For a comprehensive review of the Europe market, click below:
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

Rome has long ranked among Europe’s most visited cities, renowned for its historical significance, cultural heritage, and religious importance. The city is also home to several United Nations agencies and is a hub for key economic sectors such as tourism, oil and gas, and fashion. Recognised as the world’s fourth most important fashion capital, Rome also hosts Cinecittà Studios, often referred to as the ‘European Hollywood’. Within its 1,285 km² area and a population of 2.7 million (as of 2024), Rome encompasses Vatican City, the only sovereign state located entirely within a city. As the seat of the Pope, it remains a significant driver of religious tourism.

Rome is served by Fiumicino – Leonardo da Vinci International Airport, where international passenger traffic grew at a compound annual rate of 1.1% from 2016 to 2019. In 2024, the airport handled 49 million passengers, marking a remarkable 20% year-on-year increase and surpassing pre-pandemic volumes.

Hotel supply in Rome has remained relatively stable, growing at a modest compound annual rate of 1% between 2015 and 2024. Recent developments have been concentrated in the luxury segment, well-suited to the city’s predominantly leisure-driven demand. Around 1,500 rooms are projected to be added over the coming years, representing 3.6% of current supply. Key upcoming openings include the 165-room Ruby Hotel Rome (opening September 2025), the 157-room Rosewood Rome (opening in 2026) and the 62-room Brach Roma (opening in 2026).

Before the pandemic, marketwide occupancy in Rome typically oscillated around 70%. Average rate was very stable during that period, which resulted in a compound annual growth in RevPAR of 1.3% between 2016 and 2019. Following the disruption of 2020, Rome experienced a swift rebound. By 2022, occupancy had recovered to 82% of 2019 levels, with full recovery achieved in 2023. Average rate saw double-figure growth each year from 2021 to 2023, and by 2022 was already 15% above 2019 in real terms despite inflationary pressures. As of 2024, the market appears to have stabilised, with occupancy consistently above 70% and average rates growing in line with inflation and 30% above 2019 levels in real terms.

Looking ahead, 2025 is set to be a pivotal year for Rome as it hosts the Catholic Church’s Jubilee Year, a once-every-25-years event expected to attract millions of pilgrims. The influx is expected to generate a significant boost to hotel demand across the city. While this is broadly positive for the market, demand is expected to be price-sensitive, likely favouring midscale and economy properties.

Despite strong investor appetite for Italy and the broader Southern European region, transaction activity in Rome has remained relatively subdued in recent years. Five hotels transacted in 2022 (down from eight in 2019), while only one hotel changed hands in 2023, mirroring the reduced deal flow seen across much of Europe. In 2024, investment activity showed signs of recovery, with four hotel sales recorded: the 109-room Sofitel Roma Villa Borghese (€74 million) and the 239-room Hotel Cicerone (€70 million) both sold in April, the 351-room Midas Palace Hotel Roma (€60 million) sold in May and the 102-room Aldrovandi Villa Borghese sold in December for an undisclosed amount.

According to our latest Hotel Valuation Index (HVI), hotel values in Rome increased by 1.6% in 2024, driven by a lower cost of debt. This brings hotel values to within 4% of their 2019 peak, reflecting a near-complete recovery.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

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Change In Value For Market: (€Euro)

Rome RevPAR Change (€Euro)

Rome RevPAR (€Euro)

For more information, please contact:

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