Italy's market is on hold, restrained by high interest rates and the difficulty in planning greenfield operations or renovations, mainly due to CapEx values that have increased significantly.
This is the picture of Italian hotel real estate from the latest report produced by the consulting firm Thrends, based on data collected on its hoteltransactions.it platform.The numbers speak for themselves: in 2023 the total value of transactions in the hospitality industry in Italy fell to €1.27 billion, for an average price per room of €146 thousand. The difference compared to the previous two years, in terms of volume, is stark: -38% over 2022 and -57% compared to pre-Covid 2019. The total number of transactions also fell, from 161 in 2022 to 118 last year.
However there remains the apparent contradiction of a sector whose fundamentals continue to remain strong, thus attracting investors focused on value-add initiatives and asset repositioning, particularly in leisure and urban destinations. "Although interest in the sector has remained very high, we could say 2023 was a time for reflection. At least for institutional investors, who have simply slowed down the pace," says Thrends' managing director Giorgio Ribaudo. "Looking ahead to 2024, we expect a first half with still very modest volumes, and then a gradual acceleration with, at the end the year, a peak of transactions.
Massimiliano Sarti
Journalist
