Buying a Hotel in Italy: Essential Checklist

Published on October 3, 2025 and written by Cyril Jarnias

Buying a hotel in Italy is an adventure filled with charm and unique opportunities in one of the world’s most welcoming countries. Between the cultural richness and picturesque landscapes, Italy offers an idyllic setting for any investor seeking to establish a foothold in the tourism sector.

However, this investment requires meticulous preparation to avoid potential pitfalls. This guide provides a comprehensive checklist to navigate through the crucial steps of acquiring an Italian hotel, from choosing the location to the legal specifics to consider, ensuring a successful and smooth transaction.

Italian Hotel Market Overview

The Italian hotel market shows sharply rising tourist demand in 2025, driven by an increase in international demand of approximately 18% for the summer and an expected total of 27 million air passengers (18.6M international, 8.4M domestic). The activity is supported by a rather favorable macroeconomic environment (inflation ~1.7% in 2025, unemployment ~6.6%, employment >62.5%), despite structural weaknesses related to public debt.

Demand and Geographic Dynamics

• Consolidated rebound: approximately 64.5 M recent visitors, 56% occupancy rate, ADR +4% in a market that has become key again for international hospitality.
• Most dynamic hubs: Rome, Venice, Milan lead investments, with growing momentum from Lake Como, Sicily, Forte dei Marmi.
• Very promising Summer 2025: estimated air traffic of 27 M passengers, indicating a seasonal peak supported by international clientele.

Economic Trends Influencing the Sector

• Supportive but constrained context: 2024 growth ~0.7% driven notably by tourism; disinflation and robust labor market, counterbalanced by a debt 137–138% of GDP and a deficit ~3.3% in 2025.
• Accelerating hotel investment: +30% in 2025 (€2.1 Bn), with a strong orientation towards luxury and primary destinations.

Competition and Supply Structure

• Market dominated by national/European brands: over 1,100 national/EU brands versus ~550 international ones; strong chain expansion in 2021, with +4.5% international rooms and +5.5% national rooms.
• Investment positioning: luxury captures nearly half of committed amounts, reflecting the upscaling of flagship destinations.

Most Sought-After Accommodation Types

• Rise of upscale and luxury (influx of investments, rising ADR).
• Weight of national chains in the organized supply, meeting the demand for standards and post-pandemic reliability.

Seasonality and Potential Impact

• Very marked summer peak (record summer 2025 expected) with dominant international demand; necessity to optimize revenue in high season and extend stays in shoulder seasons via events, culture, and MICE.
• Coastal and artistic destinations experience a longer high season; secondary areas benefit from a demand diffusion effect.

Post-Pandemic Characteristics and Traveler Preferences

• Refocus on quality, sustainability, and experience: sustainability becomes an investment and attractiveness criterion.
• Search for alternative destinations and “slow” stays: growth of areas like Lake Como and Sicily, beyond iconic cities.
• Predominance of the domestic market supporting low cycles and strong return of international flows during seasonal peaks.

Recent Statistics and Forecasts

• Visitors: 64.5 M; Occupancy: 56%; ADR: +4%.
• Summer 2025: 27 M passengers (18.6M international; 8.4M domestic), +~18% demand towards Italy.
• 2025 Investments: €2.1 Bn, +30%; leading cities: Rome, Venice, Milan; emerging: Lake Como, Sicily, Forte dei Marmi.
• Market size: $9.61 Bn (2024), forecast $10.20 Bn at CAGR 1.22%.
• Macro: inflation ~1.7% (2025), unemployment ~6.6%, 2024 growth ~0.7%; debt 137–138% of GDP.

