It's resort time. Following years during which institutional investors shied away from properties considered excessively volatile and complex for their excessive dependence on seasonality, capital is now eagerly eyeing leisure properties in Italy. To tell the truth, the phenomenon has been gaining traction for some time but Giampiero Schiavo, citing Ey data, explains that in 2023 “transactions for resorts reached as high as 46% of total hotel investments.” Speaking at the Milan Hospitality Forum organized by Scenari Immobiliari in collaboration with Castello sgr, Schiavo who is managing director of the latter, pointed out that Tuscany has attracted 33% of the capital invested in leisure facilities, Lombardy 20%, Sicily 13%, Liguria 10% and Sardinia 6%.
According to the Report on the hotel real estate market by Scenari Immobiliari presented at the Milan event, in general in 2023 the value of transactions in the sector reached €1.4 billion (down from €1.7 billion in 2022). However, the hospitality real estate sector has exhibited robust dynamism, remaining substantially at the historical levels of the last decade, if we exclude the record 2019 and the post-Covid 2020.
What's more, in 2023 the volume of transactions made by Italian investors - as has happened only rarely in the past - exceeded that of international capital which came mainly from France and the United Kingdom, with about a quarter from non-European countries. The profiles of the main investors are those of family offices, hotel operators and private equity, the first two representing the main component of Italian players.
This is a substantially positive stage,- concluded Mario Breglia, president of Scenari Immobiliari. -However, we cannot overlook the fact that hospitality is worth around $10 trillion globally, equal to almost 10% of the world's GDP. Understandably many would like to get their hands on this slice of the pie, so it is vital to be ready and organize supply in all sectors. In short, we need to create an entire economic system that really understands what it means to network.
Massimiliano Sarti
Journalist
The Ca' Pisani is Venice’s first design hotel
The Ca’ Pisani investment of €20 million includes a mini restyling, while the Molino Erizzo Palace - which is located in the Cannaregio district overlooking the Grand Canal and will be converted in a couple of years into a 25-room 5-star with a spa, restaurant and bar – has been taken over for 25 years through its subsidiary Altana. The Ca' Pisani, a 4-star and the city's first design hotel, and was formerly owned by the Serandrei family, who also own the Saturnia & International. The late 14th-century palace has 29 rooms, including four junior suites, the lounge bar-restaurant La Rivista, also open to outside guests, a solarium and a space for small events.
“Venice is a dream come true”
"Venice is a dream come true,- says Planetaria's managing director, Sofia Gioia Vedani, -a destination we are finally able to add to our portfolio. The Ca' Pisani was a long negotiation, it took eight months, but it was worth it. The investment was made entirely by my family and we therefore have the privilege of not having funds chasing us. This operation does not mean just having thirty more rooms to put in our portfolio, and a few million in additional turnover. It represents a new narrative in a fragile context like Venice, and one to be guided into the future.”
Local specialities from aperitifs to ice creams
"We have kept all the hotel staff and the integration has turned out to be easy for both sides,- says the Group’s director general Damiano De Crescenzo. -Our aim is to enhance the specific character of each of our properties. We will start by working on the restaurant, enhancing local excellence, from aperitifs to ice cream, and with fish first courses. To create undemanding dining that is capable of capturing the spirit of Venice at all hours.”
Planetaria is also considering leisure destinations
Planetaria is to continue with its expansion policy. "Since Covid,- adds De Crescenzo, -we haveopened up to management and we are also looking at leisure destinations. But we are in no hurry.” With the arrival of the Ca' Pisani, the group now has 12 hotels in Venice, Milan, Rome, Genoa, Venice and Florence. Last year Planetaria closed with a turnover of €52 million and gross operating margins (ebitda) of €18.7 million (35% of total revenue). This year the expectations are to exceed €55 million in total turnover.
The resort is said to be in the hands of a Kazakh businessman
This change was reported by the Financial Times, citing as its source the Cypriot commercial register, which includes the holding company, Retivia Investments, that owns the Sardinian resort. The previous owner, Chechen oligarch Musa Bazhaev, had acquired the complex in 2014 for around €180 million. But on 25 February 2022, just twenty-four hours after the Russian armies entered Ukraine, he reportedly decided to hand over ownership of Retivia to a relative, who in turn handed it over in early 2023 to Kazakh businessman Shukhrat Ibragimov.
