Report

Italy Hotels & Chains Report 2023

The report, now in its 10th year, is an in-depth look at the Italian hospitality market, focusing on the relationship between branded and independent hotels.

The report, produced in collaboration with the Italian Confindustria Alberghi Association and Bocconi University, tracks the key performance indicators of the market, including overall hotels and rooms, chain/branded hotels and rooms, international and domestic chains, average hotel size, star ratings and the number of brands by both local and independent chains. The report also tracks the key tourism indicators of the market, such as arrivals, overnight stays, and new hotel developments.

This edition highlights the sector’s resilience, the recovery from the COVID-19 pandemic, and the ongoing evolution of the market, including shifts in business models, brand penetration, and development trends.

Key Findings

Post-Pandemic Recovery:

Italy’s hotel industry experienced a significant rebound in 2022, with tourist arrivals and overnight stays recovering to nearly 83.3% and 91% of 2019 levels, respectively. The return of international tourists has been a key driver of this recovery, contributing to a positive balance of over €18.2 billion in 2022.

Growth of Hotel Chains:

Chain hotels in Italy have continued to grow, with a 44.7% increase in chain hotel penetration from 2013 to 2022. In 2022 alone, the market saw a net increase of 61 new properties and nearly 5,500 additional keys, reflecting a strong recovery in the sector.

The overall penetration rate of chain hotels reached 5.5% in terms of properties and 17.7% in terms of rooms, with international brands playing an increasingly significant role.

Business Model Shifts:

Lease agreements remain the dominant business model for chain hotels, accounting for 41% of all chain properties. The franchise model follows, making up 34% of chain hotels, while management contracts and ownership models are less prevalent.

Over the past decade, there has been a noticeable shift towards lease agreements, with a decline in franchises and slight decreases in ownership models.

Market Segmentation:

The luxury and upscale segments continue to dominate the Italian hotel market, with over 71.7% of chain hotels falling into these categories. The economy segment remains underdeveloped, representing only 1% of the total chain room supply.

Regional Focus:

Lombardy, Latium, Sardinia, and Veneto together account for more than half of all chain hotels in Italy. Rome remains the leading city, with 232 chain hotels and over 25,700 rooms, followed by Milan and Venice.

Secondary destinations, particularly in Sardinia and Emilia-Romagna, are becoming increasingly attractive for development, with significant growth observed in these areas.

Development Pipeline:

By 2025, the Italian market is expected to see the addition of nearly 25,000 new chain hotel keys, with a strong focus on the upscale and luxury segments. New international players are entering the market, further diversifying Italy’s hotel landscape.

The Italian hotel market continues to show resilience and growth potential, with strong performances in key regions and segments. The ongoing evolution of business models, coupled with the entry of new international brands, suggests a bright future for the sector. As Italy prepares to host major events like the 2026 Winter Olympics, the industry is poised for further expansion and development.