Mazars Real Estate Italy presents the research of the top cities in Italy for hotel investments. The study was conducted by Mazars hospitality department over 110 major cities in Italy after having identified seven variables used by hotel developers to select the target cities for their developments.
2. SUMMARY
What we do?
Our services
Our stakeholders
Introduction
Methodology
Overview
3. WHAT WE DO?
Our services are Firstly applied to hotels, hostels, resorts
Golf courses and golf
resorts
Senior housing
Tourist residences
Shared ownership resorts
and hotels
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and also to:
4. OUR SERVICES
We are focused in the hospitality sector for:
feasibility studies
valuations
investors and operators selection
roll out for hotel chains
project development and
management
market research and publishing
asset management
corporate finance
benchmarking
Design and space optimization
strategic consulting
leisure and touristic consulting
performance optimization
development advice
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5. OUR SERVICES
Feasibility studies
Market feasibility study helps valuing the economic potential of the
hotel/resort or leisure activity planned and ensuring its economic feasibility.
Based on the analysis of the area and on hotel market, we can provide
information to improve revenues referring to:
best product mix;
category and type;
food and beverage and other departments services;
product concept;
economic and financial forecast.
Valuation
We apply most coherent methodologies and standards to every appraisal
according to the engagement purpose and hotel type.
Context and valuation goals influence significantly standards and
methodology applicable.
Our standards are known worldwide in the professional practice (Red Book
RICS).
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6. OUR SERVICES
Operator Selection
Hotel or resort success depends mostly from the managing operator.
Moreover an appropriate management contract and provided conditions
determine economic results.
Based on collaboration relationships developed during the years with
national and international hotel operators, we are able to know the most
suitable type of hotel for every operator and its management needs.
Business Advisory
We assist our clients in strategical actions for company growth, business
improvement and financial operations such as purchasing companies or
branches. Our services offer assistance in due diligence activities,
counterpart research, market forecast, negotiation and business planning.
NPL Strategic Advisory
With a growing difficulty generated by non performing loans, Banks, SGR
and leasing companies need advisors to manage, revaluate and restore
this assets. We can assist them in reporting on the status of legal
procedures, designing operations aimed at speeding up recovery time, find
transaction solutions and identify the most favourable management
strategies for legal and extra-legal actions.
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9. Hotel check-ins: the number of guests, Italian and foreign, hosted in
lodging facilities in the period considered (2015 data, source: ISTAT).
Airport: Assaeroporti, statistics for the year 2016. We selected the
closest airports to the destination.
METHODOLOGY
Step 1: choice of seven parameters useful to identify top cities in Italy, besides
the primary cities.
Step 2: creation of a top list for each indicator.
Step 3: interlacement of each list through a multicriteria analysis in order to
unificate all the parameters under a uniformed system of weights and
measures.
Step 4: conduction of a sensitivity analysis to give the right weight to every
parameter.
Overnights CAGR: compound annual growth rate based on ISTAT data
for the period 2011-2015.
Population: ISTAT, last data available (2016 data).
Students: number of enrolled students at universities for the academic
year 2015/2016 (source: MIUR).
Events and shows: SIAE statistics of tickets sold for museums,
monuments and archaeological areas in the destination (2015 data).
RevPAR: it is a synthetic performance indicator showing the net
revenue per available room over the period (2016 data, source: IHM).
10. 0 7 14 21 28 35
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
ROME
Rome is the capital of Italy as well as the largest and wealthiest city in the country. It is also
one of the biggest cities in Europe with a population of over 2,8 million inhabitants. Rome is
situated within the Lazio region in Central Italy and it is a city of international importance in
cultural, religious and political aspects as well as a significant commercial center. It hosts the
Vatican city.
10
Hotel rooms
(1)Serviced Apartments
(1)
11. ROME
11
Strengths/Opportunities Weaknesses/Threats
Low presence of international budget hotel
chains
Risk related to terroristic attacks
Good mix between leisure and business
segments
High concentration in the 4 star segment
Growth mainly driven by international tourists
Hotels in the suburbs depend on mainly
leisure groups
Absence of seasonality with incoming
tourists all over the year
Lack of public transportation
Several future new openings in the luxury
segment
Hotel performances change significantly in
each city area
Population 4.342.000
Students 230.000
Tickets sold 18.156.000
Passengers (airports) 30.409.000
Overnights CAGR 2011-2015 4,6%
Hotel check-ins 17.092.000
RevPAR € 88,3
12. 0 5 10 15 20 25
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
MILAN
Milano is the first metropolitan area by population and extension in Italy and the capital of
Lombardy. Milan with a population of about 1,3 million, is the main industrial, commercial and
financial center of Italy and a leading global city. Its business district hosts Italy's stock
exchange and the headquarters of the largest national banks and companies. The city is a
major world fashion and design capital.
