For most hotels, exceeding their typical occupancy and sales yield for almost a week would be a big success but doing this in peak season, when rates are at their highest, would be like Christmas coming twice. In Milan it does.
Data from hospitality data analyst STR shows that from the Tuesday before this year’s Italian Grand Prix until the Sunday of the race itself, revenue per available room (RevPAR) at hotels in the nearby city of Milan was higher than the monthly average.
According to the data from STR, the RevPAR at hotels in Milan steadily surged from $84.20 on Tuesday 28 August to $106.38 on Thursday and then peaked at $182.51 on Saturday, the night before the race. The following night it still hit a healthy $131.89 which was nearly double the monthly average for August of $77.31 (€66.48).
It proves that F1 races drive a powerful economic impact as spectators chose to stay in Milan even though the Grand Prix had finished. This boosted the occupancy which in turn also increased the average rate. Dividing the total room revenue by the number of available rooms gives the RevPAR and this explains why it accelerated during the race period.
One of the driving forces behind the popularity of the race is the performance of Italy’s beloved Ferrari squad which has been challenging reigning champions Mercedes throughout this season and currently lies just one place behind it. The location of the Italian Grand Prix also helps as it is one of the most convenient of any of the 21 races on the F1 calendar.
It is held at the Autodromo Nazionale Monza which was built in 1922 and is the world’s third-oldest continuously-running purpose-built race track after Brooklands in Britain and Indianapolis in the United States. Monza sits in the middle of a picturesque park which is just half an hour by car from the hotels in downtown Milan. STR has its finger on their pulse.
Founded in 1985, STR is one of the leading sources of hotel performance trends on a daily and monthly basis with its data sample in the industry comprising more than 62,000 properties and 8 million rooms. Its data shows that both the occupancy and average rate of hotels in Milan outperformed the monthly average for August from the Tuesday of race week up to and including the night of the Grand Prix. It was fuelled by the army of staff who work for F1.
Each of the ten teams brings around 100 people to each race and then comes the hospitality staff and workers who produce the television broadcast which was seen by a television audience of 352.3 million last year. Spectators arrive on Thursday and the sooner teams arrive on-site, the more time they have to prepare which can make all the difference on track.
The teams’ arrival window largely depends on the location of the previous Grand Prix as F1’s gruelling schedule sometimes sees races on different continents take place just one week apart. In contrast, the Italian Grand Prix was the week after the race in nearby Belgium so team staff could travel there directly and arrive early.
Testimony to this, occupancy started to rev up on Tuesday of race week when it came to 56.9% according to STR. This was just above the monthly average of 55% but it was ten percentage points above it by Thursday and hit top gear the night before the race when 78.2% of rooms in Milan were occupied.
The average daily rate followed suit and exceeded the monthly average of $140.62 (€120.92) all week. It started at $148.08 on Monday but raced to a staggering $233.50 by Saturday. This isn’t just an average of the rate paid for the rooms in each hotel but an average of the totals across all hotel categories. The biggest beneficiaries are those at the upper end of the spectrum and the leader of its class is the Four Seasons.
Located just steps from the historic Piazza del Duomo and shops in the heart of Milan, the Four Seasons is hardly visible from the outside. Discretion is the name of the game as the hotel is on a cobbled alley hidden behind what looks like a row of houses, complete with shutters on the windows. It was actually a 15th century convent and there’s no mistaking it inside.
Parts of original frescoes line the lobby and tapestries hang on the corridor walls. There’s a covered central courtyard and the rooms around it still have lamps outside the doors from when it was open air. The spa and pool is another hint to its history as it sits between stone columns in what was the cellar. The hotel doesn’t just make the most of its history but also its location.
In addition to arranging dinners on cruises across nearby lakes, the Four Seasons also offers wealthy gear-heads a road trip like no other. On the Dolce Vita tour they can take the wheel of a 1960 Giulietta Spider, a 1958 Mercedes-Benz 190 SL Cabrio or a 1956 Porsche 356A Speedster and visit some of auto racing’s most historic destinations. They include Monaco and Modena, birthplace of Enzo Ferrari who founded the eponymous auto maker.
