Milan's hotel industry well fed by the Expo 2015

As Milano Expo2015 is closing its doors on October 31, 2015, it is time to step back and evaluate results. Visits to the event have beaten expectations, and the city's hotel industry recorded strong performances, with year-on-year revenue growth ranging between 25% and 55% between May and October 2015.

From May 1 to October 31, 2015, held under the theme "Feeding the Planet, Energy for life", Expo Milano drew crowds to the capital of Lombardy. Close to 21 million visitors explored the event's 58 pavilions, 25% of them coming from abroad. The overall economic impact is estimated at 10 billion euros, with 50% from tourism revenues - a 0.1% increase in GDP for the country.

The Expo's impact on Milan's hospitality industry has indeed been very significant. Arrivals in the city's hotels led to significant increases in Revenue per available room (RevPAR), according to monthly data published by MKG Hospitality and the HotelCompset database. The occupancy rate surged from 2014 marks, despite new additions to the market's hotel supply that included the openings of several flagship hotels: Mandarin Oriental Milan, ME by Meliá, the reopening of Excelsior Gallia -now a Luxury Collection hotel- and further from the city, at Malpensa airport, the first Moxy Hotel by Marriott (in partnership with Ikea).

Year-on-year change in hotel performances in Milan, IT (2015)

In May, as Expo Milano opened its doors, the city registered a 25% RevPAR gain from 2014. This growth rate accelerated with the summer season to reach 54.5% in August. Although growth slowed down after the summer season, the RevPAR still climbed to remarkable levels, up by 45% in September and about 38% in October, according to MKG Hospitality's first estimates for this month.

Thanks to robust monthly increases during the Expo2015, on a full-year basis Milan's hotel results should reach new all-time peaks. As of September 2015, the RevPAR surged by 23.4% year-to-date (Jan-Sept 2015), with occupancy rates up 4.6 points and average daily rates up by 15.6% over the period. Through the event, the Lombard city gained in visibility, reputation, and benefited from a modernization of its hotel supply. This will bring long-term support to Milan's tourism and hospitality professionals, after the event boosted their results in 2015.

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