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Hotel chains, Economy segment analysis by THRENDS

According to a recent analysis by Thrends on the economy segment in Italy, from 2013 to 2022, accommodation facilities saw a decrease equal to a CAGR of -2.8%. However, the key chains saw a growth of +23.9% and consequently the CPR (% chain rooms compared to the total offer), went from 0% in 2013 to 3% in 2022. In 2022, ownership has proved to be the predominant business model for the segment with 60% of the properties out of the total, while the remaining 40% is leased. Among the groups with the greatest presence in the segment we find: Bella Italia, The Student Hotel, A&O Hotels & Hostels, Meininger and Parc Hotel.

Bella Italia holds the record in the segment with 794 keys. The presence of the chain in the segment is mainly concentrated in Northern Italy with 9 structures. The presence of hotels in the economy segment is destined to increase in the coming years, which will see the opening of 6 chain structures, mostly concentrated in central Italy. The Student Hotel holds the record for pipelines, with 4 hotels and approx. 1,700 keys under construction. On Italian soil, the number of chains in the hostels segment is particularly limited and rather stable. On the other hand, operators offering flexible stay formulas are growing, such as Camplus, CXPlace, Staycity, The Student Hotel and, in the scouting phase on Italian soil, Selina and Edyn.

The operators of the hostels segment in Italy are:
• A&O Hotels & Hostels with two neighboring complexes in Venice Mestre and an opening with 140 keys in the pipeline in Florence;
• Generator Hostels, present in Rome and Venice;
• Wombat’s, no longer operational in Italy after leaving the management of a facility in Mestre just one year after opening;
• Meninger Hostels, operating with 2 structures in Milan and one in Rome. In Venice, the opening of the «Meninger Venezia Mestre» (rebranding ex Wombat’s) is scheduled for 15 March this year; • Plus Hostels, brand of hostels of the Human Company group present on domestic soil with 1 structure (Florence);
• SafeStay, present in Pisa with a 30-room structure;
• Combo Hostels, active in Italy with 4 structures;
• Jo&Joe, the Accor brand which will make its debut in Rome in 2023 and will include some hostel positioning rooms;
• YellowSquare, operating in Rome, Milan and Florence. At the basis of the Florentine development there would be InvestiRE SGR which, as owner of the property, leased the asset to the manager.
• Ostello Bello, active on domestic soil and abroad (Myanmar). It has a portfolio of 8 hostels in Italy.

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