The Public Land agency in Italy has partnered with hotel management firms to convert abandoned buildings into luxury resorts, according to NBC.
The Villa Tolomei Hotel & Resort is an example of the success that has resulted from this partnership. The luxury resort, located outside of Florence, was previously an abandoned convent that lay in ruins, and after the Public Land Agency partnered with IsHotel, it was transformed into a profitable resort.
The property is an 11,500-square-foot-estate housing multiple buildings and owned by the Public Land Agency. They have leased it to the hotel management firm for 50 years at $200,000 per year.
IsHotel spent $13 million over a five-year period to renovate the property into a luxury resort. In the first three months, the resort generated $800,000 in revenue. The yearly profit goal set by IsHotel is $3.3 million.
"The winning asset of this place is that you're in the lush countryside, close to Florence's Renaissance attractions but without all the city buzz and traffic," Gianluca Bellini, the CEO of IsHotel, said.
This success story begins what the government hopes is an even more successful project, the Valore Paese Dimore, a project that hopes to develop and manage real estate assets owned by the government. This could increase revenue and lower the country's debt, while also preserving buildings that are falling into ruin and creating jobs to help stimulate the economy.
There are 115 properties being leased to private investors for development. The Public Land Agency owns 46,000 properties.
"Italy's tourism sector accounts for over 10 percent of GDP," Stefano Scalero, the director of the Public Land Agency, told NBC News. "It's strategic in promoting economic growth and this is why cooperating with privates is crucial."
IsHotel has spoken positively about their partnership.
"Villa Tolomei has turned into a successful business thanks to all the players involved, both public and privates," Bellini said.
This article is copyrighted by Travelers Today, the travel news leader
