Hotels, luxury establishments up 40 per cent since 2018

More accommodation facilities and fewer hotels. Fewer one-, two- and three-star hotels (and fewer rooms), while four- and five-star hotels are growing at double-digit rates and still account for less than a quarter of the market. Less quantity, more quality, but above all a parcelling out of hospitality that also reflects the explosion of non-hotel offerings (i.e., short-let flats and B&s). Taking a snapshot of the sector, as of 2018, is an analysis by World Capital Group, which will be presented this morning in Rome.

If, since 2018, accommodation facilities in Italy have grown by 6.2 per cent (or 229,531) - including residences and extra-hotels in this number - hotels represent just 12.7 per cent (down 2.8 per cent). However, while 4- and 5-star hotels together do not reach 25 per cent of the total number of establishments, since 2018 they have both grown by 8 and 32 per cent, respectively. While one-, two- and three-star hotels (13, 17 and 51 per cent of the market, respectively) have actually decreased, by -13, -11 and -2 per cent. In short, the hôtellerie market in Italy is rapidly changing skin. A phenomenon strongly accentuated after the pandemic, which gave the 'coup de grace' to many dated and family-run realities. With the return to normality, the lack of staff in all departments has put pressure on establishments, customer expectations have increased, reviews significantly influence the flow, and luxury tourism has exploded. At the same time, a rebranding of many establishments has begun, not only in the big cities but also in locations with higher tourist appeal. Urban regeneration, then, has seen the multiplication of large hôtellerie brands, some even making their debut in Italy.

The city of Milan recorded significant growth, with an increase of +63% in the number of facilities and +9% in the number of rooms compared to 2018. Milan is confirmed as a magnet for hotel operators, who hold 44% of the hotel assets, in terms of facilities. The total value of hotel assets in the city amounts to €8.5 billion, of which €3.1 billion is in the hands of hotel operators and €2.8 billion to local investors.

Rome also shows a positive trend, with a growth of +40% in the number of establishments and an increase of +1.5% in the number of rooms. The Italian capital stands out for its attractiveness to hotel operators, who own over 40% of the hotel stock, both in terms of facilities and number of rooms. The value of Rome's hotel real estate stands at EUR 17.5 billion.