Hospitality

Hotels, conversions and development drive the luxury market

2025 closed with 2.5 billion investments. The boom continues in 2026

by Paola Dezza

25 February 2026

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

The year 2026 opened with a further acceleration of interest in the hospitality market. And still the pipeline of projects remains diversified in terms of prime, luxury and reconversion assets to be enhanced in a trend that has been going on for some time.

Growth is supported by a combination of factors, from operational strength to investment readiness, from strong interest in value-add strategies to growth in tourist flows.

Record investments in 2025

Last year, investment volume in the sector reached EUR 2.5 billion, with significant growth over 2024 (+19%) and levels well above the historical average (+35% over the 10-year average). According to EY research on the sector, which Il Sole 24 Ore can exclusively preview, value-add transactions accounted for as much as 62% of total transactions. EY estimates a further increase in volumes in 2026. So comments Fabio Braidotti, head of hospitality for EY in Italia.

Strategies have covered both new construction and redevelopment and conversion of existing assets, with a focus on high-end hotels and trophy assets. It is this segment that catalyses the attention of international investors competing for the most valuable assets in locations where further growth in tourist flows is expected, rates - which in many cases are now sky-high - and good occupancy. Some small and medium-sized Italian chains are taking off (see article opposite) or consolidating their position, while management brands are looking for new locations in which to land. In Rome, Mandarin Oriental, Four Seasons and Rosewood are expected to open, some of them late, while in Italia new realities such as the French Airelles at the Giudecca and again Orient Express Venezia are expected to open after the opening in Rome.

"Many investors today look not only at the assets but also at the operating companies and thus enter the company structure. A cascade is a multiplier, an injection of finance into the Italia hotel system,' Braidotti explains.

First destinations in the city

Rome, Milan, Venice and Florence concentrated more than half of the volumes. Rome confirmed its position as the main pole of attraction, catalysing a quarter of the resources invested (EUR 630 million) thanks to major operations and conversion projects in the historic centre. A slight decrease, however, compared to the 29% of total capital invested in the first half of 2025. Milan has intercepted a significant share of flows (16% of the total), sustained by its role as a financial and corporate hub, while Venice has maintained its attractiveness in the luxury segment. Florence remains strategic for selective investments. But it is here that new hotels for young people, such as the Hoxton, and large projects such as Auberge ex Collegio alla Querce have arrived. In the area, the average occupancy rate is 70%, an Adr (average daily rate) of 228 euro and a RevPar (revenue per available room) of 158 euro, up 3% on 2024.

Venice continues to lead Italia with a RevPar of EUR 284, while Florence confirms a RevPar of EUR 180, also in a normalising phase. Rome and Milan follow, both with positive growth (respectively +4% and +5% RevPar), supported by strong international demand and solid corporate and event-related activity.

Resort destinations contributed one third of the volumes, 822 million. After growth in 2024, the leisure segment maintained stable activity levels in 2025, with a concentration in high-end locations.

Luxury focus and repositioning

The most significant transactions during the period included the acquisitions of Hotel Caesar Augustus in Anacapri and Hotel Villa San Felice in Capri, as well as several assets on Lake Como, including Hotel Regina Olga, Residence La Cava and the Terminus and Vista Palace hotels. Hotel Hermitage in Forte dei Marmi also contributed to strengthening the high-end leisure segment.

The investor profile

Paola DezzaCaporedattrice del Lunedì e responsabile del settore real estate per tutto il gruppo
- @24paoladezza
Lingue parlate: inglese, francese
Argomenti: mercato immobiliare, architettura, finanza immobiliare, lifestyle, turismo, hotel e ospitalità
Premi: “Key player of the italian real estate market” di Scenari Immobiliari
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