City of Florence has entered into a contract with two Italian hotels, and is considering the sale of others as it looks to reduce costs.
The Italian government has been pressing the hotel sector to increase its efficiency and reduce costs in order to ensure the country’s financial health, in particular its airports and the railway system.
According to a press release from the city’s Tourism and Tourism Investment Agency (PTI), the Italian government had granted the city an initial extension of its planned contract with Marriott International and Lusitania for 20 years in April 2020, until March 2021.
“This extension is part of the package of measures in the framework of the countrys strategy to improve the competitiveness of tourism in Italy,” the press release read.
The announcement was accompanied by a press statement from the Italian Prime Minister, Angelino Alfano.
“We have always believed that hotels provide the most effective way of making money in Italy, and we are glad to announce that the mayor of Florence will extend the contract with the two Marriott hotels until the end of 2019,” the statement read.
In March, Florence’s mayor, Francesco Matera, had announced a bid for the Marriott hotel chain, and it was revealed that he was going to purchase it.
Matera had also indicated that the city had not yet received any offers from other potential buyers.
The mayor said that he had been working with his Italian counterpart, Angelo Alfano, on a “strategic agreement”, adding that the hotel would “provide us with new possibilities in our tourism” and “in our tourism and tourism investment”.
Materas office said the city would continue to invest in the hotel industry, which has experienced a downturn in recent years.
“The mayor will continue to be a big fan of Marriott International, which is an iconic Italian hotel chain.
We have been working together for years and are happy to announce the extension of the contract,” the office said.
However, the mayor did not specify what the agreement was worth.
Last week, the Italian Chamber of Commerce and Industry (CCI) told the government it had not received any offer from a potential buyer for the hotel chain for at least two years, and was considering a bid from another party.
It is understood that the government has also been looking at the sale and leasing of other hotels.
The city’s government said that it would use the money it raised from the deal to improve its infrastructure and improve the hotels’ customer experience, as well as to reduce the number of hotels in Florence.
“As a result, we are now considering the possibility of a tender to purchase the two hotels and other hotels in the city,” it said.
“There is a possibility that another Italian hotel may be purchased from another entity or a new operator will be established in Florence.”