Mid-long term stays from 2021 to 2022 are up by more than 30%
This is highlighted by the specialised company Halldis in an ad hoc study conducted on a sample of 500 apartments in Bologna, Florence, Rome, and Milan. Bookings for mid-long term stays from 2021 to 2022 have increased by more than 30%. Increasing from six to fifteen in Bologna, eight to forty-six in Florence, 28 to 117 in Rome, and 39 to 143 in Milan. The average duration data is interesting, as it decreases slightly in Bologna (from 149 to 60 days), moderately in Milan (from 129 to 125 days), and slightly in Rome (from 104 to 100 days) from 2021 to 2022. On the other hand, the average daily price rises significantly in Florence (from €67 to €86), modestly in Milan (from €93 to €95) and Rome (from €85 to €87), and at a faster rate in Bologna (from €32 to €57).
There is a recovery in short-haul rentals Vincenzo Cella managing director Halldis
“The increase in demand for long-medium term stays goes hand in hand with the recovery of the short-term rental sector in general,” says Vincenzo Cella, Halldis managing director. “And the fact that the dynamics of average duration and prices intersect in a consistent manner, with the former decreasing albeit slightly and the latter always increasing slightly, suggests that this trend will continue.
“Owners should also consider flexible forms of duration between short and mid-long term”
“The demand for medium-long term rentals reflects a new way of living and working,- says CEO Michele Diamantini, - from smart working to the emergence of so-called bleisure travel. There will be an increasing demand for the professional management of buildings and properties, as well as homes built and furnished for these purposes, possibly supplemented by common areas, services for family sports activities and cultural interests. This trend will develop not just in historic downtown areas, but also in secondary locations, such as smaller lakes or mountains. And owners should also consider flexible forms of duration between short and mid-long term.”
Close to Florence’s railway station
Owned by the Tuscan company Progetto Majestic, the property is in Piazza dell'Unità d'Italia in the city's historic centre, close to Santa Maria Novella Station and the central Via de' Tornabuoni. The complete redevelopment will unify the various existing buildings into a single 5-star unit. The building has six floors and three basement levels, and renovations will focus on the environment and wellness as expressly requested by the owners and sole director Roberto Puccini.
“The project will be a new contemporary city landmark”
The project also includes a new ground living and reception area, a lounge bar and a restaurant, which will be developed around a partially covered inner courtyard. The lower floors will have a spa & wellness area, a meeting and event space, and technical and service areas, and work on the site has just started.
“The conversion of the former Majestic hotel into a luxury hotel is an example of the appeal of Italian cities like Florence. We are thrilled to be part of this project, which aims at become a new contemporary landmark for the city.”
Investors are attracted by Italy’s hotels
With the asset class of hotels receiving a lot of attention, it is attracting a lot of capital according to Cbre Italy's Francesco Calia, who says just over €1 billion were invested in hotels in the first three quarters of the year (roughly last year's levels), for a total of 8.8 billion in the last five years (including the annus horribilis of 2020).
Strong focus on the four primary markets
Italy ranked fifth in Europe for hotel investments in the first nine months of 2022 (as it did in the same period in 2021), despite being the seventh market in Europe for commercial real estate. An examination of the last five years' historical trend reveals a growing emphasis on value-added hotel operations (mainly for conversions from other uses, such as offices, or the major repositioning of existing hotels). These account for 70% of transactions in the first nine months of 2022, with a strong focus on the four primary markets (Rome, Milan, Venice, and Florence), which now account for around 60% of transactions. Investment in resorts is also growing and will account for some 35-40% of the volume invested in hotels in 2020.
Luxury conversions in sea, lake, mountain, and rural areas
The excellent recovery recorded during the summer season and subsequent months, particularly for the luxury leisure segment (in Rome, for example) and in resorts, has fueled investor interest in sea, lake, mountain, and rural properties. The most significant transactions this year have been in luxury conversions in Rome and resort destinations, including the future Four Seasons Rome in Piazza San Silvestro, the repositioning of the Majestic in Via Veneto in Rome, and the rebranding of the Savoy in Cortina d'Ampezzo.
