Italian hotels offer exceptional performances to investors. According to the latest report from Jones Lang LaSalle Hotels, the performance of hotels in Rome and Milan in 2002 aligned with that of the most important European cities, such as London, Amsterdam or Berlin, which had already recorded a negative trend since 2001.
However, a more careful analysis of the historical trend of the market would suggest that the current slowdown is due to the typical cyclicality of the hotel sector. Operators in Rome and Milan expect a reversal of the trend in 2004 with a return to a performance level similar to that recorded in the record year of 2000.
In 2002 and the first quarter of 2003, the performance of hotels in Rome and Milan was negatively affected by the general slowdown of the world economy, the continuing terrorist threat and the political instability of the Middle East. These factors have contributed to the decrease in tourist flows (both business and leisure) originating from important markets such as the United States, Japan, Germany and the United Kingdom. After a long period of growth, the occupancy rate in Rome (76%) and Milan (68%) in 2002 was below the average of recent years, while the average price per room recorded further increases albeit with a more contained growth rate than in the past.
source: Real Estate Observatory
Grimaldi Padua
Padua - 35137 - Via G. Matteotti, 27
e-mail: padovacentro@grimaldifranchising.it
Tel. +39 49 663 033 - VAT number 05301660287
Grimaldi Cadoneghe
Cadoneghe (PD) - 35010 - Via G. Franco, 2/A
e-mail: cadoneghe@grimaldifranchising.it
tel. +39 049 88 736 56 - VAT number 05322440289