An Italian subsidiary to structure growth in Southern Europe
Arabella Hospitality SE, part of the Schörghuber Group, is pressing ahead with its European expansion by setting up a wholly owned subsidiary in Italy, headquartered in Milan. Since 1 October 2026, Nicola Foschini has served as CEO of Arabella Hospitality Italia S.r.l.
The group has identified Italy as its next growth market in Southern Europe. It intends to leverage its expertise in the upscale and luxury segments, full-service hotels and resorts, complemented by its know-how in golf.
This independent local organisation is designed to combine market knowledge and networks with the group’s international standards, with a remit to forge partnerships and build the Italian hotel portfolio. The move follows the strengthening of the executive leadership with the appointment of Jan-Patrick Krüger as COO.
Karl-Heinz Pawlizki, CEO of Arabella Hospitality, stresses that Italy is the group’s next growth market in Southern Europe and one in which, given its expertise, it sees considerable potential. He adds that Nicola Foschini brings the experience and market knowledge the group needs to establish its Italian subsidiary.
Nicola Foschini: more than 25 years in hotel operations
Nicola Foschini has more than 25 years’ experience in international hospitality. Most recently, he was Chief Operating Officer of 753 Hospitality, an Italian investment fund specialising in hotel acquisition and renovation, where he oversaw operational strategy, franchise negotiations and team management.
From 2022 to 2024, he led development and operations at Monrif Hotels, overseeing three properties and the launch of a new lifestyle brand. Between 2020 and 2021, he served as COO of Olympic Entertainment Group in Estonia, with responsibility for 105 sites and more than 1,000 employees.
He began his hospitality career in 2008 with Accor in Italy, where he held a series of management positions over eleven years, rising to Vice President Operations Luxury and Upscale, in charge of a portfolio of 23 hotels.
In Milan, he combines this operational experience with a hotel investor’s perspective. He will be the local point of contact for owners and investors and will drive the development of the Italian business. Having its own subsidiary and a team on the ground, he explains, will allow the group to respond more quickly to market opportunities and to build lasting, long-term partnerships with owners.
Management contracts and a white-label model
Looking ahead, Arabella Hospitality intends to rely increasingly on management contracts. Under the white-label model, the group contributes its operational expertise without owning or leasing the hotel. Ownership and leasing nonetheless remain important pillars of its business.
Present in Spain for several decades, the group can, from its Mallorca base, bring new hotels into its portfolio elsewhere in Spain, as in Ibiza, where it will operate the future Ibiza Corso under the Autograph Collection brand. These structures and this experience provide the foundation for its move into Italy.
Munich South: a 164-room Moxy at the heart of The Source
In Bavaria, Arabella Hospitality SE is strengthening its presence in Munich and moving into the south of the city for the first time. The group will take over operation of the Moxy Munich South, part of The Source urban development on Baierbrunner Straße in Obersendling. The asset is owned by Empira Group.
The 164-room hotel will occupy the South Building, a new-build of approximately 8,655 sq m gross floor area. It will stand alongside the Siemens tower, designed by architect Hans Maurer and built between 1961 and 1963. Munich’s tallest office building on completion, it is now a listed historic monument and is undergoing revitalisation.
Set on a 15,564 sq m plot, The Source will total approximately 54,700 sq m of gross floor area, combining a hotel, offices, serviced apartments and food and beverage outlets, with a 370-space underground car park. The hotel’s building permit process is under way, with completion scheduled for the second half of 2028.
An upper-midscale segment already proven in Munich
The Moxy Munich South will be positioned in the upper-midscale segment, where Arabella Hospitality SE already operates the Residence Inn by Marriott Munich Central, the Four Points by Sheraton Munich Arabellapark and the Aloft by Marriott Munich. With this opening, the group’s Munich portfolio, which also includes The Westin Grand Munich and the Rosewood Munich, will comprise six properties.
Group-wide, Arabella Hospitality SE will thus operate 19 hotels across the DACH region and Spain, under the Marriott St. Regis, The Luxury Collection, Westin, Sheraton, Four Points by Sheraton, Aloft, Autograph Collection, Tribute Portfolio and Residence Inn brands, as well as its own Arabella brand and the Rosewood banner.
The choice of Obersendling reflects the district’s transport links, with the U3 and U6 underground lines and the Siemenswerke S-Bahn station connecting it to the city centre, as well as the near-absence of major international hotel brands in southern Munich. Its proximity to Thalkirchen and to the Bavaria Film Studios in Geiselgasteig offers additional demand potential.
According to Karl-Heinz Pawlizki, southern Munich is a logical next step for the group: with the Moxy Munich South, it is filling a gap in the market, as until now there had been no modern midscale hotel in this location.
Empira, owner of the asset
Empira Group is a real estate investment manager active in Europe and the United States, with around €10.6 billion in assets under management. Since 2025, it has operated as an independent real estate brand within Partners Group. Based in Zug, Switzerland, it has offices in Germany, Luxembourg, the United States, the United Kingdom, Sweden and Austria.
Our analysis – These two announcements point to a two-speed strategy: consolidating its position in the Munich market in the upper-midscale segment alongside an institutional owner, and opening up Italy with a preference for management contracts. It is a less capital-intensive approach that positions the operator as a partner to owners and investors, in a market where expansion depends on local proximity.
At a glance by The Hospitality Tribune
Arabella Hospitality enters Italy and takes over Moxy Munich South
Italy: new wholly owned subsidiary, Arabella Hospitality Italia S.r.l., headquartered in Milan
Leadership: Nicola Foschini appointed CEO effective October 1, 2026 (ex-753 Hospitality, Monrif Hotels, Accor Italy)
Model: growth focus on management contracts, including white-label operations
Munich: 164-room Moxy Munich South at The Source, owned by Empira Group, completion H2 2028
Portfolio: six hotels in Munich, 19 across DACH and Spain
