Airbnb or Hotel in Greece? Pros and Cons of Each in 2025

The decision to run a hotel or an Airbnb in Greece in 2025 depends on your vision, resources & strategy. Here's a detailed comparison to guide your decision-making.

1. Licensing & Legal Framework

• Hotels: Subject to Greek Tourism Organization (EOT) ratings, safety & accessibility standards.

• Airbnb/Short-Term Rental (STR): Requires building permits and municipal approval. Mainland areas may impose limits to manage overtourism.

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2. Investment & Operating Costs

• Hotel: Large initial capital, staff employment, higher overhead—but economies of scale.

• Airbnb: Lower upfront costs, flexible operations, but more reliance on self-management or third-party property managers.

3. Revenue Potential & Seasonality

• Hotels: Broader amenities and consistent occupancy, but significant staffing costs.

• Airbnb: Higher nightly rates and flexibility—especially for short stays—but occupancy can be unpredictable.

4. Guest Experience & Expectations

• Hotel guests expect services and uniformity (daily cleaning, 24/7 reception).

• Airbnb guests seek local charm, full autonomy, and personalized touches.

5. Operational Management

• Hotels: PMS systems coordinate staff, inventory, housekeeping, and maintenance.

• Airbnb: Self-managing is feasible, but third-party managers are costly and may eat into margins.

Choose based on your goals: boutique hotel excellence with full-service, or Airbnb-style flexibility with unique local experiences. Both models can succeed with the right digital and operational support.