Italy is among the most attractive European countries for hotel real estate investment. Rome takes the third place, behind Spain and Germany, in terms of market attractiveness in Tranio’s overview of European hospitality real estate market, presented during the 22nd edition of the International Hotel Investment Forum (IHIF).
Most of the survey participants hailed from European countries such as the UK (29), Germany (19) and Spain (16); however, Russian, Saudi and Emirati investors were also well represented. According to previous joint research conducted by Tranio and MR&H (Mediterranean Resort and Hotel Real Estate Forum), the Mediterranean region is quite popular among American, Russian and Chinese investors. Russian entrepreneurs showed a keen interest in European hotel real estate in both surveys. Italy also ranked as the third most attractive countries for investments overall.
Investors’ spirits are high, as the majority of those who participated in the survey indicated that they are willing to believe in European real estate and thus more likely to buy than to sell in 2019. There is, nonetheless, a lack of good offers available on the market while as Marina Filichkina, Tranio’s Head of Sales, said many investors are searching every day for hotels to purchase and then rent. Survey participants showed more interest in higher value real estate purchases, as 71% of revealed that their average investment budget is over ten million euros; 23% of the sample indicated that their budget is in the one million to ten million range.
Investments made in Italy are usually held for longer periods, as well as those made in Germany and Spain, thus favouring a long-term investment strategy, usually over ten years. Another study, Deloitte’s “2018 European hotel investment survey”, revealed that 30% of respondents indicated a hold period of 5-10 years and 40% more claimed that they would be looking to hold for 10+ years.
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