December 10, 2018

Italian hotels have interest from Arab and Middle-Eastern investors

Italian hotels

In the eyes of Middle-Eastern investors, Italian hotels have become an area full of popular interest.

Private investors are seeking to buy luxury real estate Italian hotels.

The hotel industry in Italy is attracting massive attention. It is offering big potential in a country like Italy where private families own approximately 90% of the buildings.

However, finding Italian hotels for sale is not easy. Interest is mainly encapsulated around Rome and Milan but finding investment opportunities in the luxury segment is very slim, which is why assessments on developments are very significant.

This year there is unlikely to be Arab and Middle Eastern capital among real estate investments, which amounts to €1.8 billion-2 billion in the first quarter – much higher in comparison to the same time last year.

In relation to Italian hotels, the last transaction goes back to June 2016 with the sale of Nozul Hotels & Resorts to Starwood Hotels & the resorts of two hotels in Florence, St. Regis and The Westin Excelsior. The buyer is a company completely controlled by a private business, the Qatari Jaidah Holdings, with the transaction summing to €190 million, a wealthy amount indeed.

The Qatar sovereign wealth fund has grown tender towards Italy and now has their attention on the office sector. They are the owner of deluxe hotels on the Costa Smeralda and the Four Seasons in Florence.

Their fund has been pro-active recently. They operate through the Katara Hospitality holding, which is loyal to the property sector. As a whole, a monstrous €1.5 billion worth of investments has stemmed from the Middle East alone, in the Italian hotels’ sector.

Overseas investors are taking a liking to Milan, where in two rounds it has obtained the whole compound of Porta Nuova established by Hines and the Credit Suisse offices via Santa Margherita for approximately €115 million.

An impressive recent investment is that of the Fawaz brothers who are the owners of the Alhokair group. They have chosen to invest in the Milanosesto project, a sum total of €2 billion. It is a project that extends over an area of one million four hundred thousand square metres that will provide a new city up to high standards of energy efficiency.

So Italian hotels are attracting the attentiveness from investors all over the world, which is why the Italian economy is growing from strength to strength.

Written by Gemma Smith

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