Italy has the most fragmented hotel market in Europe. Chains struggle to take off here because we are too individualistic, and our hotels are too small and too old to be attractive to those who think in terms of brands.
How many times have we heard these or similar statements at conferences and round tables? Yes, there is some truth in it but Italy, like any social reality, is not an immobile monolith. Things change, so while the penetration of chains in Italy is still low in absolute terms (about 6.6% of all hotels), when it comes to rooms the perspective is very different from before. Just ten years ago the share of hotel rooms managed by hospitality groups was 13.3%, today it is 19.7%, Quite a revolution for a sector that is now much closer, in terms of dynamics and composition, to the models of neighboring European and English-speaking countries.
The data comes from an analysis by the consulting firm Thrends. From 2013 to 2022 chain hotels grew from just over 1,300 to 2,100 (+59%), while rooms increased from 146,000 to over 210,000 (+44%). The penetration rate of groups, in terms of properties, has therefore risen from 4% to 6.6%, while in terms of rooms the jump, as we said earlier, has been more marked, going from 13.4% to 19.7%. In other words one hotel room out of five in Italy today belongs to, is managed by, or is branded by a chain.
At the same time the average size of branded hotels has dropped from 110 rooms in 2013 to 100 today. This is mainly due to the proliferation of lifestyle brands, which are less rigid when it comes to size, and therefore more suited to the Italian real estate and hospitality model. There is also increasing pressure on Italy from global players. Today there are 152 international brands present in Italy, compared to just 75 ten years ago which means a growth of 100%. Hotel groups here have risen from 138 to 264, and 72% are Italian.
Massimiliano Sarti
Journalist
