How to operate a luxury hotel in the Amalfi Coast

In The Room With Maurizio Orlacchio, GM and Co-Owner of Borgo Santandrea

Hello everyone, happy Wednesday.

If you’re new here, “In The Room” is a written interview series dedicated to the stories of hoteliers and restaurateurs doing things in a uniquely interesting way.

The Amalfi Coast is one of the few regions of Europe that consistently commands ADR’s in the thousand’s. It’s easy to see why: the visually arresting cliffside beauty, turquoise waters, abundant seafood, and historical landmarks that date back to the Ancient Romans are clear selling points of the destination. For those that normally work in grey offices and live in concrete cities, it’s easy to justify an expensive trip just to satisfy the need for beauty.

Another crucial component to the Amalfi Coast, however, is the scarcity of developable land and the strict zoning laws for any redevelopment. This creates a real estate dynamic that asymmetrically favors hotel owners and operators. Therefore, to me, to acquire and build a 5-star hotel in the Amalfi Coast in this generation is no easy feat, even if you’re native to the area.

I first came across Borgo Santandrea and was struck by the thought that its structure looks like it could have been a medieval fort centuries ago, with its ogival arched windows and fortress tower. Inside, the hotel couldn’t look more Italian in the seaside sense, as the furniture and fixtures are made by Italian artisans and artists, with heavy inspiration from Gio Ponti. I also thought that it must have been an engineering feat to create a hotel of ultra-luxury standard on a vertical cliff! In today’s “In The Room” column, I’m sharing a conversation I had with one of the owners and the GM of Borgo Santandrea, which satiated some of my curiosity of what it’s like to own and operate a hotel in the Amalfi Coast. I hope you enjoy.

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Maurizio Orlacchio, an Ischia native and the Co-owner & General Manager of Borgo Santandrea, has descended from a longline of passionate Italian hoteliers, developing his keen eye for aesthetic design and vast knowledge of the hospitality industry. Maurizio began his career at the Cesar Ritz School of Management, pursuing hospitality and hotel management at the highest level. Mastering his craft as a seasoned hotel operator, he gained invaluable experience working at renowned hotels such as the Four Seasons Milan and the Miramare Sea Resort & Spa in Ischia, and has used this experience to capture the quintessential Italian spirit at Borgo Santandrea.

Located on a cliffside 90 metres above sea level, overlooking the fisherman’s hamlet of Conca dei Marini, Borgo Santandrea has been renovated to become a masterpiece in mid-century design fused with classic, inimitable Mediterranean style, giving prominence to local Amalfi and Campania craftsmanship. With a well-honed knowledge of the secret local coves, finest artisans, and most sought-after restaurants, Maurizio can help create unique and long-lasting memories for guests – helping to unlock secret hidden gems along the famed coastline.

Borgo Santandrea used to be Il Saraceno Hotel, until your family acquired it back in 2017. How did you find the site?

It was an investment made by my family and the De Siano family. We share a deep friendship and a hospitality heritage rooted in Ischia. In 2017, we were introduced to this property by an important agent. Seeing its potential, we embarked on an eight-month negotiation and due diligence process that culminated successfully in November 2017.

Can you please share how much you acquired the site for? Did you raise money for the acquisition?

Roughly €23 million. The total cost including the renovation was €85M. And yes - 80% private equity, 20% from a bank.

Can you tell us more about the hotels you were doing before, both you and the De Siano family?

We both come from the island of Ischia, and we’re third-generation hoteliers. We were born and raised in our family’s three-star hotel. The De Siano family developed several hotels on the island, and I worked as General Manager at San Montano Resort and Spa. In 2017, this opportunity came along, and we decided to do something together — and here we are.

That hotel is on a vertical cliff and I imagine it must have been very complicated to renovate. What were the biggest engineering and logistical challenges that you faced in this project and how did you overcome them?

When we bought the property, we had two options: an easier project and a more difficult one. We chose the difficult one. The most demanding part was keeping the skeleton of the property and redesigning everything else. Working vertically on the Amalfi Coast is already a challenge.

This project required a lot of patience and tenacity. But we never changed an inch from the original plan, even when we faced delays. There were many moments when we could have taken shortcuts, but we didn’t, because we truly believe that the difficult road is often the one that brings the greatest satisfaction in the long run.

One of our biggest challenges was creating a brand-new garden on a terrace that sits directly above guest rooms and between Alici restaurant and the bar. It was a bold idea meant to create perfect balance between spaces. Many thought we were crazy, but now other hoteliers come to see it and ask how we did it, hoping to replicate it elsewhere. That’s very rewarding.

I also read that you had a phased renovation. Did you operate the hotel in between those phases?

When we bought it, it had already been closed for three years. After five more years of work, we reopened it to guests.

How long did it take to get approval from the Comune to get the plans approved?