“Cbre is focusing on three luxury-lifestyle developments in the centre of Rome”
The ongoing development in the luxury and extra-luxury sectors, as well as the openings of international hotel chains in this range, suggest an ambitious investment pipeline for the next 18/24 months, despite rising raw material and construction costs. “At Cbre we are focusing on three luxury-lifestyle developments in the centre of Rome that are expected to close in the first half of 2023, for a total value of over €500 million euros. International capital will continue to dominate the Italian hotel investment market” adds Calia.
Further REVPAR growth and interest in secondary urban destinations
In terms of management performance urban hotels are expected to achieve further REVPAR growth although operators do not anticipate further increases in average rates this year. The expected recession may have a greater impact on corporate demand (restrictions on business travel are already in place), with ramifications for secondary urban destinations with a strong business vocation and for midscale/upscale properties. Leisure demand in Italy, on the other hand, is expected to go on growing thanks to international markets and the great Italian art cities of Rome, Venice, Florence with upper-upscale and luxury properties benefitting most.
The new Pullman is the Almar Timi Ama Resort & Spa
Now the Hnh Hospitality Group has signed a franchising agreement with the French company for the Villasimius Timi Ama, and it is now called Pullman Almar Timi Ama Resort & Spa in view of its opening next May for the summer season.
“Our expansion towards strategic locations, that reconcile leisure with conference and wellness tourism”
"We are particularly pleased to collaborate in this new management in Sardinia with a major player such as Accor," said Hnh Hospitality’s CEO, Luca Boccato. "The management of a historic property such as the Pullman Almar Timi Ama Resort & Spa represents a new and important step in our expansion towards strategic locations, that reconcile leisure with conference and wellness tourism. This partnership is also further proof of the credibility that our group has achieved with all the major international brands hospitality with which we operate".
Located in the heart of South Tyrol, near Campo Tures, the Olm Nature Escape will be the name of the new green hotel project launched by the Carron holding company, which heads the real estate company Carron Bau.
Unicredit’s first green minibond in Europe
The 12 million project was initially underwritten by UniCredit was a Green minibond for €3 million. The transaction, with a duration of 60 months and verified by Cerved is the first in three tranches of the bank’s first green minibond in Italy. The second, for a further €2 million will be issued by UniCredit in 2023. Completion is scheduled for the winter of 2023.
The hotel will have 25 units with private spas
The hotel will be a model of hospitality with 42 units, 25 of which will have private spas, and a series of integrated services like signature restaurants with an on-demand format. A geothermal plant will heat the entire structure, while a photovoltaic system will provide the energy. The 2-storey circular building is open on one side and the courtyard will be a natural area with an orchard and a water feature. Olm in South Tyrolean dialect means alpine pasture and meadow, but it can also refer to the infinity of time.
The Autograph Collection has five hotels in Italy
The 73-room property will get 14 new suites with the restyling. The Tuscan complex will thus become the Marriott group's first Italian golf resort, as well as the first for the Autograph Collection in Europe. The US hotel company's soft brand portfolio currently boasts five properties in Italy, four 5-stars and one 4-star, for a total of some 430 rooms. And word has it that the Concordia Park Hotel, a four-star with 58 rooms in Cortina, is also in the pipeline for next year.
A recent timelapse from the National Institute for Tourism Research (Isnart) provides a brief overview of Italian travel industry trends over three decades, and the first figure that stands out is, of course, the growth in arrivals: in 1990 total overnights were 252 million and in 2022 they were 436 million, with foreign tourist numbers going from 84 million in 1990 to 220 million in the pre-Covid 2019 year (+160%). What tourists are buying is also changing, with typical food and wine products growing strongly (from 26% in 2008 to 34% in 2019) as is spending on cultural products like entrance tickets and museum guides, which rose from 16% to 24% of the total spend.
