Ah, Rome. Despite ongoing economic and political uncertainty in Italy, hospitality developers and hotel brands are confident enough to invest in the country.
Like some other countries, Italy, from a hotel development and investment perspective, can be bifurcated into two separate parts: Milan and Rome. According to Edward Rohling, CEO of TRC Hotel Advisors, “Rome is more challenging: Privacy desires restrict release of performance history; discussions of tenant and manager changes are cloaked in secrecy; valuation is often perceived to be only tangentially related to income potential; minimal international brand presence below five star in the urban core allows for few repositioning comps; and property owner rights are enforced patiently.
"However, room supply is the same today as 10 years ago. With little on the horizon, and a growing demand from travelers to the predictability of branded four-star hotels. But the quantity of required interactions to complete a transaction is a multiple of that in Milan, but persistence will pay off.”