Italy, the third-largest economy in the Eurozone, remains one of the top destinations for both tourists and investors. Despite challenges such as slow economic growth and significant public debt, tourism plays a critical role in the country’s economy, contributing 13% to its GDP. Over the next decade, the sector is projected to grow at an aggressive annual rate of 6.5%.
In the first half of 2024, the Italian hotel market recorded transaction volumes exceeding €600 million—double the amount from the same period in 2023.
With major events like the Jubilee Year 2025 and the Winter Olympics in Milan and Cortina in 2026 on the horizon, Italy’s tourism and hospitality sectors are poised for steady growth and significant investment inflows.
Although tourism and hospitality in Italy have a long history and a high level of maturity in the upscale and luxury segments—demonstrated by numerous recent openings of internationally branded hotels in major cities—there remains significant potential for further revitalization. This can be achieved through property conversions, rebranding efforts, and new developments, particularly within the economy and upper-midscale segments.
Investment growth could benefit both well-established regions and less-explored tourist areas across the country.
Italy continues to attract investors, operators, and hotel brands, thanks to strong market performance, a fragmented ownership structure, and a relatively low penetration of international chains. As investors delve deeper into opportunities in Italy’s primary cities, their interest is expanding to secondary regions demonstrating robust performance.
Key Trends in Italy’s Tourism and Hospitality Market for 2025
Tourism as an Economic Driver
Global Leader: Italy consistently ranks among the most visited countries worldwide, attracting millions annually with its history, culture, cuisine, and natural beauty.
Sustainable Growth: Post-pandemic recovery has been successful, with tourist numbers continuing to rise.
Year-Round Demand: From summer beach holidays to winter ski resorts and year-round cultural events, Italy attracts visitors in every season.
Impact of the Jubilee Year 2025
Increase in Pilgrimage Tourism: The Jubilee Year is expected to draw approximately 30 million visitors to Rome and nearby cities, significantly boosting hotel occupancy and revenues.
Infrastructure Investments: Large-scale urban infrastructure projects tied to the Jubilee are further enhancing the hospitality sector’s appeal to investors.
An Attractive Real Estate Market
Diverse Opportunities: From luxury boutique hotels in Florence to seaside resorts in Sardinia, Italy offers options to suit varied investment strategies.
High Yield Potential
Growing Revenues: Average daily rates (ADR) and hotel occupancy levels continue to rise, particularly in cities like Rome, Milan, and Venice.
Emerging Destinations: Regions like Apulia, Sicily, and Sardinia are gaining popularity, offering opportunities to tap into new markets.
Increasing Presence of International Hotel Chains
Brand Development: The Italian hotel market is seeing a rise in the presence of both international and local hotel chains, especially in the luxury and upper-upscale segments.
Digital Transformation
Growth in Online Sales: By 2029, 84% of hotel revenues in Italy are projected to be generated through online platforms, creating scalable revenue channels for investors.
Technology Integration: Italy’s hospitality market is rapidly adopting digital tools to enhance guest experiences and improve operational efficiency.
The Italian hospitality market is experiencing steady growth driven by increasing tourism demand, major infrastructure projects, and preparations for key international events. This makes it an ideal time for investors to explore opportunities in both established destinations and emerging regions across Italy.
If you are considering purchasing a hotel in Italy, the Italian real estate agency Trevi Elite will be your trusted partner at every step of the process. We understand that successful investment in the hotel industry requires not only deep market knowledge but also professional guidance. Therefore, our team provides a comprehensive approach to selecting and acquiring real estate properties, ensuring personalized solutions tailored to your needs
