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Hotel investments have doubled in the last past three years

16 April, About Hotel

Gabetti reports that the real estate investments in the hospitality sector in Italy have doubled in volume since 2014, reaching 1.8 billion in 2017. “Investors are particularly interested in high-end properties (4 and 5-star hotels), which represented 80% of the total investments in 2017 (95% in 2014-2016). Lower-category hotels are less interesting for institutional investors. The only exceptions in this category are those properties strategically located or with renovation potential, or properties targeting younger and more sophisticated customers, such as new generation design hostels in excellent positions. This latter type resented in 2017 almost 13.5% of the total”.

The analysis also shows how the Italian hospitality property offer has changed in its composition, with the progressive reduction in the number of businesses and the increase in the number of rooms and beds. At the same time, low-end properties have decreased in number, favouring the rise of medium-range hotels that represent nowadays the biggest quota, as well as of the high-end hotels that have reported the sharpest growth.

“In 2017 international investors were approximately 53% of the total investors. They were for large part from France, US and UK, constituting 66% of the total international capitals. Whereas in 2016 the biggest international quota was reported by Qatar (56%), followed by Turkey (25%). Qatar was the main international investor also in 2015 (46%), followed by the US and UK (29%), while in 2014 the biggest investor was Russia with 38% of the total international investors, followed by Qatar with about 27%.

According to Gabetti, transactions concerned in 2017 nearly 9,800 rooms. Their distribution was more homogeneous than in 2016, with the predominance of the centre (37%), followed by the south (36%) and the north (27%). At a regional level, Lazio has the biggest quota (21.3%), followed by Tuscany (14.6%), Puglia (12.2%) and Lombardy (10.2%).

Rome has the highest number of rooms transacted (20.2%), followed by Florence (9,5%), Castellaneta (8.1%), and Milan (5.9%).

Composition of the offer

According to the data from Istat processed by Gabetti, hotels are 19% of the total, including apartment hotels (46%), bed and breakfast (18%), agritourism (10%), camping and resorts, holiday houses, youth hostels, and mountain huts (4% of the total).

Between 2008 and 2016, the hospitality facilities other than hotels reported an increase in their number, with 39 thousand new facilities.

There has been a sharp growth of bread and breakfast, which grew by 14 thousand new units from 2008, thanks also to the dedicated booking portals.

Hotels present a rather varied scenario: while the total balance is negative (989 hotel less from 2008), this reduction concerned only hotels with two stars or less. On the contrary, high-end hotels (4 and 5 stars) have significantly increased, respectively by 24% and 46%.

Source: About Hotel

Translator: Cristina Ambrosi