While Italy’s hotel sector slowly begins to reopen, it is clear that international hotel chains are being hit harder than independent, family-run or budget hotels, according to Francesco Calia, senior director and head of hotels Italy at CBRE.
The hotels that have reopened are predominantly independent, family-run or belong to the midscale segment, and are located in either resort destinations or secondary cities, where domestic demand is dominant, including cities such as Turin, Bologna and Trieste, according to Calia.
‘The demand for luxury, international and high-spend corporate hotels has yet to recover, meaning that hotels in Milan, Rome, Venice and Florence remain closed, as this type of demand is key in the primary city markets,’ Calia told PropertyEU.
The small luxury operators have been more receptive in reopening, whereas global chains appear more cautious. Small luxury operators benefit from having a significant presence throughout Italy and are more flexible in managing brand standards and related operating costs, he noted.
In addition to primary city markets, luxury resort destinations such as Lake Como, Capri, Amalfi Coast and Portofino are more prudent about reopening. In fact, luxury hotels in top seasonal destinations seem to concentrate their operations in a shorter opening period (very high season) to capture the demand peak generated principally by high-end domestic tourists and maximize profitability. Calia: ‘This shows us that the domestic market is driving the recovery of hotels in Italy.’
In total, around 25% of hotels in Italy have reopened, with a further 20% expected to be open for business by the end of June.
