Best practices in Italian hotel investment can be found in the niche sector’s history, according to Sara Bindo and Simone Roberti from Colliers International and Mattarocci, a professor at the University of Rome Tor Vergata.
The performance drivers of the asset class are not comparable with other types of real estate, as the skills and information needed to evaluate the investment opportunities in the hospitality industry are unique and not frequently available for fund managers. Performance analysis of the hotel industry shows that hospitality assets perform differently than other real estate asset classes, and significant differences are detected based on the location and quality of a hotel asset. Hotels are also significantly affected by brand reputation and its capability to maximise RevPAR through the optimisation of the ADR (average daily rate) and occupancy rate.
By analysing the investment decisions behind two Italian hotel-specific funds, the authors su
