Europe -  Florence, Italy

Florence is the capital of Tuscany, centrally located in Italy, on the River Arno. With its abundance of historic art and cultural attractions, Florence is a highly desirable tourist destination and often a stop on tours through Italy. While primarily a leisure destination, Florence benefits from the presence of a strong fashion sector. Prime luxury brands (Roberto Cavalli, Salvatore Ferragamo, Emilio Pucci) are based in the greater Florence area. Leveraging this historic tradition, Florence hosts the biannual Pitti Immagine fair, which is an important international fashion exhibition held in January and June in the Fortezza da Basso.

While the USA is by far the largest international source market, American tourists often visit Florence as part of a tour as long-haul connections from Florence airport are extremely limited. Because of its leisure focus, the city’s hotels experience strong seasonality with many properties closing over winter. Strong performance growth was recorded in 2017, driven by both occupancy and average rate; despite the seasonality, Florence hotels now record an annual occupancy rate of more than 75%. As a result, RevPAR levels have grown by around 10%, long overtaking pre-crisis levels.

The city’s hotel market is characterised by small properties and a lack of international operators, as many hotels are independent or part of a regional brand or group. This is not expected to change in the near future as the city’s pipeline is very limited. Barriers to entry are extremely high because most of the city centre’s buildings are listed, making conversions very costly.

Following last year’s active transaction market, 2017 did not register any change of hands in the hotel sector in Florence.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Florence RevPAR Change (€Euro)

Florence RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Simon Hulten
[email protected]
  • +44 020 7878-7775 (w)