Prices withstand the pandemic
New openings focus mainly on three factors: sustainability, safety and hybridization - said Monica Badin, Senior Real Estate Advisor Hotels and Hospitality Investment at World Capital.
The pandemic does not seem to have overly affected asset prices, with only midscale hotels suffering to some degree and currently at € 165,000 per room in the city centre. In the same area upscale properties stand at €290,000 per key with luxury rooms around €964,000.
Prices of hotels rooms could rise
It is indeed possible that prices could rise again,” added Badin. “In 2020 the cap rate (the expected rate of return based on the projected annual income of a given property Ed.) from international investors fell by 42 points. If we add to this the traditional lack of core assets available on the market, in coming months it is plausible to expect an increasing trend in valuations.
