Short-term rental Limehome: searching for a sunny place in Italy

A new player has emerged in the hospitality sector in Italy - Limehome. This business project was established in 2018 in Germany. Today, the company is already present in 10 European markets with 5,000 apartments and aims to occupy the niche between hotel and short- to medium-term rental housing in Europe. However, Limehome only deals with fully renovated buildings converted into apartments for short-term rental, all equipped in a uniform style. The company currently manages 5,000 apartments across 10 European countries.

“Our business model is unique,” explains Alessandro Giuffre, head of the recently opened Italian branch of Limehome. “We want to become the largest player in apartment management in Europe, similar to Marriott in the hotel business. We are focused on middle-income clients. We are not aiming for luxury.”

The appearance in Italy is linked to the idea of expansion in vacation-related directions. The company is opening its apartments inRome in the student district of San Lorenzo, near La Sapienza University and Termini train station. The first building is already operating inMilan on Stresa Street, close to the Vertical Forest. Openings are also planned in Salerno and along the Amalfi Coast.

“We have plans to open in Salerno,” says Giuffre. “There will be a renovated building that is currently used for offices.

The company does not invest directly in properties, leaving them to the owners, who, of course, pay for the renovations out of their own pockets. The advantage of Limehome is that they guarantee an interesting return on investment. "We also increase the value of the property," adds Juffre. "After the renovation and with our contract, they become more attractive for sale."

It is obvious that more and more tourists want to rent quality apartments with safe services. "For families," says the manager, "it's much easier to rent an apartment. Additionally, in apartments, you can cook at home, saving money and maintaining a healthy diet."

Regarding the legislator's intervention to regulate short-term rentals, according to Giuffre, this is not a problem; on the contrary, it can provide greater order in the market. "The phenomenon of short-term rentals in smaller cities, that is, outside ofMilan, Rome, Venice, and Florence, is very limited. We are also focused on such cities. Of course, the regulator must be cautious because if they impose too many restrictions in large cities, it could lead to a loss of tourists, as the demand for short-term rentals, especially among millennials and Generation Z, is very high."

Limehome has a major partner in a German private equity fund, which has already conducted several capital increases, the latest of which amounted to 45 million last year. Revenue is expected to reach 60 million by the end of 2023, but it is projected to double over five years due to new openings, which should increase the number of apartments to 23,000.