12
(1)Serviced Apartments
(1)
Hotel rooms
13. MILAN
13
Strengths/Opportunities Weaknesses/Threats
Good public transportation all over the city Risk related to terroristic attacks
Good mix between leisure and business
segments
High concentration in the 4 star segment
Growth mainly driven by international tourists
Hotels in the suburbs depend on tourist
groups
Seasonality mitigated partially by the events
organized during the year and the growing
leisure segment
Numerous new hotel openings in the next
few years
Low number of budget hotel chains Recent growth in luxury segment
Population 3.196.000
Students 190.100
Tickets sold 790.000
Passengers (airports) 18.550.000
Overnights CAGR 2011-2015 6,1%
Hotel check-ins 7.392.000
RevPAR € 94,6
14. 0 5 10 15 20 25
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
VENICE
In 2015 the city of Venice ranked 2nd in Italy for overnights, second only after Rome. The city
is characterized by a tourism mostly from the leisure segment. Overnights highest peaks are
in summer and during the Venetian Carnival. Venice has many demand generators such as
the historical center, the port (with 1,6 million passengers in 2015), the Biennale di Venezia
and the islands like Burano, Murano and Torcello.
14
(1)Serviced Apartments
(1)
Hotel rooms
15. VENICE
15
Strengths/Opportunities Weaknesses/Threats
Important harbor working with the cruise ship
market
Risk related to terroristic attacks
Mainly driven by the leisure segment
Slight seasonal demand due to rather limited
business segment
Growth mainly driven by international tourists
Several new hotel openings in the next years
especially in the mainland
Highest registered RevPAR in Italy
Strong growth of the airport
Stable hotel demand
Population 862.000
Students 23.800
Tickets sold 923.000
Passengers (airports) 11.123.000
Overnights CAGR 2011-2015 -0,6%
Hotel check-ins 8.652.000
RevPAR € 108,1
16. 0 2 4 6 8 10
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
FLORENCE
Florence is the main city of Tuscany which in the last years had a consistent and stable
growth in terms of arrivals and overnights especially thanks to the Eno gastronomic and
cultural tourism in fact Florence contains an exceptional artistic patrimony, testimony to its
secular civilization and the Chianti area, between Florence and Siena, is one of the most
beautiful countryside in Italy and a famous wine production area.
16
(1)Serviced Apartments
(1)
Hotel rooms
17. FLORENCE
17
Strengths/Opportunities Weaknesses/Threats
Entry barrier to new development in the city
center
Risk related to terroristic attacks
Strong leisure demand Destination almost entirely leisure
Well developed Eno gastronomic and cultural
tourism
Decrease in business demand
Sustained growth even during the last year of
global crisis
Peripherical hotels driven by leisure group
with poor key performance indicators
Fast connection with the other main cities in
Italy due to high speed railway
Population 1.012.000
Students 50.500
Tickets sold 6.176.000
Passengers (airports) 2.503.000
Overnights CAGR 2011-2015 2,5%
Hotel check-ins 4.895.000
RevPAR € 95,8
18. 0 4 8 12 16 20
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
NAPLES
Besides primary cities, Naples is the most populous one presenting also the highest growth in
overnights. Napoli is ranked at third for number of tickets sold in museums and third for
number of university students in Italy. The high-speed railway system grants fast connection
with the major Italian cities. Next to Naples are also located numerous archeological sites like
Pompei and Ercolano.
