Hospitality - Real Estate Investment Guide
Hospitality is one of the most dynamic sectors in the Italian real estate investment market. It has extraordinary potential and it has achieved significant results in recent years, having proved to be capable of withstanding even this historic period of uncertainty and instability.
More investors are approaching the sector, either through value-add transactions, by buying income-generating properties, or rebranding existing products. Investing in the hotel sector in Italy also means having the opportunity to geographically diversify your portfolio. The touristic appeal spans the entire country, from north to south, from large cities to small villages.
Iconic locations like Florence, Rome, Venice and Milan dominate the market in terms of investment volumes, whilst secondary cities and regional destinations accounted for 15% of total investment volume.
From an investment perspective, it's also worth considering major international events in Italy, such as the 2025 Jubilee in Rome and the 2026 Winter Olympics in Milan-Cortina, which will bring millions of visitors to Italy. Milan is establishing itself as the new capital of Italian tourism, attracting visitors all year round (8.5 million arrivals in 2023, according to the Municipality of Milan). It hosts prestigious events like the Salone del Mobile and Fashion Week. And numerous multinational companies are based in Milan, bringing business professionals to the city. On the other hand, in 2024 Rome retained its position as the most attractive city for hotel investments for the third consecutive year, capturing 22% of the total volume.
The luxury segment dominates investment in the hotel sector, with transactions focusing not only on existing properties but also on redeveloping historic buildings to be converted into hospitality facilities.
Resorts are one of the most sought-after property types in the hospitality sectors; in 2023 and 2024 they accounted for around 40% of investment transactions in this sector (source: Scenari Immobiliari and Castello SGR report; Ernst Young Hotel Investment 2024). Another growing segment is aparthotels, a hybrid product halfway between a hotel and a private apartment that's gaining popularity due to its flexibility and ability to offer a more personalized experience.
The non-hotel segment is also dynamic and full of interesting opportunities. Homes for short-term rental have gained considerable popularity as an alternative to traditional property rental in many cities and tourist destinations in the wake of the strong development of platforms such as Airbnb and HomeToGo. The use of artificial intelligence is also constantly increasing, which by providing ideas and suggestions simplifies the planning and booking activity, offering an increasingly personalized experience. In particular, travelers are interested in using AI for suggestions on experiences available at the destination and for the choice of accommodation.
In recent years, glamping has emerged as a rapidly growing asset among alternative investment options. It's an exclusive product that combines the experience of direct contact with nature with the high-quality services typical of a five-star hotel.
