Two hats

Hospitality investing in Greece is finally becoming more institutionalized. This means we’re starting to focus on what’s best for the asset, and the business separately, making decisions with a clearer investment mindset.

Institutional investors are leading the way. They often approach investments in one of two ways: they either buy a property and lease it for steady income, or hire a management company to run it, accepting more risk but with the potential for higher returns. In the latter case, the investor steps away from day-to-day operations and focuses solely on the asset’s value. If the property’s value goes up, selling might be a logical step, free from any emotional attachment to the business operations.

This approach can be tough, especially if you’re used to managing every part of your business. Sometimes, what’s best for your asset may mean handing over management, or securing a steady income by leasing it out. Wearing the "investor hat" instead of the "operator hat" helps in making clearer decisions that focus on long-term value rather than just daily profits.

This separation of goals becomes even more complex in family-owned businesses, where some members are operators and others are purely investors. Operators might push for growth, while owners look for yield. It’s like owning shares in a company while also running it, you might sell if the value peaks, even if operations remain stable, because assets are often valued on their future potential, not just current performance.

Institutionalizing hospitality investments means viewing the property as an asset with potential. Sometimes, that means stepping back from daily operations, and making tough decisions for the long-term health of the investment.