It took six months to get the first approval and start the project. But of course, we didn’t do everything at once. Borgo Santandrea , even after four years, is still evolving. Every year, we present new projects – for the beach club, landscaping, and so on. The six months were just to obtain the official permission to begin work.

What was the project plan in terms of room mix?

When we bought it, there were 80 keys; we brought it down to 45, and now we’re at 52.

And you did that by enlarging the rooms and adding suites, right?

Exactly. We now have one of the highest suite mixes on the coast and in Capri — out of 52 rooms, 21 are suites, and nine of those have private pools.

When you bought Il Saraceno, you mentioned that it was closed for three years. Tell me more about the condition of the hotel when you bought it.

It was largely dormant, but full of potential. The 1960s structure needed to be softened and elevated to today’s hospitality standards. We made natural light a central focus, inspired by Gio Ponti’s sensibility at Parco dei Principi in Sorrento. That became our “fil rouge” that connected our story and helped us to create a place where mid-century design meets Mediterranean style.

I want to go back to the time when you were fundraising for the project. What was happening in the Amalfi Coast at the time, and what was your pitch to investors?

We were fortunate because the Amalfi Coast was already booming. It was home to some of the most successful hotels in Italy, with outstanding profitability and ADRs. So there was no doubt about the potential once you had the right product.

We positioned Borgo Santandrea as a market disruptor, a property that would stand apart in a region where demand far exceeds supply. Our business plan focused on creating a distinctive, design-led product that reflected modern luxury standards. Investors saw that, and they understood the long-term value.

You chose to operate the hotel yourself instead of hiring a major flag. Tell us more about that decision.

That was one of the easiest decisions we made. We come from a hospitality background, and on the Amalfi Coast, most iconic properties are still family-run, some for 60 or 70 years. Apart from Belmond Caruso in Ravello, nearly all are independent.

We wanted Borgo Santandrea to feel like a private luxury villa with a family behind it. I’m both owner and general manager, and I wanted to bring the same atmosphere we had at our family hotel in Ischia. Whether it’s a three-star or seven-star property, what matters is your attitude toward hospitality: the warmth, the welcome. That’s what makes the difference.

I’m curious why you chose to focus on the Amalfi Coast versus creating more luxury hotels in Ischia, as Ischia is quite popular.

Ischia’s popularity has really grown only in the last few years. Back in 2017, it was quieter. We did look at opportunities there, and still are. But the chance to buy Il Saraceno was once-in-a-lifetime, so we took it.

This project also benefits Ischia. We partner with another five-star hotel there on sales and marketing, and the visibility of Borgo Santandrea helps boost the island’s profile as well.

I want to go back to your point about Gio Ponti and the design of the hotel because it is very quintessentially Italian. You chose to partner with Italian designers and architects instead of an international designer. Tell us more about that decision.

That decision was very natural. We didn’t want to follow a corporate model. We didn’t use a contractor from day one because we wanted total creative freedom. Working with Italian brands and local artisans allowed us to create something unique: personal, soulful, and authentic. Throughout the hotel, you’ll find pieces from my brother’s vintage collection from the 1950s and 60s. That mix of iconic Italian design, local craftsmanship, and personal touches defines Borgo Santandrea’s character. When you’re independent, you can make those choices. You’re not bound by corporate standards, and that’s exactly the freedom we wanted.

One thing I really loved about the hotel is the staff. They’re elegant, discreet, and attentive. Finding and housing good talent in Italy is a huge challenge. How do you manage that?

Thank you, that means a lot. I come from a corporate background as I spent 11 years with Four Seasons. But when we started Borgo Santandrea , I wanted everything but corporate.

I wasn’t looking for perfect résumés; I wanted people with passion and enthusiasm. Many of our team members are young and eager to learn, and that energy gives the hotel its freshness. Nowadays I have the youngest team on the Amalfi Coast and Capri, and I’m super happy because you can feel this.

Besides the compliments we receive for the building itself, having people recognize this approach is something I really like. I didn’t want Borgo Santandrea to be too fussy; I wanted to create a home-like atmosphere where people feel relaxed. You can have a fantastic product, a fantastic view, a fantastic beach—but it’s the human touch that creates the experience, the emotion. And you can only achieve that with people who understand that we are welcoming guests into our home—it’s not just my home. That was the big challenge during pre-opening when I did my in-training; some of them had to learn how to work properly in a place like this. Looking back, I feel very proud of this decision.

And what about housing?

We have about 190 employees, and we provide housing for around 60 of them. We have a large staff house for 30 people and several nearby apartments that we bought about 10 minutes away.

We even have housekeeping dedicated to the staff housing and three chefs who cook in our two staff canteens. Creating a clean, beautiful, and comfortable environment for our team is key — when they feel good, that energy flows directly into the guest experience.

The Amalfi Coast is one of the most competitive markets in Italy and I think even Europe. How do you communicate what makes Borgo Santandrea different to your prospective guests?

