News / From the associates

The IPI Report projects moderate growth for the hotel investment market in Italy in 2025. Total transaction volume is expected to reach approximately €2.1 billion, up 5.4% from 2024, with 92 deals closed (+3.4% year-over-year). The average deal size remains essentially stable at €22.8 million, while the median deal size grows by 9.1% (from €11 million to €12 million), signaling a strengthening of the mid-market segment. At the same time, the share of the top five and top ten deals in total volume decreased (to 31% and 47%, respectively), indicating a lower concentration of capital and a broader distribution of transactions across the mid-market segment. The breakdown by size class confirms a diverse structure, with transactions above €100 million, a significant share between €50 million and €100 million, and a broad base of transactions between €10 million and €50 million.

From a temporal perspective, over half of the volume is concentrated in the first half of the year (approximately €1.37 billion between the first and second quarters), while the third quarter saw a slowdown followed by a recovery in the fourth. The geographic distribution confirms Lombardy’s central role as the leading market by investment volume; Campania shows growth in activity, while Veneto and Sicily show a year-over-year contraction. At the urban level, Rome maintains its leadership in total volume, Milan increases activity, narrowing the gap with the capital, and Venice remains among the main investment hubs. Established leisure destinations continue to attract capital, despite limited asset availability.

As for the source of capital, there is a strengthening of the domestic component, which accounts for about half of total investment volumes, alongside stable interest from international investors—particularly European and U.S. investors—focused primarily on upper-upscale and luxury assets. Strategies are largely oriented toward core and core-plus profiles, with selective value-add transactions linked to redevelopment and repositioning programs. Overall, the hospitality sector continues to represent one of the most dynamic segments of the Italian real estate market, with a broader distribution of capital and a growing focus on asset quality and the sustainability of operating performance in the medium term.