The how and the why of the agreement to sell a stake in two Louis hotels in Corfu

Amongst those seeking funds is Louis, which in recent years has seen the quality of the competition improving with ongoing investments in infrastructure. It has now sold a stake in five of its Greek hotels, including two in Corfu. The five properties are the Louis Grand Glyfada and Corcyra Beach in Corfu, two hotels in Zakynthos and one in Crete.

According to market information, the pre-contract was signed on Monday, with Louis retaining management of the properties and keeping its personnel. The buyers are an International Fund which, recognising Greece as a country with financial opportunities and an emerging tourist market, is acquiring a stake in infrastructure that it expects to increase in value over time. The interest shown (something that is happening for all Greek destinations) is indicative of what has been happening in the Greek tourist economy over the last five years and more.

As regards Corfu, it is clear that this all began with the Ikos investment, which was part of an aggressive half-million Euro package to establish new units in the Mediterranean by 2025. In Corfu this unit is in Dassia (along with Halkidiki, Kos and Marbella in Spain). Mr. Daskalantonakis immediately responded by refurbishing and upgrading his hotel in Kommeno. With four properties on the island, Louis wasn't going to just stand by - thus the agreement to sell a stake in two of the properties to allow funding of the necessary refurbishment and upgrading to make it more competitive.