Europe -  Rome, Italy

Rome, the eternal city, offers numerous historical and cultural sites, which draw visitors from all over the world. Rome’s popularity is highlighted by its strong demand growth over the past several years, from Europe but also from the USA (Rome is one of the most popular destinations for US travellers), and increasingly from Asia and Middle Eastern countries.

From a political perspective, Paolo Gentiloni took over as Italy’s Prime Minister following Matteo Renzi’s resignation in response to the humiliating rejection of his far-reaching constitutional reforms at a referendum in November 2016. Gentiloni’s immediate priorities are to shore up Italy’s ailing banking sector, create jobs and push through electoral reform before the next election, in which the Democratic Party is expected to face a stiff challenge from the populist Five State Movement. GDP growth for the near future appears to be relatively stable compared to the early 2010s, albeit somewhat unexciting at 0.9-1.1% at best. Rome has come to the forefront of investors’ interest over the last two years or so. Following a strong RevPAR recovery in 2015, Rome’s performance remained relatively flat in 2016 and 2017, with little change in occupancy and average rates.

The city’s upside potential in terms of existing assets that can benefit from capital investment, as well as new properties/brands, is enticing. The Dorchester Collection’s Hotel Eden reopened its doors in 2017 to wide acclaim following an extensive refurbishment. Furthermore, the former 192-room InterContinental De La Ville closed in March 2016 for complete renovation, following a change in ownership, and is expected to reopen in early 2019, with a reduced room count of 105, under the management of Rocco Forte, which already operates the highly-reputed Hotel De Russie in this market. Rosewood and Marriott also have exciting luxury projects in the pipeline, and others are sure to follow. Improvements in value per room for this market still have substantial potential to reach the peak levels of 2006.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Rome RevPAR Change (€Euro)

Rome RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
sperret@hvs.com
  • +44 20 7878 7722 (w)
Simon Hulten
shulten@hvs.com
  • +44 020 7878-7775 (w)