Table – Dynamic Areas and Positioning

Area	2025 Dynamic	Product Positioning
Rome	Very Strong	Luxury, Upscale, MICE
Venice	Very Strong	Luxury, High-End Leisure
Milan	Strong	Business, MICE, Lifestyle
Lake Como	Rising	Nature/Experience Luxury
Sicily	Rising	Premium Leisure, Long Season
Forte dei Marmi	Rising	Beachfront Luxury

Table – Key Indicators

Indicator	Recent Value	Source
Annual Visitors	64.5 M
Occupancy Rate	56 %
ADR	+4 %
Summer 2025 Passengers	27 M (18.6 M int., 8.4 M dom.)
Demand to Italy	+~18 % (summer)
2025 Hotel Investments	€2.1 Bn (+30 %)
Market Size	$9.61 → $10.20 Bn (CAGR 1.22 %)
2025 Inflation	~1.7 %
2025 Unemployment	~6.6 %

Strategic Implications

• Prioritize Rome–Venice–Milan markets and select emerging ones with high rate potential (Lake Como, Sicily).
• Position the offer on luxury/upper‑upscale and strengthen sustainability and experience attributes to capture post‑pandemic demand.
• Optimize seasonality management (yield in summer, cultural and MICE packages in shoulder seasons).
• Leverage the strength of national brands and the measured growth of the total market to consolidate market share.

The Italian hotel market enters 2025 with rising demand, an upscaling supply, and leading urban hubs, while the summer season and emerging destinations amplify growth potential.

Due Diligence Steps for Buying a Hotel in Italy

Key Due Diligence Steps for Buying a Hotel in Italy

• Letter of Intent (LOI), NDA, and Audit Schedule
  • Importance: secures exclusivity, frames the information to be provided, sets conditions precedent and “satisfactory” audit criteria.
• Legal and Regulatory Due Diligence
  • Property Titles and Encumbrances: verification of full ownership, mortgages, easements, rights of way, cadastral compliance, surface/usage alignment.
  • Urban Planning and Compliance: permits, certificates of habitability (agibilità/abitabilità), fire safety compliance (CPI), security, accessibility, health and HACCP standards, installation compliance (electrical, gas, elevators).
  • Operating Licenses: hotel classification, municipal/regional authorizations, terrace/restaurant/alcohol, music, pool/spa.
  • Ongoing Contracts: management/franchise, leases, key suppliers, OTAs, maintenance/energy contracts, IT/PMS, insurance; intuitu personae clauses and change of control provisions.
  • Litigation and Risks: disputes, administrative controls, sanctions, GDPR compliance, anti-money laundering, intellectual property (trademarks, trade name, website, photos).
  • Importance: secures the transferability of the business, avoids risks of nullity or operational interruption, and forms the basis for price adjustments, warranties, and indemnities.
• Financial and Accounting Due Diligence
  • Review of Financial Statements: 3 to 5 years of accounts, revenue quality (accommodation vs F&B vs MICE vs ancillaries), PMS/POS/bank reconciliation, cut-off, provisions, normalized EBITDA.
  • Debt and Off-Balance Sheet Commitments: loans, covenants, leasing, guarantees, tax credits, subsidies.
  • Cost Analysis: payroll, energy, linen, distribution/commissions, maintenance; comparison to industry benchmarks.
  • Cash Flow and Working Capital: client deposits, group/agency advances, seasonality, OTA penalties/chargebacks.
  • Importance: validates the accuracy of figures, identifies earnings corrections and free cash flow, and supports valuation.
• Tax and Social Audit
  • VAT, local taxes, IMU/TASI, tourist tax, withholding taxes; risk of tax reassessment.
  • Social Compliance: contracts, applicable collective bargaining agreement, hours, temporary work/subcontracting, labor disputes, accrued payroll liabilities.
  • Importance: avoids assuming latent liabilities and informs the negotiation of liability guarantees.
• Operational and Commercial Due Diligence
  • Segmentation and Channel Mix: corporate, leisure, groups, MICE, direct vs OTA vs GDS; dependency on a few accounts.
  • KPIs: RevPAR, ADR, Occupancy, GOPPAR, NRevPAR; comparison to comp set; seasonality and event analysis.
  • Reputation and Customer Experience: online ratings and reviews, recurring themes, response time, NPS; impact on pricing.
  • Partnerships and Distribution: OTA terms, rate parity, overbooking policy, content and SEO, CRM, loyalty.
  • Importance: estimates revenue sustainability and potential for repositioning/pricing power.
• Market Study and Competitive Positioning
  • Definition of Comp Set: category, location, services; capacity mapping and pipelines (openings/renovations).
  • Primary/Secondary Demand: local attractions, air/rail traffic, macro trends (leisure, business, bleisure).
  • Indicators: RGI/MPI/ARI indices, price elasticity, event sensitivity, risks of oversupply.
  • Importance: anchors business plan assumptions and WACC/risk premium.
• Technical Inspection and Physical Condition
  • Building and Structures: envelope, roofs, facades, waterproofing, seismic compliance per zone, asbestos/lead.
  • Technical Installations: HVAC, electrical, gas, plumbing, fire safety, elevators; compliance, preventive maintenance, remaining useful life.
  • Rooms and Common Areas: wear and tear, ADA/local accessibility compliance, brand standard, capex upgrade costs.
  • Environment: noise, nuisances, flood risk, energy efficiency (certificate), waste/wastewater.
  • Importance: quantifies immediate capex and multi-year plan (PIP), pivots price negotiation and conditions precedent.
• Technology and Data
  • Systems: PMS, RMS, CRS, channel manager, POS, accounting; contracts, integrations, reversibility.
  • Cybersecurity and GDPR: policies, incidents, marketing consents, software licenses.
  • Importance: ensures operational continuity and data compliance, limits hidden costs.
• Human Resources and Culture
  • Organizational chart, key skills, dependency on key personnel, turnover, social climate.
  • Accrued benefits, company agreements, outsourcing (housekeeping, security).
  • Importance: preserves service quality, anticipates integration/recruitment costs.
• Financial Modeling and Scenarios
  • Performance Normalization: post-Covid adjustments, renovations, anomalies; run-rate.
  • 5-Year Business Plan: RevPAR assumptions, F&B, channel mix, inflation, energy, capex, renovation and ramp-up.
  • Sensitivities: +/− ADR, Occupancy, OTA commissions, energy/labor costs; break-even and DSCR.
  • Importance: tests investment robustness and debt service capacity.
• Project Governance and Risks
  • Risk Matrix: legal, technical, operational, market, ESG; mitigation plans.
  • Conditions Precedent: obtaining financing, authorizations, license transfers, absence of major defect.
  • Importance: structures the go/no-go decision and secures the closing.

