Hotel and commercial property investments in Greece
Timely market placement and preparations for the post-COVID-19 era. Investors planning on a long-term basis look ahead, focusing on the advantages of a particular location and its sectors of activity. For decades, tourism has been an extremely important and successful sector of the Greek economy. A similarly positive growth path has also been seen with respect to commercial properties. At AP & Generalis, we have helped a large number of foreign companies invest in specific sub-sectors in Greece. In addition to investments in hotel facilities and commercial properties, our experienced team of lawyers provides you with support also during the operation of a hotel or commercial business in Greece, offering efficient and effective solutions in all relevant matters. Lease contracts for the rental of hotel facilities, commercial lease agreements, management contracts, allotment and guarantee contracts with tour operators, seasonal employment contracts and all other matters relating to the operation of your hotel or commercial business in Greece are normal everyday tasks at AP & Generalis.
We place at your disposal a proven team of 12 specialist lawyers, who cover all the necessary branches of law and have the experience and expertise required for even the biggest investments. We provide consistently high-quality advisory services, delivered by a team specifically selected for your investment plan and particular needs, under the guidance of accomplished commercial law experts specializing in corporate matters and M&A, and further supported by colleagues with in-depth knowledge in other fields, such as specialists in labor law or real estate law, so that all issues which may arise – and their implications – can be addressed in a comprehensive manner in order to achieve the optimum outcome.
Our support is provided not only for “classic” hotel purchases through share or asset deals, but also for direct purchases of hotel facilities at public auctions – which in Greece are now conducted online – or sales resulting from bankruptcy proceedings, by hotel businesses placed in receivership, as well as for your participation in calls for bids issued by the Hellenic Republic Asset Development Fund.
Depending on the needs of your investment plan, we put together and place at your disposal advisory teams made up of English-speaking:
- Tax consultants
- Civil engineers and architects
- Certification bodies (e.g. Tüv Austria)
The purchase of a hotel business presents certain challenges, which must be taken into consideration by the investor. Apart from the usual legal checks on the target company, due diligence should also extend to the following:
- Land registry checks on the hotel property and verification of the ownership status, as well as of any encumbrances on the property
- Necessary permits and approvals (operating license, hotel star rating certificate, environmental permit, building permits, licenses to sell food and beverages, i.e. operating licenses for restaurants and bars, swimming pool permits, fire safety certificates, etc.)
- Employment factors, taking into account national and local collective bargaining agreements for hotel employees, management contracts, etc.
- Any material agreements, such as allotment contracts and guarantee contracts with tour operators, lease agreements with third parties, hotel management contracts, etc.
- Any competition issues (control of concentrations between undertakings)
- Insurance and insurance policies
- Compliance with the General Data Protection Regulation
We present the results of our checks to you in a detailed Due Diligence Report. In addition, the most important findings, which are of key importance for the transaction, are set out in a separate Red Flag Due Diligence Report, so you have a full picture of any risks that the transaction may conceal.
On the basis of our findings, we then draw up the documents required for the implementation of the transactions, from the Letter of Intent through to the Share Purchase Agreement.
The experienced team of AP & Generalis are at your disposal at any time, ready to provide their specialist and bespoke advice at our offices in Athens and Berlin, and of course by telephone or video conferencing (Teams, Zoom, Skype).