Hotel news and transactions from around the European region: Statuto acquires Hotel Caesar Augustus on Capri, Venice Market Pulse and more...

Statuto acquires Hotel Caesar Augustus on Capri, Italy, from Signorini family

Italian investor Grupo Statuto has acquired the five-star, 55-room Hotel Caesar Augustus on Capri, Italy, from the Italian Signorini family, for a reported price of €180 million (€3.2 million per room). The original luxury villa was built in 1850 and owned for a time by a Russian prince. It was converted to a hotel by the Signorini family who purchased the property in 1940, elevating it to a luxury level in 1995. The hotel is situated on a cliff, 300 metres high in the northern part of Anacapri, overlooking the Gulf of Naples, and includes 49 guest rooms and six suites, a restaurant, pool and spa. Statuto already owns a number of luxury hotels operated by brands such as Four Seasons and Six Senses.
 
Alexandre Hotels acquires Hotel Grand Teguise Playa in Lanzarote from CaixaBank and Metrópolis

Spanish owner-operator Alexandre Hotels has acquired the four-star, 300-room Hotel Grand Teguise Playa on Lanzarote, in Spain’s Canary Islands, from CaixaBank (60%) and Spanish real estate investor Metrópolis (40%). The property is situated on the beachfront in Costa Teguise, some 14 kms from Lanzarote’s main airport. The hotel includes two restaurants, two bars and meeting rooms. Following this transaction, Alexandre Hotels’ portfolio includes three properties on Tenerife and two in Barcelona. 

Venice Market Pulse

By Lorenzo Gullotta , Ezio Poinelli , Giammarco Pignocchi

Introduction

The resurgence of travel activity in Venice following the years afflicted by the COVID-19 pandemic has not only been a sign of recovery but also an indicator of evolving trends within the city's tourism sector.

In line with what observed with other Italian cities, Venice's hotel market experienced an unprecedented surge in the post-pandemic era. While overall occupancy rates remain below pre-pandemic levels, the upper upscale and luxury market segments appear to have fully rebounded.

This recovery, along with a significant increase in average rates, has resulted in a notably positive impact on Revenue Per Available Room (RevPAR).

Meanwhile, the vacation homes market, which was already gaining momentum before 2020, has accelerated further in the aftermath of the pandemic a trend driven by a combination of shifting traveller preferences and the rising prices of hotels, making them less accessible to certain traveler demographics.

Economic Indicators - Italy

Source: International Monetary Fund, April 2024

Airport Statistics

Passenger movement at Venice "Marco Polo" Airport reached 11.3 million in 2023, down by 2.1% compared to 2019. International passengers were 10% lower than pre-pandemic volumes, while domestic passengers increased by nearly 50% from 2019 figures.

During the first quarter of 2024, there was a 2.8% uptick in overall volumes, with the international segment experiencing a 4.2% year-on-year growth and the domestic segment witnessing a 3.1% decline. Meanwhile, Treviso Airport "Antonio Canova" in 2023 was still 6.7% lower in passenger volumes compared to 2019.

Despite a notable increase of 30.9% in the international segment, the domestic segment dropped by 80.7%. The beginning of 2024 was marked by a closure between February 25 and March 16.

Nevertheless, total passenger volumes in Q1 2024 aligned with the previous year, with international passengers increasing by 15%, while domestic passengers dropped by 90.5%.

Passenger Movement – Venice “Marco Polo” Airport (000s)

Source: Assaeroporti

Tourism Demand

In 2023, accommodated bednights in the Venice market nearly caught up to 2019 figures (-2.5%). However, the hotel sector remains evidently impacted by the aftermath of the COVID-19 pandemic, as it still lags by 10.3% compared to 2019. Conversely, extra-hotel accommodations, including B&Bs, guesthouses, vacation homes, and hostels, have experienced a tremendous surge in demand in the wake of the pandemic.

By the end of 2023, bednights in these categories had increased by 9.5% compared to 2019, with vacation homes emerging as the primary driver of this trend. Over the past decade, in fact, Venice has witnessed a significant increase in short-term rental accommodations, with vacation homes showcasing double digit CAGR from 2013 to 2023 (+11%). Consequently, their market share rose from 14% in 2013 to 25% in 2019 and further to 31% in 2023, indicating an acceleration of this trend.

In terms of geographical distribution, the Centre/Lagoon area remains the most sought-after, capturing approximately 72% of all accommodated bednights, followed by Mestre/Inland with 25%, and Lido with 3%. While the Centre/Lagoon area has successfully recovered to 2019 bednights volumes (+3.1%), Mestre/Inland and Lido di Venezia continue to lag significantly, standing at -14.1% and -17.2% respectively.

Notably, Lido seems to have experienced a substantial decline in demand across all categories, with accommodated bednights decreasing by over 30% over the past decade. This negative trend, therefore, started well before the pandemic.

Read the full report here