New experiences and medium term stays – a hybrid hospitality mix

Serviced apartments, medium term rentals and extended stay hotels are creeping into the Greek accommodations market, boosting the range of experiences offered to visitors.

In a sign of maturity of the country’s real estate sector, investors are changing and improving the services offered to travelers – such as digital nomads, project consultants, and long term vacationers – interested in stays that go beyond a couple of weeks.  

 

Up until now, the Greek hospitality market has been dominated by hotels and basic short term accommodation offered on Airbnb-type platforms.

Investments in both accommodation segments have soared in recent years, drawing billions of euros from local and international players, as Greece’s tourism sector skyrocketed.

But now, more is being offered to those who plan longer visits, reflecting an increase in higher income individuals visiting the country.

The common characteristic of medium to long term accommodation offered is the inclusion of extra amenities.

The philosophy changes from simply offering a bed for the night to an experience that will help visitors remain active and productive, while also having the opportunity to socially engage with other travelers and locals.

Furnished apartments often provide 30% more space than a regular hotel room with the price being up to 20% lower, data shows. Experience and flexibility are also key as they offer a seamless journey and allow the tenant to operate on his own schedule or even host guests at a time that suits.

Serviced apartments include a fully equipped kitchen and often services such as gyms, yoga rooms and common work areas, allowing for more social interaction.

Market insiders point out the huge potential this new segment offers and that it requires a better quality of dwelling and hands on management of the building but that it is worth it.

New developers in the market, have been selling a more comprehensive mixed-use residential experience with amenities’ such as gyms, pools, wellness areas and parking spaces.  

At the end of the day, the extra services help boost client loyalty and that makes enormous economic sense.

Central Athens is the hub

Some property companies in Greece have been offering medium term stays at apartments for some time now but apart from the extra time provided, less is offered.

The first ones going the extra mile and offering complete serviced apartments have popped up in the heart of Athens, giving travelers direct and easy access to the best the city has to offer.

Areas like Omonia, Psiri, Agia Paraskevi, are home to the first medium term stays, while market insiders say that they expect more of them to soon appear in the Athens landscape.

 

Corporates love it

Demand for medium term accommodation is not just coming from leisure travelers. On a global level, the sector is also gaining traction from business travelers, according to a Global Serviced Apartment Industry Report (GSAIR) 2023. The report, which included a survey of 3,000 corporates, serviced apartment operators and agents, showed that serviced apartments usage is on the rise.

More than half (53 per cent) of corporates said they are now using serviced apartments for business travel more than they were twelve months ago, while 39 per cent report increased use for project or assignment work, which is unchanged compared to 2022.

A forecast which shows the popularity of these new accommodation services that are drawing more and more sophisticated investors.