The Ferragamo family is exploring the sale of a minority stake in its hotel management arm, Lungarno Collection, as it seeks fresh capital to accelerate growth in the luxury hospitality sector. According to Italian media reports, discussions are at an early stage and would involve hotel management operations rather than property ownership.

The family has reportedly hired an investment bank to gauge interest from long-term institutional investors, including family offices and sovereign wealth funds. Lungarno Collection, managed under holding company Feroni Finanziaria Palace and chaired by Leonardo Ferragamo, operates high-end hotels in Florence, Milan and Rome. In 2024, the unit generated 97 million euros ($105 million) in revenue, up from 81 million euros ($88 million) a year earlier, with profitability also improving.

The potential move comes as Ferragamo looks to diversify beyond its core fashion business following a revenue decline to 977 million euros ($1.06 billion) in 2025. Luxury hospitality is increasingly seen as a strategic growth lever, with the group’s Portrait-branded properties — particularly Portrait Milano — driving performance. Ferragamo joins a broader trend among Italian luxury houses investing in hotels to expand lifestyle positioning and unlock new revenue streams, alongside brands such as Armani and Dolce & Gabbana.

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