The work will focus on evolution of hospitality industry developed in Milan from 2008 when the city won the run to Expo 2015, to currenty year. The analysis will have to define the state of art accommodation capacity in Milan, about quantitative and qualitative aspects, and estimate the accommodation needs which must meet by the year that will take place the Universal Exposition. OBJECTIVES Produce a complete mapping about accommodation hotel and other accommodation supply divided in local area in order to define the trend observed from 2008 to 2013. Underline which hospitality solutions have found greater development and under what conditions. Analyze the growing presence of second homes for accommodation use by identifying the overall impact of the phenomenon on the total supply and in the choices of tourism demand. The evidence of research, will find a quantitative application in the developing of a forecast income statement applied to a concrete case.

1. MTM TEAM:
Iulia Davydova
Carolina Mardegan
Marco Lancellotti
Sara Lucarini
Stefania Rampini
TUTOR:
GIORGIO BIANCHI
ASSISTANTS:
Fabrizio Piolanti
Silvia Pinna

2. • Produce a complete mapping about accommodation in
Milan, in order to define the trend observed from 2008 to
2013
• Underline which hospitality solutions are more developed
and why
• Analyse the growing presence of extra-hotel
accommodation and identify its impact on the total supply
and on the tourism demand
• Develop a forecast income statement applied to a concrete
case
Quantitative analysis
On-field and web tourist
survey and interviews to
hoteliers
Definition of our area of
interest and of our
competitive set

3.  Evolution of accommodation offer in Milan
 Influence of extra-hotel offer in Milan
 Analysis of demand in Milan
 Relation between offer and demand in Milan
 Trend of foreigner tourists flows

4. 2008 2009 2010 2011 2012 2013
604 627 646 685 727 760
Property Growth
2008 2009 2010 2011 2012 2013
28735 28465 28982 29004 29796 29913
Rooms Offer Growth
Data source: Osservatorio del Turismo, Provincia di Milano 2008/2013
2008 604
2009 627
2010 646
2011 685
2012 727
2013 760
PROPERTIES
2008 28735
2009 28465
2010 28982
2011 29004
2012 29796
2013 29913
ROOMS
0
10000
20000
30000
40000
2008 2009 2010 2011 2012 2013
MILAN –ROOMS OFFER 2008-2013
N° OF EXTRA HOTEL ROOMS N° OF HOTEL ROOMS TOTAL ROOMS OFFER
-0,9% +1,8% +2,7%+0,1% +0,4%
0
200
400
600
800
2008 2009 2010 2011 2012 2013
MILAN - HOSPITALITY OFFER 2008-2013
N° OF EXTRA HOTEL BUSINESSES N° OF HOTELS TOTAL OFFER
+3,8% +3%
+6,1%
+6%
+4,5%

5. As for the typologies of accommodation, we noticed the following trends:
0
20
40
60
80
100
120
140
160
180
2008 2009 2010 2011 2012 2013
EXTRA HOTEL PROPERTIES
GROWTH SINCE 2013
CAMPING SECOND HOUSES (RENT)
HOSTELS HOUSES FOR HOLIDAY
B&B
Data source: Osservatorio del Turismo, Provincia di Milano 2008/2013
80%
85%
90%
95%
100%
105%
110%
115%
120%
125%
2008 2009 2010 2011 2012 2013
5 STAR HOTELS
4 STAR HOTELS
2 STAR HOTELS
RESIDENCE
3 STAR HOTELS
1 STAR HOTELS
HOTEL PROPERTIES GROWTH
SINCE 2008

6. Data source: Osservatorio del Turismo, Provincia di Milano 2008/2011
Total Offer Growth Total Demand Growth
+4% +26%
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2008 2009 2010 2011 2012
Italian Presences Foreigners Presences
+6%
+9% +7%
+15%
23,000
24,000
25,000
26,000
27,000
28,000
29,000
30,000
2008 2009 2010 2011 2012
Hotel Accommodation
Extra-Hotel Accommodations
-0,1%
-0,9%
+1,8%
+2,7%

7. 6%
58%
25%
3% 3% 2% 3%
Demand Concentration
5 stars
4 stars
3stars
2 stars
1 star
Residence
Extra Hotels
We wanted to analyse where the demand is concentrated, in order to
choose which type of accomodation would be more suitable within
Milan area.
Data source: Osservatorio del Turismo, Provincia di Milano (2013)