18
(1)Serviced Apartments
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Hotel rooms
19. NAPLES
19
Strengths/Opportunities Weaknesses/Threats
Good connections by airport and railway Project risks due to bureaucratical timing
Constant growth of the demand Strong seasonality of demand
Several demand generators in the
surroundings in addition to the ones in the
city
Problems related to pollution and de-
qualification of some districts
Lack of international hotel chains
Population 3.118.000
Students 141.700
Tickets sold 5.984.000
Passengers (airports) 6.762.000
Overnights CAGR 2011-2015 3,0%
Hotel check-ins 3.476.000
RevPAR € 72,6
20. 0 2 4 6 8 10
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
TURIN
Like Napoli, Torino is a populous city and has registered in the considered period a growth in
overnights. It benefits from the proximity to mountains and to the good connections with
Milan. In the last years the city invested a lot in cultural and sports events to improve the
tourism in a city with an historical industrial vocation. Today Turin is mainly visited for its
cultural heritage like the Mole Antonelliana, the Venaria Reale and the Egyptian Museum.
20
(1)Serviced Apartments
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Hotel rooms
21. TURIN
21
Strengths/Opportunities Weaknesses/Threats
Fast connections with Milan and France
Low average stay due to the short time spent
in the city
Good potential growth of the market location
Low percentage of overnights generated by
foreign tourists
Good presence of university students (4th in
Italy)
Seasonal demand
Several investments from the public
administration to improve the tourism
Strong competition with the city of Milan
Population 2.291.000
Students 95.000
Tickets sold 1.784.000
Passengers (airports) 3.943.000
Overnights CAGR 2011-2015 2,9%
Hotel check-ins 2.253.000
RevPAR € 71,8
22. 0 1 2 3 4 5
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
BERGAMO
Bergamo presents a growth in overnights also due to the growth of the low cost airport which
is considered one of the airport of Milan. The commercial center in front of the airport is
considered the second largest commercial center used also from shopping tourism. In 2015
thanks to EXPO 2015, the city experienced a growth in terms of overnights, these volumes
were confirmed in 2016 especially thanks to international guests.
22
(1)Serviced Apartments
(1)
Hotel rooms
23. BERGAMO
23
Strengths/Opportunities Weaknesses/Threats
Strong growth of the airport and well
connected with the Italian motorway system
Rather high tourism expenditure
Lack in the 5 star and budget hotel
categories
Substantial growth of the supply in the 4*
segment
Incoming tourist volumes confirmed after
EXPO 2015
Growth in overnights in particular in other
lodging facilities
In a central position between important cities
in the northern Italy
Population 1.108.000
Students 15.600
Tickets sold n.d.
Passengers (airports) 14.370.000
Overnights CAGR 2011-2015 2,0%
Hotel check-ins 1.056.000
RevPAR € 60,5
24. 0 1 2 3 4 5
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
COMO
Como is located in a strategic position next to Switzerland and well connected to Milan and its
airports by motorway and railway. Como benefits from its location also because is next to the
lake and the mountains and their related demand generators such as water sports, trekking
and skiing. Como is growing in ranks thanks to the strong interest of international tourists on
luxury destinations.
24
(1)Serviced Apartments
(1)
Hotel rooms
25. COMO
25
Strengths/Opportunities Weaknesses/Threats
Favorable climate conditions thanks to the
presence of the lake
Sustained growth in other lodging facilities
Next to many demand generators like the
lake, the mountains and Milan
Demand growth steady in the last years
Foreign tourists expenditure almost doubled
since 2010
Problems related to pollution due to the high
traffic in the area
Easily reachable by international airport
Population 599.000
Students 7.800
Tickets sold n.d.
Passengers (airports) 13.544.000
Overnights CAGR 2011-2015 0,6%
Hotel check-ins 1.068.000
RevPAR € 71,2
26. 0 1 2 3 4 5
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
BARI
Bari was considered for long time one of the best city in south Italy for hotel development. In
last years in fact the growth in offer was followed by a consistent growth in demand of about
4,0 % thanks to the public administration investments. The city is a main hub to visit both the
Gargano in the north and the Salento area in the south. Main demand generators are the port
and the airport.
26
(1)Serviced Apartments
(1)
Hotel rooms
27. BARI
27
Strengths/Opportunities Weaknesses/Threats
Unique cultural and architectural heritage
Poor connections and low level of public
transportation
Recent investments from the public
administrations to promote the destination
Puglia
Strong growth of the supply in the 4*
segment
Recent growth of the demand driven by
cruising segment
Marked seasonal demand
High touristic flows thank to the port (mainly
cruise passengers) and the airport.
