The pandemic has boosted the importance of hotel renovations. To use the time earned by the imposed cease in operations for renovating hotels has become an imperative for such an old-fashioned portfolio as the Italian one. In Italy, we have witnessed a tremendous growth in the works originated in 2020 and 2021 compared to previous years, especially in the Upscale and Luxury tiers. Based on the success received with the previous 2019 and 2020 editions, we have renovated our effort to improve the CapEx database: today we can count on overall 264 records of fully completed projects, spanning in the years 2013-2021 and some pipeline. A very substantial evidence to investigate how the cost of construction and renovation moves along the several market segments, size, type of building and locations in Italy.

The 2021 will probably represent a milestone year for the cost of hotel development. This is partially evident from our data, but it is for sure confirmed by the widely acknowledged rise in raw materials’ price, which was sensibly recorded at the end of 2020 and beginning of 2021. Steal, wood, concrete, iron, copper, etc.. have all grown in price from 15% to even 25% on 2019 prices. And the impact of inflation is also very evident from other perspectives (services) and it will be more evident in the very next future.