Invest in a Unique Opportunity: Convert a Historic Palazzo in Galatina into a Luxury Boutique Hotel

If you're looking for a lucrative investment in the rapidly growing luxury tourism market, we have an exciting opportunity for you. Nestled in the heart of Galatina, a historic town rich in culture and charm, a palazzo dating back centuries is poised to become a premium boutique hotel. This project presents an exceptional blend of historical heritage and modern luxury, designed to attract affluent tourists seeking an authentic Salento experience.

Why Invest in Galatina?

Galatina is a hidden gem in the Salento region of Puglia, known for its stunning Baroque architecture and rich cultural history. The town's winding streets, historic churches like the Basilica di Santa Caterina d'Alessandria, and local artisan traditions create a unique atmosphere that draws discerning travelers from around the world. Its strategic location, close to popular destinations like Lecce, Gallipoli, and Otranto, makes it the perfect base for exploring the region.

• Lecce: 20 km (25 minutes by car)

• Gallipoli: 30 km (35 minutes by car)

• Otranto: 40 km (45 minutes by car)

• Brindisi Airport: 70 km (1 hour by car)

• Bari Airport: 190 km (2 hours by car)

This central location, combined with Galatina’s historic charm, positions it as an ideal spot for a high-end hotel catering to both local and international tourists.

The Investment Opportunity

Our project involves converting a 450 m² palazzo into a luxury boutique hotel with 6-8 elegantly designed rooms, a rooftop terrace offering stunning views of the historic city, and a wellness area for guests to unwind. The total cost of the project is €675,000, which includes property acquisition and full-scale renovation.

Key Financial Highlights:

• Total Investment: €675,000

  • Purchase Price: €275,000

  • Renovation and Decoration: €400,000

• Non-Refundable Grant: Up to 60% of the project cost, provided by Regione Puglia through the Mini PIA Turismo initiative.

• Bank Loan: 10% of the project cost, with interest-only payments for the first two years.

• Project Owner Contribution: 30% of the total project cost, covering pre-financing costs such as down payment and consultancy fees.

Revenue Projections (First 3 Years)

Upon completion, the hotel is expected to generate solid returns through a combination of high occupancy rates and premium pricing.

• Number of Rooms: 8 luxury rooms

• Occupancy Rate: 65%

• Average Room Rate: €150/night

• Annual Revenue: €284,700

With fixed operating costs projected at €120,000 per year, the net operating profit in the first two years is expected to be around €161,865 per year.

Exit Strategy: Significant Capital Appreciation

After three years of operation, the palazzo is projected to appreciate significantly, allowing for a high-value exit through property sale. Based on the current market price of €3,500 per m² for luxury properties in Galatina, the projected sale price is estimated at €1,575,000.

Total Returns Over 3 Years:

• Operating Profit: €478,578

• Projected Sale Price: €1,575,000

• Total Cash Inflows: €2,053,578

• Net Gain: €1,378,578

Why This Project is a Strong Investment

1. Prime Location in a Growing Market: Galatina is quickly gaining recognition as a luxury travel destination in Puglia, offering investors a chance to be part of this upward trend.

2. Attractive Financial Support: The Mini PIA Turismo grant covers up to 60% of the project costs, significantly reducing the financial burden.

3. Steady Cash Flow & High Exit Value: With robust revenue projections and significant capital appreciation potential, this investment offers a compelling combination of immediate returns and long-term profitability.

4. A Unique Heritage Project: This isn’t just an investment in real estate; it's an opportunity to revive and breathe new life into a piece of Galatina’s history, making it a meaningful and rewarding endeavor.

Conclusion

This investment opportunity offers a high return potential in one of Italy's most sought-after regions for luxury tourism. With the backing of the Regione Puglia’s grant, steady revenue from hotel operations, and a lucrative exit strategy through property appreciation, this project presents a rare chance to enter the luxury hospitality market with reduced risk and strong financial upside.

If you’re interested in learning more, don’t hesitate to get in touch. We’d be happy to provide additional details and photos of the property.

Contact Us TodayGiuseppe FunaroCEO, Mari e Trulli International Srl+44 208 123 1402+39 351 400 1402g.funaro@marietrulli.com