Italian Hotel Investors Target Gateway Cities as Inbound Capital Grows

Survey Shows Continued Buying Intent

Nearly three-quarters of investors surveyed by commercial property adviser JLL expect to be net buyers of Italian hotel assets during the next 12–24 months, according to the company’s Italian Hotel Investment Outlook and Strategy Survey.

The survey, conducted in May 2026, collected views from senior hotel investment decision-makers in Europe and other international markets. More than half of the respondents manage hotel portfolios valued at €500 million or more, while almost 40% oversee assets under management exceeding €1 billion.

The results point to continued capital inflows into Italian hotels, although the survey does not state the total number of respondents. Its findings therefore represent the expectations of the participating investors rather than a complete measure of market activity.

Buying plans vary according to investors’ current exposure to Italy. International groups and private investors with limited or no existing Italian hotel holdings reported stronger plans to increase allocations than investors already focused on the country.

Inbound Investors Plan Larger Allocations

Investors with minimal exposure to Italy were more likely to anticipate substantial allocation increases and describe themselves as prospective net buyers. This group includes international private capital, high-net-worth individuals and family offices considering entry into the market or an expansion of existing holdings.

According to the survey, these investors generally have confidence in Italy’s medium- and long-term hotel performance. Some are prepared to evaluate assets across an economic cycle rather than base decisions only on short-term trading conditions. That approach may support competition for hotels with established locations, brands or repositioning potential.

Investors whose Italian assets already account for at least half of their hotel portfolios expressed more measured plans. They generally expect stable allocations or selective growth. JLL attributed this difference to portfolio concentration controls and existing strategic positions rather than a broad reduction in interest.

The findings suggest that new and less-exposed investors may be a larger source of incremental demand, while established participants are likely to concentrate on individual assets that fit their current portfolios.

Gateway Cities Remain the Main Targets

Rome, Milan, Venice and Florence are the preferred markets across domestic, European and global sources of capital. Investors cited liquidity, established visitor demand and the ability to deploy capital at scale as factors supporting interest in these cities.

Established leisure destinations form a secondary area of demand. Luxury and upscale hotels are receiving particular attention because investors expect them to retain pricing power and attract a mix of international and domestic guests.

The survey identifies more than 10 Italian destinations that can support luxury hotel investment. This gives investors opportunities to spread holdings across several cities and leisure markets instead of concentrating on one location.

Interest in secondary cities and regional destinations is more selective. Italian investors show a greater willingness to consider these areas than inbound investors, who tend to focus on larger and more familiar markets.

Where respondents expressed interest in secondary locations, their plans were usually connected to specific circumstances. These included hotel conversions, refurbishment opportunities, repositioning projects and locations where new supply is limited. The responses did not indicate broad-based demand for secondary markets as a single investment category.

Returns Depend More on Asset Execution

More than two-thirds of respondents said execution-led strategies will be the main source of additional returns. The finding indicates that investors do not expect market-wide demand growth alone to deliver their targeted performance.

Refurbishment and capital expenditure programs were the most frequently identified routes to value creation. Investors are considering physical upgrades alongside branding or rebranding programs intended to change a hotel’s market position, room rates or customer base.

Revenue management and pricing optimization were also cited by roughly one-third to two-fifths of respondents. These measures involve adjusting room prices, distribution and inventory in response to booking patterns and demand.

The focus on operations reflects pressure from labor, energy, maintenance and other hotel costs. It also suggests that returns will vary more between individual properties based on management decisions, renovation plans and the ability to complete projects within budget.

Distressed and opportunistic investments remain part of some strategies, but the survey does not indicate that investors expect widespread financial distress across Italy’s hotel sector.

Market Outlook

The survey presents Italy as an active destination for international hotel capital, with inbound buyers expected to contribute to transaction demand. Competition is likely to remain concentrated in gateway cities, established leisure locations and hotels that can be upgraded or repositioned.

However, investor interest will not affect every property or region equally. Existing owners are taking a more selective approach, and interest in smaller markets depends largely on asset-specific conditions. Over the next two years, investment outcomes are expected to be shaped by acquisition pricing, renovation costs, operating performance and the execution of branding and revenue strategies.