Italy has long been a top destination for tourists the world over. However, while cities like Rome, Milan and Lake Como often steal the spotlight, there’s a growing focus on secondary and tertiary locations that are transforming the hospitality landscape, with investors and travellers alike looking beyond the usual hotspots.
Luxury activity
As Giorgio Ribaudo CEO Thrends and ITHIC co-founder highlights, the country is the third-largest European demand market, with an impressive 447 million overnight stays in 2023, making it an attractive proposition for hotel companies and investors.
And based off the recent activities in the country by Gruppo Statuto, Rocco Forte and Six Senses to name a few, the country’s allure – especially when it comes to the luxury segment - is clear. In 2023, Gruppo Statuto purchased Six Senses Rome for €245 million, with the €2.6million per key price tag representing the second highest in Italy after the Rosewood Castiglion del Bosco. Rocco Forte continues to open hotels in almost every major city, with plans for further expansion. And just last month, Mohari Hospitality purchased the Bauer Hotel in Venice, announcing plans for a renovation of the 110-room hotel in collaboration with Rosewood Hotels & Resorts.
“Italy is high on the agenda of many luxury hotel chains,” Ribaudo notes.
Leonardo Stassi, head of hospitality at Coldwell Banker Commercial agrees. “We see a lot of interest in the luxury segment. Everyone wants to have a luxury presence in Italy. Lake Como has tripled the footprint of luxury hotels and Rome has quadrupled the presence of luxury hotels. So there’s a big focus on the segment.”
The road less travelled
But the focus is now no longer on major cities, with secondary – and even tertiary – locations now on the rise, part aided by increasing tourist interest in destinations such as Capri, Tuscany, Sicily and the Piedmont wine regions as well as subsidies aimed at fostering economic growth, with some of these subsidies aiming to evenly distribute tourism across the country as a way to combat overtourism in certain destinations. These incentives have spurred luxury developments in regions like Sicily, Calabria and Apulia, encouraging investors to look beyond traditional locations.
Stassi notes investors are now more interested in investing in luxury property not necessarily on the beachfront, highlighting a recent transaction with a Canadian Italian investor who plans to develop an 80-suite luxury hotel inland, a deal which was triggered by the subsidies available.
“Nowadays, secondary destinations are on the radar of core investors. I see a lot of Israeli money and US capital going into Italy with a focus on luxury. All investor types are represented and are looking for opportunities. It's surprising that in some situations, someone who has never invested in Italy is entering the country from really tertiary locations. This interest in secondary locations is something we’ll see more and more,” Stassi says.
Luciano Scarfone of Bayview further highlights the increasing transactional activity in secondary cities, noting “secondary locations like Bologna and Turin are becoming very interesting” as he also notes activity in Veneto and Tuscany, spotlighting PGIM’s sale of glamping assets to French operator Sandaya.
Another factor driving interest in secondary locations is improved infrastructure, which is helping bolster demand in locations like Vicenza, Treviso and Padua, Emilio Valdemeri says.
“Infrastructure is improving so you can reach many places in Italy. Internal flights are very expensive at the moment but the trains are working very well so it's quite easy to reach all the destinations in the country. So that's why the secondary locations are growing strongly and we’re seeing investment in Turin, Genova and Bologna,” he says.
Other micro-luxury destinations, Stassi notes, include the Piedmont wine regions, Ligure and Sicily.
Where to look
Bit in order to attract investment, Stassi says secondary cities have a track record of long-term performance, a stabilized flow of hotel demand, adding that arrivals and stays have to be historically strong.
“If you can prove that there are demand generators and a track record of arrivals and stays, investors are willing to buy,” Stassi says.
He adds: “A luxury product can establish a destination and there’s proof of that in many parts of Italy. If you can do something special, people will go and will pay the price even if the location is not still established as a luxury destination.”
This trend is evident in regions like Umbria and Apulia, where initial investments paved the way for further luxury developments.
He notes that luxury platforms are not married to prime locations and instead are increasingly exploring other less-trodden areas, spotlighting Rocco Forte’s activity in Noto.
“Rocco Forte went to Noto, which was a domestic market. So that speaks to the fact that you can do luxury in secondary destinations as long as you know you can do something special and the location deserves luxury.”
Just in October, Rocco Forte announced the 2026 opening of its third Sicilian hotel in Noto, with the hotel transforming one of the town’s largest palaces, Palazzo Castelluccio into a 31-residence.
Stassi advises further: “When it comes to urban and secondary locations, fundamentals and track record of arrivals and stays are key.”
With high average daily rates achievable in these areas, the allure of secondary locations is undeniable and while Rome, Milan and Florence represented almost 43 per cent of transactions in Italy last year, other destinations are gaining momentum.
With €1.3 billion in transaction volumes recorded by Q3 2024 and expectations to surpass 2023 levels, the Italian hospitality market shows no signs of slowing down. And with travellers increasingly interested in lesser-explored destinations, investors are seeing Italy as a whole as more attractive and are more willing to take risks in secondary locations, Stassi says.