Expanding Your Hospitality Business in Italy in 2020
Speaking to Veronica Vitello, we learn how 2020 is progressing for investors interested in expanding their hospitality business in Italy.
Italy remains to be a tourist’s haven. With Lake Como being an ideal location for a luxury destination wedding and Rome being the Eternal City travellers yearn to visit, it is not shocking to hear that their hospitality industry has been progressing well.
How the hospitality investment market in Italy is progressing in 2020
2019 was a record-breaking year for the hospitality sector in Italy; the approximately 3.3 billion euros of transaction volume was double the results of the previous year and is actually the second investment sector in Italy, after offices. Luxury hospitality represents 42% of the total investments in this area. Trophy assets represent 38% of the transactions.
Actually, investors’ sentiment for 2020 seems quite optimistic. Investors confirm their interest in the primary markets (Milan, Rome, Florence and Venice). Rome is the city with the higher volume of investments (more than 500 billion euros invested in hospitality). Milan, after the election for next Olympic Games 2026, is preparing to further development in the hospitality sector, and has already had increased investment with Expo.
The main players are foreign investors representing more than 80% of the total investments which are attracted by the increasing performance of the hospitality sector in Italy and by the limited market volatility of the Italian market compared to other European markets. Mainly the investors are institutional investors, sovereign funds and high net worth individuals.
The change in investor’s approach in hospitality
Generally, in the last year, it seems that the approach of foreign investors has changed from an “opportunistic approach” into a “long term investment”.
How about the legal framework?
The legal framework in Italy is quite complex and, therefore, notwithstanding the aforesaid numbers and the significant market demand in several cities, only approximately 12% of the hospitality transactions refers to the development of new hotels. The role of a lawyer is crucial to help foreign investors to understand the market and the legal framework, to deal with the public authorities in order to allow the issuance of all the required permits and authorisation and to find the best way to prevent any possible dispute.
Above all, consulting a lawyer promptly would always avoid a wide range of issues and reduce financial losses. In my experience it is essential to operate with the highest international standards of excellence in legal service, both domestically and internationally, with innovative approach, looking ahead, and, where necessary, providing our clients with a dedicated multidisciplinary team, which focusses on meeting all of our clients’ business needs in connection with the prospective transaction.
Veronica Vitiello
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Veronica Vitiello is a Partner at RCCD law firm (Milan Office). She has extensive experience in the following practice areas and industries: Real Estate, M&A, Real Estate Funds, Corporate Real Estate Services, Real Estate Finance, Administrative Law and Environmental Law.
She assists primary Italian and overseas investors, corporate clients, public entities, real estate investment funds, developers and lenders in all legal aspects relating to real estate transactions.
She is a transactional lawyer with broad experience in real estate acquisitions and disposals, joint ventures and strategic alliances, and advises Italian and overseas clients on domestic and cross border deals in the negotiation and drafting phases of transactions to help clients to pursue their business goals.
She has extensive experience in administrative law, environmental law and public tender procedures and also advises on issues including development projects, construction, road networks, state property, zoning and building, work contracts, both for supply and services, development of public projects, landscape and environmental protection.
Veronica has held posts as a professor of law at Politecnico University of Milan and at the University of Bergamo. She writes articles on the aforesaid legal matters and is invited as a speaker in conferences and seminars.
Prior to joining RCCD law firm, Veronica worked for first-tier Italian and international law firms.
