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HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY

2014

The CEOs of Six Senses and The Brgenstock Collection discuss the luxury resort of the future Wimberly Interiors present a stunning 7-page portfolio of hotel design trends The 2014 hotel outlook around the world: 45 country reports from Horwath HTL Our trend spotters on asset management, sustainability, digital marketing, tourism and revenue management in 2014 Industry observations from our academic partners Cornell, Lausanne, Hong Kong Polytechnic and ESSEC

www.hotel-yearbook.com

This e-publication may be ordered online | 19.50

COUNTRY REPORT
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Hotel, Tourism and Leisure

At Horwath HTL, we focus one hundred percent on hotels, tourism and leisure. With over two hundred and fifty professionals world wide, our network can draw on a tremendous amount of international experience and local knowledge that gives us, and our clients, a unique advantage. We offer a broad range of advisory solutions that covers the whole cycle of the hotel product, starting with planning and development, on to asset management and operational advice, to transactional and financial restructuring. At any stage, Horwath HTL will add value to your project and ensure that you receive the very best support every step of the way. www.horwathhtl.com

Zoran Bacic is Senior Partner and Managing Director of Horwath HTL in Italy. He studied economics in Croatia and Italy. He has been the team leader on various development and research projects, and was Company Founder and Development Department Manager for the nautical tourism company Adriatic Club Yugoslavia. In Italy, he was the business development manager for prime construction companies in the infrastructure sector. In Austria and the UK, he served as business development and financial advisor in the investment banking sector. Since 2009 he.

ITALY
2013 SNAPSHOT In 2013, Italy suffered the fall of its domestic market, especially in the midscale and upscale segment, less evident in luxury. On the contrary, international arrivals have grown, with arrivals from outside the EU increasing by about 4% compared to 2012. Significant increase has been registered from the Middle East and Russia. Industry fundamentals in major cities partially recouped 2012s weak results: +0.6% in occupancy and -2% in ADR in 2013 (YTD) vs. 2012. The luxury scale outperformed the average with +0.4% in occupancy and +0.3% in ADR. Best performing cities in terms of fastest recovery from 2012 were Venice, Rome, Florence, Genoa, and Bologna. Capacity in terms of numbers of hotels has slightly declined, but the average dimension of the properties has grown, following the trend that started in 2010: budget and economy scale is reducing while the upscale capacity has significantly increased, with over 20% of overall capacity (by room) concentrated in the upper and luxury scale. The second half of 2013 also saw a number of relevant transactions or negotiations in Rome and Venice by Middle Eastern sovereign funds, private Arab and Russian investors, targeting trophy assets in top-notch locations, most frequently big branded properties.

by Zoran Bacic

BUSINESS SCENARIOS FOR 2014 AND BEYOND Extra-European markets will stimulate demand in 2014 (+6.6%), with consolidation of the Japanese and US markets, according to a major national tourism watch. There will be a further increase of flows from Central Europe. No evidence of recovery of the domestic market is given, but Italian demand should not fall further. 2014 will see a boost in the presence of international hotel chains, totaling over 60 brands already in the country today and over 63,000 rooms. Some Asian and Middle Eastern brands have pipelines in place to enter Italy during the year ahead. An evident trend towards restructuring and upgrading of properties, already underway, might be fostered by new seasonally planned loan schemes, recently approved by trade unions and a major bank, with a budgeted fund of 300 million. The governments strategic plan for 2020 for tourism strongly focuses on improving hotels physical standards. Middle Eastern, Russian and Asian investors will be on the way to finalize relevant negotiations, especially in the luxury segment. Focus will be on hotels, wine and organic farming, resorts and marinas. An expected sale of a huge portfolio of real estate assets from the Italian government could be the driver of relevant opportunities for development. Milan will continue to be the focus of developers as the 2015 Expo international exhibition gets closer, but pipelines might lead to excess capacity, which could be critical to place in the market after the exhibition, even though the city could retain a certain business vitality for the immediate future. New hospitality formats and mixed use will spread in Tuscany and the Lakes (Como, Garda), as fractional ownership and serviced villas become more familiar to the market and legislation slowly adapts in some key regions. Horwath HTL Italy foresees no significant change in sector fundamentals for 2014, with steady pricing and a very small or no increase in occupancy.

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HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY

2014

The CEOs of Six Senses and The Brgenstock Collection discuss the luxury resort of the future ESPAs Sue Harmsworth on the coming changes in the global hotel spa industry The 2014 hotel outlook around the world: 45 country reports from Horwath HTL Our trend spotters on asset management, sustainability, digital marketing, tourism and revenue management in 2014 Industry observations from our academic partners Cornell, Lausanne, Hong Kong Polytechnic and ESSEC

This e-publication may be ordered online | 19.50

www.hotel-yearbook.com

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