We handed over our passports at the start of our 2 day stay. Being from the UK, we're not used to doing this. Although it's standard practice in Italy, the hotel normally just notes the details and gives them back.
The passports were not given back to us when we checked out. We forgot to ask for them, admittedly, but I'm astonished the hotel forgot to give them back. They didn't even call us to tell us they still had them. It was only when we got to our next hotel 2.5 hours drive away that we realised. We had to drive all the way back. We got a vague apology from the girl on the desk, nothing from the management (who weren't to be seen on our return).
What's more, passports are kept in open pigeonholes behind the front desk - i.e. the security of these important documents is terrible.
We won't be going back.