Various transfers of ownership
The move probably served to avoid European sanctions against Russian tycoons, on whose list Bazhaev appears. It also appears that a couple of months earlier, in December 2022, Ibragimov transferred 40% of the ownership of an ordo mine in Kyrgyzstan to the Chechen oligarch: a venture launched in partnership by both businessmen in 2021, together with Ibragimov’s nephew Deni Bazhaev, and of which the Russian family is now the 100% owner.
“There has never been any change in the Italian management”
Interviewed by the Financial Times, Forte Village chief executive Lorenzo Giannuzzi stated that “Progetto Esmeralda, the management company responsible for the resort, never plays any active role in changes of ownership. Moreover, the authorities, as well as financial and commercial institutions, have always been promptly informed of every transaction. In the last two decades, the resort has actually changed ownership at least seven times. However, there has never been any change in the Italian management, which has always ensured the continuity of operations.” Neither Bazhaev nor Ibragimov have made any statements to date.
The property has been closed since October 2021
The company led by Luca Boccato recently signed a letter of intent for the management of the former Holiday Inn in Modena Nord. The property, closed since October 2013, was acquired last December by entrepreneurs Michelangelo Marinelli and Gianluca Bonini. The latter is also the owner of Ecoservim Group, a company specialized in thermo-hydraulics and construction.
The inauguration is scheduled for the end of 2025
the hotel is currently undergoing renovations, with work expected to go on for about 18 months and the inauguration scheduled for the end of 2025. The renovation costs are around €15.5 million, including furniture, fixtures, fittings and equipment. Once the renovations are complete, the hotel is expected to maintain its original 186 rooms. Boccato has already declared his intention to re-affiliate the hotel with the Holiday Inn brand.
The 460-room complex will be upgraded
Last year the gross operating margins (ebitda) of Alpitour's hospitality division topped €30 million, or 17% of turnover (ebidta margin). Paolo Terrinoni, CEO of Voihotels, told the press the group has recently completed the acquisition of the Voi Arenella Resort in Siracusa which it had already been managing for some time. The aim now is to renovate the 60-hectare, 460-room complex and reposition it upwards.
An area for events for over 700 people
The restyling will involve the modernization of all rooms, the addition of a poolside restaurant bar, and an additional restaurant-pizzeria. Two new padel courts will also be added as well as two areas for young guests with equipped play areas, a larger arena theatre and a new multi-purpose area to host events with a capacity of over 700 people.
The VRetreats brand has eight hotels and resorts
The operation in Sicily is part of a general acceleration of Alpitour's commitment to the hospitality sector. From 2019 to 2023 the Group invested €135 million to acquire new facilities and upgrade those already in its portfolio. Voihotels now manages a total of 26 hotels and resorts, eight under the VRetreats brand, four of which are already operational (Siracusa, Olbia, Cervinia and Florence), while for the fifth, in Lecce, is in the final stages of negotiation.
Looking to introduce Eritrea or the Comoros to the Italian market
The goal now is to expand further, with a particular focus on the luxury segment and with Milan, Rome and Naples being considered. For resorts the focus is mainly on international destinations with plans to introduce Eritrea or the Comoros to the Italian market.
"The European hotel market is incredibly dynamic and the results of the survey show a bullish attitude on the part of investors, who are looking to capitalize on growth in Europe,- explains Silvia Gandellini, head of capital markets at Cbre Italy. - In the first quarter of 2024 Italy was the second European market for investments in the hotel sector, totalling €330 million. We expect these results to continue in the second half of the year, with possible signs of yield compression for new trophy asset transactions.”Since last year Italy has ranked third in the most attractive destinations in Europe. Despite declining overall investment volumes, in 2023 hotel assets attracted more than 20% of the capital invested in domestic commercial real estate.
