Hotel Market Snapshot Italy - pwc.com/it
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Hotel Market
Snapshot Italy
pwc.com/itHotel Investments (€m)
In 2020, hotel investments 3,500
recorded a decrease of 75%
3,000 -75%
compared to the previous year.
Var% 20vs19
The volume invested in 2019,
2,500
which was the best year on record
for hotel investments in Italy 2,000
thanks in part to the Belmond
+23%
portfolio transaction, reached 1,500 Var% H1 21vs20
around €3.3bn, while in 2020
investments were just under €1bn. 1,000
For the first half of 2021, hotel 510
investments reached €510 mln, 500
c. 20% above investments for the
same period in 2020, showing 0
2014 2015 2016 2017 2018 2019 2020 H1 2021
positives signs of recovery.
The majority of hotel transactions in the first half of 2021 were executed by international private equity investors,
snapping up properties in Venice and Florence, which are traditional hotel investment markets along with Rome
and Milan.
Investor Investor
Date Property Name City Category Keys Buyer Seller
type origin
Cortina Attestor Capital
Jun-21 Hotel Cristallo 5-stars 72 Paolo Gualandi Private equity International
d’Ampezzo LLP
Jun-21 Hotel M89 Milan 4-stars 55 Star Gestion Srl Torre Sgr Private equity National
Toscana Resort Montaione Incorp Holdings
May-21 5-stars 151 TUI Family office International
Castelfalfi (Tuscany) B.V. (Lohia Family)
ECE European
Bonvecchiati
May-21 Venice 5-stars 191 Lodging Recovery Eligio Paties JV International
Complex
Fund
NH Anglo
Apr-21 Florence 4-stars 115 Oaktree Immobiliare Uno Srl Private equity International
American Hotel
Hilton Florence
Apr-21 Florence 4-stars 212 Pygmalion Capital Millenaria Srl Private equity International
Metropole
Hilton Garden Inn
Apr-21 Florence 4-stars 121 Pygmalion Capital Millenaria Srl Private equity International
Florence Novoli
Baglioni Hotel
Feb-21 Venice 5-stars 93 Reuben Brothers Baglioni Hotels Private equity International
Luna
Star Hotel, Feidos,
The Pantheon InvestiRE SGR
Nov-20 Rome 5-stars 79 York Capital, DeA Institutional National
Iconic Rome SpA
Capital Real Estate
Dedica Anthology
Sep-20 Various Various 488 Covivio Hotels Varde Partners Institutional International
Portfolio 2020
Blue Skye
May-20 Bauer Palazzo Venice 5-stars 210 Signa Group Investment, Elliott Private equity International
Management
Ancora di Cortina Cortina Red Circle
May-20 4-stars 49 Cusinato family Family office National
Hotel d’Ampezzo Investments
Jan-20 Hotel La Palma Capri 5-stars 72 Reuben Brothers RBD Armatori Private equity InternationalTourism Demand
Italy before the pandemic recorded more than 400 million bednights evenly distributed between domestic and
international, which was cut in half during 2020 and mainly supported by national demand. The first 5 months of
2021 show that the market is still being supported by national demand.
500,000 4.0
3.7
3.5 3.3
3.4 3.4 3.3 3.5
3.2
400,000 3.0
3.0
2.7
2.5
300,000
49% 49% 50% 50% 51%
Avg Length of stay (days)
Bednights (Thousands)
2.0
200,000
1.5
31%
1.0
100,000
51% 51% 50% 50% 49% 69% 53%
43% 0.5
22%
47%
0 0.0
2015 2016 2017 2018 2019 2020 YTD May YTD May YTD May
2019 2020 2021
Domestic International
AVG length of stay
Source: PwC analysis
Arrivals Forecasts (base = 2019)
Domestic tourism demand is expected to return to pre-pandemic levels by 2022, while the international demand
recovery is delayed until 2024.
