Tourism

The institutional framework of tourism in Greece is determined by two basic laws, namely the Law 2160/1993 (Government Gazette 118/A) and the Law 4276/2014 (Government Gazette 155/Α).

In particular, L. 2160/93 proceeded to systematize the operating procedures for tourism enterprises and tourism infrastructure, while the more recent L. 4276/2014 promoted the simplification of the relevant procedures and clarified the content of the special forms of tourism.

The Special Operating Label is still in force, which functions as an operating license for tourist accommodation; the procedure for its granting for hotels and organised camping sites as well as furnished rooms and apartments for rent is simplified. The classification of tourist accommodation is now entrusted to the Chamber of Hotels of Greece. Additionally, in this body, the General Commercial Registry service is created as well as an one-stop shop service, in order to simplify the procedures and faster processing of the applications. In addition, the Citizens’ Service Centres (KEP), operating as a Single Contact Service Point for citizens can accept applications for the licensing of tourism enterprises.

Introduction

Tourism is one of the main economic sectors in Greece (26 million tourists in 2015). Tourism infrastructure has greatly developed and offers a wide variety of tourist facilities while tourism is the fastest growing industry in Greece.

Public authorities, at the local, regional and national level, have a prominent role and responsibility in the establishment of conditions favourable to sustainable development in tourism. There are opportunities in tourism for the elderly (silver economy) or eco-tourism, upgrading the tourism value chains aiming for higher market segments, and diversify tourism activities into becoming less dependent on seasonal tourism.

Tourism is subjected not only to specific tourism regulations but also to regulations primarily designed for other areas such as the environment, consumer protection, the preservation of cultural and historical heritage. There is a large variety of tourism regulations within the different competency levels of administration.

What makes a hotel acquisition special?

Purchasing a hotel means investing in real estate for a specific purpose. This specific purpose is the hotel business that is directly connected to the real estate. At the same time, however, such an acquisition is much more dynamic than a “normal” real estate investment with a “major tenant”, since the hotel operator must cater to a continuous stream of guests.

But operating a hotel is much more than renting out rooms on a nightly basis. For there are always additional businesses such as a restaurant, a bar, shops, guided tours, conferences, etc. And usually even more businesses are situated within the hotel (e.g. a spa, water sports, car rental, etc.), operated by an independent party that leases the space from the hotel owner.

In the context of a hotel acquisition, all these components and the complexity of these interrelated businesses must be taken into consideration for the purchase decision, the evaluation and negotiation of the purchase price, the details of the purchase agreement and the structure of the acquisition process. This chapter outlines the typical acquisition process, with a focus on legal due diligence, while also describing some special forms of hotel acquisitions.