Milan is the fashionable runner-up. And, like Spain, Italy comes in with two countries in the top 10.
Investor appetite is strong in Italy, and Milan is benefitting from the upsurge. Germany's Meininger has signed an agreement with Italian property company Beni Stabili SIIQ for a 131-room hotel in Milan. The hotel will be the second for the group in Italy, with a site in Rome due to open next year.
Hannes Spanring, CEO of Meininger Hotels, said: “With its history and culture, Milan is an important tourism destination with people visiting from all over the world. Milan is a leading business hub and trade-fair city with a steady stream of traffic throughout the year.”
Meanwhile, IHG announced the signing of Hotel Indigo Milan, the brand’s second Italian location, joining Hotel Indigo Rome, which opened in 2014. The Milan Indigo is scheduled to open early in 2018 under a franchise agreement with Amapa Group.
According to Edward Rohling, CEO of TRC Hotel Advisors, Milan remains a more comfortable city to invest in over a city like Rome, for some. "Milan is more comfortable for New York and London private equity: Historical property info can be obtained; negotiations to secure vacant possession are openly discussed; there is enough major brand presence that repositioning expectations can be based on actual recent reflagging experiences; and property rights enforcement is predictable. It is a closer match to the recent private-equity experiences in the UK and Germany. But the opportunity may be reduced due to less new supply constraint," he said.
Milan is one of the country’s strongest cities, with EY commenting in its market snapshot that it boasted the most established luxury supply in Italy, further enhanced by the recent opening of the Mandarin Oriental and the reopening of the Excelsior Gallia, Luxury Collection. Milan supply was, it said, particularly vibrant and some further 1,000 guestrooms are expected to enter in the market in the following years.