Luxury hotels in Florence continue to attract significant investment, with three recent five-star openings involving more than €90 million. Palazzo Monnalisa, part of Dei Cavalieri Collection, has reopened following a two-and-a-half-year renovation. The property closed in April 2024, after the Bernardelli family acquired it in 2017. The €25 million project has transformed the historic building into a 37-room boutique hotel. Located near the Duomo, it also features a private garden and a restaurant inspired by local cuisine.
Another recent opening is Borgo Pignano Florence, a 32-room Relais & Châteaux property. The hotel represents the second chapter of the project launched near Volterra by entrepreneur Michael Moritz. A €45 million investment converted a fifteenth-century residence surrounded by five hectares of parkland. Meanwhile, Palazzo Sogni has entered the market with 30 rooms and suites. The sixteenth-century building now houses a spa, restaurant and panoramic terrace. Although its investment remains undisclosed, industry sources estimate a figure of approximately €25 million.
These openings will further strengthen Florence’s upscale accommodation supply. The city will count 35 five-star hotels by year-end, offering almost 2,250 rooms. The current pipeline includes four additional luxury properties, among them Cappella and Baccarat. However, supply growth is beginning to outpace demand. In 2025, international five-star overnight stays in Florence province reached 681,000, up 6.3% from 2023. International arrivals also increased, from 248,000 to 264,000. Over the same period, the luxury hotel inventory expanded by five properties and 358 rooms, representing 19.5% growth. Consequently, average overnight stays per operating five-star hotel fell from 348 in 2023 to 310 in 2025.
Moreover, operators highlight the market’s strong reliance on US travellers. In 2025, overnight stays from this market declined by between 0% and 5%. Not all hotels offset this weakness through higher average daily rates. At the same time, affluent travellers increasingly explore destinations across Tuscany. They also show growing interest in urban and countryside resorts offering leisure facilities, including pools, spas and sports amenities. Therefore, luxury hotels in Florence face a more competitive environment, despite continued investor interest.
