Athens Tourism Set for New Growth as Zafolia Hotel Receives Major International Investment Boost

Highgate and Eternam have finalized their acquisition of Athens Zafolia Hotel. Both companies have full ownership of the 191-room property. This is Highgate’s first property in Greece, and Eternam’s first property in Greece, as part of their growing hospitality portfolio. Highgate will lead the management of the property, and renovations will occur to guest and public areas. International travel and business have returned to Athens, and more properties like Zafolia will be renovated to cater to travelers. This transaction shows the interest and ability of larger investment firms to participate in the Greek hotel market.

Major Athens Hotel Acquisition Signals Rising Global Confidence in Greece Tourism Market

The acquisition of Athens Zafolia Hotel represents a significant development in Greece’s hospitality investment landscape as international capital continues to target established properties in major European destinations.

Located on Alexandras Avenue in the heart of Athens, the hotel has long been recognised as an important independent hospitality asset in the Greek capital. The property offers 191 guestrooms and suites, conference facilities, dining areas and seasonal rooftop amenities, including a garden, restaurant and swimming pool with panoramic views towards Lycabettus Hill. The hotel also holds the Green Key eco-label certification, supporting its environmental credentials and aligning with increasing demand from travellers and investors for more sustainable accommodation options.

Athens Zafolia Hotel At A Glance

The transaction brings a new phase for a property that has been part of Athens’ hospitality landscape for nearly five decades. The hotel was owned and operated by the Zafolia family since 1977 before transferring to new international ownership.

Highgate Enters Greece With First Hotel Investment and Management Expansion

For Highgate, the Athens Zafolia Hotel acquisition creates its first operational footprint in Greece and strengthens its wider Southern European expansion strategy. The company has been building its presence across international hospitality markets, including Europe, and is now focusing on opportunities that combine strong locations, established assets and potential for long-term value creation.

Through the agreement, Highgate will take over the long-term management and operation of Athens Zafolia Hotel. The company will apply its global hospitality expertise, operational systems and management capabilities to reposition the property within the competitive Athens hotel sector. Highgate’s entry into Greece reflects a wider trend among international hotel operators seeking opportunities in destinations with strong tourism fundamentals.

Athens has become increasingly attractive because of its combination of:

• Strong cultural tourism demand
• Expanding international visitor numbers
• Year-round business travel
• Growing meetings and events activity
• Strategic position as a gateway to Greek islands and regional destinations

Unlike highly seasonal resort markets, Athens benefits from diversified visitor demand throughout the year, making city hotels attractive investment targets.

Eternam Expands European Hospitality Portfolio Through Alcyon Fund Strategy

The acquisition also represents a major milestone for Eternam’s hospitality investment platform. The Athens Zafolia Hotel purchase is the second completed investment through Eternam’s Alcyon Hospitality Europe fund, following the acquisition of Hilton Garden Inn Rome Claridge.

Alcyon Hospitality Europe is Eternam’s third dedicated hospitality investment fund and focuses on hotel assets located in major European capital cities where investors identify opportunities for improvement, repositioning and stronger operational performance. The fund plans to deploy approximately €60 million of equity over an 18-month period, targeting properties that offer long-term value creation potential.

The investment approach focuses on:

• Prime urban locations
• Established hospitality assets
• Renovation opportunities
• Professional management improvements
• Sustainable operational upgrades

Athens and Rome represent key markets within this strategy because both cities combine international tourism appeal with strong corporate travel demand.

Full Hotel Renovation Planned to Create Modern Athens Hospitality Experience

The new ownership group plans a comprehensive reinvestment programme to transform Athens Zafolia Hotel into a more modern hospitality product. The renovation programme will cover all 191 guestrooms and suites, with upgrades designed to improve guest comfort, design standards and overall operational efficiency.

The transformation will also extend to the hotel’s shared facilities, including:

• Public areas
• Conference facilities
• Food and beverage spaces
• Rooftop terrace
• Pool bar
• Restaurant areas

The rooftop experience is expected to remain one of the hotel’s major attractions due to its views over Lycabettus Hill and its potential appeal among leisure travellers, corporate guests and lifestyle visitors. The refurbishment strategy follows a growing investment model across Europe where established independent hotels are upgraded rather than replaced, allowing investors to preserve existing assets while improving market competitiveness.

Family-Owned Athens Hotel Moves Into New International Ownership Era

The acquisition marks the end of nearly 50 years of family ownership at Athens Zafolia Hotel. Since 1977, the property had been operated by the Zafolia family, becoming a recognised name within Athens’ independent hotel sector. The ownership transition reflects a broader transformation taking place across Greece’s hospitality industry. Many traditionally family-owned hotels are now attracting international investors looking to combine local heritage with global operational expertise.

This trend is particularly visible in Athens, where established properties are increasingly becoming targets for institutional investors seeking opportunities in one of Europe’s most popular urban tourism markets. The arrival of international investment brings new capital, renovation opportunities and professional management structures while maintaining the identity of long-established hospitality assets.

Athens Strengthens Position as Southern Europe Hospitality Investment Destination

The Highgate and Eternam acquisition highlights Athens’ growing importance as a destination for international hotel investment. The Greek capital continues to attract travellers because of its ancient heritage, cultural attractions, Mediterranean lifestyle and accessibility to island destinations.

For investors, Athens offers a unique combination of leisure and business demand. Hotels can benefit from visitors travelling for:

• Historical and cultural experiences
• International conferences
• Corporate meetings
• Cruise extensions
• Short city breaks
• Extended European holidays

The city’s improving tourism infrastructure and strong global recognition have encouraged more international companies to explore opportunities in the market.

Strategic Investment Supports Next Phase of Athens Tourism Growth

This transaction is noteworthy for more than just the sale of a hotel. It shows how the Greek hotel market is changing. More international investors are focusing on cities, rather than the Greek countryside. Highgate has hotel management experience and Eternam provides the financial aspects of the investment. Together, they will make improvements to the hotel and enhance its long term prospects.

The purchase of Athens Zafolia Hotel shows how the demands of the travel market, coupled with the transformation potential of historic buildings, make Athens an attractive market for hotel investors. With a complete refurbishment and a change in the management of the Hotel, Athens Zafolia will be well positioned to take advantage of Greece’s initiatives to enhance and improve Greece’s position in the European Travel market.