The volume of hotel asset transactions in Italy is back to record levels according to the latest report from Cbre, the world’s leading commercial real estate services and investment company.
In 2021 hotel sales for a total of €1.9 billion were recorded, second only to the extraordinary 2019 figures, but 82% higher than 2020. The majority of transactions involved vacant possession of properties to be converted, or hotels to be rebranded and therefore in need of capital expenditure, many of them with luxury or trophy-asset potential.
The recovery for business hotels will be slower
The resort segment (seaside, mountain, lake and countryside properties) that was seen as highly risky before the pandemic, is now increasingly becoming the focus of investors' interest. The trend in resorts is likely to continue in 2022, both for the luxury and midscale/upscale segments, due to the recovery expected for the summer season. While the recovery of business hotels in the main Italian cities will be slower, the future pipeline is also substantial, suggesting that the sector will perform well in coming months.
Commercial real estate was up 13% in 2021
The commercial real estate sector in Italy showed clear signs of recovery in 2021, with total transacted volumes at €10.3 billion, up 13% on the previous year. The last quarter in particular saw €4.6 billion investments and 52% growth compared to the same period in 2020, with the reduction in the restrictive measures in the second half of the year boosting the recovery.
