International real estate stakeholders look at the hospitality world as an incubator for new investment opportunities and Berlin will be, from 4 to 6 March 2019, the location where these issues will be faced. For the 22nd edition of the Hotel Investment Forum (IHIF) – the main European event dedicated to investments in the real estate tourism sector – Coldwell Banker Commercial (CBC), Italian real estate advisory and brokerage firm, with specific skills in the hospitality sector, has confirmed again its presence with a dedicated booth.
“We will present a mixed portfolio of opportunities located in the most appealing Italian cities, consisting of already existing hotels, sea resorts and office buildings to be converted into hotels, for sale and lease – explains Giuseppe Rojo, CEO and founder of the exclusive affiliate for Italy of Coldwell Banker Commercial -. The aim is to attract international investors who want to invest in Italy for a direct management or also by relying on a hotel operator for income. IHIF is a challenging opportunity to interact with the main players interested in these kind of transactions”.
According to a recently published study in this sector, in year 2018 real estate hospitality transactions in Italy reached 1.3 billion euros, with 58 deals for 7.400 rooms, confirming the positive trend. By the end of 2019 the volume of investments may exceed 2 billion euros.
“I am confident that the hospitality sector, considered anticyclical with respect to the other fields of the real estate market, can keep on attracting interest, given that it’s an asset class following tourism trends – says Giuseppe Rojo -. Italian ‘’SGR’’ are still very focused on the main cities, probably not yet ready for “secondary locations”, but we see great interest for sea resorts and sky destinations, and also in locations such as Naples, Turin and Sicily, where employment rates increase fast “.
If the hospitality market remains vivid, despite economic and geopolitical uncertainty, customers’ behaviour and needs are going to change. “Condohotels and hostels are valid alternatives for hospitality development in Italy – underlines Rojo -. For the former, however, it has to be taken into account that those who intend to ‘’ride’’ on this concept have to think at a contractual structure that compensates the lack of legislation in force. For hostels, it can be said that they provide a better Ebitda than a traditional 4 star-hotel business model”.
In what is called the “hybrid” sector (a combination of hotel and hostel), Coldwell Banker Commercial plays the role of official developer in Italy for the German group MEININGER. “After three openings, two in Milan and one in Rome – says Veronica Sagliaschi, development manager Italy for MEININGER Hotels – we aim to double our portfolio. We are mainly focused on Venice, Florence and Naples. We have more than one negotiation in progress in Mestre area and a very advanced negotiation on Naples, close to the Central Station. In Rome we aim for an additional location and look with interest at Ostiense, Testaccio and Trastevere areas “.
The change of use of the buildings is another trend developing in Italy, where a great number of prestigious properties are located. “The type of conversions depends on the individual locations and the economic context – says Carlo de Romedis, Cbc’s head of hospitality -. The divestment strategy originates from a correct asset valuation and the decision to prefer the hotel conversion must take into consideration accounting factors, such as the affordable rent or, in case of direct management, the Ebitda . The problem of international investors interested in investing in the hospitality sector, however, concerns the risk of long planning permits procedures aimed at the change of use and redevelopment costs. At Cbc we are specialized in supporting investors throughout the conversion process, also offering technical and legal assistance”.
Source : Company