Specific Advice for the Italian Context

Key Documentary Checks

• Property title, cadastral extract, floor plans and urban planning compliance.
• Certificates of habitability (agibilità/abitabilità), installation and fire prevention compliance.
• Accommodation and restaurant licenses, municipal authorizations, tourist tax.
• Employment contracts and applicable collective agreements, tax and social compliance certificates.
• Trademark/trade name register, website and current bookings.

Collaboration with Local Professionals

• Real Estate/Hospitality Lawyer: review titles, licenses, urban planning, contracts, drafting SPA and warranties.
• Hospitality-Specialized Accountant: quality of earnings, normalizations, local taxation and tourist tax.
• Engineer/Architect/Technical Expert: technical audit, capex costing, seismic/energy compliance.
• Hotel Broker and Appraiser: comp set, market value, PIP, repositioning opportunities.
• Notary: final checks, filing, registration, deed taxation.

Revenue Forecasts and Online Reputation

• Review Analysis: positive/negative recurrences, impact on pricing and loyalty.
• Forecast: bottom-up models by segment and channel, integrating events and regional seasonality.
• Improvement Strategies: direct mix, upselling, bundles, F&B and MICE optimization.

Influence of Due Diligence on Negotiation and Investment

Price and Warranty Adjustments

• Discounts for immediate capex and PIP; escrow clauses for potential disputes or reassessments.
• Earn-out linked to post-closing performance if uncertainties on the run-rate.
• Enhanced reps & warranties on titles, licenses, taxation, GDPR, absence of hidden liabilities.