Low level of performances in terms of
RevPAR due to the high presence of other
lodging facilities
Population 1.265.000
Students 56.700
Tickets sold 152.000
Passengers (airports) 4.318.000
Overnights CAGR 2011-2015 4,0%
Hotel check-ins 792.000
RevPAR € 52,7
28. 0 1 2 3 4 5
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
GENOVA
Genova is characterized by a remarked attractiveness in the leisure sector thanks to the
presence of demand generators like the European biggest aquarium with the related natural
museums and the historical center. Business segment is also improving thanks to MICE
tourism with over 200.000 arrivals per year. Genova is also the Italian main base for cruising
ships (it is the MSC Crociere homeport) with more than 1 million passengers for 2016.
28
(1)Serviced Apartments
(1)
Hotel rooms
29. GENOVA
29
Strengths/Opportunities Weaknesses/Threats
The harbor is one of the main in the
Mediterranean area
Risks related to the climate in autumn and
spring
Good potential growth of the market
Strong growth of hotel supply in peripherical
areas
Growth of the demand especially in the MICE
segment
Presence of industrial and logistic areas next
to the city center
Presence of demand generators
internationally known
Not fully adequate quality level of hotel
supply
Decrease in business demand and increase
of the seasonality
Population 858.000
Students 31.200
Tickets sold 96.000
Passengers (airports) 1.263.000
Overnights CAGR 2011-2015 1,1%
Hotel check-ins 1.542.000
RevPAR € 69,9
30. 0 2 4 6 8 10
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
BOLOGNA
Bologna after a period of difficulties for the hotel sector, registered in the last years a constant
demand in terms of overnights. It is recognized as a university city and during the last few
years, the city developed a stronger appeal thanks to the new high-speed railway that made
Bologna a meeting point between Milan and Rome. Bologna airport has reported that some
investments will be provided for the next future to have a better connection between the
airport and the railway line. The city is trying to boost the trade fair activity.
30
(1)Serviced Apartments
(1)
Hotel rooms
31. BOLOGNA
31
Strengths/Opportunities Weaknesses/Threats
Meeting point between the main Italian cities
due to the barycentric location
Further decrease in terms of overnights due
to faster connections
Rather high tourist expenditure (5th place
after primary locations)
Low average stay
Student city Destination not well known internationally
On the way between Florence and Rome
Recent growth of the supply in the 4*
segment
Opportunity for new hotel development in the
city center
Peripherical hotel filled by leisure groups
Population 1.004.000
Students 78.000
Tickets sold 62.000
Passengers (airports) 7.673.000
Overnights CAGR 2011-2015 -0,4%
Hotel check-ins 1.736.000
RevPAR € 62,8
32. 0 2 4 6 8 10
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
VERONA
Verona plays an important rule in the northern Italy system of infrastructures (located between
Milan, Venice and with direct connection to Brennero). Verona with its Arena, lake and the
other sights has also a good demand from the leisure sector. The hotel demand registered a
growth of 1,5% in the analyzed period.
32
(1)Serviced Apartments
(1)
Hotel rooms
33. VERONA
33
Strengths/Opportunities Weaknesses/Threats
Proximity to the Garda Lake and central
position in the north of Italy
Airport passengers in decrease
Good mix between leisure and business
segment
Strong presence in the 3* and 4* segments
Presence of the 1st interport of Europe and
several golf courses
New hotel developments expected in the
next years
Meeting point between the main Italian cities
due to the barycentric location
Low performances in terms of RevPAR
driven by leisure groups and decreasing
business demand
Constant growth in trade fair especially in the
eno-gastronomical tourism
Population 923.000
Students 22.600
Tickets sold 1.000
Passengers (airports) 2.803.000
Overnights CAGR 2011-2015 1,5%
Hotel check-ins 4.173.000
RevPAR € 58,2
34. 0 2 4 6 8 10
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
PADOVA
Padova has a big concentration of university students (despite its dimensions). This city has a
big volume of overnights because of its proximity to Venice, in fact, tourists heading to this
city, are usual to house in Padova. Remarkable is the cultural and architectural heritage in
Padova and the presence of many students thanks to the university Ateneo Patavino that
attracts more than 55.000 students every year.
