Hotel Alexandra in Rome and the challenges of hotel investments in Italy

31/01/2026 - 28/02/2029

An emblematic case of operational deadlock in the Italian hotel market

 

The acquisition of Hotel Alexandra, a historic property located on Rome’s prestigious Via Veneto, by the UK-based Molo Hotel Group in 2022 was announced with great emphasis as a landmark transaction for the Italian hospitality market. Three years on, however, the hotel is still not operational, and the renovation process appears to be ongoing.

 

The Alexandra case is emblematic of a recurring critical issue in the Italian hotel market: the asymmetry between acquisition-phase enthusiasm and the real complexity of execution.

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An iconic asset, an endless construction site

 

With 57 rooms, food & beverage spaces, and a prime location, Hotel Alexandra sits in one of the most symbolic areas of the capital. The project announced by Molo Hotel Group envisaged a “lifestyle” repositioning, a segment experiencing strong growth across major European markets.

 

Yet, three years after the announcement, the hotel remains an active construction site.
For a relatively small asset, such a timeline raises not only operational but also strategic and financial concerns.

 

In the Roman hotel market, even mid-size assets are now recording construction timelines exceeding 30–36 months, with significant impacts on the overall profitability of the investment.

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The hidden cost of stagnation

 

A project that remains non-operational for three years generates a substantial opportunity cost, often underestimated at the acquisition stage.

 

Even assuming:

 

• a conservative ADR for a lifestyle hotel on Via Veneto

• a stabilized average occupancy

• a GOP margin consistent with the segment

 

the lack of operations for three seasons results in:

 

• loss of operating cash flow

• increased financing requirements

• significant compression of the expected IRR

 

From a financial standpoint, time becomes the primary value destroyer—often more impactful than capex itself.

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Bureaucracy or underestimated risk?

 

The causes of delays can be multiple:

 

• complex permitting procedures

• architectural and urban planning constraints

• fragmentation of the authorities involved

• critical issues in managing the construction supply chain

 

However, the core issue is not whether these obstacles exist—they are well known and structural—but whether they were properly assessed ex ante.

 

The key question therefore is:
did the pre-acquisition feasibility realistically incorporate timelines, risks, and financial buffers?

 

In the Italian market, underestimating regulatory complexity often means shifting risk from the initial analysis phase to the construction phase, with multiplicative effects on costs and timelines.

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Governance and methodology: what is often missing

 

The Alexandra case highlights a deeper issue: the lack of structured project governance from the acquisition stage onward.

 

In the hotel sector—especially in historic contexts such as Rome—it is not sufficient to:

 

• acquire a well-located asset

• define a market concept

• start construction

 

What is required is:

 

• a realistic permitting roadmap

• a financially stress-tested timeline

• a clear separation between ownership, development, and future operations

• continuous oversight of execution

 

Without these elements, even theoretically straightforward projects risk turning into never-ending construction sites.

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Impact on the market and the city

 

A prime asset left unused on a symbolic street like Via Veneto represents not only a problem for the investor, but also:

 

• a loss of value for the city’s hotel offering

• a signal of systemic inefficiency

• an implicit deterrent to new investments

The Alexandra case confirms that Italy remains highly attractive in theory, but operationally complex for those who do not deeply understand its dynamics.

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The Hotel Alexandra experience demonstrates that in the Italian hotel market:

 

the real risk is not acquisition, but the management of time, processes, and complexity.

 

Without rigorous planning and experienced advisory support, even relatively small-scale transactions can suffer delays severe enough to compromise their overall economic balance.

 

Hotel Management Group supports investors and operators in:

 

• pre-acquisition feasibility

• assessment of permitting and operational risks

• structuring of redevelopment projects

• governance of hotel execution

Because in the Italian market, buying well is not enough: you must be able to build better—and faster.

 

https://www.hotelmanagementgroup.it

READ ALSO: THE HOTEL MAJESTIC CASE

https://www.robertonecci.it/en/news/3397/the-hotel-majestic-rome-case-between-announcements-and-financial-reality.html

 

Roberto Necci
info@robertonecci.it

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