is expected to move into the renovated “green” building, with an area of 4,650 sq.m., located at the junction of Omirou 2 and Stadiou streets, opposite the Old Parliament, which it acquired in 2018.

Based on the invitation of the consulting company, the Bodosaki Mansion can be leased either in sections by floor or independently. Based on data from the Bodosakis Foundation, at the end of December 2022 the fair value of the property was 72.54 million euros.

Prospective tenants are free to propose the preferred use, which in addition to offices may also include hotel operation. Non-binding offers for the property are expected to be submitted on July 17, followed by the submission of binding offers at the end of September.

The six-story office building of the Bodosakis group (Prodromos Bodosakis Athanasiadis, 1891-1979) was built between the years 1949-1958, based on plans by the architect Andreas Ploumistos, a founding member of the Hellenic Architectural Society, who was for many years head of the architectural sector in the Municipality of Athens . Professor Eleni Fessa-Emmanouil characterizes it as “classical modern style or a sample of how a new building can be essentially old or academic style”.

Seven floors

The building that was renovated in the 2000s to house Eurobank’s offices has seven floors and two basements, has an area of over 12,800 sq.m. and offers unobstructed views of the Acropolis, Lycabettus Hill and the National Garden.

The listed building belonging to e-EFKA.

The utilization of another emblematic building belonging to e-EFKA and located at 58 Stadiou Street is being launched by the insurance organization that announced a tender for its lease. The deadline for submitting binding offers is June 28.

The aim is to reopen the property as a hotel of at least 4 stars and achieve a high income. The three-storey building with a roof, with a total area of 3,105 sq.m., is located 50 meters from the metro station in Omonia.

According to the terms of the tender, the lease term of the property is set at 30 years, with the right to extend for another 10 years, and the starting monthly rent of the tender is set at 20,500 euros. It is also foreseen that the lessee will implement an investment program, amounting to at least 3.8 million euros, with the aim of re-opening the “insurance” property into a luxury hotel.

Based on the terms of the tender, the hotel operator should have experience in the management of at least three 4-star hotels, one of which must have a capacity of more than 100 rooms.

Redevelopment works

One of the largest regeneration projects in Thessaloniki is expected to be put on track in the near future. It is a reconstruction of the premises of the former Fix Brewery at the western entrance of the city.

The project promoted by Dimand Real Estate is expected to require capital of around 150 million euros. The start of construction work is scheduled for the second half of the year.

In the place of the old Fix factory, new spaces will be created that will exceed 51,000 sq.m. and will include a mix of uses. About 36,000 sq.m. will involve new buildings, while 15,500 sq.m. will concern the utilization of existing preserved buildings. In this context, from the 36,000 sq.m. the utilization of approximately 28,000 sq.m. to create 220-230 new apartments. In the remaining 8,000 sq.m. the construction of a new hotel is planned.