Geopolitical developments in the Middle East have emerged as an unpredictable factor that could affect the performance of the Divani Group’s hotels, despite the fact that 2026 began under the best of circumstances.
In the annual financial report for the 2025 fiscal year, the management of “Divani Hotels S.A. Tourism, Hotel, and Technical Company” notes that military operations in the Middle East have already created a climate of international insecurity, significantly affecting travel by tourists from Gulf countries, as well as from markets that use the region as a stopover on their way to Europe.
The Start and Concerns for 2026
As noted in the 2025 financial statements, this year began with particularly positive prospects for Greek tourism, led by Athens, as the first quarter saw a significant increase in arrivals—a development that has already had a positive impact on the performance of the company’s hotel properties.
At the same time, the completion of extensive renovations in guest rooms, restaurants, and outdoor areas—such as pools, bars, and restaurants—combined with the partial modernization of equipment, has enhanced the quality of services provided.
Management estimates that these investments, combined with increased tourist traffic and the pricing policy in place, will contribute to further strengthening revenue.
However, geopolitical developments, and in particular the continuation of military operations in the Middle East, may create pressures on the sectorin the coming months. The impacts could be both direct, through a potential slowdown in tourist traffic, and indirect, due to rising operating costs across a range of sectors.
At the same time, the significant development of new hotel properties in Attica, as well as the further expansion of the short-term rental market (such as Airbnb), are intensifying competition, primarily in terms of pricing, a factor that is expected to affect the company’s performance in the short term.
Overall, management remains optimistic about the 2026 fiscal year, based on the momentum of tourism in Athens, as well as improvements in the company’s infrastructure and services. Nevertheless, the uncertainty associated with developments in the Middle East and the potential increase in operating costs may limit part of the expected growth.
In fact, the company expresses hope that the conflicts will de-escalate before the peak of the summer season, so that normalcy can be restored to international tourist flows.
“The year 2026 is projected to be better for tourism, and it is estimated that the group’s activity will remain at levels comparable to those of 2025 in real terms. However, tourism receipts are expected to show a slight decline in real terms, indicating that even if flows hold up, purchasing power and travel costs may put pressure on the real value of revenue.
"If attacks in the Middle East continue into the summer, they will cause difficulties and a further decline in the tourism market and tourism receipts in the European and, by extension, the Greek economy," the report by the independent certified public accountant states.
Performance in 2025
In 2025, the group, which manages seven hotels in Greece, undertook renovations of rooms, restaurants, and outdoor areas, as well as partially modernizing equipment, with the aim of providing upgraded services and boosting revenue through increased tourist traffic and its pricing policy.
In terms of results, the group’s revenue reached €78.8 million in 2025 compared to €76.7 million in 2024, representing an increase of approximately 3%. Pre-tax profits stood at €35.8 million compared to €35.6 million in the previous fiscal year, while net profits after taxes reached €27.96 million.
Management attributes the sustained high profitability to both increased tourism demand and improvements in the services provided.
During 2025, the group faced increased pressures on energy, raw materials, and operating expenses, resulting in cost of sales rising to €32.3 million from €29.6 million in the previous fiscal year.
Cash and cash equivalents showed a significant increase, which strengthened the Group’s financial position during a period of high international uncertainty. At the same time, the company continues to maintain limited exposure to long-term debt, a factor that provides it with greater flexibility to finance investments and address potential market fluctuations.
The Identity
The Divani Collection Hotels group, chaired and led by Spiros Divanis, maintains a presence in popular tourist destinations across the country, with hotels in Athens, Corfu, Larissa, and Meteora.
Its main activity is the operation of the 5-star “Divani Caravel” in Kaisariani and the“Divani Apollon Palace & Thalasso”and“Divani Apollon Suites”in Kavouri,“Divani Palace Acropolis”in Athens near the Acropolis, and“Divani Palace Larissa”in Larissa, as well as the 4-star“Divani Meteora”in Meteora and“Divani Corfu Palace”in the Kanoni area of Corfu.