Nikhil Prasad 
Hotel News: Italian Tourism Boom Spurs Global Hotel Giants into High Gear
With the number of international tourists flooding into Italy hitting a record high, the country is rapidly becoming a magnet for luxury hotel investments. In 2024 alone, Italy welcomed a staggering 65 million international travelers, accounting for 235 million overnight stays. This wave was largely led by visitors from the United Kingdom, Germany, and the United States—and with trends indicating continued momentum through 2025, hotel investors are racing to meet soaring demand.
Image Credit: Nobu Hotels
This Hotel News report outlines how this investment surge has led to a sharp pivot in strategy among hospitality developers. No longer focused solely on Italy’s iconic destinations like Rome, Venice, or Milan, developers are increasingly turning their attention to the scenic coastlines of Tuscany, the dramatic landscapes of Sicily and Sardinia, and the storied lakes of Northern Italy. According to a recent PwC market snapshot, regions previously considered secondary—such as Turino and Forte dei Marmi—are now at the heart of the country’s hospitality evolution.
Record Breaking Foreign Investment in Luxury Resorts
Marco Zalamena, head of hospitality for EY in Italy, highlights this monumental shift. He explains that while Italy’s three major cities still lead in hospitality revenues, luxury resort markets are catching up fast. “Luxury resort destinations accounted for 39 percent of the total investment volume in 2024,” Zalamena said, marking a significant 11 percent jump from the previous year. This increase comes after hotel investment volumes soared by 30 percent in 2023 to a total of €2.1 billion.
Investors are especially targeting the luxury segment, with 4- and 5-star hotels dominating the scene—each capturing 45 percent of the total investment. Impressively, half of all recent hotel transactions have involved foreign investors, primarily from the Middle East and other parts of Europe.
Sicily alone accounted for 15 percent of total hotel transactions, while the exclusive Forte dei Marmi region followed closely at 11 percent. Lake Como is also emerging as a prime hotspot, responsible for nearly a third of all resort-related transactions in late 2024, many of which are focused on conversions and renovations for ultra-luxury rebranding.
Hilton and Marriott Expand Their Italian Footprint
Major hotel brands are now doubling down on their Italy strategies. Hilton, for instance, is rapidly expanding across Sicily and Sardinia. David Kelly, Hilton’s Senior Vice President for Continental Europe, said that after the €12 million rebranding of Mangia’s Santa Teresa Sardinia into a Curio Collection property, the group has continued to increase its footprint across the islands.
“We recently launched a hotel in Sicily under the Tapestry Collection and are preparing to open another Curio Collection property there in the coming weeks,” Kelly stated. The group currently has 109 operating and pipeline hotels across Italy.
Meanwhile, the Canopy Milan Duomo, opening in collaboration with Roscioli Hotels Group, will represent Hilton’s 11th active brand in Italy. Alan Mantin, Hilton’s VP of development for Southern Europe, said the move underscores the country’s importance as both a lifestyle and luxury travel destination.
Mangia’s Strategic Bet on Premium Hospitality
Italian operator Mangia’s has also been ramping up investments, deploying over €250 million across its Sicilian and Sardinian beachfront resorts following a 40 percent revenue increase in 2023. The group recently acquired the Grand Hotel et Des Palmes in Palermo as its first move into luxury city hotels. CEO Marcello Mangia views this as a crucial step in positioning the brand to attract a more elite international clientele.
Mangia’s strategy relies heavily on joint ventures and branding alliances. A 2021 partnership with Hotel Investment Partners (HIP) led to €90 million in property upgrades. Among the success stories is Mangia’s Brucoli resort in Sicily, which reopened in 2023 under the Marriott Autograph Collection after a €27 million makeover.
Lake Como and Beyond Ripe for Ultra Luxury Rebirth
Northern Italy’s Lake Como is also becoming a focal point for high-end redevelopment. Zalamena confirmed that nearly one-third of recent resort investments in Italy targeted the region. Many of these are heritage conversions, like the Grand Hotel Imperiale in Moltrasio, which will become a Raffles Hotels & Resorts property by 2027. Local developer CL Hotel is leading the transformation, with assistance from EY during the operator selection phase.
The Raffles entry signals a broader wave of ultra-luxury hospitality interest in Italy. Other global titans—including Ritz-Carlton, Six Senses, Belmond (under LVMH), and Edition—are planning new openings around Lake Como. Additional launches are scheduled across the country, with Four Seasons set to debut in Puglia by 2027 and Mandarin Oriental expected in Cortina d’Ampezzo.
Hyatt Taps Rome and Florence Through Boutique Brand Expansion
CL Hotel, spearheaded by Andrea Girolami, is also behind a slate of notable developments. Girolami, who is also President of AG Hotels under AG Group, continues to forge new ground through partnerships with Hyatt. Following their 2021 collaboration on Il Tornabuoni in Florence—now part of VOIhotels’ V Retreats portfolio—Girolami’s group is launching Thompson Rome by Hyatt this June.
The new Rome property, a conversion of the former Italian Communist Party headquarters near Capitoline Hill, represents a bold architectural and conceptual undertaking. It also reflects the group’s long-term ambition: achieving a €220 million turnover from hospitality operations by 2030 as it expands its premium portfolio throughout Italy’s top-tier destinations.
B and B Hotels Targets Broader Market Reach
While the high-end scene is thriving, the mid-scale segment is seeing its own surge. Paris-based B&B Hotels is aggressively targeting 3- and 4-star developments across Italy, aiming to double its national footprint by 2030. According to CEO Liliana Comitini, the company currently operates 81 properties and plans to hit 150 by the end of the decade.
B&B’s strategy involves both new constructions and strategic conversions across primary and secondary cities, as well as key resort zones. Its recent opening of B&B Hotel Sassari in Sardinia marks the group’s first presence on the island. Comitini emphasized the chain’s focus on attracting a broad demographic—business travelers, families, leisure seekers, and even baby boomers, who represent a growing segment.
American Travelers Drive Sardinian Tourism Surge
Fueling this expansion is the increasingly lucrative American market. Franco Cuccureddu, Sardinia’s general counselor for tourism, noted that U.S. travelers are now the top non-European visitors to the island in both numbers and spending power. At a tourism trade show in March, he confirmed that this influx has driven a 10 percent increase in both hotel stays and airport traffic in Sardinia since 2023.
This development is pushing even more local operators to upgrade facilities, expand service offerings, and seek out global hospitality partners. With the blend of high consumer demand, institutional investment, and strong tourism infrastructure, Sardinia and its neighboring islands are quickly becoming hotbeds of innovation in the Mediterranean hospitality space.
What This Trend Means for the Global Hotel Industry
As Italy draws increasing attention from developers and tourists alike, the global hospitality market is witnessing a subtle but powerful shift. The trend underscores how diversified investments in heritage-rich, experience-driven destinations are becoming the next big frontier in hospitality. From luxury legacy brands like Raffles and Four Seasons to modern lifestyle operators like Thompson and Curio, the country is now a battleground for premium experiential travel.
Italy’s tourism boom is proving more than just a temporary surge—it is reshaping the country’s entire hospitality framework. Local operators are capitalizing on strategic alliances with global giants. Meanwhile, guests can expect a heightened level of service, unique design concepts, and a stronger fusion of local flavor with international luxury standards. With more openings lined up through 2027 and beyond, Italy is setting a benchmark for tourism-driven development across Europe and the world.
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