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Parliament Approves Pivotal Adjustments To Hotel And Tourism Accommodation Licensing Laws

The Hellenic House of Representatives has approved significant amendments to the law governing the establishment and operation of hotels and tourism accommodations. With a decisive vote of 25 in favor and 15 abstentions, the modifications aim to extend compliance deadlines for obtaining operating licenses and introduce a rigorous special permit regime for properties that are currently non-compliant.

Extended Compliance Deadlines And Refined Requirements

Lawmakers have granted operators critical additional time to meet licensing obligations. The revised framework extends the deadline for securing an operating license until November 30, 2026, and also provides a one-year extension for other statutory requirements as stipulated in Article 18 of the current law. These measures address the challenge faced by many hotels and tourism facilities that have been unable to fulfill the necessary documentation requirements to obtain their licenses.

Introduction Of Special Operating Permits Based On Fire Safety Standards

The reform, proposed by legislator Kyriakos Chatziannou of DISY representing Ammochostos and backed in part by AKEL, introduces the issuance of a special operating permit. This permit is contingent upon stringent conditions, including a comprehensive review of the facility’s architectural plans by an independent consultant and the submission of detailed fire safety studies. The initiative is designed to ensure that both active and passive fire protection measures are thoroughly verified by the relevant authorities, notably the Fire Service.

Comprehensive Enhancements To The Regulatory Framework

The amendments incorporate several critical updates:

  • Extension of the compliance deadline for obtaining an operating license until November 30, 2026.
  • A one-year extension of additional deadlines as outlined in Article 18 of the current law.
  • Replacement of the term “temporary operating license” with “special operating permit” to reflect enhanced safety requirements.
  • Substitution of the term “special fire protection plan” with “fire protection study”.
  • Extension of the Fire Service’s review period for submitted fire protection studies from 30 days to six months.
  • Implementation of a unified, standardized evaluation process for fire safety recommendations.
  • Revision of the special fire certification validity, now effective for three years, with a one-time renewal for an additional two years, subject to onsite inspections.
  • Provision for the automatic invalidation of the special fire certification if unauthorized building modifications occur.
  • Authority for the Fire Service to revoke the certification if the requisite fire safety measures are not maintained.
  • Modification of the validity of the special operating permit to three years, renewable once for a further two years.
  • A mandatory condition is that, following expiration, no hotel or tourism accommodation may operate without securing a valid operating license in accordance with the law.

These changes are set to modernize the regulatory landscape for the tourism sector, balancing the need for operational flexibility with uncompromising safety standards. By integrating extended compliance timelines and robust fire safety protocols, the new law aims to safeguard both public safety and the long-term viability of the hospitality industry.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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