In the business sector, in the third quarter of this year there were 461,000 accommodation and catering companies, employing almost 2 million people. Compared to 2010 this is a rise of 20% in the number of registered companies and 32% in the number of employees. All of which goes to show the growing importance of tourism in Italy’s economy.
Encouraging numbers and figures indeed, that we at Italiabsolutely take as our cue to wish all travellers and tourism players a fantastic 2023. May it be full of new discoveries, experiences and emotions at all latitudes, but especially in Italy!
Massimiliano Sarti
Journalist
Room occupancy rose together with average rates
These are preliminary figures for the 2021-2022 financial year from the Hnh Hospitality Group. An excellent performance thanks to the increase in room occupancy, which rose from 41.3% to 64.2% in 2022, and by the growth in average rates, which rose from €133.8 to €143.
The Group has business, city and now luxury resort properties
As part of its product diversification strategy the Mestre-based hotel company now offers three different categories of facilities: business hotels, city hotels and luxury resorts. Preliminary figures show significant growth, especially in the city hotel market, the segment in which Hnh has grown most during 2022 and which now accounts for 47% of its total turnover.
Almar Giardino di Costanza and Timi Ama. Two popular resorts
This year the group expanded into resorts with the opening of the Almar Giardino di Costanza in Sicily last May. Then there is the new management, from January 2023, of the Timi Ama, a luxury resort in Villasimius, Sardinia, also under the Almar brand. With this new opening the resorts, which were 25% of turnover in 2022, are set to weigh in at almost 40% per cent of its overall turnover in 2023.
“We recorded triple-digit growth, more than doubling the previous year's revenues"
"In 2022, despite being penalised by Covid in the first half, we recorded triple-digit growth, more than doubling the previous year's revenues," said CEO Hnh Hospitality, Luca Boccato. "These figures show that the courageous choices made during the pandemic are paying off. For 2023 we are confident of continued growth, also thanks to the decision to further differentiate with the entry of the new Almar Timi Ama: a property that will allow us to strengthen our position in the 5-star beach & sun resort market”.
The new Miami hotel has 32 rooms and is owned by the boss of Diesel
This step into international markets by Aldo Melpignano's group follows the recent new entry, Castel Badia di San Lorenzo di Sebato near Brunico. The group is known, among other things, for the famous luxury resort Borgo Egnazia in Apulia. The Miami hotel, says Pambianco Hotellerie, is a 32-room property owned by Red Circle, the family holding company of Renzo Rosso, boss of the Diesel fashion brand.
The rooms are themed on famous movies
The hotel recently reopened its doors after two years of restyling for a total investment of over €6 million. The rooms, designed by Diesel's creative team, are all different and themed on movies which give their names to the rooms. Of the 32 total keys, seven are suites, six have ocean views and one is an exclusive penthouse.
Rosso acquired the Ancora Hotel for near to €20 million
Among the many investors interested in the Cortina resort is Renzo Rosso, who has already signed an agreement with the San Domenico Hotels group to manage the Pelican in Miami. Through his real estate company Red Circle, the Diesel boss acquired the Ancora hotel two years ago for almost €20 million. Now, says Pambianco Hotellerie, he is thinking of a renovation that will cost more than the value of the deal.
Reducing the number of rooms to create an all-suite property
The Ancora Hotel, a historic Cortina property established in 1826, originally had 50 rooms but the idea is to reduce them to 40 in order to increase the square footage and create an all-suite hotel with rooms measuring between 55 and 110 sqm. The hotel is scheduled to reopen in 2024 and the agreement for its management is presently being finalized. Architect Vicky Charles, well known for her Soho House projects around the globe, has been appointed to lead the restyling.
Brescia, located between Milan and Venice, is easily accessi…
274Brescia, located between Milan and Venice, is easily accessi…
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