And European investors are championing Italian cities with Rome and Milan in the top-ten, respectively in fourth and eighth place of Europe’s most attractive cities. This ranking puts London in first place, buoyed by the destination's long-term potential and expected higher levels of spending on inbound travel. Madrid has overtaken Paris to become the second most popular European destination for investors. Indeed, the Spanish capital is becoming increasingly attractive to global capital, with significant interest from Latin America.
Massimiliano Sarti
Journalist
A 130-room Park Hyatt for Rome
This follows the Milanese property that opened in 2013. Located between Via del Corso and the Trevi Fountain and owned by the Israeli real estate group Omnam, the new property will be a 130-room 5-star managed through a management agreement and it is scheduled to open in 2026.
Hyatt’s Thompson brand will also open in Italy
Hyatt is undergoing a phase of strong expansion in Italy. In addition to talk about the new hotel in Rome, the Italian debut of the Thompson brand is expected this year also in the capital: another 70-room 5-star which was the Italian Communist party headquarters in downtown Via delle Botteghe Oscure. The property has been leased by a joint venture between Rossfin and the operator Ag Group, which has in turn signed a franchising agreement with the US company.
Hyatt Regency is also planned for Italy
But there’s more for Rome as the former Radisson Es Hotel should herald the arrival of Hyatt Regency in Italy at the end of 2025, thanks to a rebranding operation by the asset management company Garnet Hospitality Partners. While in Siena renovations are underway on Palazzo Sozzini Malvolti which is expected to join the Unbound by Hyatt collection, again under Ag Group management in 2026.
Mangia's resorts in Brucoli and Selinunte in Sicily get Breeam in-use certification.
One of the most important environmental certifications
The certification also goes to the Santa Teresa in Sardinia, and the award for sustainable building, had already been obtained in January by Mangia's Torre del Barone Resort & Spa. Breeam is an acronym combining the acronyms Bre (building research establishment) and eam (environmental assessment method) and is considered among the most important environmental certifications. The Bre group is a private British organization with more than 100 years of experience in research into sustainability and the environmental impacts of the building sector. It ensures environmentally sustainable design and construction standards, applicable to buildings, infrastructure and urban-scale initiatives.
Low environmental impact and more
Certifying a Breeam building therefore means guaranteeing a low environmental impact, the use of environmentally sustainable processes and materials, a focus on green building and design innovations, superior building quality compared to legislative standards, lower maintenance and operating costs, and high standards of indoor comfort.
Summing up Sardinia’s trends for the coming summer Paolo Manca, president of the Federalberghi Sardegna federation said “the year got off to a strong start, with increases of 25%-30% in bookings in January and February compared to the same period in 2023. They dropped a little in March, and in April they were more or less in line with last year. Then from 25 April things slowed down, but all in all we are still 15% above the levels of twelve months ago.”
The demand from international tour operators, especially German companies, which had been somewhat sluggish in 2023, is now driving Sardinia’s growth, and domestic demand no longer seems to be focused exclusively on the month of August: “This is a significant trend, given that 90% of demand is domestic in August, while for the rest of the season 51% are international guests.”
Rates remain a delicate issue: “I think they will more or less confirm last year's levels. The issue again is the month of August. Will demand hold up? And it is not just a question of prices. Guests are looking at alternatives to the traditional peak weeks, also because of the revenue quota systems on our island's most famous beaches that will inevitably lead to a redistribution of the anthropic load.”
Massimiliano Sarti
Journalist
The new property will be close to Trieste
It will do so at the Tivoli Portopiccolo in Sistiana, a short distance from Trieste. The debut property of the Minor brand in Italy is currently still at the soft opening stage, but it will soon be fully operational and will have a Terme di Saturnia spa. This was announced recently in Milan by the Minor group which presented the rebranding of its Europe & Americas division, formerly Nh after the acquisition of the Spanish company by the Thai company in 2019.
A nhow in Rome is in the pipeline
"Our group is now present in 56 countries, with a total of 350 hotels distributed between Oceania and South America,- said Minor Hotels Europe & Americas chief marketing and communications officer Isidoro Martínez de la Escalera Alvarez. -The name change was designed to increase synergies between our eight brands. Several other innovations were announced during the evening, including the forthcoming opening of an additional Tivoli in Florence and a nhow in Rome".
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