34
(1)Serviced Apartments
(1)
Hotel rooms
35. PADOVA
35
Strengths/Opportunities Weaknesses/Threats
Existence of valuable districts such as
biomedical, Euganean Thermal and diffused
business districts
MICE tourism infrastructures not developed
even if the demand in the segment is
growing
Good potential growth of the market Lack of 5* hotels
Constant growth of the demand
Absence of a direct railway connection with
Marco Polo airport in Venice
Proximity to Venice Low average stay
Decrease in business segment and hotels
driven by leisure groups
Population 938.000
Students 58.500
Tickets sold 21.000
Passengers (airports) 4.439.000
Overnights CAGR 2011-2015 2,4%
Hotel check-ins 1.726.000
RevPAR € 54,2
36. 0 1 2 3 4 5
5*
4*
3*
2*
1*
SA
2015 2006
values in thousand
CATANIA
This city is characterized by the presence of a big airport on which have been carried out
upgrading and expansion works in the last few years. Catania is located next to important
tourist destinations like Etna Volcano, the historic city of Taormina and many archeological
sites. It has a rather marked seasonality due to a leisure-oriented tourism.
36
(1)Serviced Apartments
(1)
Hotel rooms
37. CATANIA
37
Strengths/Opportunities Weaknesses/Threats
Relevant growth of the airport passengers Project risks due to bureaucratical timing
Well developed cultural, natural and seaside
tourism
Poor infrastructure connections within the
region
The port of Catania has a relevant position
for Italy thanks to its position between the
Suez Canal and the Strait of Gibraltar
Strong competitivity of better developed
touristic destinations (e.g. Tuscany)
Low hotel supply in the 5 star category
Lack of international hotel chain
Population 1.116.000
Students 45.100
Tickets sold n.d.
Passengers (airports) 7.909.000
Overnights CAGR 2011-2015 0,9%
Hotel check-ins 818.000
RevPAR € 57,6
38. …Malpensa airport, thanks to its strategical location, serves more than
five provinces, managing every year almost 20 million passengers.
DID YOU KNOW THAT…?
…Syracuse is the city with the most remarkable growth in the period
with a 6,4% CAGR.
...Como is the smallest city of this survey with less than 600.000
habitants.
…there are just 72.000 foreign university students in Italy on a total of
1,6 million students.
…Frosinone is the 5th city in Italy for tickets sold for museums,
monuments and archaeological areas.
…Venice presents the highest RevPAR with a registered value of € 108.
…Bolzano in 2015 had 29,4 million overnights, the 3rd in Italy right after
Rome and Venice.
39. CONTACTS
Marco joined Mazars in 2001 and accrued a 15
experience in audit services. He is focused in Banking,
financial intermediaries and real estate sectors. Marco
is a registered auditor in Italy.
He is responsible for the coordination and supervision
of the audit services provided to international clients,
managing audit team from different countries.
He also manages advisory projects relating to M&A,
debt restructuring and divestment processes. He was
part of the “AQR team”, supporting the Bank of Italy in
the Asset Quality Review project.
Main references are: BNP Paribas group, Findomestic
Banca, Polaris RE SGR, Quadrivio SGR, Dexia
Credoiop, Beni Stabili group, Ifitalia, Sudtirol Bank.
Marco Lumeridi
Partner, Audit –
Financial Services &
Real Estate
+39 335 356376
marco.lumeridi@mazars.it
Danilo has a 15 years experience in the real estate
sector, with a specialization in valuation, corporate
development and financial advisory services.
Danilo. Board member of RICS Italia, has a strong
experience in the leisure and hospitality business.
Danilo manages advisory projects relating to: listing,
M&A, preparation of Business Plan, financial
performances measurement, back office in outsourcing
activities, market feasibility studies, appraisal of share
values and of real estate properties.
Main references are: Hilton, Dorchester Group, Four
Season, Meininger, Condotte Immobiliare, Cerberus,
Blackstone
Danilo Papaleo
Senior Manager, MRICS
Valuation – Real Estate
Advisory Services
+39 335 6108431
danilo.papaleo@mazars.it
40. More information on
www.mazars.it
OUR DEDICATED, MULTI-DISCIPLINARY TEAM COMBINES A
FORWARD-THINKING APPROACH WITH A COMPREHENSIVE
INTERNATIONAL HOSPITALITY EXPERIENCE ADVISING ON
INVESTMENT STRATEGIES, ACQUISITIONS, DISPOSALS AND EXIT
STRUCTURES, CONSTRUCTION PROJECTS AND FINANCING
STRUCTURES THROUGHOUT THE WORLD. THIS ENABLES US TO
PROVIDE VALUE-ADDED SERVICES AT EACH STAGE OF YOUR REAL
ESTATE PROJECT.