Italy’s hotel real estate sector is really booming. We’re talking about investments hitting €2.2 billion in 2024–that’s half again as much as the year before. And the first half of 2025? Already over €1.5 billion, according to that 2025 Report on the Hotel Real Estate Market. Across Europe, hotel investment jumped 40% to €22.5 billion. Italy’s now ready to climb the ladder in Europe, fueled by demand for fancy hotels, more tourists showing up, and tourism spreading beyond the usual popular places.
A European Powerhouse
Europe’s hotel market saw about 1,000 deals in 2024. That’s more than 120,000 rooms and a portfolio worth €8 billion. The UK (€7.85 billion), Spain (€3 billion), and France (€2.4 billion) were the biggest players. But Italy, not far behind at €2.2 billion, might just pass France in 2025. This could put Italy among the top three markets in Europe. The luxury and upper-upscale hotel segments here attracted 60% of the investments, which comes out to around €2.3 billion over the last year and a half. Just in 2024, about 6,500 rooms changed hands.
Italy’s Dynamic Hotel Investment
The Italian hotel real estate market is having an amazing, dynamic period. High occupancy rates, more tourists, and strong financial numbers like RevPar and ADR are helping. The hotel sector is a major part of Italy’s economy. Experts emphasize a good outlook for 2025, citing €1.5 billion in hotel investment already in the first half of the year. Also, the rise of “dream destinations” in smaller cities and regions is noted. This new kind of hospitality works with local communities and gives Italy an edge.
Places like Florence, Milan, Rome, and Venice? Still popular with investors. But cities like Bologna, Genoa, Naples, Palermo, and Verona are gaining steam, along with lake and seaside spots. This wider spread shows more interest from institutional investors. Only a small portion, around 12%, of the 79 real estate funds active are actually Italian.
Luxury and Heritage Drive Value Hotel Investment
Back in 2024, Italy’s hospitality real estate assets were worth about €160 billion, which is an 11% increase from 2023. Hotels made up the bulk of that, at €133 billion (over 80%), while non-hotel accommodations were around €29 billion. The number of hospitality properties in real estate fund portfolios also went up, from 144 to 191, managed by 25 asset management companies. Real estate turnover increased from €3 billion in 2023 to €3.4 billion in 2024. The forecast for 2025? A 9% jump to €3.7 billion, going beyond what we saw before 2019.
The luxury and upper-upscale segments are really driving growth. They’re targeting international travelers who want high-quality experiences. Most cities saw occupancy rates for medium- to high-end places above 65% in 2024. Places like Bologna, Florence, Milan, Rome, and Venice even passed 75%. Looking at 2025, Bologna and Milan were close to 80%, while Rome and Venice dropped a bit.
A Bright Tourism Forecast
The tourism outlook for Italy in 2025 looks good. We’re expecting around 134 million arrivals, more than 467 million overnight stays, and €135 billion spent. To keep this going, Schiavo stressed the importance of investing more in things like innovation, sustainability, and good architecture to improve the hospitality industry. By blending Italy’s history with what’s new in hospitality, the country wants to stay on top as one of Europe’s favorite places.