Makedonia Palace: turnover rises in 2025, but losses reach €3.1M

According to the financial statements, the company’s turnover amounted to €17.23 million in 2025, compared with €17.02 million in 2024, representing an increase of approximately 1.2%. Management attributes the continued upward trend primarily to the strengthening of tourism and hotel activity in Thessaloniki, as well as increased visitor numbers driven by conferences, business events, and social functions held in the city.

This performance follows a significant improvement in the company’s financial results during 2023 and 2024, when profitability also increased substantially.

From Profit to €3.1 Million in Losses

Despite the increase in turnover, the company recorded a loss of €3.07 million in 2025, compared with a profit of €727,317 in 2024. According to management, this reversal was mainly attributable to higher expenses and accounting charges associated with the settlement of outstanding obligations.

In particular, administrative expenses increased to €2.60 million, compared with €2.33 million in 2024, while selling and distribution expenses rose to €1.70 million, from €1.43 million.

The largest increase was recorded in other expenses, which surged to €1.84 million, compared with just €78,836 in the previous financial year. By contrast, finance costs declined significantly to €343,052, compared with €472,129 in 2024.

The Charges Affecting 2025

As noted in the financial report, the loss-making year was primarily associated with increased promotional expenditure, as well as the recognition of lease-related liabilities owed to e-EFKA, as part of the process of settling and offsetting investment-related expenses, pursuant to Law 5301/2026.

Management estimates that these liabilities are expected to be reversed in a subsequent financial year, which, in its view, limits the significance of this charge in terms of the company’s recurring operating performance.

At the same time, the company’s assets include doubtful receivables, for which, according to the company, the necessary legal actions have been undertaken and the corresponding provisions have been recognized.

Liquidity and Cost Management in Focus

Management is placing particular emphasis on ensuring adequate liquidity and maintaining disciplined cost management, with the aim of improving the company’s competitiveness over the long term and fully restoring it to a stable operational and financial position.

As part of this strategy, the hotel is continuing to review and refine its pricing policy, with the objective of further strengthening its position in the Thessaloniki hotel market.

This strategy is also linked to efforts to maximize the return on the substantial investment expenditure undertaken in previous years, enabling the investment to generate greater returns while reducing the company’s future reliance on shareholder financing.

Outlook for 2026

For 2026, management estimates that the company’s financial performance could improve by approximately 2%–3% compared with 2025, which is characterized as the year in which turnover reached its peak.

Nevertheless, the business environment continues to be subject to uncertainty. The continuation of the war in Ukraine, as well as the military operations involving Israel, are creating an environment of geopolitical instability, with potential implications for tourism as well.

Despite these external pressures, the company’s primary objectives remain to maintain the upward trajectory of turnover, improve operating efficiency, and strengthen its position in the Thessaloniki hospitality market.