Europe -  Rome, Italy

For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Within Rome’s 1,285 km² circumference and population of 2.9 million (2019) lies the Vatican City, the only existing example of a country within a city, and the seat of the Pope, thus attracting large numbers of religious tourists. Key economic sectors in Rome are tourism, industry (oil and gas) and fashion. It is the fourth most important fashion centre worldwide and the home of the European ‘Hollywood’, Cinecittà Studios. In 2019, Rome ranked as the 16th-most-visited city worldwide and the country’s most popular tourist attraction. It is also the seat of several United Nations agencies. According to ICCA, in 2019, Rome was 13th in the world ranking of organisers of exhibitions and congresses, up from 22nd position in 2018. Rome is served by Rome Fiumicino (Leonardo da Vinci) International Airport where international passenger movements increased at a CAGR of 4.5% from 2009 to 2019 and domestic travel at a decline of 1.2%. Rome Ciampino International Airport (a mainly budget airline hub) is a secondary airport of the city and experienced a CAGR of 2.5% in passenger numbers over the same period, mainly thanks to international visitation growth.

Rome’s hotel supply increased at a CAGR of 2.6% from 2012 to 2019. In 2019, three-star hotels dominated the offering by ‘number of hotels’ (37.0%), followed by budget hotels (35.0%). In terms of room supply, four-star hotels have the biggest capacity, providing 50.0% of Rome’s total rooms. Much of Rome’s upper-end hotel stock is only of ‘reasonable’ quality, as the strong demand makes reinvestment into the properties’ fabrics a low priority from owners’ perspectives. However, new supply may pressure existing hotels into renovating and consequently improving the overall supply quality in the market. The five-year pipeline of 28 schemes accounts for 4,600 rooms, or 10.5% of the current supply. Most of these properties (68.0%) are classified between midscale to upper upscale, the minority (10.0%) as economy and 22.0% as luxury. Included in these is the 95-key Six Senses Rome, the 110-key Bulgari Hotel Roma, the 159-key W Hotel Rome, the 157-key Rosewood Rome, the 95-key EDITION Rome and the 160-key InterContinental Rome.

Occupancy in recent years has been around the 70s-mark marketwide. Average rate increased at a CAGR of 2.5% from 2014 to 2019, signifying an inflationary RevPAR CAGR of 1.1%. The blow to Rome’s RevPAR throughout the course of 2020 was in the region of 85.0%. Going forward, Rome’s strength lies in it being a strong leisure destination, in a stable country, with significant qualitative appeal; however, its dependency on international visitation (circa 60.0% of arrivals) and the slow national vaccine rollout are key threats to its recovery. Rome’s hotel values declined by 16.6% in 2020, as per our HVI analysis, being largely commensurate with Milan’s value change and faring just a nudge better than the Florentine market. Three hotels were sold in 2020 (down from eight in 2019) for a total of €193.4 million, including the acquisition of the NH Naiadi Roma by Covivio Hotels from Varde Partners, as part of the Dedica Anthology Portfolio. The other two properties sold were the 79-room Pantheon Iconic Rome Hotel and the 86-room The Duke Hotel.

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%

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)