Italy Leads Luxury Tourism as ESG and Sustainability Drive Investment Appeal

With 60% of investors’ approval ratings, Italy remains Europe’s most attractive hub for high-end tourism. In this context, ESG certifications have become an indispensable “credibility passport” for operating on the global market.

Italy is at the top of the European rankings for high-end tourism investment, with 60% of investors indicating it as a priority destination for the next three years . In an economic landscape characterized by geopolitical uncertainty, the ability to generate higher returns than other segments is pushing the sector toward a strategic repositioning where environmental management and excellence in offerings become the true drivers of competitiveness.

These are some of the data presented by Deloitte this afternoon at the event ” Luxury Hospitality Reloaded: Repositioning and Balancing Sustainability . “

ESG Investing and Financial Performance: Value Beyond Compliance

The integration of ESG criteria is now a key factor in the valuation of hotel assets, directly impacting the reputation and financial sustainability of the properties. Data shows that over 21% of total CapEx allocated to repositioning projects in the luxury segment is now absorbed by sustainability initiatives . This financial commitment has led to a 22% increase in the number of properties with ESG certifications between 2024 and 2025. These documents now represent a “credibility passport” essential for attracting institutional capital and facilitating access to financing sources.

The return on investment for efficiency improvements is tangible: energy retrofitting, water conservation, and circular waste management can increase property value by 6% to 10% . Beyond savings on operating costs and mitigation of energy market risks, sustainability responds to a specific market demand, with 73% of travelers demanding a positive social impact and direct benefits for local communities from their tourism spending.

“In a global context where attention to environmental and social aspects is growing, ESG factors are no longer an ethical choice, but a strategic imperative that impacts the competitiveness, reputation and economic sustainability of hospitality facilities,” said Franco Amelio , partner at Deloitte Climate & Sustainability.

Italy’s primacy and the strategic role of Food & Beverage

The Italian luxury hospitality market is clearly ahead of its European competitors, far surpassing the attractiveness of countries like Greece (11%) and Portugal (10%). While art cities like Rome, Milan, Venice, and Florence remain key, investor interest is also expanding towards regenerated villages and emerging mountain destinations. In this process of asset valorization, food and beverage is emerging as the main differentiating factor , with over 70% of operators planning investments in this area , focusing on Italian cuisine and partnerships with premium brands to strengthen their properties’ positioning.

Despite growth prospects, the sector faces structural challenges related to the very nature of its assets. Investors are focusing on existing structures and historic properties, which, despite their high identity value, often present complex architectural and conservation constraints. Added to this is the difficulty of accessing the capital needed to sustain the substantial renovation costs.

The sector’s success will depend on the ability to transform hotels into models of responsible management, leveraging the region’s resources to create a memorable and financially sound offering.

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(Featured image by Sebastian Leonhardt via Unsplash)

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