We use our unique selling points as the main focus. We are one of the few five-star hotels on the Amalfi Coast with a private beach. We are also the only one with a Borgo fleet — we have five boats — and we’re the only property where guests can arrive and leave by boat. We have a large dock and a beautiful, expansive beach.

We’re also one of the newest hotels on the coast, offering a very fresh product, and we have the largest entry-level rooms in terms of size. So, in terms of marketing and sales, these are the points we emphasize. But beyond that, it’s also about the atmosphere we share with our guests. This has helped us create the message that Borgo Santandrea is the perfect choice for those looking for a place on the Amalfi Coast that’s far from the crowds but close to everything — another of our unique selling points.

Nowadays, everyone is talking about mass tourism and overtourism, so we like to say that Borgo Santandrea is a destination within a destination. And even the name Borgo evokes that idea — in Italy, a “borgo” means a little village with narrow streets. One of the things I tell my guests upon check-in is, “Get lost in our Borgo.” Walk around, go down to the beach, stop in a corner to admire the view, then go to the pool or the fitness area. You can spend the entire day at Borgo Santandrea and never get bored.

Or you can take a boat to Positano — and maybe never even touch the road. By creating this storytelling, we’ve built curiosity around a place that’s on the Amalfi Coast, yet feels like a completely different world.

There are a lot of private equity investors and large hotel groups that are trying to plant major luxury flags all over Italy, and it wouldn’t surprise me if several of these groups are circling the Amalfi Coast. What do you think about these international brands trying to enter and expand into Italy? And what’s your approach to remaining distinctive in a changing hospitality environment?

When you have a corporate setup and big brands coming in, those brands have shareholders who want to see the right numbers. And, you know, the flow of communication is completely different — the process for making a decision takes much longer. Here, being independent gives you the opportunity to be fast and creative in your own way.

Sometimes you have to follow certain standards that are exactly the same whether you’re in Hong Kong, Bali, or London. And sometimes guests who are well-traveled — people who stay at places like Four Seasons or Ritz-Carlton — see exactly the same thing from one property to another. It’s fantastic service, fantastic touch, but always the same.

I think people are looking at Italy because it’s destination number one, and in terms of hotel profitability, big funds see a great business opportunity. Of course, that’s what we did as well.

Our idea, though, was not to follow something that already existed. For a corporate hotel, it’s much easier to open because there’s a structure that simply moves from one opening to the next. Of course, they’ll give a flavor of the destination where they are, but it’s always something that’s been done before — and you can tell. On an economic scale, that’s perfectly normal, and maybe it’s even more profitable. But there’s a certain sense of love that’s missing.

That’s why being independent matters. If I have an idea today, I can put it in place in ten minutes. In a corporate structure, you need to send an email to the asset manager, then it goes to the general manager, then to headquarters — maybe there’s a meeting — and by the time they decide, the instant moment of that love has already passed.

For example, if we decide that tomorrow for breakfast I want to serve panettone, or I want to change the menu right now because it’s autumn and I want to add truffles, or I want to change the housekeeping sequence, I have a meeting with my department and say, “Let’s do it.” When? Tonight. I don’t want to wait.

So it’s completely different. Both approaches aim for luxury hospitality, but the love you can feel from an independent hotel — you can’t quite replicate that in a corporate one. The taste is completely different.

I tend to prefer independent hotels as well. You talked a bit about profitability and I want to double click on that. What makes your hotel profitable?

Well, the fact that we run with one of the highest ADRs in Italy. About 85% of our margin comes from the rooms. And as I said, this is not because we are the best; it’s because we are on what I call the “golden coast.” The Amalfi Coast has had the highest ADR in Italy for the past 15 years. So when you have a great product in terms of rooms, that’s what drives your business.

Of course, you also have all the additional revenue from the spa, F&B, and other extras. But basically, the fact that you can charge 3,000 euros per night for your entry-level room from June until the end of September gives you a great boost.

What’s your typical operating season?

From April through the last week of October. This year we close on November 2nd.

What are the challenges of running a seasonal hotel?

The key is that you need to maximize everything in six months because, taking out the shoulder season, you have to make your profits in a very short time. Then you need to make sure that you have the right numbers when you are closed, because otherwise the margin you earned in the summer has to cover all the fixed costs you have in winter.

Last question, what advice do you have for hoteliers?

Well, I don’t presume to advise my fellow hoteliers. What I believe is that continuous exchange makes us all better, and this is something I always tell my team. Stay curious, cultivate productive competitiveness, and share your learning so that everyone benefits.

And above all, let the spirit of the place guide you. When you mix all of this together, the guest experience naturally follows. Especially for my Italian fellow hoteliers, we have a great sense of humor and an even greater sense of hospitality, and that comes naturally.

I always use this metaphor: when you are cooking, if you have a fantastic product, don’t touch it too much. Just do the minimum. Keep it simple. The “less is more” concept is what we did here at Borgo, and it’s what I apply every day in my work.