In the hotel world, regardless of the hotel classification or brand collection, a €1,000 average daily rate has always been considered the true threshold of luxury. It is a veritable empyrean of ultra-exclusive properties, the prerogative of the privileged few, the result of a rare combination of top destinations, prestigious buildings and impeccable service. 

However, the enduring polarization of the market, the shift in consumer preferences away from material goods towards experiential products, and the desire to travel after the pandemic have, boosted the number of HNWIs willing to spend exorbitant sums for an elite stay. A trend of immeasurably greater significance than inflation, that has led many more hotels to exceed the €1,000 average daily rate threshold. Worldwide CoStar data tells us that in the first half of 2019 just 150 hotels could boast an average rate above triple digits. This year they are up to 460

The phenomenon is global, but destinations such as the United States, France and especially Italy are among those that have benefited most. In the USA the number of hotels rose from 22 to 80; in Italy from just under 20 to around 70; in France from around 20 to almost 50. Growth in Europe was driven chiefly by demand from the US and also benefited from the strength of the dollar. All told, in the Old Continent and the Americas, hotels above the $1,000 average daily rate have almost tripled, while in the Asia-Pacific region, the Middle East and Africa they have more than doubled.

While the trend is easing somewhat, it does not seem likely to reverse any time soon, given the substantial level of investment being channeled into new top-tier properties. Indeed, the CoStar data may undervalue the phenomenon, as the figures are limited to properties in the US company's database, which does not include small ultra-luxury properties such as lodges in the African savannah, boutique hotels or European country resorts.

Massimiliano Sarti
Journalist

The Arsenale Group has opened the Villa Diodoro Hotel in Taormina.

The new hotel has 102 rooms

The Arsenale Group is the leading company in the Treno della Dolce Vita - Orient Express project, and it has just acquired the Villa Diodoro Hotel in Taormina, for around €40 million. The four-star property has 102 rooms. The company led by Paolo Barletta now intends to renovate the property, with the probable aim of repositioning it in the 5-star segment.

Italy’s first Kimpton will be in Taormina

The hotel was part of the portfolio of the Italian Gais Hotels group, which also owned the property. The first Italian Kimpton, the Grand Hotel Miramare, is also scheduled for Taormina next year. Also in Sicily the Roman company Bzar recently took over the management of the five-star 23-room Hotel Metropole. 

The Jhsf Participações Group, one of Brazil's largest real estate companies, also known for its Fasano luxury hotel brand, recently announced its intention to develop a new property in Sardinia. 

Just 15 minutes from Olbia Airport

Through its asset management company Jhsf Capital, it has acquired a controlling stake in the Italian company Tavolara Bay srl, with the intention of building the Fasano Sardinia near Porto San Paolo, opposite the island of Tavolara, 15 minutes from Olbia airport. 

Sea-view villas for sale

The project includes the construction of a hotel, expected to open in 2028, with some 60 rooms and suites. Sea-view villas for sale will also be built on about 30 plots of land, each on some 200 to 500 square metres. A spa, tennis and paddle courts, a beach club, a marina services for boats, several restaurants, and a small shopping centre will complete the offer.

The Fasano brand is expanding fast 

The investment in Sardinia confirms the Fasano brand's ambition to expand into new internationally renowned destinations. The brand is currently present in New York, Punta del Este (Uruguay) and eight other destinations in Brazil, including Sao Paulo and Rio de Janeiro. In addition to Sardinia, the company is also developing additional hotels in Miami (scheduled to open in 2025) and London (scheduled to open in 2026).

The figure is, of course, provisional and undoubtedly discounts the unhappy momentum of other sectors. And to think that only last October many would have thought it was fake news. Instead, in the first half of this year, assets were the class on which most commercial real estate investments in Italy were concentrated: something less than €1 billion out of a total of just over €3 billion. They were followed by offices, and retail space came in third place. 

So said Domenico Basanisi at the presentation of the latest Cbre study on the Italian real estate market, underlining another important fact about hotel investors: not only has the domestic component of capital regained share, returning to be the majority, but as many as 55% of those who have made acquisitions are owner-operators: "We are coming from two years of large cash flows. And so there are those who have taken advantage of this to buy,- explained Basanisi. -While on the sellers' side, these are generally buyers who maximize pricing, as their motivations often go beyond financial considerations, and are also based on industrial and marketing logics.”

Core capital, on the other hand, is still dormant: 'On paper it is there, it is active, but it has minimal impact. In the first half of 2024 it was around 10%. And the trend is likely to remain the same for the rest of the year. The so-called value-add investors are still the most active part of the market.”  Looking ahead Basanisi predicts a trend towards market polarization, with value-add capital tending to be concentrated on the higher-end properties, while the mid and lower-scale segments will be mainly the domain of owner-operators.

Massimiliano Sarti
Journalist

The Terme di Saturnia resort reopened with new features on 24 July.

The restaurant got a major facelift

The works included a new-look 1919 Restaurant, a new overflow relaxation area at the spring pool, and the Stellata trattoria which overlooks the golf course. For the oldest restaurant in the Maremma area the total restyling of the spaces behind the large thermal pool has resulted in the addition of a veranda overlooking the spring and a totally revised interior design. The new relaxation area, also overlooking the pool, has air-conditioned interiors and is adjacent to the Roman Bath, creating a cozy space for guests to relax between thermal baths and spa treatments.

“We finish our cacio and pepe at the table” 

The restaurant in traditional Maremma style that has reopened retains its cornerstones of traditional Tuscan cuisine, but with completely revised interiors and furnishings. The original farmhouse has been extended with a veranda and a pergola overlooking the 18-hole golf course and Saturnia’s bucolic countryside. But the Stellata's novelties also regard the kitchen with a new open artisan grill for barbecued dishes in the centre of the restaurant. "This way guests can participate in the creation of our dishes- says, Terme di Saturnia’s executive chef Salvatore Quarto.  “We like to finish the preparation of some dishes, like our cacio and pepe right in front of our guests at the table."

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

A duel coup in Venice for Planetaria Hotels with the acquisition of the 4-star Ca' Pisani and the state concession for a 5-star. 

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.

Forte Village reportedly changed hands in the aftermath of the Russian invasion of Ukraine.

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 expansion of the Hnh Hospitality group continues with an agreement for the former Holiday Inn in Modena Nord. 

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.