The Italian hospitality industry keeps expanding: in the initial quarter of 2026, financial commitments amounted to €1.25 billion

The Italian lodging property sector maintains its favorable momentum. Following a prosperous 2025, with a total investment of €2.35 billion, marking a surge of 27% compared to the previous year, investor engagement remains robust in 2026. Solely in the first quarter of this year, investments totaled around 1.25 billion euros.

This information is detailed in the Hotel Real Estate Market Report for 2026, produced by Scenari Immobiliari and Castello SGR, and presented at the Hospitality Forum 2026 in Milan.

Emphasis on Quality in the Market

As per Francesca Zirnstein, CEO of Scenari Immobiliari, the Italian hotel sector is increasingly concentrating on enhancing property quality and elevating its worth.

The total value of hotel real estate in the nation already surpasses 140 billion euros, indicating a 7% increase compared to 2024.

The escalation in investments and the enhancement of vital industry metrics suggest that proprietors are actively investing in modernizing and upgrading hotels, with promising prospects for further market expansion.

Particularly appealing to investors are:

• Milan;
• Bologna;
• Florence, Siena, and the Chianti region;
• Genoa and the Ligurian coast to La Spezia;
• Verona and Lake Garda;
• Naples and the Amalfi Coast.

In numerous of these destinations, average hotel occupancy rates are steadily nearing 80%, heightening their appeal to institutional investors, hotel operators, and private equity funds.

Luxury Segment Vital for Market Growth

The majority of investments are channeled towards hotels in the four- and five-star categories, showcasing sustained interest in mid-range and high-end properties.

Giampiero Schiavo, CEO of Castellò SGR, highlighted that the hotel sector remains a highly attractive realm within the Italian real estate market.

For multiple consecutive years, key industry metrics have shown improvement:

• tourist numbers are on the rise;
• overnight stays are increasing;
• average hotel occupancy rates are climbing.

The luxury hotel segment notably drives overall market development, as evidenced by the multitude of ongoing hotel projects.

Escalating Transaction Numbers

Intense investment activity persisted throughout 2025 and the initial months of 2026.

During this period, over 90 transactions were completed for the acquisition and divestment of hotel real estate, encompassing almost 8,300 hotel rooms.

While previously, investor focus primarily centered on major tourist hubs like Rome, Milan, Venice, and Florence, there is now a growing interest in resort destinations and emerging cities with notable development potential.

Continual Rise in Hotel Real Estate Revenues

The turnover from the hotel real estate market in 2025 reached 3.8 billion euros, marking an approximate 12% increase compared to the previous year.

The primary sources of this growth were:

• private equity funds;
• hotel operators owning their properties;
• institutional investors actively funding projects to renovate and boost the value of hotel assets.

Surpassing 173 Billion Euros in Hotel Real Estate Value

The total value of hotel real estate in Italy in 2025 surpassed 173 billion euros, reflecting a 7.2% increase over the year.

Leading the hotel count are:

1. Trentino - Alto Adige - exceeding 5,370 hotels;
2. Emilia-Romagna - over 4,030;
3. Veneto - approximately 3,150.

Collectively, these three regions boast over 370 thousand hotel rooms.

Among non-hotel accommodations (apartments, guesthouses, B&Bs, and other forms), Veneto leads with over 65 thousand properties.

Following are:

• Lazio - about 34 thousand;
• Lombardy - around 25.7 thousand.

Significance of the Territorial Brand

Experts emphasize that an area's appeal to investors is not solely based on hotel quality and tourist infrastructure.

The territorial brand's importance is growing - the region's recognition, reputation, and ability to differentiate itself in the global tourism market.

A study covering 22 tourist brands in Italy affirmed that a robust territorial image directly aids in attracting investment in hotel real estate.

European Market Overview

Elevated investment activity also characterizes the European hotel real estate sector.

From January 2025 to May 2026, approximately 430 transactions were finalized, encompassing over 84 thousand hotel rooms.

Leading in investment volume are:

1. Great Britain — exceeding 5.6 billion euros;
2. Spain — 3.7 billion euros;
3. France — €3.5 billion.

Italy ranks fourth, attracting over €2.3 billion in investments. Together with the top three, it represents approximately 62% of the entire European hotel real estate investment market.