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Milan is Italy’s second largest city, the country’s business and financial centre and a leader in technological and scientific research. The city is home to Italy’s stock exchange and one of Europe’s largest trade fair and congress venues. At the forefront of the international fashion and design scene, Milan is the preferred city for many national and international fashion and design companies to have their headquarters and it hosts several globally renowned events throughout the year, including Milan Fashion Week and the Milan Furniture Fair. The city is also strategically located with easy access to lakes, mountains and the coast, while also being a gateway to Europe. According to the ICCA, in 2019 Milan was 32nd in the world ranking of organisers of exhibitions and congresses, an impressive leap from the 42nd position the city held in 2014, demonstrating the robust upside resulting from the EXPO 2015. Milan has two dedicated airports: Malpensa International, which is about a 50-minute journey north of the city, and Linate International, which is about 15 minutes east of the city centre. These two airports represent Italy’s second largest airport hub after Rome’s Fiumicino airport. Milan also benefits from Orio al Serio International Airport in Bergamo, some 60 km east of Lombardy’s capital city. Total passenger movements at Malpensa International Airport increased at a compound annual growth rate (CAGR) of 5.2% from 2009 to 2019. Linate Airport has moved from being strongly domestic-focused, with around 70% of passenger movements being domestic, to having an increasing proportion of regional/international routes, with international travellers currently accounting for almost 70%, compared to 30% in 2009.

The market continues to be dominated by four-star hotels, which represent close to 60% of total room stock in the city. However, the five-star segment (currently 7.3% of room stock) recorded a CAGR of 6.0% in the number of rooms from 2012 to 2020, compared to the average of 0.8% throughout the market. The five-year pipeline looks moderate, with roughly 1,800 rooms due to enter the market, representing 4.5% of the current supply. The 15 projects range from the upper midscale to luxury service classes, have an average of 120 keys and two-thirds of them are expected to be operated or franchised under an international brand. Hotel performance has been on the rise in Milan for several years thanks to the boost instigated by the EXPO 2015, during which RevPAR increased by around 30% over 2014. Despite a readjustment in 2016, RevPAR increased at a CAGR of almost 5.0% from 2014 to 2019. The 2020-21 performance reflects the adverse impact of the COVID-19 pandemic on global hotel markets, with RevPAR dropping by around 80% in 2020 over 2019 and recording a 60% decrease in 2021 compared to 2019. In terms of values, the strong demand recovery experienced from September 2021 and the high liquidity of the market meant values in Milan grew by 5.2% in 2021 over 2020.

Transactions in 2019 amounted to €332.6 million across seven properties (1,024 guest rooms). In 2021, however, only three transactions were reported: the 106-room Park Hyatt in January 2021, the 55-room Hotel M89 in June 2021, which transacted for €7.7 million (€140,000 per key), and the 239-room Four Points Milan City Centre in December 2021.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change
Market Supply Growth

Change In Value For Market: (€Euro)

Milan RevPAR Change (€Euro)

Milan RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA Senior Director [email protected] +44 20 7878 7722 (w) +44 0 7725781037 (m)