Highgate and Eternam Acquire Zafolia Hotel Athens in Greece Debut
The joint acquisition of the 191-key independent hotel marks Highgate's first Greek investment and expands the operator's Southern Europe footprint.
Highgate and Eternam have jointly acquired the Zafolia Hotel Athens, a 191-key independent hotel located in downtown Athens. The transaction, announced on September 17, marks Highgate's inaugural investment in Greece and represents an expansion of the company's platform across Southern Europe.
The acquisition positions both operators to capitalize on growing demand for quality hospitality in Greece's capital. Athens has emerged as a key destination for leisure and business travel, with the downtown location offering proximity to cultural landmarks and commercial districts. The independent hotel sector in Greece remains fragmented, creating opportunities for established operators to consolidate and upgrade properties.
For Highgate, the move signals a strategic pivot toward underserved European markets beyond its traditional Western European strongholds. The company has built its reputation managing luxury and upper-upscale properties across North America and select international markets. This Greek entry follows the operator's broader expansion strategy into emerging European destinations where independent hotels offer acquisition and conversion opportunities.
Eternam's involvement in the joint venture reflects the company's growing role in sourcing and developing hospitality assets across the Mediterranean and Southern Europe. The partnership structure allows both operators to share capital requirements and operational expertise for the property's repositioning and management.
The deal underscores accelerating consolidation in Southern European hospitality, where independent properties increasingly attract institutional capital seeking to upgrade aging stock and standardize operations. Hotel owners across Greece have begun pursuing strategic partnerships with established operators to access distribution networks, technology platforms, and capital for renovations—elements increasingly required to compete in a market drawing international chains.
No financial terms were disclosed. The acquisition is expected to strengthen both companies' presence in a region where U.S. and European operators have intensified activity over the past two years. The successful integration of the Zafolia could serve as a template for future acquisitions in Greece and neighboring markets where similar opportunities exist.