Categorized | Commercial, International

Hotels in Italy Perform Well in 2011

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Italian hotels enjoyed a successful year in 2011 despite an overall weakened economy. While not every market experienced a year-over-year increase, the majority did. The positive growth in the hotel industry in Italy was largely based on the revenue generated per room, as well as the occupancy rate of the hotels in each region.

Italy’s overall economy has struggled over the past year, as the European debt crisis has caused lenders to tighten lending, and investors to remain on the sidelines. As such, the majority of real estate sectors has either remained stagnant, or experienced a decline.

The commercial hotel real estate market in Italy, however, experienced a strong increase in supply and demand thanks to increased profits. Over one hundred new hotels were added to the Italian market in 2011. Hotels were also added in eleven regions of the country that previously did not have a strong hotel presence.

The booming hotel market indicates that there is still tremendous international interest in Italy despite recent economic struggles. Many countries in Europe are experiencing similar trends, as investors from Asia look to diversify their real estate portfolios. Furthermore, tourism continues to remain a driving force in many areas in Italy, both for the nation’s historical significance, and also its beautiful landscapes.

The hotel industry will likely continue to produce strong results during the following year. Analysts, however, are not nearly as certain nor confident in the other real estate sectors. The overall performance of Italian real estate largely depends on the severity of the debt crisis, and how lenders and investors continue to react.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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