Ultra-luxury facilities, international brands, and transactions that are redefining the market: this is what is happening in Rome.
And what if Rome’s vortex of high society — as often defined nostalgically by the cinema — were to become the new rallying point of ultra-luxury holidays? This is what is already happening in Via Veneto, where the jet-set tables and the Fellinian paparazzi photographers have long been a thing of the past and could soon be replaced, in the collective imagination, by red carpets, sumptuous hotel entrances, and staff dressed in livery. This news may seem obvious: 5-star hotels are nothing new in Via Veneto. But what the latest transactions and upcoming openings indicate goes much further: the road that goes from Porta Pinciana to Piazza Barberini, full of prestigious buildings, is the new great destination for international investors and the most renowned hotel brands. Here's what is happening.
Via Veneto today
Today’s snapshot of Via Veneto shows 7 hotels in the highest segments, with a total of more than 700 rooms between 5 stars and luxury. Many of the main international multi-brands populate the street both with more timeless classic brands, such as Westin, and lifestyle brands (one example is the recent opening of the W Rome Hotel). There is no shortage of excellent local players, with independent hotels that every year manage to prove themselves as some of the best performers in Rome’s luxury market.
The new buzz in Via Veneto
The Via Veneto area is aiming even higher. The new projects are all about luxury and ultra-luxury. Starting from 2024, the exclusive ultra-luxury segment will be represented by two of the most important brands: Rosewood, engaged in transforming the former headquarters of Italy’s Banca Nazionale del Lavoro (BNL) into a hotel with more than 150 rooms, and Mandarin Oriental, in the I Villini area. In less than two years, the area will therefore host two of the 5 ultra-luxury hotels planned in Rome.
The impetus is given by the arrival of some international brands not yet present on the Rome market, also and above all in the luxury segment, thus contributing to the area’s repositioning process. The Ambasciatori Palace hotel will reopen in 2022 under the Intercontinental brand, the Grand Hotel Via Veneto has recently signed a partnership with the Nobu Hotel Group and the Majestic hotel will be included in an important CapEx plan to be transformed into a luxury lifestyle hotel. The Sofitel hotel has been refurbished and the Westin facility could follow a similar path to achieve a more competitive positioning on the new market.
In total, the rooms involved in new projects and repositioning in the luxury and extra-luxury segment are close to a thousand. In other words, the Via Veneto offer has more than doubled, as a sign of the new luxury frontier.
Transactions in the area concern hotels and much more
Since 2016, Colliers Italia has recorded transactions for the hotel sector in the Via Veneto area worth more than €800 million, out of a total of about €3.5 billion throughout Rome. In other words, 24% of hotel investments in Rome is concentrated in this small but strategic area. The transactions closed include Majestic, Mandarin Oriental, Rosewood, Ambasciatori, W Rome Hotel and the Edition Rome.
Alongside transactions in the hotel sector, Colliers Italia recorded a growing interest in Via Veneto and the surrounding streets also in other asset classes, attracting investors and tenants of high standing. Since 2016, around €1.7 billion has been invested in an area of not even 0.6 square kilometres.
Rome Caput Mundi of hotel industry
Development projects are also focusing on other areas, transforming the city to the point of redefining Rome’s hotel market.
In the historic center, there are 5 new projects in the luxury segment and 3 in the ultra-luxury segment, for a total of almost 700 rooms. There is Bulgari, which will open in Piazza Augusto Imperatore in 2024, Six Senses, in Piazza di San Marcello by 2023, and Four Seasons at Palazzo Marini. And then there are Corinthia, Orient Express, and the Shedir brands between Piazza del Parlamento and Piazza della Minerva.
With the entry of new or renovated structures on the market, Rome's luxury market will probably be divided into three sub-markets: Ultra Luxury (average daily rate between €1,000 and €1,200); Luxury (between €700 and €900), and 5-star hotels (in the €400 to €600 range).
A new life for Rome, which is becoming increasingly attractive for investors and tourists from all over the world, looking for bustling Roman holidays and imperial splendour. The current buzz confirms what is increasingly becoming a certainty: there is still a lot of potential to be exploited. The only doubt? This can be summed up in a single question: what will be the next great project coming to Rome?