Buying a hotel in Greece: A practical guide

Buying a hotel in Greece is an attractive investment that requires both professional expertise and a deep understanding of the local market. In this article, we look at the key steps and considerations that are crucial for a successful hotel purchase in Greece.

A hotel purchase in Greece can basically take place in two ways:

Asset deal: Here, the buyer acquires the physical assets of the hotel, including the property and fixtures and fittings. This route is often the simplest as it focuses directly on the physical assets.

Share deal: In this transaction, the buyer acquires shares in the company that owns the hotel. This method can be more complex as it requires a thorough review of the financial and legal aspects of the business.

The process of buying a hotel in Greece is multi-stage and requires careful planning and execution:

Pre-decision and initial evaluation:

• Selecting a suitable hotel according to previously defined criteria.
  
  

• Initial valuation of the property and calculation of a preliminary purchase price offer.
  
  

Start phase of the transaction:

• Written offer, LOI (Letter of Intent), exclusivity agreement and NDA (Non-Disclosure Agreement). Minimisation of binding commitments in the LOI in favour of the buyer.
  
  

• Ensuring a sufficient exclusivity period.
  
  

Due diligence:

• Examination of the hotel's financial, technical, legal and tax situation.
  
  

Negotiation of the final purchase agreement:

• Determination of any discounts and the final purchase price.
  
  
• Determination of the terms and conditions prior to completion of the transaction.
  
  
• Agreement of guarantees and indemnities from the seller.

Purchase agreement and closing:

• Drafting and signing of the purchase agreement.
  
  
• In the case of share deals, signing of an additional share transfer agreement.
  
  
• In the case of asset deals, notarisation of the purchase agreement and entry in the land register.

The scope of legal due diligence when buying a hotel in Greece is extensive and includes:

• Property ownership: Review of property titles, encumbrances and debts.
  
  
• Licences/approvals: Review of operating, environmental and building permits.
  
  
• Contracts: Analysis of tour operator contracts, licence agreements and employment contracts.
  
  
• Litigation: Review of all relevant court and administrative decisions.
  
  
• Trademarks and other rights: Examination of trademarks and trade names.
  
  
• Insurance and data protection: Review of insurance policies and compliance with data protection laws.

While the process of buying a hotel in Greece is complex, it offers significant opportunities for well-informed investors. With a clear understanding of the key transaction types, a thorough knowledge of the steps required and a thorough legal review, you can maximise your investment and minimise the risks.

We are happy to support you in this crucial step. Our experienced team will accompany you from the initial enquiry to the successful completion of the purchase. We not only support you in your search for a suitable property, but also provide you with advice to ensure that every phase of your hotel purchase in Greece runs smoothly and efficiently.

Would you like to take the next step towards a successful hotel purchase in Greece? Contact us today and let's lay the foundations for your successful investment together!