5-Star Hotel Valuation in Florence
Valuing a 5-star hotel in Florence calls for a specialist methodology that combines sector EBITDA multiples, 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 5-star hotel market in Florence in 2026
The Florence hotel market in the 5-star category comprises roughly 22 recorded properties. Seasonality typically peaks from spring to autumn (April to October), with a low season in January and February.
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 5-star hotel
5-star and luxury hotels represent the top of the market: trophy assets, often historic, international brands, EBITDA margins of 32-42%, multiples of 10-14× (up to 16-18× for iconic trophy assets). Buyers are global institutions, sovereign wealth funds and luxury brands in expansion.
Typical facilities
- • fine dining restaurants
- • luxury spa
- • premium concierge
- • private pool
- • limousine service
- • personal butler
Typical buyer profile
- • sovereign wealth funds
- • global real estate funds
- • luxury brand hotel groups
- • UHNWI
What is a 5-star hotel in Florence worth?
EBITDA multiples for 5-star hotels in Florence in 2026 range between 10× and 14×, with a premium for prime historic-centre locations (+14% modifier). For a typical property of 60 rooms with a RevPAR of € 380 and 83% occupancy, the valuation range is € 35.4M - € 49.6M.
| Metric | Benchmark value |
|---|---|
| EBITDA multiples (5-star category) | 10× – 14× |
| Typical EBITDA margin | 32% – 42% |
| Prime location Florence | +14% |
| Average RevPAR Florence (5-star) | € 380 |
| Average occupancy | 83% |
| Typical room count | 30 – 200 rooms |
ⓘ The ranges shown are indicative and based on public market parameters. A professional valuation also considers: the condition of the property, staff contracts, the exact location, brand affiliation, licences, any litigation, and accessibility.
Data sources: ISTAT (tourist arrivals and overnight-stay statistics), Banca d'Italia (international tourism), industry benchmarks (CBRE, Cushman & Wakefield, JLL Hotels & Hospitality, STR Italia). Updated: Q1 2026.
Frequently asked questions
What is a 5-star hotel in Florence worth?
The value of a 5-star hotel in Florence is estimated on the income it generates, not on floor area alone. The EBITDA method multiplies gross operating profit by a market multiple (typically 6-12× in Italy), adjusted for category, location and building.
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 5-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 5-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 5-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