8. 163.387
+211%
Since 2008
CHINA
192.981
+119%
Since 2008
RUSSIA
179.866
+40,7%
Since 2008
FRANCE
177.839
+24,2%
Since 2008
USA
173.960
23,8%
Since 2008
GERMANY
These charts consider the
foreigners arrivals in Milan in
2012 and show how the
percentages increased since
2008.
Data source: Osservatorio del Turismo, Provincia di Milano (2012)

9. What about the future?
In order to be ready to welcome about 20 millions of visitors for EXPO
2015, we tried to collect some forecasts, searching on the following
official web sites and contacting directly some offices such as:
• Union camere
• Confcommercio
• Provincia Milano
• Web sites: expo2015.org; expo_asselombarda; HotelMilanoExpo2015
BUT…
we haven’t been lucky enough to get any kind of information!
WHY???
Probably because nobody has such data yet!!!

10.  AIM: in-depth understanding of tourists’ behaviour and the
reasons that drive their choices
 Investigate the why and how of decision making usually
through focused samples
 Make sure the research is trustworthiness
 A survey with simple and precise questions to define important
patterns related to purpose of visit, location preferred, choice
influencers, average spending per day
 Web survey and face to face interviews in the most touristic
places
 Face to face interviews to hospitality professionals both for
hotel and extra-hotel accommodations

11. Data source: Personal elaboration
*Accommodation
included
100 - 300 € 60%
Altro 17%
300 - 500 € 16%
500 - 700 € 3%
700 + € 4%
Central Station 25%
Duomo 21%
Altro 20%
Navigli 10%
Fieramilanocity
Sempione 10%
Rho-Pero
Trade fair 6%
Porta Romana 4%
Malpensa
Linate Airport 4%
Location 36%
Price 35%
Altro 11%
Comforts 11%
Design 3%
Free Wi-fi 3%
Meeting rooms 1%
Brand 1%
Restaurant 0%
Parking 0%
Vacation 25%
Work reasons 22%
Studies 19%
VFR 12%
Shopping 11%
Altro 11%
Cultural events 4%
Health reasons 4%
MICE 3%
Furniture fair 2%
Trade fairs 1%
Average spending
per day
Purpose of
visit
Choice
influencers
Location
preferred

12. LOCATION PRICE
INDIPENDENT
HOTEL
INTERNATIONAL
TARGET
Limited offer in Porta
Romana/Navigli 14% of
tourist presence
- U.S.A., France, Germany
- 30-45 years old stylish
persons
58% of tourists choose 4
stars Hotel
Only 1% of tourists are
influenced by the brand
* All the percentages are taken from the quantitative & qualitative analysis

13.  Concerning the availability of accommodation in Milan, OFFER and DEMAND
don’t follow the same path  only 4% offer growth against 24% demand
growth from 2008 to 2012
 Focusing on tourists’ needs, there are two emerging trends:
1) Budget/low cost hospitality with standardized and limited service, at usually
affordable prices (mainly B&B, second houses and hostels)
2) Hotellerie upscale (in particular, 4 stars hotels represent 58% of demand
concentration in 2013)
 In Porta Romana and Navigli there is a lack of hospitality offer
 Price and location are the most important influencers in the accommodation
choice
 A new 4 stars Hotel in Porta Romana area
 High quality
 Lower rates than the other upscale hotels in the same area
 New offer in terms of style and concept

14. The survey we spreaded among
tourists, shows that Porta Romana and
Navigli areas were chosen only by 4% and
10% of the interviewed. This means that it
has a great potential to be developed, in
order to meet the high demand (26 %)
compared to the poor offer (4%).
N° strutture
per zona
Our area of interest
ACCOMMODATION OFFER STRUCTURES AV ROOMS AV RATE
5 STARS 1 28 € 375
4 STARS 8 104 € 163
3 STARS 5 63 € 105
2 STARS 2 17 € 67
1 STAR 1 31 € 64
RESIDENCE 4 13 € 147
TOTAL HOSPITALITY 21 256
EXTRA HOSPITALITY 6 25 € 91
TOTAL OFFER 27

15. New Openings within Milan area
2014 > 5 STARS
 EXCELSIOR GALLIA: Brand
TBA, 235 keys (Centrale)
 LE GARE HOTEL: Milano
Centrale
 MANDARIN ORIENTAL:
104 keys (via Monte di
Pietà)
 W MILAN: Starwood
Hotels, 76 keys (via Brera)
 NH HOTEL: Rogoredo
Santa Giulia, 200 keys
 MOXY: Marriott-
Aeroporto Malpensa
2015 > 4 STARS
 NH HOTEL: Sesto San
Giovanni, 193 keysMilan Municipality has chosen this part of the city to
refurbish one of its building in order to create a low
cost accommodation, confirming the previous data
emerged from our market analysis.

