Buying a hotel in Italy

The Italian real estate market for small hotels (up to 30 bedrooms) has experienced significant growth, propelled by a robust tourism sector and strategic investments.

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Market Trends and Locations

In 2024, Italy welcomed a record-breaking 65 million international visitors, surpassing pre-pandemic levels.

This surge in tourism has increased demand for diverse accommodations, including boutique and small hotels. Major cities such as Rome, Venice, Milan, and Florence continue to attract significant tourist interest, while regions like the South—comprising Abruzzo, Apulia, Basilicata, Calabria, Campania, and Molise—are emerging as attractive locations for small hotel developments, supported by public investment in infrastructure.

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Average Daily Rate (ADR) and Occupancy

In 2024, the Italian hotel market saw a transaction volume of over €600 million in the first half, doubling the same period in 2023.

While specific ADR figures for small hotels are not readily available, the overall market has experienced robust growth. Florence reported the highest average occupancy rate in four-star hotels in 2024, at 77.5%.

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Transactions and Investments‍

The hotel investment landscape in Italy has been dynamic. In the first half of 2024, the Italian hotel market saw a transaction volume of over €600 million, doubling the same period in 2023.

Notable transactions include the sale of three business hotels—The Holiday Inn Naples, My One Hotel Bologna, and Hotel Villa Ducale Parma—totaling 535 rooms, to CHC Holding S.P.A.

Additionally, Blackstone invested more than €500 million into southern European hotels over the past year, including properties in Italy, to capitalize on the booming post-pandemic tourism.

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Tourism and Flight Statistics

Italy's tourism sector has shown remarkable resilience and growth. In 2024, the country welcomed 65 million international visitors, surpassing pre-pandemic levels.

Foreign tourist spending in January 2024 alone was €2.7 billion, and Italian airports saw 40.2 million passengers in the first quarter, a 7.2% increase from 2019.

The recent approval of Lufthansa's acquisition of a 41% stake in ITA Airways is expected to enhance Rome Fiumicino airport's potential as a hub for long-haul flights and business travel, further boosting international connectivity.

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In summary, Italy's small hotel sector is thriving, supported by a strong tourism industry, increasing occupancy rates, and substantial investments. While traditional urban centers remain focal points, emerging regions offer promising opportunities for boutique hotel developments.