Italian Hotel Market Outlook 2023 - Global Asset Solutions

Italy is seeing a growing investment appetite for luxury branded hotels, according to the latest study from Global Asset Solutions.

The country will see the debut of a number of flags in the coming years, including Edition, Orient Express, and Cheval Blanc, all of which are expected to put upward pressure on their respective market’s average room rates.

Thuy Tran, Hotel Asset Manager, Global Asset Solutions, said: “Rome remains the country’s development hub, with Milan and Venice the perennial favourites, but we are seeing increasing interest in other locations, including secondary cities such as Verona, Bologna, Turin, Naples, and Catania, as well as coastal cities and, of course, the Lake region particularly from the more niche brands.

“For potential investors, the attraction of Italy is only growing. Scarcity of prime assets in central locations has driven the market for conversions and repositioning, which has served to draw in those with value-add strategies.”

Historically, the hotel market in Italy has been very fragmented and characterised by generational ownership, which makes it challenging for outside investors to access. However, the pandemic has caused something of a paradigm shift.

Many family-owned businesses are under post-Covid debt loads, which they may struggle to repay, especially if under pressure due to refinancing.

As a result, more and more opportunities for foreign investors are expected to emerge over the next few years particularly as reality starts to narrow the bid/offer value gap.

The country is moving away from the family-owned model, but local knowledge remains critical to success in Italy and global investors would be wise to appoints specialist investment advisors and dedicated asset managers with experience of the region when considering their move.

To read the full report, click here

About Global Asset Solutions

Global Asset Solutions operates worldwide providing independent hotel asset management services. Clients include PE firms, institutional investors, sovereign funds and family offices, with over $20bn of assets managed in Europe, Asia and the Middle East. The company leans on decades of experience in the luxury sector to deliver bespoke solutions which allow investors to grow their asset value and realise the potential of their assets. www.globalassetsolutions.com