Europe -  Milan, Italy

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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 70.0% of passenger movements being domestic, to having an increasing proportion of regional/international routes, with international travellers currently accounting for almost 50.0%, compared to 30.0% in 2009.

The market continues to be dominated by four-star hotels, which represent 58.0% of total room stock in the city. However, the five-star segment (currently 7.6% of room stock) recorded a compound annual growth rate of 7.6% in number of rooms from 2012 to 2019, compared to the average of 1.0% throughout the market. The five-year pipeline looks moderate, with roughly 2,000 rooms due to enter the market, representing 7.5% of the current supply. The 16 developments range between the upper midscale and luxury service classes, they have an average of 130 keys and just under half of the projects will be in the city centre. 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 30.0% over 2014. Despite a readjustment in 2016, RevPAR increased at a CAGR of almost 5.0% from 2014 to 2019; however, in 2020, the pandemic eroded occupancy and ADR by 77.0% and 13.0%, respectively. Hotel values in Milan depreciated by 16.7% in 2020 over 2019.

Transactions in 2019 amounted to €332.6 million across seven properties (1,024 guest rooms). In 2020, however, the only reported sale was that of the Be Mate Via Tivoli, a 14-key boutique property which transacted for €21.5 million (€1.5 million per key).

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: Less than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković
[email protected]
  • +44 20 7878-7721 (w)
  • +44 7 593572865 (m)