Investment management company 1 Asset Management, through the IAM Rome Prime Real Estate Development Fund, is investing in a unique project in the center of Rome. The historic Teatro delle Arti building in the Ludovisi district, next to the Borghese Gardens, will be converted into a 112-room five-star hotel.

This is the first investment by 1 Asset Management in Italy, as well as the largest Lithuanian-capital project in the country.

The hotel will feature a restaurant and bar, spa and wellness areas, and a rooftop panoramic terrace with a vermouth bar and swimming pool. The former Teatro delle Arti theatre hall will be revived as a multifunctional arts and entertainment space.

The project is being implemented together with strong local partners, including Italian fund manager Castello SGR, which has extensive experience in the hotel real estate sector and manages more than EUR 1 billion worth of hotel assets across Italy. This partnership helps ensure professional project execution in line with the planned schedule and budget.

“I had been searching for a project that combines a prime location with the opportunity to create additional value through development. Projects of this type in central Rome are extremely rare due to heritage protection and urban planning restrictions, which limit new hotel development. These circumstances, together with Rome’s position as one of the world’s leading tourism destinations, have driven strong investor interest in the project,” says Tomas Langaitis, partner at the IAM Rome Prime Real Estate Development Fund.

The hotel will be developed in the Ludovisi district – one of the most prestigious locations in central Rome

The legendary Via Veneto street, made famous by Federico Fellini’s film La Dolce Vita, runs through the district. Today, it is one of the most luxurious areas in Rome, home to high-end hotels such as The Rome EDITION, NOBU, W Rome, Dorchester Collection, and Excelsior Hotel, with a highly luxurious Mandarin Oriental also planned nearby.

The district is also known for its Michelin-starred restaurants and is just a few minutes’ walk from the Trevi Fountain and the Borghese Gardens. The U.S. and Indian embassies are located close to the planned hotel, making it a convenient location for both diplomatic staff and visitors.

A rapidly growing luxury hotel market

According to market data, the average room rate in five-star hotels in this area often exceeds EUR 700 per night, with some hotels reaching more than EUR 1,000.

According to T. Langaitis, one of the key reasons for investing in this project is the rapidly growing luxury hotel segment in Rome. Over the past ten years, the number of customers has increased by around 24%, while the number of overnight stays has grown by as much as 75%, whereas supply has expanded only marginally.

The hotel real estate market in Italy is characterized by strong liquidity, with Rome remaining the largest and most active hotel investment market in the country. In 2025 alone, investments in hotels across Italy exceeded EUR 2.5 billion – 19% more than in 2024 and 35% above the ten-year average. Rome accounted for the largest share of these investments, at EUR 630 million.

Alius Jakubėlis, CEO of 1 Asset Management, says this investment marks an important stage in the company’s development.

“Rome is one of the most visited cities in the world, and the luxury hotel segment here is characterized by strong demand and limited supply, which gives such projects clear long-term potential. With many years of experience in hotel development and management in the Baltic states and the CEE region, this investment allows us to diversify our portfolio and respond to investors’ interest in opportunities beyond Lithuania. It is an important strategic step for us in expanding into Southern Europe,” says A. Jakubėlis.
The hotel is expected to open in 2029, with stabilized operations anticipated within a few years. The fund then plans to exit the investment by selling the asset to a strategic investor.