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Luxury hotels in Florence: new openings, performance and prospects

A new luxury hotel in the center of Florence is coming. The hotel will be developed in Calimala Street.

The 5-star property will have 45 keys, a Michelin-starred restaurant, a bistro a spa with sauna, hammam, massage rooms and swimming pool.

The hotel will be called “La Gemma”, and will occupy part of the building owned by the Monge group that until a year and a half ago housed the Zara department store. It will be managed by a pool of Italian entrepreneurs identified by Sviluppo 23 who took care, together with Postology, of the development of the project.

Sviluppo 23 has also identified the two companies that will occupy the ground floor (while the hotel will develop vertically, from the first to the fifth floor) to which it will deliver the shops set up. These are Marciano Guess and Foot Locker, which have decided to expand its stores in Florence.

Florence, after Rome, is the second destination in Italy for the number of 5-star hotels currently operating (25 hotels, for a total of 1,300 keys). Moreover, the city is experiencing a phase of particular ferment.

The segment, in destination, experienced a phase of growth (CAGR +4.5%) in revenue/key performance in the period 2013-2019. As a result, TRevPAR also grew to EUR 359 in 2019, compared to EUR 278 in 2013. The average profitability of the segment, on the other hand, was in a rather stable range and equal to 15-18% of turnover.

In 2020, there was a setback with annual turnover values per room that suffered an average decrease of -77%.  EBITDA% also fell into negative territory to around -52%.

In addition to the new Hotel La Gemma there are currently 3 (for 282 keys) 5-star hotel openings planned in the destination. In particular, for 2023 the W Florence (120 keys) will be developed in the Ex. Grand Hotel Majestic and the Collegio Alla Querce (82 rooms), which is the first property in Italy of Auberge Collection.

For 2024, the opening of the Baccarat Villa Camerata is also planned with the development of an 80-key urban resort in partnership with Omnam Group. The Baccarat opening marks the debut in Italy of the SH Hotels & Resorts group.

As for the new openings (or rebranding) of chain hotels between 2022 and 2024, the following openings are also planned in the other hotel segments:

  • new The Student Hotel Belfiore (652 keys);
  • Radisson Blu Hotel Florence – Conference Florentia Hotel (4* with 329 keys);
  • AO Florence (2* from 140 rooms);
  • Hotel Indigo Florence;
  • Firenze Anglo American Hotel (4* with 115 keys) under Curio Collection;
  • Ruby Hotel Florence (4* from 118 rooms)
  • The Hoxton Florence, second The Hoxton in Italy;
  • Wyndham Garden Florence Novoli, 4* with 94 keys, the brand’s first property in Italy.

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