YellowSquare, a hybrid format and a crossroads of ideas and innovations

YellowSquare is not just an accommodation facility, but a place of attraction for the local community. It is a revolutionary hospitality model that goes beyond the simple concept of lodging to fully embrace the idea of community, cultural exchange and innovation. It is an epicentre of growth and discovery that positively influences not only the local economy but also the social fabric of the cities it is in.

Growth and innovation

With an impressive 37% growth in 2023 and revenue exceeding €4 million, YellowSquare does not stop at financial success. It is its innovative spirit that captures the attention, transforming each structure into a vibrant meeting place for creative minds. From opening new spaces in Pisa to planned expansion in other Italian cities, YellowSquare aims to be more than just youth hospitality. Its mission is to revitalise disused buildings, as demonstrated in Florence, where it contributed to the positive gentrification of the neighbourhood, becoming a catalyst for culture and innovation. Revenue diversification, with a particular focus on the food and beverage sector, underlines YellowSquare’s holistic approach to hospitality. But it is its unique identity that makes the difference, creating an inclusive environment that attracts not only visitors but also the local community.

TRevPar and real estate development

With a national TRevPAR of €198 and a turnover of €1500 per square metre, YellowSquare not only excels in business but also demonstrates a unique ability to enhance and transform spaces, making them centres of attraction and cultural exchange. The next scheduled opening will be in Pisa in 2025, inside a building under the protection of the heritage authorities. “We have already obtained permits and will offer 58 rooms and 298 beds, while the entire main floor will be used as a co-working space open to both citizens and guests,” comments Fabio Coppola, founder & chief visionary officer of YellowSquare. “Outside, a 2000 square metre garden will include wellness areas and a space for physical training.” Meanwhile, negotiations are under way to launch the hybrid hospitality model in Venice, Verona, Palermo, Turin and on an island in Tuscany for a development plan worth €40 million by 2026.

Start-up incubator

Collaboration with Will Media and the organisation of events such as “Will Book Club” and “Actually Live” highlight YellowSquare’s vision as a start-up incubator and a place for idea exchange. These meetings stimulate personal and collective growth, attracting digital nomads and promoting constructive dialogue between visitors and residents.

The 2023 balance sheet

The balance sheet for the fiscal year ending in December 2023 recorded more than 100,000 guests for YellowSquare in 2023 with approximately €14.4 million in total revenue, marking a significant increase of 37% compared to the previous fiscal year (2022) of €10.5 million. The EBITDAR – earnings before interest, taxes, depreciation, rent and lease payments – for the fiscal year amounted to approximately €6 million. The average age of guests is 24 years, with nationalities from across the globe.

Laura Dominici

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