On the tour a driver from the hotel will follow behind in a more modern-day car which acts like a human GPS service as it can be contacted with a two-way radio and will take the lead if you get lost. The driver is also on call for roadside assistance, recommendations and valet parking. In true Four Seasons style they will even wash the car and fill it up if needed.
It is this kind of attention to detail which has made the hotel a favorite with F1 luminaries during the Italian Grand Prix and it pays off. General manager Mauro Governato says it doesn’t just give the hotel a boost, it really is comparable to Christmas.
What is the minimum stay requirement during the Grand Prix period?
There is no minimum-stay during the Grand Prix.
How far in advance of the Grand Prix is the hotel usually fully-booked?
As everything is last minute demand and because the GP of Monza takes place the first Sunday of September when many still enjoy vacation time, the hotel really fills up in the last week, when everyone starts to talk about the upcoming GP and the F1 fever starts in Italy.
Can you name any F1 personnel and/or celebrities who stay at the hotel during the Grand Prix period?
We cannot name anyone for privacy reasons but because the location of the hotel is very special, right into the heart of Milan’s bustling fashion district, we have many CEOs of racing teams and F1 organizers using our facilities and the hotel as their base. Lots of ours guests also enjoy combining the F1 GP with doorstep shopping, and they get it all by staying with us!
How does the average food and beverage spend per booking differ during the Grand Prix period to other times of the year?
It’s always difficult to put a number to this however our relaxing inner garden offers an amazing venue for F1 lovers to chat about the qualifying performance around a few glasses of Champagne or a cocktail creation by our head barman Luca Angeli, so the F&B sales definitely increase over that weekend.
Do you market the hotel specifically at F1 clients and, if so, how?
We do not specifically market to F1 clients as the Four Seasons Hotel Milano has been here for 25 years and benefits from a great reputation built year after year making it an F1 lover’s favorite. Guests know they can enjoy relaxation, rejuvenate with a spa treatment or enjoy a drink in our garden, all in keeping with privacy.
Why is your hotel ideal for Grand Prix spectators?
The hotel provides the perfect setting for relaxation and calm after the stressful day of the race.
Housed in a 15th century reborn convent, it is a timeless sanctuary in the heart of Milan’s fashion district, steps away from La Scala, the Duomo and world-leading couture houses. Each room and suite blends historic details with timeless Italian design, and offers views over the property’s cloistered garden, the quiet street of Via Gesù or private gardens.
Its location in Milan’s Fashion district makes it a place of choice to combine the F1 with great shopping, dining al fresco in the peaceful garden and unwinding at our spa. It is also an easy 10 minute helicopter ride from Linate airport for those who choose to reach Monza in the most speedy way, and style.
To follow their passion for cars even further, guests can also choose to book our ‘en route to la Dolce Vita’ experience where they drive an authentic vintage car, with assistance, and visit the beautiful landscapes of the south of France or Tuscany, in collaboration with our two sister properties based respectively in Florence and Cap-Ferrat.
Do you produce packages connected to racing or the GP?
Yes we do offer a four night package in a Superior room and including personalized welcome amenities, complimentary morning refreshments, complimentary premium internet connection and access to our spa facilities.
Does your hotel host F1-related events during the Grand Prix period and, if so, which are the most significant of these events?
No we don’t
Does your hotel host F1-related events during the rest of the year?
No
Is the Grand Prix comparable to Christmas and New Year as being one of the busiest times of the year for the hotel?
Yes the GP period is definitely an event driving a lot of attention and enthusiasm especially when the Ferrari Team is in the context to win the championship.
Do you offer any special services during the Grand Prix (for example shuttles to the track)?
No we do not offer a shuttle service but there is definitely a great F1 vibe in the hotel, with specific amenities prepared by our pastry chef Daniele Bonzi and our bar staff dressed for the occasion with an outfit reminiscent of the F1 preparers.
