3-Star Hotel Valuation in Florence
Valuing a 3-star hotel in Florence calls for a specialist methodology that combines sector EBITDA, local RevPAR analysis, the underlying property value and positioning modifiers. KW Hospitality applies a structured framework tested across dozens of transactions in the Italian market. For the Florence market: a UNESCO Renaissance centre, a strong global brand (75%+ international guests), a saturated historic centre, Pitti Uomo, a premium on historic palazzi.
The 3-star hotel market in Florence in 2026
The Florence hotel market in the 3-star category comprises 137 3-star hotels recorded by ISTAT in 2024. Seasonality typically peaks from spring to autumn (April to October), with a low season in January and February.
| Tourism demand in the municipality | 2023 | 2024 | Change |
|---|---|---|---|
| Arrivals | 3.926.389 | 3.981.152 | +1.4% |
| of which international | 2.974.000 | 3.125.589 | +5.1% |
| Overnight stays | 8.928.336 | 9.192.960 | +3.0% |
| of which international | 7.181.666 | 7.631.304 | +6.3% |
| Accommodation supply 2024 | Value |
|---|---|
| Total bed spaces | 65.166 |
| Hotel establishments | 362 |
| 3-star hotels | 137 |
| Average length of stay | 2.31 |
| Foreign share of overnight stays | 83.0% |
Source: ISTAT, tourist movement and accommodation capacity, municipal figures. Full 2014-2024 series in the KW Hospitality observatory.
Factors specific to the Florence market
- ›UNESCO historic centre, capital of the Renaissance
- ›Global 'Florence' brand → strong international demand (75%+ foreign guests)
- ›Uffizi, Accademia, Duomo: top 5 attractions in Italy
- ›Biannual Pitti Uomo plus niche fashion events
- ›Saturated market in the centre → premium on historic palazzo assets
Typical features of a 3-star hotel
3-star hotels represent the largest segment of the Italian hotel market: a balanced business-leisure offering, a broad target base (tourism, mid-market business, tour operators) and lean operations, with.
Typical facilities
- • breakfast restaurant
- • bar
- • wifi
- • 24h reception
- • some meeting rooms
Typical buyer profile
- • independent operators
- • small investors
- • local operators
- • mid-market funds
Frequently asked questions
How is a hotel valued using the EBITDA method?
You start from revenue (rooms × RevPAR × 365), estimate EBITDA by applying the operating margin, and multiply by the market multiple. The result is a value range, refined through real estate and positioning analysis.
What is RevPAR and why does it matter in a valuation?
RevPAR (revenue per available room) is ADR × occupancy. It is one of the main value drivers: a higher RevPAR in Florence means greater earning capacity and therefore a higher market value.
Which factors increase the value of a 3-star hotel in Florence?
Location and tourist flows in Florence, brand affiliation, quality of F&B and wellness, condition of the building, cost efficiency and management contracts. Optimising these elements before a sale increases the applicable multiple.
Does KW Hospitality provide a preliminary estimate of my hotel's value?
Yes. We provide a preliminary estimate of the value of your 3-star hotel in Florence, with the market range and the levers to raise it. It is the ideal starting point before considering a sale.
Request a preliminary valuation
KW Hospitality brokers 3-star hotels in Florence through a confidential methodology, the global Keller Williams buyer network and a structured process running 6-12 months.
Request a preliminary valuation → Explore our valuation methodology