Resort in Tuscany with 5* project re-positioning

The tourist/hospitality complex “Riva degli Etruschi” (www.rivadeglietruschi.it) is located on the Tyrrhenian coast, between San Vincenzo and the Gulf of Baratti (LI), within a pine and oak woodland of approximately 30 hectares overlooking the sea. It comprises 252 villas (each two bed rooms), 34 apartments and 85 hotel rooms, for a total of approximately 660 rooms and 240 sofa beds, with an overall nominal accommodation capacity of about 2,000 guests per day. The complex also includes 6 restaurants and 5 bars, all directly operated and open to external customers as well.

As early as 2016, the tourist and hospitality complex required significant extraordinary maintenance investments in order to make it suitable for the tourism and hospitality market which has been; such investments were subsequently carried out by the new ownership.

From 2020 onwards, the opportunity emerged to design a comprehensive repositioning of the resort (the “Riva Project”), transforming it from a 3–4 stars property—whose revenues were mainly generated by weekly rentals of villas (10/15% of the revenues are coming from the 84 rooms hotel activity)—into a 5 stars resort with full hotel services across all accommodation units, capable of tripling both revenues and margins. The investments in design and related activities were carried out by the owners, which developed a Master Plan for the entire investment. Initial discussions were launched with the main competent public authorities, and an appropriate communication structure was established to promote the initiative through media outreach activities. In 2024, the construction phase of the radical renovation process of the rooms and common areas is considered to have begun. According to the project timeline, the various phases of the renovation are expected to continue until 2028. The new villa prototype project has been finalized; the authorization and consultation process with the relevant authorities (municipality and cultural heritage authority) has commenced and are well in progress; and the design of the technical systems and construction sites is currently underway.
Agreements have been concluded with construction companies, prefabrication firms, and various suppliers. Upon completion of the renovation process, the Riva degli Etruschi (“RdE”) real estate and operating complex will be largely renewed and will achieve a significantly higher market positioning than its current one.
Owner’s intention is to sell the full RdE business, or through an assets sale or through the sale of the companies.
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RdE can be sold to an investor interested only in the acquisition of the assets with the assets rented to a top hospitality operator (already identified if necessary) or to a counterpart interested in the assets and in the management of the resort.
Current owner is available to remain as a minority partner in the RdE business until full completion of the Riva Project but is not interested in remaining as a minority partner after the project’s completion.