16. Corso Italia, 49 angolo Viale Beatrice
D’Este 1
From Malpensa Airport: A8 highway
From Linate Airport: A51
From Orio al Serio Airport: A4
• NAVIGLI AREA: happy hours, pubs, restaurants, vintage stores, antiquate
markets, fashion shops, Sinigallia fair, boat trips
• TORTONA/SAVONA AREA: design, contemporary art, culture, “Fuori Salone” trade
show, temporary exhibition in lofts
• Colonne di San Lorenzo nightlife

17. Focus on four 4 stars hotels in the area of interest
Via Tortona, 35
•Unique originality
and design
•Everchanging
experiences from
classical to
modern, fashion to
underground style
•Eclectic and
artistic spaces,
result of unusual
inspirations
Via dei Fontanili, 26
•Make guests feel
like home
•Comfort with
style, not luxury
•Fun and friendly
atmosphere
Alzaia Naviglio Grande, 8 Viale Isonzo, 14
•Classic, sober and
elegant city resort
•Old style with
modern
conveniences
•Exclusive
location: building
from the
1920s, former
curtyard
transformed into a
large garden
•Stylish and elegant
•Modern and
designed interiors
•Real Milan taste:
balustrade home
with internal
curtyard, typical of
the city
•Fairy-tale
residence
preserving all the
pleasures of
the Italian way of
life
MiHOTELNHOW MILAN MAISON BORELLA GRAND VISCONTI PALACE

19. STYLE
 Blend of design, modern, minimal and bright interiors with
the traditional and typical taste of the real Milan
CONCEPT
 Friendly and stylish atmosphere with artistic lounge space
opened to guests and external visitors
 Rooms: 143 double rooms used also as singles (30mq)
 Facilities & Services: restaurant & bar, wi-fi, transportation
from and to the main stations and airports, event
room, cultural and enogastronomic tours, weekly
sports, partnership with typical restaurants, cultural
associations, clubs

20. WE GUARANTEE WHAT TOURISTS LOOK FOR

21. We can easily observe the curve: the peak
is represented by the EXPO, and even
after 2016 the GOP keeps growing.
We developed an income statement to forecast the performance of
our hotel during and after the Expo.
The Key Performance Indicators
show a good trend, with a good
total growth from 2008 to 2022
Data source: Personal elaboration
€ 0
€ 1,000,000
€ 2,000,000
€ 3,000,000
€ 4,000,000
€ 5,000,000
€ 6,000,000
€ 7,000,000
€ 8,000,000
€ 9,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022
TOTAL REVENUE GOP (general operating profit)
YEAR OCC% ADR RevPAR
2014 50% 120€ 60,00€
2015 70% 155€ 108,50€
2016 68% 130€ 88,40€
2017 69% 133€ 91,77€
2018 70% 133€ 93,10€
2019 71% 134€ 95,14€
2020 72% 135€ 97,20€
2021 72% 137€ 98,64€
2022 73% 138€ 100,74€
TOTAL
GROWTH% 23% 15% 68%++ +

22. Final observations
 The lack of data and trends about Expo2015 makes Milan unable to
forecast, plan and consequently match tourists’ needs with a proper
hospitality offer
 The lack of balance between the demand and the offer has raised a
urgency of creating a qualified hospitality offer, able to satisfy
specific tourists’ needs
 The new offer will succeed only if able to meet preferences and
priorities of specific targets
 La Corte aims at:
1) Reduce the lack of hospitality offer in Porta Romana area
2) Create a strong image matching the 4 stars high quality with
competitive prices
3) Leverage on Expo2015 to position ourselves within the
market, but also be able to keep the same standards over the
years, due to the strong identity built

23. TUTOR:
GIORGIO BIANCHI
ASSISTANTS:
Fabrizio Piolanti
Silvia Pinna
MTM TEAM: Iulia Davydova
Carolina Mardegan
Marco Lancellotti
Sara Lucarini
Stefania Rampini
Aries Crisione