Hotels & Hospitality Hotel Intelligence Italy 2013 Despite international tourism growth in 2012, Italy witnessed subdued domestic tourism levels amid the country’s troubled political and economic environment. Hotel investment in 2012 was characterised by trophy asset sales and an increase in high-profile foreign investment transactions is expected in 2013 and 2014.
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Hotels & Hospitality
Hotel Intelligence Italy 2013
Despite international tourism growth in 2012, Italy witnessed subdued
domestic tourism levels amid the country’s troubled political and
economic environment. Hotel investment in 2012 was characterised
by trophy asset sales and an increase in high-profile foreign
investment transactions is expected in 2013 and 2014.
2 Hotel Intelligence: Italy
Contributors
Introduction The Italian economy remains fragile in 2013 International tourism fuels total demand Domestic investors continue to retain ownership Domestic buyers still the most active, while Middle Eastern buyer activity on the rise Luxury hotels continue to attract international interest
Table of Contents
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Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US$25 billion, while also completing approximately 4,000 advisory and valuation assignments. The group’s hotels and hospitality specialists pro-vide independent and expert advice to clients, backed by industry-leading research. For more news, videos and research from Jones Lang LaSalle’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality
Hotel Victoria Verona 16 71 4-star 225,000 Domestic
Grande Albergo delle Nazioni and Hotel Project Rome 80 215 4-star 372,000 Domestic
Source: Jones Lang LaSalle Hotels & Hospitality
Italy: Transactions 2012
8 Hotel Intelligence: Italy
Following the €1 billion peak reached by hotel investments in
2007, the Italian hotel investment market recorded a 46% drop
in 2008 and a further 60% drop in 2009. As the global
economy showed some timid signs of recovery, hotel
investments seemed to follow the trend: in 2010, transaction
volumes increased by around 35% on the previous year. This
increase can be attributed partly to the sale of the Grand Hotel
Timeo and Villa Sant Andrea in Sicily, together with a number
of investment sales based on the acquisition of hotels
encumbered with lease agreements with established hotel
operators, as hotel investors tried to reduce their exposure in
the market.
Despite the prolonged global and Eurozone sovereign debt
crisis, the hotel investment market in Italy in 2012 showed
signs of recovery, although it was still characterised by
investors seeking secure investments. The year will probably
be remembered for the sale to Qatar Holding of the Costa
Smeralda Portfolio for €580 million, the largest transaction
ever recorded in Italy, with an estimated yield of 5.5%. This
confirms that interest in trophy assets is still strong in the
current market. However, even if this transaction is ignored,
the volume of hotel sales at year-end 2012 was 163% higher
than in 2011. Major transactions completed include two
properties located in the centre of Rome, a 5-star hotel and a
former office building acquired by Middle Eastern and Asian
buyers for conversion into 5-star luxury hotels.
In the first half of 2013, just three transactions were completed
for a total of around €195 million, representing a contraction of
around 35% compared to the same period in 2012. The most
prominent transactions included the Hotel Four Seasons in
Florence, acquired by the Sovereign Wealth Fund (SWF) of
Qatar, and the more recent acquisition of the Hotel Tre Ville
located in Positano by Ivanhoe Capital. Should the hotels
currently in the due diligence stage and other opportunities on
the market come to fruition, total hotel investment volume in
2013 may reach €500 million.
As the domestic economy continues to struggle and tight
credit conditions persist, we envisage a reduction in the total
number of completed transactions in the short term. However,
total hotel investment volume is expected to be boosted by a
number of high-profile transactions in 2013 and 2014, as the
primary hotel markets of Rome, Milan and other celebrated
Italian leisure destinations continue to attract foreign capital.
Luxury hotels continue to attract
international interest
Hotel Intelligence: Italy
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