Hotel Foreclosures Continue to Plague Greece’s Islands

Despite Greece’s booming tourism sector and record visitor numbers in 2024, a troubling trend is casting a shadow over the country’s idyllic island destinations: a wave of hotel foreclosures and sales that threatens the survival of small, family-run tourism businesses.

According to data from E-Real Estates, more than 120 hotel units and tourist accommodations have been listed for sale across Greece within just 30 days — a sharp indicator of the strain faced by the sector. The majority of properties are small-scale operations, with fewer than 30 rooms, located in key destinations like the Cyclades (40 listings), Crete (23), the Ionian Islands (23), the Dodecanese (12), and other regional island clusters.

While tourism demand continues to soar, these numbers point to a growing disconnect between national tourism performance and the sustainability of local hospitality enterprises.

A Surge in Foreclosures
Beyond simple sales, foreclosure activity is on the rise. Between January and mid-April 2025, 99 hotel properties have already been scheduled for auction — following 293 foreclosures recorded throughout 2024. This year is expected to reach similar levels, with 135 hotels already set to go under the hammer.

This surge reflects a wider pattern: for the fourth consecutive year, listings and foreclosures in the tourism sector have remained high. As Themistoklis Bakas, president of E-Real Estates, explains, “Despite strong demand, the tourism industry is under constant pressure — and small operators are bearing the brunt.”

The Roots of the Crisis
The challenges driving this crisis are complex and cumulative. Rising operating costs — from energy bills and raw material prices to higher service fees — are hitting small hotel owners hard. Many are also struggling to repay loans taken during previous downturns or to modernize their facilities to stay competitive.

Meanwhile, the entry of domestic and foreign investment funds into the market is accelerating, with non-performing loans serving as a key vehicle for acquisitions and refinancing. For small hoteliers, this can mean losing not just their business, but also their family legacy.

Can Small Businesses Survive?
The current wave of sales and foreclosures highlights a critical question for the future of Greek tourism: can small and medium-sized enterprises survive in a market increasingly dominated by larger players and financial institutions?

As local businesses disappear, so too may the authenticity and charm that define Greek island hospitality. Experts warn that without targeted support — including access to credit, a stable tax framework, and protection against predatory lending — the country risks losing a foundational element of its tourism identity.

If the trend continues unchecked, 2025 could mark another record year — not just for tourism arrivals, but for the number of family-run hotels forced to shut their doors.