Italy boasts the largest hotel market in Europe, with over 32,000 hotel facilities, and this record has attracted significant investor interest. According to a report by Deloitte, investors are ready to invest up to EUR 100 million in the Italian hospitality industry in 2023. The report reveals that over 40% of Italian hotel facilities expect a revenue increase between 3% and 12% by the end of 2023. Angela D’Amico, Partner and Real Estate Sector Leader at Deloitte Italy, highlights a positive scenario for the Italian hotel market. Existing groups within the country are working to expand their presence, while others are aiming to make their entry into the market for rapid growth.
Investor preferences are divided geographically, with 58% favoring Northern and Central Italy for stable returns, while 86% of hotel groups prefer Central and Southern Italy due to less saturated markets. Major cities like Rome, Milan, Florence, and Venice are highly sought after, followed by "Sun & Sand" destinations and lakes. The report also examines different hotel management models, with Direct Management and Management Agreements accounting for 33%. Increasingly, the Management Contract model is gaining popularity due to investments from capital-rich newcomers. However, sustainability remains a concern, with around 60% of respondents considering the current commitment of Italian hotel companies to be insufficient. Despite potential challenges like rising energy costs and staffing issues, the Italian hospitality sector is poised for growth and improved competitiveness on the global stage.
