Historic Thessaloniki Hotel Attracts Israeli Investors

Thessaloniki’s hotel sector is attracting Israeli investors interested in real estate in the region. The latest development from investors, a four-star hotel in coastal Katerini (Pieria prefecture), is owned and operated by the Pavlidis family.

The hotel features 50 rooms overlooking a large pool area, 10 suites with private pools, and a new bungalows complex on the foothills of Mount Olympus, also in Pieria prefecture.

Israeli investors looking for investment opportunities in real estate have recently turned to Greece, in order to take advantage of the economic recession. In Thessaloniki proper, investments are going toward renovating preserved buildings in the city’s historic center into “boutique” hotels is underway, with “Naftemporiki.” The news of Israeli investments coincides with plans for a Holocaust Museum in the area of the old Thessaloniki train station.

For those unfamiliar, Thessaloniki once hosted the world’s largest Sephardic community, which was almost completely annihilated during the WWII occupation (1941-44) by Nazi and Axis forces.

Israeli investors in Greece tend to come from three distinct cames: those interested in building a villa or a holiday home near the beach for the summertime or vacations; those purchasing assets for a good and stable yield; and those who are prepared to permanently move to Greece permanently.

One historic building is the “Caravan Sarai” located just north of the Hoca Bay mosque, that has served as a town hall in the past. Another historic building attracting the attention of Israeli investors is the “Vienna” house, on 2-4 Egnatia Avenue, which initially served as a hotel when it was constructed in the early 1920s.

During the Nazi occupation, the same building was used as a headquarters for collaborationist units and even the German military administration “Kommandantur” in the city.