Having plunged by almost two thirds during 2020, retail current value sales of luxury hotels saw no more than a marginal recovery in 2021. Many hotels remained closed even after they were allowed to reopen during 2020 due to a lack of demand.
Almost luxury hotels brands witnessed a strong decline in the occupancy rates in 2020, especially those located in art cities, such as Rome, Florence, Venice (as these tend to be more dependent on international tourism) as well as in Milan, which is a business centre and thus suffered most from the decline in business travel. Luxury hotels located in coastal, mountainous or rural areas were in a better position than those located in cities.
Despite the pandemic, the number of luxury hotels in Italy continued to increase during both 2020 and 2021. In June 2020, Paragon 700, a luxury boutique hotel and spa opened in Ostuni in the Puglia region, located in a building called Palazzo Rosso that dates back to 1700.
The recovery in demand for luxury hotels will significantly gather pace during 2022, as inbound international tourism continues to revive and the domestic economic environment improves. In constant terms, retail value sales will remain below their pre-pandemic (2019) peak even at the end of the forecast period.
Despite COVID-19, the number of luxury hotels in Italy will continue to rise throughout the forecast period, with the pace of growth matching that of the review period. During 2021, Marriott opened a new Four Seasons hotel in Taormina’s San Domenico Palace.
Already significant before the onset of the pandemic, health and wellness is set to become an even more important part of the luxury hotel offer during the forecast period, with such facilities as spas, gyms and swimming pools expected to proliferate. COVID-19 will play a role in this by underlining the health risks associated with obesity.
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Understand the latest market trends and future growth opportunities for the Luxury Hotels industry in Italy with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Luxury Hotels industry in Italy, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Luxury: includes luxury and upper upscale hotels. Would generally include 5-star hotels and above, but may include some “4.5-Star” outlets, provided that the brands positioning warrants it. The luxury classification is primarily determined by the brand’s positioning and marketing, which will be at the high-end. Brand examples include Marriott, Hilton, Sofitel and InterContinental.See All of Our Definitions
This report originates from Passport, our Luxury Hotels research and analysis database.
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