According to the Luxury Hospitality Report by Thrends, 49 new high-end properties opened during the year, while the pipeline includes a further 96 openings in the coming years.
Added to this is the strategic role of the Milano-Cortina 2026 Winter Olympics as a multiplier of visibility and tourism demand. According to data related to the event, between 3.5 and 4.5 million visitors arrived in Italy during the Games, with a significant focus on quality tourism (Federalberghi Lombardia 2025).
The event as an accelerator
According to Giorgio Bianchi, Global Business Development, “2025 demonstrated that the upscale and five-star market is now a structural component of the Italian offering. To this already positive scenario we must add the Olympic factor, which in 2026 will act as a further accelerator, expanding the international audience and strengthening the visibility of key destinations. The Games impacted demand by covering historically challenging months. January and February, traditionally complex periods, recorded strong performance. Milan, for example, saw significant growth in average rates without reaching the extreme peaks of other major events. This is an important indicator. It means the market absorbed value without entering an out-of-scale speculative dynamic”.
Internationalisation of demand
The other structural element concerns source markets.
“Supporter-visitors arrived from high-spending markets. This produced a repositioning effect for certain Alpine destinations. Locations such as Bormio, Livigno and Cortina d’Ampezzo benefited from international visibility that would have been difficult to achieve through traditional campaigns. When global broadcasters tell the story of a territory, the impact is enormous. It is pure branding, but with real effects on investment”.
For Milan, the event also represented an infrastructure boost. The strengthening of the events system enhanced the city’s ability to attract major international gatherings, and MICE demand, compressed during the Olympic months, shifted forward.
“Demand wasn’t lost, it was simply deferred – Bianchi confirms -. It is a legacy that remains. Milan will be able to compete with new formats. But the case of short-term rentals is emblematic. A boom was expected, yet, at least in the city, apartments struggled while hotels were full. The international market requires clear protocols, services, control and standards. Hotels are better equipped to meet these needs”.
Development trajectories
On the supply side, Bianchi identifies two trajectories for 2026. The first is the continued expansion of the luxury and upper-upscale segment, including resorts. The second, perhaps the most interesting and innovative, is the hybridisation of models.
The most tangible legacy concerns the former Milan Olympic Village in the Scalo Romana area. After the Games, the structure will be transformed into one of the largest affiliated student housing complexes in Italy, with 1,700 total beds, 450 of which at controlled rents.
“It is proof that the hybrid destination works – he comments -. In a market such as Milan, characterised by strong housing pressure and a shortage of university residences, the operation represents a strategic element not only from an urban planning perspective but also socially. Italy lacks a structured offering for a young, international audience, including athletes”.
“Hospitality must be ready to reinvent itself. The real challenge – Bianchi concludes -, is not filling rooms during the Olympics but understanding what kind of hospitality will remain when the spotlight turns off”.
Paola Olivari
