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HVS In-Depth Europe Hotel Valuation Index:   2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Florence, the capital of Italy’s Tuscany region, is in central Italy and stands as the region’s most populous city, with approximately 368,000 residents as of 2024. The greater metropolitan area expands to more than 991,000 inhabitants. Despite its size, about 95% of Florence’s tourism activity is concentrated within a compact 5 km² area, reflecting the city’s dense historic and cultural appeal.

Widely regarded as the birthplace of the Italian Renaissance in the 14th century, Florence was designated a UNESCO World Heritage Site in 1982. The city is globally renowned for its rich cultural heritage, Renaissance art and architecture, and world-class museums and galleries, such as the Uffizi Gallery and Palazzo Pitti. Florence also boasts a strong fashion industry presence, serving as the home to iconic brands including Roberto Cavalli, Salvatore Ferragamo and Emilio Pucci. It also hosts the biannual Pitti Immagine fashion fairs each January and June at the Fortezza da Basso, drawing international attention. Also, whilst the Vatican Jubilee Year in 2025 is centred in Rome, Florence is expected to benefit from an increased influx of religious pilgrims exploring nearby sacred and cultural sites.

Prior to the pandemic, Florence experienced a mild decline in occupancy as international visitation plateaued. International travellers, who typically account for around 70% of total demand, mainly originate from the USA, China, the UK, Germany, France and Spain. The pandemic brought a sharp downturn, but recovery began in earnest in 2022, when demand noticeably improved and average rates grew above inflation, leading to RevPARs above the nominal levels observed in 2019. This upward trajectory continued in 2023, with strong double-figure growth in both occupancy and average rate. Although occupancy saw a slight dip in 2024, the overall performance translated into real RevPAR growth of more than 20% above 2019 levels.

Hotel supply in Florence has remained relatively stable over the years, with inventory growing at a modest compound annual rate of 0.5% between 2019 and 2024. The market is notably defined by a strong concentration of luxury and boutique hotels, with a predominance of independently operated properties. Entry barriers are particularly high, as many buildings within the historic city centre are heritage-listed, making conversions into hospitality assets both costly and complex. Currently, Florence’s hotel pipeline remains limited, with just two notable projects under development: the 122-room W Florence, slated to open in July 2025, and the 75-room Baccarat Hotel Florence Villa Camerate, opening in 2026. Together, these two projects will add approximately 200 rooms to the market.

Following a surge in hotel transactions in 2021 – driven largely by private international investors – investment activity has since slowed. No hotel transactions occurred in 2022, followed by one deal in 2023: the sale of the 58-room Palazzo Castri 1874 in September for an undisclosed amount. In 2024, a single transaction was recorded: the sale of the 67-room Hotel Rivalta in December, also for an undisclosed price.

According to our 2025 European Hotel Valuation Index, hotel values in Florence increased by 2.1% per key in 2024 compared to the previous year, reflecting continued investor confidence in the city's long-term appeal, despite limited deal flow.

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For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 2078787722 (w) +44 0 7725781037 (m)
	Tabitha Watkins Analyst [email protected] +44 0 2078787724 (w) +44 0 7562956921 (m)
	Margherita Rivetti [email protected] +44 0 278787754 (w) +44 0 7955271797 (m)