Hotel, the construction industry engine
Hotel trade drives restorations and new buildings in Italy, betting on technological and digital innovation
A er the years of crisis and decrease numbers, it looks like the recovery me for the construc on industry has come. The latest facts induce cau ous op mism and, a er all, this is exactly the industry trend, that historically reacts slowly to more complex periods. The forecasts for 2019 show a growth prospect of 122.6 billion euros, that’s s ll mainly led by residen al (38,10%), but it is increasing the number of new buildings (15,90%) and of commercial buildings (46% in total, public/private sector). The MADE Expo, the main fair of architecture and construc on, will open the doors of the 9th edi on in march 2019, and it has recently submi ed the outcome of its observatory, based on ANCE data. Hotel trade leads this recovery, it shows to be, in the recent CRIF Real Estate Services data, the real engine for restora ons and new construc ons in our country. This trade is able to convey investments with strength and resilience much more than other real estate sectors and, especially, it’s highly focused on technological and digital innova on and news.
The Real Estate relaunch
The demand is taking back, especially in some ci es and regions. According to ISTAT data, in the first three months of 2018 there was a growth of real estate buying and selling rate of 4,2%, compared with the same period of last year. As MADE Expo report states, the fastest growing stock exchanges are Milan (+ 8,2%), Naples (+ 7,4%), Turin (+ 4,9%) and Rome (+4,1%). Most of all Milan is in the core of this relaunch, whose reflec ons involve virtuously the construc on industry: 6 million square metres of new developments are planned for the next 15 years in Lombardy capital (such as the Life Science Park, the addi onal two towers of
Citylife, Scalo Farini, the projects of Segrate, Cascina Merlata and the ex Area Falk). Here, the top hotellerie is able to make the difference. Indeed, in our country, the crisis produced a posi ve effect, in a manner of speaking, on the Italian hospitality offer. It recreated the offer, by propor onally reducing the number of lower quality structures (one and two stars) and promo ng, instead, the growth of four and five stars hotel. This orienta on to excellence embraces tourism demand qualita ve evolu on and the tourist quan ta ve growth in Italy. This trend hasn’t stopped since 2014.
Private equity, private companies and qualified major investors: the most interested to high end hotels
Similarly, according to CRIF Real Estate Services data, the hotel real estate in vestments increased from 600 million euros to 1.2 billion euros between 2014 and 2017 in Italy, represen ng about 1012% in all real estate investments. Although, in the first half of 2018 it has been registered a decrease compared with the same period of 2017, this decrease was significantly lower than that of the total market. It’s a proof that this segment con nues to be interes ng against other ones. Private equity, private companies and qualified major investors, with a more focused interest in high range hotel facili es, are investors who turn to the hospitality industry, a segment which alone accounts for about 80% of the transac ons carried out. CRIF Real Estate Services proposes benchmarks for hotel markets by iden fying the average of market value for facili es and, most importantly, for individual rooms. The evalua ons are based on
the value per square meter and on other socioeconomic data. They show the supremacy of Florence among the big ci es, with a hotel average value of 13.2 million euros and a mean value of 240 thousand euros per room; followed by Milan, with an average value of 15 million euros per facility and a mean value of 205 thousand euros per room, next there is Rome, which has an average value of 12.3 million euros per facility and an average of 174 thousands euros per room. Among the tourist des na ons, Lake Como stands out on both side, with 8.8 million euros of average value per facility and 169 thousands euros per room.
Subsidies for construction industry
The recovery of the construc on industry, especially, the one related to the hospitality sector, is also promoted by the fiscal instruments deployed and reconfirmed for 2019. First of all, let’s start with the so called “Bonus Alberghi e Agriturismi”. It’s a tax break that was reconfirmed and extended by the last 20172018 Budget Law. This law, that has been prolonged un l 2020, provides for the chance to access a tax credit of 65% on restructuring costs for hotels, agritourisms and, generally, to buildings for tourist use. This law includes: construc on redevelopment (extraordinary maintenance interven ons, restora on and preserva ve recovery ac vi es, processing measures); architectural boundaries removal (physical barriers removal, planning/realisa on of areas open to all the people, the removal of sensory barriers and communica on); increasing energy efficiency (energy reclassifica on, interven ons to the building; par al/full replacement of air condi oning systems); the purchase of furniture that are exclusively intended to hotel facili es (the remake or subs tu on of kitchens, indoor and outdoor furnishings, fixed furnitures, safer flooring, the building of new spas). This tool has become more efficient since the deduc on rose from 30 to 65%, since it can be available in two tranches along the year rather than three, and since it can be applied up to 220 thousand euros. This tax break can be applied to facili es performing agritourism ac vi es according to the Law 96/2006; hotel facili es, or rather, pending of implemen ng decrees enactment, hotels and alberghi diffusi, hoteltype tourist residences, hotelvillages, the facili es which are intended as “hotel” by specific regional laws, thermal facili es (only from 2018). The approved tax credit is 65% of the total amount of the allowable costs incurred from January 1st, 2017 to December 31st, 2018. As exposed before, up to the maximum value of 200 thousand euros may be granted to each company within twoyear reference. For costs incurred during 2018, it will be possible to submit facility request from February 18th, 2019.
Gli alberghi trainano la ripresa degli inves men in Real Estate. Hotels lead the recovery of Real Estate investments
Il se ore alberghiero interessa l'80% delle transazioni effe uate dagli inves tori del Real Estate. The hospitality industry accounts for the 80% of the transac ons carried out by the Real Estate investors
Milan is in the core of this Real Estate relaunch Milano è al centro del rilancio del Real Estate.