The tourism industry has enjoyed a significant bounce-back since the recession, with the Olympics last year encouraging international visitors to see the sights in the UK. In turn, this has led to a boom in hotel developments, with a number of different luxury and budget projects in the pipeline.
However, it is not just in the UK that tourism has rebounded, as families now feel more confident spending on foreign holidays. As a result, investors are now keenly seeking opportunities to snap up hotels in Europe, partly thanks to a favourable commercial property market caused by ongoing issues in the Eurozone.
The Eden Hotel in Rome
This week it was announced that the Dorchester Collection, owner of London’s iconic Dorchester, has snapped up a luxury hotel in Rome for a rumoured £87.8 million. The Hotel Eden is a firm favourite of movie stars such as Nicole Kidman and Tom Cruise, and the cost of a Penthouse suite starts at €5,000 per night – a factor very much in keeping with the exclusive nature of the Dorchester Collection’s portfolio.
The Dorchester Collection is owned by the Brunei Investment Agency, a sovereign wealth fund in which the Sultan of Brunei ultimately controls. The Hotel Eden is the group’s second acquisition in Italy with the first being Milan’s Hotel Principe di Savoia, purchased in 2003 for the princely sum of €275 million.
Altogether, the Dorchester Collection owns and operates 10 luxury hotels in Europe and the United States. It is now believed to be turning its attention to Asia and the Middle East in order to capitalise on the emerging markets’ needed for luxury business accommodation.
During the transitional period, the group will continue to work closely with previous management firm Starwood Hotels and Resorts in order to fully cater to the needs of guests, partners and employees. Following this, the 121 room hotel will undergo an extensive renovation designed to enhance the building’s impressive heritage.
Christopher Cowdray, the Dorchester Collection chief executive, believes the acquisition of the Hotel Eden will further raise the group’s profile.
He says; “Hotel Eden is an exciting addition to our portfolio and is one of the world’s most majestic and iconic hotels in a truly superb setting.
“Its landmark status, heritage and individuality complement the style and locations of our other nine hotels in the UK, France, Switzerland, Italy and the US.
“We are delighted to welcome Hotel Eden’s employees into the Dorchester Collection family.”
Benefiting from a number of local landmarks such as St Peter’s Cathedral, Piazza Navona and the Colosseum, the Hotel Eden certainly brings an air of exclusivity sought by all properties in the Dorchester Collection’s portfolio. However, with ongoing issues in the Eurozone remaining a concern for many tourists, only time will tell whether the acquisition of this stunning property will yield the returns the group seek.
Do you think tourists are more likely to opt for a budget hotel when travelling to countries worst hit by the Eurozone Crisis?
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