Deal Structuring

• Asset deal vs share deal based on taxation, debts, license and contract transfer.
• Closing conditions: transfer without operational interruption, novation of critical contracts, retention of key teams.

Value Creation Plan

• Category/brand repositioning, targeted renovation, channel and revenue management optimization.
• Operational gains: energy, labor, contracts, digitalization; work schedule minimizing RevPAR loss.

Summary Table of Due Diligence Deliverables

Domain	Documents/Analyses	Influenced Decisions
Legal	Titles, Licenses, Contracts, Litigation	Price, Warranties, Conditions Precedent
Financial	QofE, Debt, Working Capital, KPIs	Valuation, Financing Structure
Tax/Social	Declarations, Liabilities, Audits	Escrow, Liability Guarantees
Technical	Reports, PIP, Capex	Price Discount, Work Schedule
Market	Comp Set, Pipelines, RGI	Positioning, Business Plan
Operational	Procedures, SLA, Distribution	Continuity, Synergies
Technology	System Inventory, GDPR	IT Capex, Data Risks

Synthetic Checklist to Use

• Obtain exclusivity and define conditions precedent.
• Collect complete data room and track discrepancies vs initial information.
• Complete legal, financial, tax/social, technical, commercial audits.
• Cost immediate capex and multi-year plan; integrate into business plan.
• Normalize accounts and model multiple scenarios.
• Negotiate price, escrows, warranties, earn-out directly linked to findings.
• Finalize structuring (asset/share deal) and operational transition plan.

Key Tourism Statistics in Italy

Tourist arrivals in Italy have been rising sharply since 2024, with a peak growth in 2025: +13.14% arrivals in April 2025 vs April 2024 and nearly 29.8 million overnight stays in the first months of 2025, the highest rate among major European countries (+14.8% y/y). Tourism revenues reached a recent record in August 2024 and are recovering further in spring 2025 (€5.25 Bn in May 2025 vs €4.48 Bn in April 2025).

Main Recent Trends

• Strong post‑COVID recovery confirmed in 2024 and amplified in 2025, driven by international and longer stays.
• Summer 2025 announced as one of the busiest: 65.8 million tourists and 267.4 million overnight stays estimated (Demoskopika).
• Catalyst Events 2025: Jubilee 2025, Venice Biennale, Pope’s funeral attracting >250,000 people; increase in airport arrivals March‑May 2025 of about 4.5% y/y; 19+ million air passengers in April 2025 (+7.3% y/y).

Most Visited Regions and Cities and Accommodation Impact

• Focus on iconic cities: Rome (Jubilee, UNESCO sites), Venice (Biennale), Florence, Milan: major attractors reinforcing urban and MICE demand; peak occupancy rates during major 2025 events.
• High flows to air hubs and cultural sites increase pressure on central hotels (occupancy, ADR) and stimulate the rise of alternative accommodations in high season.
• National campaigns encourage dispersion to less frequented regions (Calabria, Apennine villages, Sicilian coastal areas), with expected effects on accommodation demand distribution.

Economic Contribution to GDP and Employment

• Estimated tourism contribution to 2025 GDP: about 11% (€237.4 Bn), up from 2024 (~10%, €228.5 Bn).
• Employment supported in 2025: ~3.2 million jobs (≈ +100,000 vs 2024).
• Foreign exchange earnings: international tourist spending forecast at €60.4 Bn in 2025 (record).

Seasonality and Monthly Flows

• Marked seasonality: recent revenue record in August 2024 (€7.47 Bn), reflecting the summer peak; solid recovery in spring 2025 (April→May: +17% revenue).
• Expected peak summer attendance 2025 (65.8 M tourists), with consequences on occupancy rate and pricing; need to manage peaks to limit overcrowding in historic centers.
• 13.14% increase in arrivals in April 2025 and 29.8 M overnight stays early in the year indicates a favorable pre-summer ramp-up for hotel occupancy.

