Selling a 5-Star Hotel in Florence
KW Hospitality, the Keller Williams Italia division specialising in hotel brokerage, handles the sale of 5-star hotels in Florence through a network of qualified Italian and international buyers. The Florence 5-star hotel market has specific characteristics that make a specialist broker indispensable: 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?
5-star hotels in Florence show highly variable valuations depending on the trophy factor: a typical range of €15-50M for assets of 50-100 rooms, though iconic assets (historic palazzi, luxury brands, prime locations) can exceed €100M. EBITDA multiples of 10-14× are standard, 16-18× for trophy assets.
Which luxury brands are active in the Italian acquisition market?
Luxury brands active in the Italian acquisition market (2025-2026): Rosewood, Four Seasons, Mandarin Oriental, Aman, Ritz-Carlton, St. Regis, Bulgari Hotels, Six Senses, Belmond. They typically enter through affiliation (management or franchise) or direct asset acquisition. KW Hospitality maintains relationships with the buy-side advisers of these groups.
How is a 5-star trophy hotel valued?
For 5-star trophy assets, standard EBITDA multiples are supplemented by a trophy premium that reflects scarcity (architectural or historic uniqueness), potential brand power, repositioning opportunities and alternative use cases (luxury residential, mixed-use). A 10-year DCF with a repositioning scenario is common practice. A multi-source valuation is recommended.
How long does it take to sell a 5-star hotel?
5-star hotels: 9-18 months on average. Trophy assets may require 12-24 months to qualify institutional buyers, prepare complete documentation, run in-depth due diligence and structure the negotiation. Often a single-buyer process rather than a competitive auction.
What return do investors expect from a 5-star hotel?
Expected yield from Italian 5-star hotels for institutional investors: 4-7% cash-on-cash at steady state, with upside from yield enhancement (premium rebranding), repositioning (undermanaged assets) and exit via brand upgrade. Target IRR over a 5-7 year hold: 12-18% for value-add investors, 8-12% for core.
Request a confidential sale mandate
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 confidential sale mandate → Estimate the value of your hotel