Industry Report: Italy – Construction and Renovation Costs in Hospitality
By Zoran Bačić on January 15, 2020
Hospitality and Renovation, Italy
With this latest report from Horwath HTL Italy, we shed light on the world of CapEx in Italian Hospitality.
This is the very first report of its kind for Italy, covering the cost of building, converting or renovating hotels and resorts. The report tries to shed light on the world of CapEx associated with hospitality development in Italy.
We have collected 63 projects (finally reduced to 50 after data cleaning), totalling over half billion Euros of investments in over five thousands rooms. Through this database, we are able to present what is the per room cost and the sqm cost associated to light or heavy renovations, new buildings or conversions, for several market segments.
The data shows that Italy is a very peculiar market for CapEx planning: due to the massive amount of hotels located in historic buildings, which are pretty delicate to approach, renovating in the luxury scale in a top destination may often cost more than building on greenfield.
Moreover, unexpectedly, we discovered that branded and independent hotels are not different in terms of CapEx requirements in greenfield developments.
50 projects in 34 destinations
Please contact our Italy office for more information.