Europe -  Milan

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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; it moved up to 18th position in 2022. Total passenger movements at Malpensa International Airport increased at a compound annual growth rate (CAGR) of 5.2% from 2009 to 2019. In 2023, Malpensa recorded 26 million passengers, representing a recovery to 90.0% of 2019 figures (28.8 million passengers). Linate Airport has moved from being strongly domestic focused to having an increasing proportion of regional/international routes, with international travellers accounting for almost 70.0% of the total. In 2023, Linate Airport recorded 9.4 million passengers, outstripping the 2019 and 2022 figures of 6.5 million and 7.8 million, respectively.

The market continues to be dominated by four-star hotels, which represent close to 60.0% of total room stock in the city. The five-year pipeline includes roughly 1,500 rooms (17 properties) due to enter the market, or just over 5.0% of the current supply. The projects range from upper midscale to luxury positioning and have an average of 91 keys. The majority are expected to be operated or franchised under an international brand. Anticipated opening include the 70-room Rosewood  in 2025, the 116-room Edition and the 68-room Six Senses in 2026.

Hotel performance has been on the rise in Milan for almost a decade thanks to the boost instigated by EXPO 2015. RevPAR increased at a CAGR of almost 5.0% from 2014 to 2019. Post-pandemic, 2022 figures for Milan show a bounce back, with room occupancy reaching almost 80.0% of pre-pandemic levels, and a healthy improvement in rate which brought RevPAR back to pre-pandemic levels in nominal terms. In 2023, the Milan hotel market completely recovered in terms of occupancy levels, as well as achieving double-digit growth in average rate, resulting in a RevPAR around a third higher  than in 2022 and almost 15.0% above 2019, in real terms.

Looking ahead, Milan and Cortina d’Ampezzo will host the 2026 Winter Olympics, where 2,900 of the world’s top winter athletes will gather to compete for 114 medals. It is expected that this will be another positive event for the market, both in terms of generating demand and creating further awareness.

Transactions in 2021 amounted to €332.6 million across seven properties (1,024 guest rooms). There was very limited activity in Milan in 2022, with just under 300 rooms transacting. Volumes remained subdued in 2023, with just four properties changing hands: the 43 Station Hotel (66 rooms), the Duomo Luxury Apartments by Rosa Grand (44 serviced apartments), the Hotel Ritter (88 rooms) and the HD8 Hotel (79 rooms) which reportedly sold for €23 million (€291,000 per key).

In terms of values, the strong demand recovery experienced from 2022 led to values growing by 2.3% in 2023, according to our 2024 European Hotel Valuation Index. This places values only some 4.0% below 2019 levels, with the full recovery for this market now almost complete.

Change In Value For Market: (€Euro)

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: More than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
Managing Director
[email protected]
  • +44 0 2078787722 (w)
  • +44 0 7725781037 (m)
Julia Dzerkach
[email protected]
  • +44 0 2078787742 (w)
  • +44 0 7912240964 (m)
Clemence Sennavoine
[email protected]
  • ++44 0 7736273439 (m)