Hotels, market in turmoil towards 2 billion investments

Almost EUR 800 million is the investment volume recorded by the hotel segment in the first half of 2024. Of the total of Euro 3.5 billion raised by Italian commercial real estate from January to June this year (+65%), as recorded by Dils. In the hotel sector, these were transactions on individual assets. Even from Cushman&Wakefield they confirm the attractiveness of the hospitality segment, which together with offices dominates the scene, with 800 million volumes.

A figure to which, between now and the end of the year, new transactions in the world of hospitality will be added. Perhaps even that of Villa Certosa, the residence that was once Silvio Berlusconi's summer home in Sardinia, now up for sale and which many indicate is in the sights of funds interested in turning it into a super-luxury hotel. Rumours in many cases uncontrolled. In general, northern Sardinia is one of the most popular areas for new openings.

The transactions of the first six months of the year are innumerable and touch all corners of the peninsula, from the transactions in Rome, which include various changes of hands such as that of the Sofitel Villa Borghese, to the transactions in Milan, for example the Avani hotel in Palazzo Moscova, to the acquisition of the Miralago hotel in Cernobbio by the Villa d'Este group and the deal relating to the Castello di San Giorgio in Portofino, which passed to Fort Partners (Four Seasons) for an amount of over 60 million euro. Also closed, according to the latest rumours in circulation, is the transaction on Lake Como concerning the Castello di Urio. The French luxury group Lvmh has purchased the property with the intention of opening a hotel under the Belmond brand. The whole area is on the radar of big investors and also becomes prime hunting ground for those who want to buy a luxury residence in Italy, as recorded by Knight Frank in Sole 24 Ore a few days ago (see the newspaper of Saturday 20 July).

The peninsula is a hunting ground for large international groups and a few Italian investors, families who have chosen to expand their groups and create small charming chains. From abroad, there has been a great race to grab the best assets, already in income or to be enhanced by changing management and redeveloping the premises. This is the case of investors such as the Cuadra family, who invested in Tuscany from Mexico, and the businessman based between Zurich and Dubai, who created La Serena in Forte dei Marmi (see other articles on the page). According to Savills, the first six months of 2024 closed with investment volumes in the region of 979 million euros (+127% compared to the first half of 2023).

Dario Leone, head of Savills' hotel division, confirms the interest of investors in the sector, with 60% of capital arriving from abroad. "About 40 transactions were made in the first six months of 2024," he recounts, "and last year's trend is also confirmed: family offices and operators are at the forefront of acquisitions. These figures were less present in the past, today they are betting on the sector by looking at the valorisation of assets and less at mere yield, which these days has to reckon with the still high level of interest rates'.