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The appeal of Italian hotels: investment record in 2017

09 February, Il Sole 24 Ore

The touristic sector is more and more appreciated by investors, especially the international ones. The report by the consulting multinational Ernst Young shows how investments in hospitality in 2017 reached their peak with 1.6 billion euro. The segment grew by 7.2% compared to 2016. Moreover, this is the third consecutive year of significant growth of the investments.

And the future perspectives are definitely positive. The EY analysts stress how the segment is continuously growing, especially for what concerns beach destinations, as the demand is moving from the Africa and Middle East destinations towards Mediterranean Europe.

Hence, the outlook for 2018 signs a great interest from Asian investors, particularly interested in Milan, Rome, Florence and Venice. The top destinations with a high range target remain the preferred by investors.

The 2017 results reported also the peak in terms of visits, registering 60 million tourists from abroad. We must also note that the returns in Italy are quite interesting. According to the estimations by Aica-Confindustria, referenced by EY, the returns per room was set at 8.4% between 2016 and 2017, with the peak in Venice of 15% against an average price of 146 euro (+4.8%). The average occupancy rate was equal to 69% with peaks of 81% in Naples.

EY has also reported 47 investment operations in the hospitality sector, among which there are the purchase of the Boscolo group by Värde, or of trophy assets such as the Casta Diva complex on the Como Lake acquired by the group Attestor, or the Satrunia thermal baths bought by York Capital, or the Valtur resorts by Cdp.

EY has estimated international investments for over 1.1 billion euro, equal to 60% of the total.

The city that has registered the highest number of investment operations has been Rome with 470 million, followed by Venice and Milan. Venice is the most expensive destination: 450 thousand euro, followed by Rome with 220 thousand, and Milan with 180 thousand euro.

Concerning the origin of the investors, EY shows the return of North American investors (43% of the total), together with European ones (24%). Italian investors have been about 30% of the total.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

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