Hotels: investment in Europe exceeds 24 billion; 430 deals have been completed over the past year and a half

Italia’s performance is particularly strong. Italy has achieved one of its best results in recent years, with investment growing at double-digit rates: up 27% compared with 2024. According to the analysis, this trend is set to continue into 2026, with investment in the first half of the year already estimated at 1.25 billion.

The transactions completed last year involved 70 accommodation facilities, predominantly 4- and 5-star hotels, totalling around 5,250 rooms, confirming investors’ interest in mid-to-high-end and luxury properties. Taking into account ‘indirect’ investments as well – that is, those involving properties intended for future changes of use, particularly from office use to hotel use – which amount to just under 400 million, the total volume exceeds 2.7 billion.

The outlook for the Italian hotel market remains positive for 2026 as well. The report highlights how Italia has already overtaken Spain in investors’ preferences, taking first place amongst the countries of Southern Europe. “2025 marked a period of exceptional dynamism for the Italian hotel property market,” explains Giampiero Schiavo, chief executive and managing director of Castello Sgr – “The investor profile is evolving: in addition to traditional funds, the market is increasingly dominated by high-net-worth individuals (HNWIs) and family offices.”

Developments and future openings of accommodation facilities belonging to hotel chains, in the economy, medium and luxury segments will, in the medium term, lead to an increase in their presence, which the study estimates at around 270 hotels and 25,250 rooms, helping to further diversify the Italian hotel offering.

Almost 60% of future openings and new franchise agreements will involve international groups, particularly those from the US, France and the UK, with a focus on Lombardy, Lazio, Veneto, Puglia and Sicily, and the cities of Rome, Milan, Venice, Naples and Turin.

In 2025, the value of Italia’s hospitality property portfolio exceeded 173 billion (+7.2% year-on-year), whilst turnover in the hotel property sector rose to 3.8 billion (+12%), driven by investment from private equity firms, owner-operators and institutional investors.

Over the last 18 months, between January 2025 and June 2026, the allocations covered just under 95 accommodation establishments: fewer than 25 per cent were five-star hotels, almost 55 per cent were four-star, just over 5 per cent were three-star, and around 15 per cent were non-hotel accommodation. In 2025 alone, investments covered almost 5,300 rooms.

Investor interest has focused primarily on Italy’s major cities – with Rome alone attracting over 600 million in capital – and on established tourist destinations such as Milan and Venice. At the same time, Capri and Como have seen significant transactions involving iconic properties or reaching investment volumes in excess of 200 million. However, interest is growing in leisure destinations and secondary cities with high potential.