Italy to Add 104 Branded Five-Star Hotels by 2029
A Deloitte study, presented at Florence's AURA show, forecasts 9,624 new luxury rooms across Italy, with average nightly rates projected to reach €970 in 2027.
Italy's Luxury Hotel Expansion
Italy is projected to significantly expand its high-end accommodation sector, with 104 new branded five-star hotels expected to open between 2026 and 2029. This development will add 9,624 luxury rooms nationwide, according to a Deloitte study.
The findings were presented at AURA, Florence’s inaugural trade show dedicated to luxury hospitality and travel, held from 27 to 29 October 2026 at the Fortezza da Basso.
The study highlights a robust growth trend, with Italy's five-star hotel supply increasing by 4.9 per cent in properties and 4.6 per cent in rooms during 2025 compared to 2024, marking Europe's strongest expansion. At this pace, Italy could reach 1,000 five-star hotels by 2030.
Key Cities and Rising Rates
This expansion is concentrated in key urban and leisure destinations, with Rome leading the way with 17 new hotels and 1,673 rooms planned. Milan follows with 11 hotels, while Venice anticipates 8 new properties adding 971 rooms, and Taormina, Sicily, expects 5 hotels with 896 rooms.
The Deloitte study also forecasts a substantial increase in average nightly rates for Italian luxury hotels. After reaching €780 in 2025 and an estimated €877 in 2026, the average rate is projected to climb to €970 in 2027.
Occupancy rates, currently between 68 and 71 per cent, are also expected to rise, reaching 72 to 75 per cent by 2027, indicating strong demand for these premium offerings.
Operator Confidence and Challenges
The strong growth trajectory reflects significant industry confidence in Italy's luxury hospitality sector. Over 80 per cent of operators surveyed by Deloitte indicated Italy as their preferred investment destination for luxury hospitality over the next three years, substantially ahead of Spain (10 per cent) and Greece (4 per cent).
Italy also stands as Europe's favourite luxury destination, garnering 59 per cent of responses, compared to Greece (11 per cent), Portugal (10 per cent), and Spain (9 per cent).
Despite this optimism, the study identifies several challenges, including a shortage of suitable properties, complex bureaucracy, a lack of specific tax incentives, rising labour costs, and a scarcity of skilled staff within the sector. Italy currently has 771 five-star hotels, second only to Greece in Europe.
Implications for Asian Luxury Travel and Investment
This substantial expansion of Italy's luxury hotel market and the projected rise in room rates present notable implications for Asian travellers and the region's hospitality industry. For Asian luxury consumers, the increased choice of high-end branded properties across Italy's key destinations, from Rome to Lake Como, will offer more diverse and exclusive travel opportunities.
This could stimulate outbound luxury travel from affluent Asian markets, where demand for unique European experiences remains robust. Furthermore, the strong operator confidence in Italy, as revealed by the Deloitte study, might attract Asian hotel groups and investors seeking to diversify their portfolios in a growing European luxury segment.
Asian hospitality companies could explore partnerships or direct investments, mirroring the trend of global brands expanding their footprint in a high-performing market.
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