Hotels: investment in Europe hits an all-time high of 20 billion

Investment in the hospitality sector continues to grow and has reached record levels in Europe, exceeding 20 billion euros. Italia is also following this trend, with 2.5 billion in investment forecast for 2025, confirming its position as one of the most dynamic markets alongside other southern European countries. The current landscape, outlook and strategies of industry players were the focus of the first edition of Il Sole 24 Ore’s Real Estate & Hospitality Summit, held yesterday in Rome at the Hotel Villa Pamphili. Despite an unsettling geopolitical climate, the hospitality sector therefore continues to perform exceptionally well, confirming its resilience. The challenges facing the sector and the need to support its growth were also highlighted at the opening of the event, which was attended by the editor-in-chief of *Il Sole 24 Ore*, Fabio Tamburini, and the chair of the *Il Sole 24 Ore* Group, Maria Carmela Colaiacovo.

At market level, Europe continues to benefit from positive trends in terms of both tourist flows and investment. “What’s new compared to the past is that more and more people are choosing to take up residence on the continent, bringing their assets and capital with them. This trend is also driven by tax advantages,” explained Giuseppe Amitrano, founder and group CEO of Dils. The composition of investors is also changing. Compared with the past, there is a reduced presence of core institutional investors and certain large pension funds, such as those from Germany. “The most significant change is the rise of family offices, which are increasingly entering the sector and now account for around 30 per cent of investments,” pointed out Ofer Arbib, CEO of Colliers Global Investors Italy Sgr.

The sector’s prospects are also underpinned by the belief that the hospitality market still has considerable scope for growth. “There are few trophy assets in Italy, opportunities for new builds are limited and the cycle of conversions is gradually coming to an end,” noted Mario Ferraro, CEO of Smeralda Holding and vice-president of the Costa Smeralda Consortium. “In this context, given the growth in tourist numbers, investing in the hotel sector continues to make sense.” However, key challenges remain, including regulatory uncertainty and the rigidity of land-use restrictions, which in some cases limit the development of new formats such as branded residences.

This potential has also been confirmed by international operators. “There are around six million hotel rooms in Europe, one million of which are in Italia,” noted Gaël Le Lay, CEO and co-founder of Petra-Hova Hospitality. Most hotels are still family-run and, in many cases, have not undergone any significant refurbishment: “This is where we see a major opportunity for investment and refurbishment.” These opportunities are increasingly extending to secondary destinations and hybrid forms of hospitality, which in some cases also include transport: “With trains, we can reach a wider audience and connect better-known destinations with lesser-known ones,” explained Paolo Barletta, CEO of the Arsenale Group.

The search for value also focuses in particular on resorts where, according to Donato Piscuoglio, head of real estate at Arrow Global Italia, the key lies in seasonality management: “The value of the asset can increase by extending the tourist season”. This is a strategy the group is also developing in Sicily, a region that ‘still has enormous potential’. Despite the boom in luxury hotels seen in recent years – particularly in Rome, Milan, Venice and Florence – according to Lorenzo Vianello, head of industry real estate at Unicredit, there is no problem of oversupply. Rather, the need is to renovate the existing stock: “Of the approximately 32,000 hotels in Italia, only 6–7 per cent belong to international chains or brands.”