In 2023, the attention of investors was focused on the debt market. During the year, high interest rates and inflated costs of construction or renovation rowed against growth for this asset class as well as others. This led to a market dislocation making all buyers and lenders extremely cautious. Based on hoteltransactions.it data, the hospitality real estate market underperformed in 2023 if compared to the previous years, registering a -38% YoY and a -57% compared to 2019. While interest in the hospitality sector remained very high as fundamentals showed fast recovery from Covid-19 crisis, we can describe the 2023 year for Italy as “a period of reflection for institutional investors”. They simply put investments on hold.

Looking forward to 2024, we expect the year to have a slow start but then gradually accelerate, ultimately landing with a much stronger finish. The Italian hospitality industry fully recovered from the pandemic in 2023 and it is expected to peak in 2024 at unprecedented volumes.

This report is an analysis of the 2023 calendar year based on the data collected by Hoteltransactions.it, thus not forcely representing a comprehensive study of the Italian Hospitality Real Estate market.

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