- Goldman Sachs is investing hundreds of millions in Greek hotels, The Wall Street Journal reported.
- The bank bought 3 seaside properties in the northern region of Halkidiki, per the report.
- Goldman is said to be interested in buying more hotels, and may combine them under one brand.
Goldman Sachs plans to invest hundreds of millions of dollars in Greek hotels and aims to buy more properties.
That’s according to The Wall Street Journal, which said the bank is investing between 150 million and 200 million euros ($163 million to $217 million) on three seaside resorts in the northern region of Halkidiki.
Unnamed sources told the Journal Goldman bought the hotels in October and now planned to renovate them.
In May last year, Greek newspaper Kathimerini reported that Goldman was in talks with GHotels to acquire a five-star hotel and two four-star units at Kallithea in Halkidiki. The properties were estimated to be worth between 80 million and 90 million euros.
The Capital Quest reported in October that Goldman was planning to invest in hotels as part of a drive to tap into the thriving Greek tourism industry.
The Journal also reported that Goldman was looking for more properties in Greece and elsewhere in Europe with a view to potentially run them under a single brand.
Goldman’s reported investment in Greece marks a symbolic point in its continued emergence from a massive recession after the global financial crash, with several downgrades to its credit rating deterring global investors.
Its economy is the same size as it was in 2001, and still nowhere its 2008 peak, according to FRED data.
However, the arrival of a right-leaning government appears to have brought more private foreign investment to Greece, complementing its bustling tourism sector.
The country is estimated to have enjoyed a record number of arrivals during its travel season last year, per Deutsche Welle.
However, the investment also comes as new headwinds rock banks and the real estate sector in particular. Commercial property is facing a potential crisis as rising interest rates increase the risk premium on bonds tied to the sector.
Sources told the Journal that Goldman’s properties would be run by its asset management division, which is seeking stable sources of revenue outside the more volatile financial sector.
Goldman Sachs didn’t immediately respond to a request for comment from Insider, made outside normal working hours.