International demand and new connections support the market
The growth in international demand represents one of the main evolutionary factors of the Italian hotel sector. The increase in stays and spending by foreign visitors, together with the development of new international air links, is helping to strengthen the market fundamentals and the quality of the sector’s revenues.
The new routes are also increasing the international accessibility of destinations outside the main gateways, helping to strengthen the visibility of new tourist locations and secondary markets. A dynamic that supports the progressive geographical diversification of investments.
Diversification of investments and valorisation of hotel assets
Geographical and typological diversification continues to characterize the evolution of the Italian market. Investors look at a complex range of destinations, assets and risk profiles, while the selection of assets, the positioning of the structures and the characteristics of the individual destinations take on an increasing weight in investment strategies and in the ability to generate value.
This evolution is also reflected in the existing real estate assets, increasing interest in redevelopment, conversion and repositioning operations of hotel structures. In particular, the ability to adapt assets to new standards of quality, efficiency and market positioning becomes an increasingly important factor in the valorisation of assets and the attractiveness of investments.
Rome and Milan: two different growth models
Within this scenario, Rome and Milan show two different development paths of the Italian hotel market, linked to the characteristics of the respective destinations.
In the capital, the investment dynamic has focused on repositioning in the luxury segment and on the pricing power of the destination.
Milan, on the other hand, benefits from the scale of the market, the diversification of demand and the continuous expansion of the sector.
“The growth in the quality of tourist spending is strengthening the fundamentals of Italian hospitality and broadening the investor base, from core and core-plus capitals to value-add operators. At the same time, geographic diversification of investments is creating and broadening growth opportunities,” comment Marco Comensoli, Head of Hotels & Leisure at Colliers Italia. “Milan, with constantly improving performance, continues to attract institutional capital, consolidating its role among the most attractive destinations in Europe”.
For further information
colliers.com
Colliers is an international company active in real estate consultancy, engineering and investment management. It operates with approximately 28,000 professionals and manages $110 billion in assets, offering services across the entire real estate life cycle.
>> If you want to receive news like this directly on your smartphone, subscribe to our new Telegram channel!
Thank you for subscribing to the newsletter.
