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HVS In-Depth Europe Hotel Valuation Index:   2026 | 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 2025. The greater metropolitan area expands to more than 991,000 inhabitants. Despite its size, the vast majority 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 during 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.

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 exceeding 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 experienced a slight decline in 2024, overall performance translated into real RevPAR growth of more than 20% above 2019 levels. In 2025, hotel performance softened, with occupancy and average rates declining year-on-year. While the Vatican Jubilee was expected to generate some spillover demand into other Italian destinations, the impact on Florence appears to have been limited. As a result, RevPAR moderated from the record levels achieved in 2024, although it remained broadly in line with 2019 levels in real terms.

Florence’s hotel supply has remained broadly stable over time, with room stock growing at a modest compound annual rate of 1.1% between 2018 and 2025. The market is characterised by a pronounced concentration of luxury and boutique hotels, with independently operated properties forming the majority. Barriers to entry are particularly high, given that a significant proportion of buildings within the historic city centre are listed for their heritage value, rendering conversions into hospitality assets both costly and logistically challenging. At present, Florence’s development pipeline is limited, with a small number of high-profile luxury schemes in the works, including the 75-room Baccarat Hotel Florence Villa Camerate, due to open in 2026, and the 89-room Capella Florence, scheduled to open in December 2027. Together, these two schemes are expected to add approximately 150 additional keys to the market.

Following a surge in hotel transactions in 2021, driven largely by private international investors, investment activity has 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. No hotel transactions were recorded in Florence in 2025.

According to our 2026 European Hotel Valuation Index, hotel values in Florence decreased by 1.8% per key in 2025, reflecting a moderation and partial reversion in hotel trading performance following the stronger pricing environment observed in 2023-24. Despite this gap in performance, investor confidence in the city’s long-term appeal remains positive, despite limited deal flow.

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For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 7725781037 (m)
	Maxime Gauthier Senior Associate [email protected] +44 0 7593572865 (m)