PPP Business Plan 09 03

overview
Rome
The building within which P. will be established is located in the heart of Rome (Italy), specifically at Piazza Campitelli, 2,
a secluded and intimate part of Rome, which unlike the locations of our competitors, is not subject to the high volume of
tourist and traffic.
According to a 2013 report from Jones Lang LaSalle, Rome remains the most visited city in the world and that the hotel
sector in the Italian capital has experienced steady growth over the years with signs of strong long-term growth to
continue.
Despite the adverse economic environment, tourism to Rome strengthened further over the last few years. Demand continues
to be driven by international guests representing approximately 70% of the total available beds per night, confirming
Rome’s reputation as an established international leisure destination.
Rome is Italy’s largest city and is considered the country’s most important tourist destination, benefiting from a well-diversified
market mix. Rome has an unparalleled archaeological, cultural, artistic and historical heritage, making it one of
Europe’s, and the world’s most visited, famous and attractive capital. Rome can truly be classified as a ‘global city’ and is
also widely recognized for its charming traditions, the unique character of some its neighborhoods, its breath-taking panoramic
views, beautiful parks and growing nightlife scene.
Another strong signal is the fact that over the last 5 years US Film Production companies are producing more and more
films in Europe. Increasingly, film production and post-production are following the tax breaks offered around the world.
In 2007, the Italian government introduced a financial law (244/2007) which included a 25% tax credit on production costs
incurred in Italy. The effort of the Italian Government has been initiated to encourage inward investments and production
film shooting in Italy. As a result, huge mainstream films have been shot in various Italian locations (especially Rome due
to its scenic backdrops) through 2009 and 2015, bringing the Studios back to Italy after a long period of absence.
According to Price-Waterhouse-Cooper hotel report, although Rome is one of the leading cities in terms of occupancy
rates, Rome has lower RevPAR when compared to cities such as Geneva, London and Zurich. Rome is currently ranked 5th
place (with average earnings of €101 per night behind its competitors). We truly believe that this delta in RevPAR is due
to the lack of ultra-luxurious accommodations and services that could justify higher per night earnings. As represented
below, the supply of luxury suites accounts for only 8% (circa) of the total stock available:
Rome: Hotel Supply
Grade Establishments Rooms % of Total
5-star 27 3,753 7.9%
4-star 238 24,830 52.4%
3-star 338 13,208 27.9%
other* 339 5,619 11.9%
total 942 47,410 -
{ as of march 2013 }
*Other includes 1 and 2-star hotels
Source: Ente Bilaterale Turismo del Lazio
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