Milan full-service branded hotels recorded a 34.2% increase in GOPPAR to €118 per available room (PAR) for the year ending July 2026, driven by exceptional Olympic-period demand and a strong February performance during the Milano Cortina 2026 Winter Games.

The Games ran from 6 February 2026 to 22 February 2026 and reshaped the year's profit profile. February RevPAR reached €436, up 171.1% year on year, as occupancy jumped 18.8 percentage points to 86.7% and ADR climbed 112.2% to €503. The uplift extended into neighbouring months, with January RevPAR rising 32.5% and March RevPAR up 13.5%.

How did the Olympics affect profit conversion?

Compared with February 2025, hotels generated €314 PAR of additional revenue, a 151% increase, and €279 PAR of additional profit, a 415% increase. The Olympic-period flow-through reached nearly 89%, the strongest single-month conversion in the dataset. Across the full twelve months, total revenue grew €37.5 PAR to €255.9 PAR, lifting GOP margin by 5.9 percentage points to 46.1%. GOP flow-through reached 80.2%, meaning €0.80 of every additional euro of revenue converted to operating profit.

What drove the underlying year-on-year gains?

Outside the Olympic window, RevPAR rose 18.9%, supported by a 9.2% ADR increase to €273 and an 8.9 percentage point occupancy gain to 74.4%. F&B revenue added a further €5.7 PAR (+12.9%) to top-line growth. Rooms revenue delivered €32.3 PAR of the €37.5 PAR total revenue increase. Departmental expenses rose only €3.2 PAR (+4.2%), and Total Departmental Profit margin expanded from 64.9% to 68.8% of revenue. Undistributed expenses climbed €4.2 PAR to €58.0 PAR (+7.9% YoY), with Sales & Marketing the main contributor at +€1.8 PAR.

How did costs behave?

Operating expenses climbed €7.4 PAR (+4.8%), well below the €37.5 PAR revenue increase:

• Payroll: €63.9 PAR, up €2.2 PAR (+3.6%); fell from 28.2% to 25.0% of revenue
• Cost of Sales: €18.5 PAR, up €1.2 PAR (+6.8%); declined to 7.4% of revenue
• Utilities: €10.1 PAR, broadly stable; fell to 3.9% of revenue
• Other Expenses (excl. Utilities): €39.4 PAR, up €4.5 PAR (+12.8%), driven by Sales & Marketing (+€2.3 PAR) and Rooms (+€1.2 PAR); declined to 15.4% of revenue

Payroll growth came mainly from Sales & Marketing (+€1.0 PAR) and Rooms (+€1.2 PAR). F&B staffing costs fell 1.1%. Electricity rose €0.5 PAR but was offset by lower Fuel & Gases and Water & Sewer costs.

What is happening to supply?

Eleven new hotels with 1,036 rooms opened in Milan between August 2025 and July 2026, adding 1.8% to weighted market supply. New openings concentrated in Municipio 3 (4 hotels, 374 rooms, 36.1% of new supply) and Municipio 1 (4 hotels, 260 rooms, 25.1%). Upscale properties dominated at 74.9% of new rooms, followed by Luxury (11.7%), Economy (10.5%) and Upper Upscale (2.9%). No Midscale or Upper Midscale supply entered the market.

What comes next?

Only one further hotel will open in Milan during H2 2026: J.K. Place Milano, a 38-room conversion. Five additional properties totalling roughly 560 rooms are scheduled for 2027. Operators will likely test pricing into the post-Olympics demand environment through Q4 2026, with the next supply filings and YE December 2026 trading updates expected to clarify whether the 2026 GOPPAR step-change holds or normalises against the 2025 base.