Typical Tourist Profiles

• Foreign share strongly progressing: international attendance ~+16% vs 2019 and +1.63% vs 2024 (2025 forecasts).
• Average length of stay: foreigners ~3.30 nights; Italians ~2.64 nights (lengthening trend).
• Rise in international air travel: 19+ M passengers in April 2025 and traffic from the top 10 airports driving urban arrivals.

Forecasts and Projects Impacting the Hotel Market

• 2025 perceived as boom year: arrivals up nearly 7% vs 2019; Italy 2nd in Europe for arrival growth since 2019 (+8.3%).
• Public priorities: connectivity, promotion of peripheral areas, training, hotel sustainability; role of the Ministry of Tourism (created in 2021) in guiding investments.
• Pipeline effect: major 2025 events boost demand in major cities; expected spillover to secondary markets, supporting expansion and upscaling of accommodation supply.

Post‑COVID-19 Recovery and Current Challenges

• Recovery completed then exceeded: revenue records (August 2024) and new increases in 2025; international flows beyond 2019.
• Challenges:
  • Overtourism in historic centers, requiring geographical dispersion of flows.
  • Pressure on airport and urban infrastructure during event peaks.
  • Management of revenue seasonality (summer peaks vs troughs), hence the interest in de-seasonalization strategies.
• Opportunities for hotel buyers: lengthening stays, robust foreign demand, pro-investment public policies and sustainability, and recurring events reinforcing occupancy outside summer.

Table – Recent Key Indicators

Indicator	2024	2025 (Latest Data)
Tourism Revenues – Summer Peak	€7.47 Bn (August)	n.a. (May: €5.25 Bn; April: €4.48 Bn)
Arrivals/Month (e.g.)	—	April: +13.14% y/y; >10.6 M visitors
Cumulative Overnights (Year Start)	—	29.8 M (+14.8% y/y)
International Tourist Spending	—	€60.4 Bn (forecast)
Contribution to GDP	~10% (€228.5 Bn)	~11% (€237.4 Bn)
Jobs Supported	~3.1 M	~3.2 M (+100k)

Points of Attention for a Hotel Purchase in Italy

• Target locations with sustained flows outside high season (event cities, air hubs).
• Diversify the offer (longer stays, international segments, sustainable accommodations) to capture lengthening durations and rising spending.
• Monitor tourist dispersion policies and public incentives in secondary regions.

Tips for a Successful Hotel Investment in Italy

Italy welcomes foreign capital in the hospitality sector without general sectoral restrictions, with public support mechanisms (ICE) and facilitating procedures for investors, including an investor visa and single-window service with administrations for authorizations. For large-scale projects in strategic sectors, unified and accelerated regional procedures can apply in areas of national strategic interest provided by decree-law (PAUAR), centralizing permits within a single act.

Legal Framework and Public Mechanisms

• Get support from the ICE Agency: legal and tax information, site scouting, interface with administrations, permit and authorization support, and tutoring services for strategic investments.
• Investor Visa: special, simpler, and faster procedure for foreigners investing in Italy.
• Strategic Projects: possible activation of a single, accelerated authorization procedure (PAUAR) in areas of national strategic interest for investments above a threshold, with centralized coordination.

Administrative Procedures and Authorizations

• Company formation (SRL/Spa) or asset acquisition, obtaining tax code, opening account, business register enrollment; ICE can serve as a liaison office with the administration.
• Urban Planning and Works: building permit/SCIA depending on the nature of the works; in complex projects, PAUAR can group authorizations at the regional level.
• Hotel Operation: municipal authorizations (Comune) and activity start declarations to local authorities, with specific obligations regarding safety, hygiene, and accessibility; ICE assists with the local administrative process.
• Para-Hotel Accommodation and Tourist Rentals: obligation to notify the town hall (Comune) via a certified commencement of activity declaration and compliance with local rules (periods, minimum nights, etc.).