20%
16%
12%
2%
0% 5%
(5%)
(18%)
(21%)
(20%)
(40%)
(48%)
(60%)
2021 2022 2023 2024
Domestic International
Source: PwC analysisRecovery tracker
Main Italian Provinces
Across the 4 main Italian hotel markets, RevPAR performance in 2020 was severely impacted mainly from a substantial
decrease in occupancy. 2021 RevPAR is showing first signs of recovery from a rising ADR, although still below
pre-pandemic levels, as occupancy continues to remain low.
RevPAR Trend - YTD August Main Provinces Italy
180€
-61%
160€ Avg decrease RevPar
2021 vs 2019
140€
120€
100€
80€
60€
40€
20€
0€
Milan Rome Florence Venice
2019 2020 2021
Occupancy Variation - YTD August Main Provinces Italy (Base=2019)
40% -65%
Avg decrease Occupancy
20% 2021 vs 2019
0%
(20%)
(40%)
(60%)
(80%)
(100%)
Milan Rome Florence Venice
2020 2021
ADR Variation - YTD August Main Provinces Italy (Base=2019)
40% +5%
Avg increase ADR
20% 2021 vs 2019
0%
(20%)
(40%)
(60%)
(80%)
(100%)
Milan Rome Florence Venice
2020 2021
Source: PwC analysis on AICACategory trend in Italy
Throughout Italy, RevPAR performance across all categories in 2020 was severely impacted mainly from a substantial
decrease in occupancy. The 5-star category in 2021 is showing signs of recovery from a strong increase in ADR, while
performance in the 4-star and 3-star categories remains relatively flat.
RevPAR Trend - YTD August By Category Italy
350€
-54%
300€ Avg decrease RevPar
2021 vs 2019
250€
200€
150€
100€
50€
0€
5-star 4-star 3-star
2019 2020 2021
Occupancy Variation - YTD August By Category Italy (Base=2019)
40% -55%
Avg decrease Occupancy
20% 2021 vs 2019
0%
(20%)
(40%)
(60%)
(80%)
(100%)
5-star 4-star 3-star
2020 2021
ADR Variation - YTD August By Category Italy (Base=2019)
40% -1%
Avg increase ADR
20% 2021 vs 2019
0%
(20%)
(40%)
(60%)
(80%)
(100%)
5-star 4-star 3-star
2020 2021
Source: PwC analysis on AICAKey takeaways
Hotel investment volumes in 2020 in Italy What is currently a winning proposition are seaside
were just under 1 bn euro, which is expected destinations which are already showing positive signs of
to be surpassed in 2021, returning towards recovery as 2021 ADR returns to pre-pandemic levels
levels recorded in 2016-2018, although still along with an increasing occupancy. In fact, GOP margins
below 2019. of seaside hotels catering to domestic demand remained
mostly positive during 2020 while hotels in the main cities
recorded losses.
The majority of hotel transactions in
the first half of 2021 were executed by
5-star hotels in drive-to seaside destinations, which
international private equity investors,
are also easily accessible by international demand,
snapping up properties in Venice and
are so far the recovery leaders.
Florence, which are traditional hotel
investment markets along with Rome
and Milan.
There is a vibrant hotel pipeline as
around 100 hotels with over 17,000
new rooms are expected to enter the
After the pandemic, there will be supply of which more than 65% are
opportunities for underinvested currently under refurbishment or
hotels in strong locations to under development.
receive a capital injection and to
be repositioned and/or rebranded,
especially the business hotel
segment. Those situations are
currently receiving special interest
from value add/opportunistic real
estate investors which have the
capability to either invest in the
debt/equity structure or to purchase
the asset.Contacts Antonio Martino Federico Colacicchi Partner - Real Estate Deals Leader Partner - Transaction Services & Hospitality +39 346 785 5519 +39 349 821 7906 antonio.martino@pwc.com federico.colacicchi@pwc.com Christopher Haug Leone Recchi Senior Manager Senior Manager +39 345 021 4140 +39 331 674 2081 christopher.haug@pwc.com leone.recchi@pwc.com
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