By the end of 2015, there were about 33.000 hotel complexes, totalling 2.25 million beds, that is about 80% of total accommodation supply and 50% of available beds.
A supply improvement must be noted in the hotel market (5- and 4-star hotels), even if the sector still depends on 3-star structure, whose beds – albeit decreasing in quantity if compared to 2009 – are still the majority of total available beds (42.5%).
In 2015, Italian hotel complexes recorded 88.9 million arrivals and 262.9 million stays.
The number of tourists staying in hotels increased by 16.6% between 2009 and 2015, while regular stays increased by 6.6%.
During 2015, the European hotel real estate market increased at a fast pace, accounting for – by the end of the year – more than €20 billion (about 8% of total investments in all asset classes). During the first half of 2016, hotel investments reached up to €6.9 billion in Europe.
All in all, Italy is a growing market, albeit still limited if compared to other Countries, with a total volume of about € 1 billion. As a matter of fact, investments between 2014 and 2015 went from 4.8% to 5.2% over the
total invested on a European level and reached the 6,4% in the H1 2016.
Some hotel groups tend to divest ownership of their properties to investors in the market, choosing to focus on managing accommodation structures.
2016 and 2017 will be very hard years for the European hotel market both because of the uncertainties arising from the Brexit and the hardships related to international terrorism.
Germany seems to be mitigating the turmoil by offering lower and more stable yields comparing to other locations.
However, hotel profitability does not depend solely on the market, but also on prevailing operating models. In Italy, 41% of hotels are owned directly by the manager, rent contracts and franchising represent 27% and 24% of the market respectively, while only 1.8% is held by a management contract.
One of the most relevant themes in Italy is without any doubt the increase in hotels affiliated to well established hotel groups, with the ensuing decrease in the number of cheap accommodations.