Key Takeaways
- • Highgate and Eternam jointly acquired the Zafolia Hotel Athens, a 191-key independent hotel in downtown Athens, marking Highgate's first investment in Greece and expanding its Southern Europe platform.
- • This transaction represents the second investment completed by Alcyon Hospitality Europe, Eternam's dedicated European hospitality fund, following the July acquisition of Hilton Garden Inn Rome Claridge.
- • Highgate leverages 35+ years of hospitality leadership and an existing Portugal portfolio to execute opportunities across Southern Europe, targeting both urban hotels and destination resorts.
- • The deal reflects Eternam's strategic conviction in value-creation potential within European capital city hospitality markets, which combine structurally resilient leisure and business demand with asset improvement opportunities.
Summary
Highgate and Eternam have jointly completed the acquisition of the Zafolia Hotel Athens, a 191-key independent hotel located in downtown Athens. The transaction was announced on September 17, 2026, and represents a significant strategic expansion for Highgate into the Greek hospitality market while strengthening Eternam's European hospitality investment thesis.
For Highgate, this marks the company's inaugural investment in Greece and demonstrates its systematic approach to building a platform across Southern Europe. The transaction builds on Highgate's existing portfolio in Portugal, positioning the company to pursue a diversified range of opportunities spanning urban hotels and destination resorts throughout the region. According to Nicholas Mellis, Senior Vice President of Acquisitions at Highgate, the acquisition "establishes Highgate's presence in Greece and demonstrates Highgate's ability to source and execute high-quality opportunities across markets." Mellis emphasized the company's 35+ years of hospitality leadership and expressed enthusiasm about the partnership with Eternam.
For Eternam, the Zafolia acquisition represents the second investment completed through Alcyon Hospitality Europe, its dedicated hospitality investment fund focused on European markets. The first investment, completed in July 2026, was the acquisition of Hilton Garden Inn Rome Claridge in Rome. This sequential deal flow underscores Eternam's conviction in the structural resilience and value-creation potential of European hospitality assets, particularly in major capital cities. European capitals such as Rome and Athens combine stable leisure and business demand patterns with individual hotel assets offering room for operational and strategic value creation.
The transaction positions both partners to capitalize on Greece's tourism recovery and Athens' appeal as a business and leisure destination within the broader context of European hospitality market dynamics.
For Highgate, this marks the company's inaugural investment in Greece and demonstrates its systematic approach to building a platform across Southern Europe. The transaction builds on Highgate's existing portfolio in Portugal, positioning the company to pursue a diversified range of opportunities spanning urban hotels and destination resorts throughout the region. According to Nicholas Mellis, Senior Vice President of Acquisitions at Highgate, the acquisition "establishes Highgate's presence in Greece and demonstrates Highgate's ability to source and execute high-quality opportunities across markets." Mellis emphasized the company's 35+ years of hospitality leadership and expressed enthusiasm about the partnership with Eternam.
For Eternam, the Zafolia acquisition represents the second investment completed through Alcyon Hospitality Europe, its dedicated hospitality investment fund focused on European markets. The first investment, completed in July 2026, was the acquisition of Hilton Garden Inn Rome Claridge in Rome. This sequential deal flow underscores Eternam's conviction in the structural resilience and value-creation potential of European hospitality assets, particularly in major capital cities. European capitals such as Rome and Athens combine stable leisure and business demand patterns with individual hotel assets offering room for operational and strategic value creation.
The transaction positions both partners to capitalize on Greece's tourism recovery and Athens' appeal as a business and leisure destination within the broader context of European hospitality market dynamics.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.