HVS In Focus: Rome - Why the eternal city could become the next hotspot for luxury hotels
Rome, one of Europe’s most historical and cultural cities, looks set to be one of the next hotspots for hotel investors drawn by improvements to the city’s luxury hotel market and recent transaction activity.
'Why should luxury travellers pay less for a hotel in Rome than in London, Paris or New York? We have the same guests here...,' a General Manager of a luxury hotel in Rome asked me recently during an interview. His remark poses an interesting question: why are luxury hotels in Rome not able to charge similar rates as those in London or Paris, when they supposedly attract a similar clientele?
'Why should luxury travellers pay less for a hotel in Rome than in London, Paris or New York? We have the same guests here...,' a General Manager of a luxury hotel in Rome asked me recently during an interview. His remark poses an interesting question: why are luxury hotels in Rome not able to charge similar rates as those in London or Paris, when they supposedly attract a similar clientele? A comparison with other European gateway cities illustrates that the business mix of the hotels in Rome is actually slightly different to that of London and Paris. Whilst the latter are not only tourism hot spots but also global business hubs, Rome's client mix is more leisure and government focused.