YellowSquare Naples hostel marks the company’s latest expansion in Italy and its first move into hybrid hospitality. The project will transform the former Mint building in Naples’ historic centre into a lifestyle hostel for international travellers and local residents. As a result, YellowSquare strengthens its presence in one of Italy’s fastest-growing urban tourism destinations.

The property belongs to the Primo RE real estate fund, owned by the Italian Chartered Accountants’ Pension Fund and managed by Prelios SGR. YellowSquare will operate the asset after an extensive redevelopment programme. Instead of creating a traditional hostel, the company will develop a mixed-use destination with hospitality, coworking and community spaces. The ground floor will feature a bar, reception area, shared kitchen and flexible event venues. Furthermore, the project aims to achieve a BREEAM In-Use “Very Good” certification.

The Naples development also supports YellowSquare’s long-term growth strategy. In early 2025, the company formed a joint venture with Invel. Together, the partners committed €200 million to new hospitality projects across Italy and Southern Europe. Their goal is to develop and operate 5,000 beds within five years. In addition, UniCredit provided €65 million to support the Yellow alternative investment fund managed by Castello SGR.

Today, YellowSquare operates around 1,200 beds across Rome, Milan, Florence and Athens. The YellowSquare Naples hostel represents another milestone in the company’s expansion beyond student accommodation. The operator now targets digital nomads, young professionals, remote workers and city travellers seeking flexible accommodation. By combining hospitality, workspaces and social experiences, YellowSquare continues to strengthen its position in Italy’s hybrid hospitality market. At the same time, the project will regenerate a landmark building in the heart of Naples.