Publications

- April 1, 2020: Vol. 14, Number 4

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Looking back: Best practices in Italian hotel investment can be found in the niche sector’s history

by Sara Bindo, Gianluca Mattarocci and Simone Roberti

In 2019, investment into the hotel sector reached 25 percent of the whole Italian real estate market. This extraordinary result has come about for two main reasons.

One is that investors have been seeking new real estate opportunities given the lack of traditional asset availability. The second is that the real estate industry, in general, is looking for new asset classes characterised by a different risk return profile with respect to standard classes such as offices, retail and residential.

In this context, the hotel industry represents an attractive asset class. 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

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