Location Evaluation: Key Criteria

• Accessibility: proximity to airports/HSR stations, highway connections, frequency of connections; ability to attract international clientele depends on hubs and door-to-door time.
• Proximity to Attraction Hubs: UNESCO sites, historic centers (Rome, Florence, Venice), coastlines, lakes, ski resorts; previous investment flows have concentrated in cities with high tourist demand (e.g., Venice, Rome, Milan, Florence), a useful signal of market depth.
• Local Seasonality: measure occupancy rate and ADR by month, event calendar, cruises, MICE, and dependency on a single demand source.
• Competition and Barriers: hotel density, brand presence, municipal regulatory constraints (e.g., limitations on tourist rentals) that can influence product mix strategy.

Method for Analyzing Tourism Market Trends in Italy

• Collect data series: arrivals and overnight stays by region, international vs domestic share, RevPAR/ADR/Occupancy by category; cross-reference with hotel pipeline and historic building conversions.
• Track investment dynamics: transaction volumes, foreign capital shares, dominant locations, to gauge exit liquidity and operator appetite.
• Examine public policies: FDI attraction mechanisms, procedure simplifications, and pro-investment initiatives (CAIE, mission units) to assess administrative risk and timelines.
• Integrate local regulations on tourist accommodation to calibrate positioning (hotel vs para-hotel) and operational flexibility.

Developing a Solid Business Plan

• Revenue Assumptions: segmentation (international leisure, domestic, MICE), channels (direct, OTA, GDS), ADR by season, yield management policies.
• Expenses: personnel, energy, brand/operator costs, local taxes, cyclical maintenance capex; budget for repositioning if converting a palace/historic hotel, common in recent transactions.
• Scenarios: base, high, stress (demand shocks, cost increases), with break-even and DSCR.
• Governance: key indicators (RevPAR, GOPPAR), asset management strategy, and semi-annual review schedule.

Relationships with Local Partners

• Legal and Business Advisors: structuring, real estate/urban due diligence, operational compliance, permit obtention, and interface with authorities, in coordination with ICE.
• Hospitality-Specialized Real Estate Agencies: off-market sourcing, comparable analysis, negotiation, insight on local dynamics, especially in markets highly sought by foreign capital.
• Authorities and Public Agencies: use ICE services for networking and administrative unblocking; follow CAIE initiatives and relevant accelerated procedures.

Management and Post-Acquisition Optimization Tips

• Adapt the offer to international expectations: multilingualism, global payment methods, bedding and service standards, flexible cancellation policies; calibrate the offer according to the origin of Italy’s major clientele.
• Marketing Strategies: balanced channel mix (SEO-optimized direct website, targeted OTAs, metasearch engines), campaigns by source markets, partnerships with airlines and local offices; storytelling on heritage and experiences, in line with the trend of historic asset conversions.
• Revenue Management and Distribution: dynamic pricing by season/day of arrival, channel closures, paid upgrades, MICE/weekend segmentation; measure impact on RevPAR/GOPPAR.
• Operations: continuous staff training, maintenance standards for historic buildings, capex investments for energy efficiency; improvement loops via customer reviews and mystery audits.
• Ongoing Compliance: monitor local obligations (registrations, tourist tax, safety) and regulatory developments on tourist accommodation and declarations to municipalities.

Domain	Priority Action	Public Support/Lever
Legal Framework	Structure the investment and secure permits	ICE as interface, investor visa, accelerated procedures for strategic projects (PAUAR)
Market	Target cities with high demand depth	Analysis of transactions and concentrated FDI flows (Venice, Rome, etc.)
Business Plan	Robust scenarios and financial KPIs	Sector data, ICE support for authorizations and HR
Partners	Mandate specialized lawyers/agents	Networking via ICE and CAIE initiatives
Operations	Revenue management and international marketing	Local regulatory monitoring and continuous optimization