In 2023, the top 29 Italian hotels generated a combined revenue of €1 billion. This is one of the most significant figures that emerged in the preview of the traditional Luxury Hospitality Report, now in its fifth edition.
The study is a kind of census of luxury properties in Italy, which currently number 710 for a total of 47,335 rooms, with an average total revenue per available room (trevpar) of €611 and operating margins of 24.4% (ebitda margin). In 2023 the average revenue per room was €144,000 per year, which was 15% higher than in 2022.
“This is a healthy sector, which has seen demand and product grow in a steady but balanced way for ten years,” said Giorgio Ribaudo, managing director of Thrends, the company behind the research, speaking at the Luxury Hospitality Conference in Milan, organized by Teamwork.
Between 2013 and 2023, the compound annual growth rate of demand was, in fact, 3.37%, while the supply was 3.74% (cagr). “These are respectable percentages, since the Covid years are also included in this period. The pace of development is the equivalent of just under thirty new luxury hotels per year, which means more than two openings per month.And the market momentum shows no sign of slowing down with domestic and international demand rising by a further 14% between 2023 and 2022".
Against this backdrop it is not surprising to find that the contribution of luxury hotels to Italy’s hotel turnover is highly substantial. Rooms in the highest segment of the market account for 4.8% of the total, generating 26% of the revenue of Italian hospitality taken as a whole, which last year amounted to around €25.3 billion.
International demand contributes 75% of total sales in the top segment, with the US (28%), German (14%) and UK (9%) markets taking the lion's share. Another highlight from the last four years is the growth in demand from Brazil, Canada and Australia, while China and Japan continue to remain well below pre-Covid levels.
Massimiliano Sarti
Journalist
