Italian Hotel industry valuation estimates 2019
23 Jun 2020
PKF hotelexperts, in collaboration with World Capital and Associazione Italiana Conﬁndustria Alberghi, conducted a study to estimate the value of Italian hotels in 2019.
The research, which mapped more than 22,000 hotels in 266 Italian destinations, concluded that the upscale Italian hotel property market is worth more than € 117 billion . This confirms the financial importance of this sector.
The study analysed the locations of touristic interest for each region subdividing into three clusters: sea, mountain and city. The research identified the number of hotels and hotel keys in each location, and estimated the value per key for three- four- and five- star hotels within each cluster.
The region with the highest value of hotel assets is Lombardy, with about € 8,2 billion of 3-star hotels, € 19,3 and € 5,7 billion of four-and five-star hotels, respectively.
Italian city hotels had an estimated value of about € 36,8 billion with the Big Four cities: Milan, Rome, Venice and Florence contributing 78 % of this amount. Rome hotels had property asset values estimated at more than € 12 billion in 2019.
Seaside hotels were estimated to be worth around € 18,7 billion. Emilia Romagna led the rankings in of the Seaside Cluster with about 23 % of the value of all hotels located in seaside destinations. The large majority of Emilia Romagna hotels are of the three-star category while Campania was the top seaside destination for four- and five-star structures with almost 2 billion € of estimated value in these categories.
The cluster of hotels in Mountain resort areas had an estimated value of about € 3,7 billion, 55 % of which was attributed to properties in Trentino Alto Adige. Veneto, the second region in the Mountain Cluster ranking includes Cortina D’Ampezzo. the location of the 2026 Winter Olympic Games where four-star hotels have – on average – about 49 keys.
"The study, a work in progress, was presented on June 15 during the Milan hotel & tourism forum online. It helps us to demonstrate the size of the market from the point of view of real estate asset values - comments Giorgio Bianchi, Managing Director of PKF hotelexperts. The impact of Covid-19 on these assessments should not be underestimated, it is important to realize that if a hotel is closed it loses value. In the absence of adequate aid to the sector, the risk of a significant reduction in real estate value estimates is very real. Valuation metrics can be quite different from market to market, and from structure to structure. It has become clear from the analysis that the negative impact of the emergency may be more pronounced for independent structures than those associated with a chain, where belonging to a brand partially manages to safeguard performance. Resorts and longer stay hotels with residential components have also been more resilient.”
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