Type of Submission

Refereed Article


This study examines the financial structure and profitability of various categories of Greek hotels for the 2005-2007 period, three years following the 2004 Olympics in Athens and just before the 2008 economic crisis in Greece. The research sample consisted of 146 private two, three, four and five star hotels. Various ratios relevant to the financial structure and profitability of hotels were explored. Results revealed significant differences in the means of most financial ratios of the four Greek hotel categories, except for some ratios such as gross profit margin and net profit margin. Five star hotels in Greece recorded larger net profits and used a larger percentage of lending capital relative to hotels in other categories. While four star hotels in Greece registered significantly higher operating costs relative to hotels with two or three stars, short term financing seemed to decrease for hotels with more stars. As such, the financial attributes of hotels in Greece are better understood.