Italian Hospitality Investment Fund I
In partnership with Quinta SGR, Erasmus Capital Partners is setting up an investment fund which will target Italian hotel assets. Erasmus here will act as the lead fund advisor.
The Italian hospitality market has shown a consistent growth pattern in the years before the Covid pandemic. From 2015 to 2019, the number of arrivals increased by 18% (from 81.6M to 96.2M), supporting revenue growth (+25%) and occupancy rates. At the same time, the structure of the Italian hospitality market did not change, with the vast majority of structures owned and operated by families and few new structures being added to the market. Few foreign chains made significant inroads into the market during this period. The Covid pandemic subsequently showed the vulnerability of this fragmented market structure, with 528 hotels being closed, of which only 3 belonged to international chains. Next to closures, hotels that managed to survive nevertheless suffered significant declines in reserves.
We would like to bring change into the current market dynamics by investing in these family owned structures, to then modernise and reposition them up to the current international market standards. We will combine local expertise and experience with international innovative hospitality concepts in order to implement the perfect balance of innovation and Italian tradition into the market.
For more information about our investment philosophy, please download our investment case via the link below.
For more information about the Italian Hospitality investment Fund I, please contact us.
Our fund will target a conservative leverage of 20-40% LTV
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