Travel & Gastronomy

Luxury Hotels in Italy: Attractive Tax Regimes and High Returns are Drawing in Investors

By Eva Morletto02 avril 2026

Italy is now Europe's leading destination for investment in the luxury hospitality sector, according to the latest report from Deloitte. This appeal is not merely a cyclical phenomenon, but stems from a structural trend that positions the country as one of the best-performing markets for high-end hotel real estate.

On the shores of Lake Como, the Lake Como EDITION has just opened its doors in a fully renovated 19th-century landmark hotel. The project was led by Omnam, a London-based real estate investment firm (EDITION)

The figures speak for themselves: 59% of operators identify Italy as the main hub for luxury hotel development in Europe over the next three years, whilst nearly 70% of investors plan to direct capital there. This confidence is driven by particularly high return prospects, with annual revenue growth estimated by Deloitte at between 6% and 10% for the majority of players, and increases of over 10% for a significant proportion of them.

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In a global context marked by a need for liquidity and a search for resilient assets, the Italian luxury hotel sector is emerging as a safe-haven asset class. The expected rise in hotel rates, estimated at +21% by 2027 – representing an average increase of around €200 per night – combined with rising occupancy rates, further enhances the appeal of this segment. Today, nearly 45% of hotel investments in Italy are concentrated.

Interest in historic villages

Beyond the major traditional tourist destinations such as Rome, Milan, Venice, and Florence, investor interest now extends to historic villages and properties ripe for redevelopment. The goal is to offer premium clients exclusive experiences that blend design, sustainability, and hyper-personalization.

However, this appeal is hampered by a more complex reality: Italy’s chronic difficulty in selling properties to foreign investors. Administrative issues and cumbersome regulatory and bureaucratic hurdles often slow down transactions. This paradoxical situation—strong international demand on one hand and obstacles to the smooth flow of sales on the other—constitutes one of the major challenges facing the Italian market.

The Italian government has invested more than 4 billion euros

Despite these obstacles, Italy retains a unique competitive advantage, based on an exceptional cultural heritage, a globally recognized lifestyle, and an ability to reinvent luxury around the experience. The Meloni government, with a tax system favorable to large foreign capital, is also helping to attract the attention of international players in luxury hospitality.

Over the past three years, the government has invested more than 4 billion euros to strengthen the tourism sector through measures to support businesses and promote regional development.

Key takeaways:

Italy is emerging as Europe’s leading hub for luxury hospitality, attracting a flood of investors and operators.

The sector is considered a safe investment, with prices and occupancy rates rising sharply.

Projects are now expanding to villages and focusing on high-end, personalized experiences.

The market remains hampered by bureaucratic red tape despite strong potential and attractive tax incentives.

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