France's AccorHotels is extending its reach in Greece after having struck up a deal to manage a new nine story hotel in Syntagma, central Athens. The deal is the latest change in a fast evolving Athens hotel market where strong tourism is driving changes and an investment boom worth more than 700 million euros in the next three years.
The French group, already present in Athens and Heraklion, will take up the former Kings Palace hotel that has been leased to Lampsa Hotels for 25 years. A fund belonging to former ATEbank employees owns the building that has been boarded up for several years.
Industry officials estimate that Lampsa Hotels is paying rent of around 1 million euros per year and that this amount could go higher if the new hotel beats initial goals. The building is located on the corner of 4 Panepistimiou and Kriezotou streets and will now be called MGallery.
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The moves also boosts Lampsa Hotel's dominance in the area. Around the corner from the MGallery, Lampsa owns the King George and Grande Bretagne hotels, two of the largest hotels in the Greek capital.