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Major Hotel Companies are Interested in Portugal

With the growing popularity of Portugal as a travel destination, hotels in Lisbon and Porto enjoy higher occupancy and, therefore, higher profits. Naturally, international hotel groups become more interested in increasing their presence in these top city break destinations and opening more hotels across the country. Many of them are interested in smaller boutique hotels that are converted from historic buildings. For example, Hilton will soon open the first Curio Collection property in Portugal – the Emerald House hotel in Lisbon.

Other major players in the hospitality market do the same. The Wyndham Group is opening a 300-room Ramada branded hotel in Lisbon, and Barcelo Hotel Group is preparing for a grand opening of the 124-room Allegro Madeira that will also become the group’s first property in the country. Such cities as Lisbon and Porto get the most of attention, but smaller destinations also attract both tourists and investors. A growing number of Europeans chooses Portugal as a long weekend destination, and travelers from America and Asia consider it a fashionable destination perfect for a holiday.

Such popularity is easy to understand. Wonderful Mediterranean climate, rich history, and amazing cuisine with lots of fresh seafood make Portugal very attractive in the eyes of modern travelers. The popularity is skyrocketing, and so Portugal even won in the top destination category in the 2018 World Travel Awards.

The number of tourists in Portugal has almost doubled since 2013. The revenues added fantastic 64% between 2013 and 2017. In 2017 alone, the hospitality industry created more than 50,000 new jobs, contributing to the development of the country. In 2018, the number of foreign guests surged by 12% to 12.7 million. Together with domestic tourists, Portugal enjoys almost 21 million tourists a year. Primarily known as a beach destination, Portugal has reinvented itself as a trendy gastronomic country. Currently, there are 26 restaurants in Portugal mentioned in the 2019 Michelin Guide.

For many companies, hotels in Portugal are an important source of income. For example, it is the third-largest market in Europe for Melia Hotels International. The hotelier will open its fourteenth hotel in Portugal in 2021. It will be a business-friendly hotel in Porto. That being said, it is now harder for hoteliers to find suitable buildings in the centers of Porto and Lisbon. Due to space constraints, hoteliers need to convert existing buildings that often require a lot of changes to fit the requirements of international chains.

10.02.2019

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