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Ey reports that in 2021 there was a significant rebound in hotel investments in Italy

Friday, 06 May 2022 11:57
Luna Baglioni Luna Baglioni

The Italian hotel real estate market experienced a significant rebound in 2021, with a volume of transactions 92% higher than that of the previous year.

This was owing to some recent and significant portfolio disposals, primarily the acquisition of the second Italian resort operator Bluserena. Then there was the series of acquisitions relating to trophy assets in primary destinations such as the Grand Hotel de la Minerve in Rome, as well as the Bauer Giudecca and the Luna Baglioni in Venice.

An economic boom involving nearly 12,000 rooms

According to Ey's latest Hotel Investment Report, the total value of transactions completed in the previous 12 months totaled €2.1 billion with 57 transactions totaling nearly 12,000 rooms changing hands. The Italian hotel investment market has thus been able to recover, reaching levels above the ten-year average, albeit still lower than those recorded a couple of years ago, after a record-breaking 2019 and a 2020 heavily impacted by the Covid-19 pandemic.

Encouraging words

"The results of our report confirm on the one hand how the interest in the country on the part of international and Italian investors is still very strong, and on the other hand how confidence in the recovery in terms of tourist flows and operational performance is robust,” underlines the head of hospitality of Ey Italia, Marco Zalamena. 

Rome, Milan, Venice and Florence are highly attractive

“Large cities such as Rome, Milan, Venice and Florence continue to be highly attractive, accounting for 52% of total investments. With reference to hotel services, after the decline in 2020 (-68% revpar on average compared to 2019), due to the closures and travel restrictions, the performances in December 2021 also recorded a rebound of + 82%, however, also in this case remaining below pre-Covid levels."

Resorts are now the most appealing asset class

Finally, among the most significant trends, resorts are now the most appealing asset class for the first time (43% of the total volume). A trend fueled by portfolio purchases as well as the sale of high-quality assets in popular tourist destinations like Cortina (Radisson Savoia, Hotel Cristallo), Costa Smeralda (Hotel Ginestre, Hotel Palme, 7Pines Resort), and the Italian lakes (Hotel Ginestre, Hotel Palme, 7Pines Resort) (Britannia Lake Como , Lefay Lake Garda). Furthermore, investors continue to focus on the 5-star and luxury markets, which account for nearly 40% of total investment volume.

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