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.

Voihotels has taken over the Arenella Resort in Siracusa in Sicily and aims to close the year with a turnover of €200 million, an increase of some 20 million over 2023.

The 460-room complex will be upgraded

Last year the gross operating margins (ebitda) of Alpitour's hospitality division topped €30 million, or 17% of turnover (ebidta margin). Paolo Terrinoni, CEO of Voihotels, told the press the group has recently completed the acquisition of the Voi Arenella Resort in Siracusa which it had already been managing for some time. The aim now is to renovate the 60-hectare, 460-room complex and reposition it upwards.

An area for events for over 700 people

The restyling will involve the modernization of all rooms, the addition of a poolside restaurant bar, and an additional restaurant-pizzeria. Two new padel courts will also be added as well as two areas for young guests with equipped play areas, a larger arena theatre and a new multi-purpose area to host events with a capacity of over 700 people.

The VRetreats brand has eight hotels and resorts

The operation in Sicily is part of a general acceleration of Alpitour's commitment to the hospitality sector. From 2019 to 2023 the Group invested €135 million to acquire new facilities and upgrade those already in its portfolio. Voihotels now manages a total of 26 hotels and resorts, eight under the VRetreats brand, four of which are already operational (Siracusa, Olbia, Cervinia and Florence), while for the fifth, in Lecce, is in the final stages of negotiation.

Looking to introduce Eritrea or the Comoros to the Italian market 

The goal now is to expand further, with a particular focus on the luxury segment and with Milan, Rome and Naples being considered. For resorts the focus is mainly on international destinations with plans to introduce Eritrea or the Comoros to the Italian market.

The European hotel investment market is set to go on growing. According to Cbre's latest European Hotel Investor Intentions Survey, 70% of investors plan to increase their asset allocation in the sector, driving capital confidence in hotel assets. The good performance from hotels, together with the continuing expansion of the tourism industry and the stabilization of interest rates are all driving capital confidence in the world of hôtellerie.

Since last year Italy has ranked third in the most attractive destinations in Europe. Despite declining overall investment volumes, in 2023 hotel assets attracted more than 20% of the capital invested in domestic commercial real estate. 
And European investors are championing Italian cities with Rome and Milan in the top-ten, respectively in fourth and eighth place of Europe’s most attractive cities. This ranking puts London in first place, buoyed by the destination's long-term potential and expected higher levels of spending on inbound travel. Madrid has overtaken Paris to become the second most popular European destination for investors. Indeed, the Spanish capital is becoming increasingly attractive to global capital, with significant interest from Latin America.

"The European hotel market is incredibly dynamic and the results of the survey show a bullish attitude on the part of investors, who are looking to capitalize on growth in Europe,- explains Silvia Gandellini, head of capital markets at Cbre Italy. - In the first quarter of 2024 Italy was the second European market for investments in the hotel sector, totalling €330 million. We expect these results to continue in the second half of the year, with possible signs of yield compression for new trophy asset transactions.”

Massimiliano Sarti
Journalist

Rumors doing the rounds say the Park Hyatt brand will soon double its presence in Italy with a new hotel in Rome in 2026. 

A 130-room Park Hyatt for Rome

This follows the Milanese property that opened in 2013. Located between Via del Corso and the Trevi Fountain and owned by the Israeli real estate group Omnam, the new property will be a 130-room 5-star managed through a management agreement and it is scheduled to open in 2026.

Hyatt’s Thompson brand will also open in Italy

Hyatt is undergoing a phase of strong expansion in Italy. In addition to talk about the new hotel in Rome, the Italian debut of the Thompson brand is expected this year also in the capital: another 70-room 5-star which was the Italian Communist party headquarters in downtown Via delle Botteghe Oscure. The property has been leased by a joint venture between Rossfin and the operator Ag Group, which has in turn signed a franchising agreement with the US company. 

Hyatt Regency is also planned for Italy

But there’s more for Rome as the former Radisson Es Hotel should herald the arrival of Hyatt Regency in Italy at the end of 2025, thanks to a rebranding operation by the asset management company Garnet Hospitality Partners. While in Siena renovations are underway on Palazzo Sozzini Malvolti which is expected to join the Unbound by Hyatt collection, again under Ag Group management in 2026.