ITALY Hotel Snapshot. extract

Transcription

1 ITALY Hotel Snapshot extract

2 INDEX Investment pag. 2 Italy pag. 4 Rome pag. 6 Venice pag. 8 Milan pag. 1 Florence pag. 12 Luxury Performance pag. 14 Luxury Reputation pag. 16

3 3 INVESTMENT In conjunction with the higher volumes invested in Italy, interest in the hotel sector grew to an even greater extent in , accounting for 13% of the market, mainly for two reasons. On the one hand, given the scenario of high liquidity and lack of traditional product, investors were seeking new products to acquire. On the other, good performance of the Italian tourism sector highlighted the lack of an adequate supply of hotels able to meet the new requirements of tourists. During the first nine months of 218, investments in hotels declined to a greater extent than the overall decrease in the Italian market; consequently, only 346 million in transactions was recorded, equal to 8% of the market. Of the 21 hotel transactions recorded, three stood out in particular. The largest transaction regarded the sale of the future hotel La Lama in the EUR zone, in shell & core condition. In fact, the real estate market in the EUR is undergoing a positive phase in terms of real estate investment as well as letting of office spaces. Mention also goes to the sale of Castello di Casole in the province of Siena, purchased by a foreign luxury operator. The portfolio of two hotels sold in Milan was acquired by a foreign operator as well, in this case French. Looking at the geographical distribution of hotel investments, the Capital maintains its record, achieving approximately 13 million, equal to 39% of volumes. Conversely, activity in the other cities is at lower levels. Investors are taking into consideration existing hotels, partly to refurbish, as well as properties to be converted, particularly in historic centres. The non-performing trend in the office market outside of Milan is driving investors to seek alternatives for these buildings. If they are not positioned on the major shopping streets, their conversion into residential or hotel use can be evaluated. In the first case, the strategy would involve a split sale, which is not in line with the investor mind-set. In fact, the residential leasehold market managed by institutional investors has not yet developed. However, the second case would maintain an investor logic with a long-term time horizon, given the duration of hotel rents.

4 million million million 4 Figure 1: HOTEL INVESTMENT VOLUME BY SCALE (stars) *L 5* 4* < 4* Share of hotel 16% 14% 12% 1% 8% 6% 4 2 4% 2% Q1-Q3 218 % Figure 2: HOTEL INVESTMENT VOLUME BY MACROREGION 1.6 Rome North West North East Centre out of Rome South & Islands Mixed Portfolio Q1-Q3 218 Figure 3: HOTEL INVESTMENT VOLUME BY INVESTORS ORIGIN 1.6 Italy Qatar USA France Other Q1-Q3 218 Sources Figure 1: Colliers International Figure 2: Colliers International Figure 3: Colliers International

5 5 ITALY Demand Tourism flows have recorded interesting percent variations over the last few years, with an increase in total arrivals of about 19% between 213 and 217 and a 12% increase in overnight stays. This trend in flows led to a decline in the average stay: the 213 figure amounted to 3.6 overnight stays, while in 217 it dropped to 3.4 nights. Also of interest is the analysis of source of the flows. The international component played the greatest role in supporting this increase in flows: the number of stays by Italian tourists increased by 9% between 213 and 217, compared to an increase of approximately 14% for international ones. The gap between domestic and international tourism is also present with regard to arrivals, although it is not as evident (+17% and 2%, respectively). The analysis of flows by accommodation facility highlights that, between 213 and 217, nonhotel facilities attracted an increasingly higher number of tourists (+39% in arrivals and +19% in stays), with the rental properties category standing out in particular. Of particular mention among hotel facilities, on the other hand, is the growing number of tourists that seek a 5-star and luxury hotel, a trend particularly evident in terms of arrivals, among both Italians (+18% in arrivals and +6% in stays) but especially international tourists (+33% in arrivals and +28% in stays). Hotel Supply There was a considerable increase in the number of hotel facilities between 216 and 217 (approx. +15%). Among hotels, which were constant during the two-year period in terms of number of establishments as well as number of rooms, the 5-star segment showed the highest growth, with a percent variation of over 8% in terms of number of hotels and over 6% in terms of rooms. Conversely, hotels in the lower segments (1 and 2-star) decreased by about 3% in terms of number of establishments and number of rooms. Non-hotel facilities increased as well, particularly in terms of number of establishments (approx. 18%). Rental properties showed the highest growth, up by about 3% between 216 and 217.

6 OVERNIGHT STAYS ARRIVALS 6 Figure 4: HOTEL DEMAND (mil) 213/217 Domestic International Total ARRIVALS OVERNIGHT STAYS Figure 5: HOTEL DEMAND BY HOTEL SCALE (mil) ,195,556 +5% 5s & 4s 3s & RTA Other ,629,155 +4% 5s & 4s 3s & RTA Other Figure 6: HOTEL SUPPLY star e 5-star Luxury % 36,19 +2% 4-star 5, ,496 3-star & RTA 18, ,591 Other 18,452 n.a. Sources Figure 4: ISTAT Figure 5: ISTAT Figure 6: ISTAT

7 FOR MORE INFORMATION Colliers International Group Inc. (NASDAQ:CIGI) (TSX:CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 12, professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 217 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investorsworldwide, and through its investment management services platform, has more than $2 billion of assets under management from the world s most respectedinstitutional real estate investors. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 1 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row. Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 2% annualized returns for shareholders, over more than 2 years. For the latest news from Colliers, visit Colliers.com or follow us on and LinkedIn. Copyright 218 Colliers International. The information contained in this document, prepared by Colliers International, is for illustration only and may be subject to change without notice. The evaluations of each subject interested in the information will necessarily have to rely on own studies and inquiries by qualified consultants. Colliers International must therefore be considered expressly free of any liability, for any damages, even potentially resulting from the interpretation or affidavit made to the content of this document. The contents of this document are property of Colliers International and are therefore protected by intellectual property rights in accordance with current laws protecting intellectual property and copyrights. Colliers International Italia SpA Via Durini, Milano Via Bissolati, Roma