March 21, 2018 will be the effective date of the regulations on Condhotels recently issued by Italian government (through Decree dated January 22, 2018).
Such regulations are aimed at enhancing (i) investments for redeveloping and upgrading existing hotel businesses, and/or (ii) up-to-date tourism products and services.
Condhotels will combine hotel and private residential use and are subject to the following requirements:
– Condhotels may include rooms in one or more buildings, within 200 meters from the main building and hotel reception;
– no less than 7 hotel rooms and at least 3 stars hotel ranking;
– private residential units, totaling no more than 40% of the total room area, available for sale to private investors and both residential and hotel use are allowed;
– one integrated management of the hotel services for the entire complex (hotel and private residential).
Expected developments are:
a) existing hotels located in tourist areas to be upgraded and redeveloped by investing the proceeds of the sale of up to 40% of its rooms to private investors;
b) private owners in tourist locations joining their properties (e.g. flats currently rented through Airbnb or equivalent channel) as one brand and as one integrated hotel product.
Regions are expected to issue implementing regulations concerning permit application procedures and requirements.
Hotel management operator and owners’ respective rights and duties under the new law would require careful and thorough analysis of all regulatory and contractual issues in order to set up transparent, reliable and effective investments products to be offered on the market.
Lucente International Lawyers assists foreign and Italian clients on real estate projects and investments throughout Italy and beyond.