Luxury hotels and the high-end hospitality sector are experiencing an extraordinary growth trend in luxury real estate, proving to be one of the most sophisticated and high-performing real estate investments.
Today, investing in a luxury boutique hotel or resort is a strategic decision. These exclusive assets allow investors to diversify their portfolios with properties capable of delivering unforgettable experiences to a high-net-worth international clientele. Their value lies in the physical property and the ability to serve as hubs for connection, aligned with the rising demand for authentic, personalized experiences.
Interested in finding out more about boutique hotels’ appeal? Read our article in Dreamer Magazine: Boutique Hotels and Luxury Real Estate: The New Investment Trend.
According to JLL’s Global Hotel Investment Outlook, hotel investments are expected to grow by 15% to 25% in 2025, compared to 2024. Numbers that confirm the strength and growing appeal of a segment that combines design, authenticity, and prime locations.
The Luxury Hospitality Sector in 2025
In 2024, total global hotel investments reached $57.4 billion (+7% YoY). In Italy, the EY Italy Hotel Investment Report 2024 recorded an all-time high of €2.1 billion (+30% YoY), primarily targeting high-end assets, with a strong focus on luxury hotel conversions and repositionings.
Why Italy Attracts Foreign Investors and Private Capital
This expansion is not just about quantity, but also about quality. Demand for exclusive experiences, personalized services, and iconic destinations is redefining hospitality investment: investors are not just buying properties, they are entering the experience economy.
Italy continues to shine as a prime market for luxury real estate with hospitality potential and bespoke development projects.
Most In-Demand Locations for Investors
- Rome: €465 million (22% of total investment)
- Venice: €353 million (17%)
- Milan: €173 million (8%)
Resort destinations accounted for 39% of the total investment volume, up 11% from 2023.
Leading areas include:
- Lake Como: 30% of the total, driven by sales and ultra-luxury conversion projects
- Sicily: 15%
- Forte dei Marmi: 11%
Lifestyle Hotel and Extended Stay: The Future of High-End Hospitality
Lifestyle hotels are transforming the business: nearly 40% of revenues come from extra-room experiences such as dining, wellness, art, and retail. Public spaces and exclusive services become key elements in attracting an international and loyal clientele.
Meanwhile, the extended stay hotel segment is rapidly growing, driven by increasing demand for flexible, longer stays in refined environments. This niche offers stable returns and development opportunities in top urban destinations.
Boutique Hotels in Italy: Heritage Value Meets Contemporary Vision
Historic villas and noble estates are being transformed into boutique hotels in Italy combining old-world charm with modern comforts. This rising trend attracts hotel buyers, funds, and HNWIs seeking rare, high-value assets.
According to the latest surveys, more than 50% of transactions in 2024 involved value-added operations – developments, conversions, and restorations – confirming the growing demand for authentic, sustainable experiences immersed in the deluxe lifestyle of bespoke hospitality.
One of the listings now for sale with Dreamer is a boutique hotel in San Gimignano (Siena), a former 16th-century abbey converted into luxury accommodations. With 3,200 sqm, 20 bedrooms, a tower suite with a private jacuzzi, and original architectural details, it is the perfect example of how history and contemporary comfort can harmoniously coexist.
Investing in Hotels
Who is Investing in Luxury Hospitality Today?
International funds, HNWIs, and luxury real estate firms are key players, with a focus on trophy assets and globally appealing destinations.
Investor breakdown for 2024:
- Hotel groups: 38% of total volume
- HNWI/Family Offices: 23%
- Private Equity Funds: 20%
Over 53% of hotel transactions in Italy involved international investors, coming from:
- Europe (27%)
- Middle East (22%)
- United States (4%)
The outlook for 2025 is strong, boosted by expected interest rate drops, pointing to further market expansion.
Villas Becoming Luxury Hotels
In the current evolution of high-end hospitality, there is a growing trend to convert historic villas and fine residences into boutique hotels and luxury relais. This is an increasingly attractive segment for investment funds and hotel groups seeking iconic properties and assets, capable of generating exclusive experiences and significant ROI.
Nestled in exceptional Tuscan landscapes, these mansions blend cultural heritage with high hospitality potential and immersive appeal. Their investment value lies in architectural prestige and their potential to become self-contained luxury destinations.
Here are 3 standout properties currently for sale with Dreamer Real Estate:
- A historic villa in the Chianti region, once home to the noble Corsini and Ricasoli-Rucellai families, is now a certified Dimora Storica guesthouse with a spa and 6 hectares of land.
- A former water mill in San Gimignano is now a boutique hotel surrounded by nature and sustainable features, ideal for continuing a successful 20-year hospitality business.
- An estate with an infinity pool in Grosseto, a luxury relais nestled among olive groves and contemporary design.
These are rare opportunities where luxury, authenticity, and profitability intersect in Italy’s most desirable hospitality real estate market.
Your Luxury Investment Starts with Dreamer Real Estate
Dreamer Real Estate manages and offers exclusive properties in the heart of Italian luxury real estate: boutique hotels, luxury resorts, historic villas with hospitality potential, and villas ready for conversion.
We provide tailor-made consulting with a 360° approach to guide you toward the best investment, especially in the high-end hospitality sector.
Looking for your next exclusive real estate opportunity? Explore our luxury listings and turn your dream into reality.
