Not even ten years ago hotels were among the real estate market’s Cinderellas. In the generic alternative asset cluster, many investors thought investing in hotels was too complicated and risky. But times have changed, and thanks to the growing interest and expertise of numerous financial players, coupled with steadily improving performance, hotels are now among the market's top targets.
This also shows in the latest CBRE data on Italy: in 2024, hotels were the second most sought-after asset class, with €2.1 billion (+36% on 2023) invested, of which €650 million was recorded in the fourth quarter with an increase in value-added capital transactions, after a year marked by owner-operators acquiring properties with no possession. “This underscores the confidence of investors in the sector, particularly in leisure markets and major art cities,- a note from CBRE explained. -Core investments, on the other hand, remain limited, even though the availability of capital for these transactions is gradually growing. After the rapid post-pandemic recovery, the growth of average prices per room in the main markets is gradually normalizing, but operator sentiment remains positive, even in the less mature markets.”
Total investment volumes in Italian commercial real estate in 2024 amounted to €9.9 billion, a 47% rise over last year. The €3.6bn in the fourth quarter contributed to this result, up 23% on the same period in 2023. Retail remained the top asset class, with total volume standing at €2.9 billion. Second-lowest on the podium behind hotels were offices at €1.9 billion (+55% year-on-year), followed by the industrial and logistics sector (€1.6 billion), residential (€715 million), and the alternative segment - which formerly included hotels -at €440 million.
Massimiliano Sarti
Journalist
