For a city with the moniker of “Eternal” – referencing its thousand-year-old unaltered skyline – Rome has developed a taste for change. The Italian capital’s hotel markets today capture around 45 percent of the country’s hospitality investment, with funds and operators displaying renewed enthusiasm for its year-round appeal.
According to data from Rome’s tourism office, capital flows surpassed €1.7 billion in the first six months of 2025, and the trend is expected to accelerate, thanks to new projects ranging from the city centre to exclusive resorts in the surrounding areas of Lazio. And while the arrival of luxury heavyweights to the city has been the main headline over the past five or six years, the range and granularity of new schemes also suggests that other themes are emerging. “The Italian hotel market continues to stand out in the European landscape for its ability to attract capital and generate interest from investors with very different strategies,” confirms Andrea Mancini, head of hotel capital markets Italy at JLL.
Luxury appeal
For good reason, the arrival of brands including Bulgari, Six Senses, Nobu and Orient Express has captured attention, often involving monumental transformations of standing trophy assets. With the next openings including Mandarin Oriental and Four Seasons, it is clear that luxury operator appetite is far from waning. The launch of the first Mandarin Oriental in Rome, slated for 2027, will take place close to the revived Via Veneto, within the lush gardens of the ancient Orti Sallustiani. It is expected to comprise ten 19th-century villas with over 100 keys, including rooms and suites with terraces or private gardens. The new Four Seasons, meanwhile, will open in the historic Palazzo Marini in the central piazza San Silvestro, close to via del Corso. DeA Capital Real Estate recently announced the successful refinancing of the fund backing the complex architectural transformation into a 127-key luxury stay. Fort Partners announced the acquisition of the palazzo for €165 million last year.
It is also worth mentioning the dozens of independent or lesser known five-star properties which have been carving out a name for themselves, including Hotel Maalot and Umiltà 36, or Palazzo Ripetta and Romeo Rome which are helping redefine the Tridente district as one of Rome’s top hotel destinations.
Says David Kellett, Savills’ head of hotel capital markets EMEA: “Luxury hotels have consistently outperformed other segments, with luxury RevPAR exceeding the wider market and ultra luxury performing even more strongly.” He notes that according to CoStar data, ultra luxury RevPAR across Europe has increased by 57 percent since 2019, compared to 47 percent for luxury and 24 percent for non-luxury properties. “This outperformance reflects both resilient demand and the ability of high-quality assets to protect pricing power in a more mature trading environment,” he adds, noting that select destinations in France and Italy are particularly driving ADRs.
Irreplaceable themes
Rome’s historic DNA also lends itself well to bespoke transformations for other service levels. Accor’s hostel brand, Jo&Joe, recently opened in a 16th century monastery block not far from the Trevi Fountain. Offering private rooms and dormitories, guests can enjoy tapas or an aperitivo at tables scattered round the fountain in its inner courtyard, elevating the experience. Meanwhile, urban hostel specialist Room00Group, headquartered in Spain, recently inked a deal with asset manager Kryalos to operate two downtown properties, near the station and in the historic centre respectively. The first, in Via Giovanni Amendola, comprises 50 keys and is a three-minute walk to Termini station. Operating as a hotel since the 1970s, and fully refurbished in 2021, it will operate under the Room Urban Hostel brand. The second property, near Piazza di Spagna, will be converted into a 45-key boutique hotel under the Letoh brand. Kryalos acquired both properties in July for around €35 million.
Midmarket hotels are still showing considerable appeal in Rome, despite their tradability waning elsewhere. In June, Petra Asset Management acquired the CitizenM Rome Isola Tiberina for €80 million, working to a mandate from ADIA, the Abu Dhabi Investment Authority. According to sources familiar with the deal, the sale of the property means expansionary cash flows for vendor Another Star, which has largely both owned and operated new CitizenM launches to date.
Meanwhile, the Extendam-led recent deal for the four-star Hilton Garden Inn Rome Claridge was driven by its “value-creation potential”, according to Maxime Durand, Extendam’s managing director. The deal will see Extendam link up with Sofiparc and Sohama International on a significant renovation of the property from 2027 which will be achieved without shuttering the hotel. The modern structure, situated in the upmarket Parioli district and owned by the same family since the 1990s, has not been renovated for 25 years.
Adds Kellett: “Quality is fundamental to the hotel ecosystem, extending well beyond the luxury segment. It captures the value of prime real estate, truly irreplaceable locations, whether urban or resort, and the resilience of high-quality lease structures.”
The allure of privacy
Yet perhaps some of the most exciting hospitality stories in Rome at the moment are taking place behind closed doors. Ask a slate of upmarket owner-operators and they will share that “privacy is the new luxury”. JK Place’s second offering in Rome, Casa JK Place Roma, fits this brief to a tee. The property, which launched in May, has abandoned the traditional hotel model in favour of 12 private residences situated in an 18th century Roman palazzo. The climate-controlled apartments offer generous well-appointed kitchens but the property also features a restaurant at its heart, while dedicated chefs and butlers are available to guests.
Palazzo Shedir, a self-styled private mansion within the noble wing of Palazzo Borghese, offers just three suites to guests, who have at their disposal the frescoed halls of the palace. These include a mirrored dining room with a 20-metre table decked with candelabras and intricate baroque spaces overlooking the river Tiber.
The newly-opened Corinthia Rome, a classical five-star hotel in many respects fashioned from the former Bank of Italy headquarters, offers one of the city’s most unique suites. A slate of palatial rooms, created within the hall of the former bank’s governors, are distinguished by turn of the century banking frescos and mosaic floors.
The privacy theme continues in the amenities of several new hotels in Rome which have added a secret speakeasy to their suite of restaurants and bars. The Orient Express La Minerva’s speakeasy is a windowless bar in dramatic dark red with heritage features, concealed behind a curtain in the lobby. Ocra After Hours, the speakeasy of the Corinthia, welcomes guests in hues of ochre and copper beyond an anonymous door. JK Place Casa Roma, meanwhile, enjoys a private entrance into the latest iteration of Drink Kong, a Roman institution serving cocktails in surroundings that recall cult movie Bladerunner.