The Portuguese hotel market continues to attract high-net-worth private investors, particularly Spanish family groups. We see Portugal as a stable market with strong appreciation potential.
The appetite for hotel investment in Portugal remains steady, with significant transaction volumes recorded. Among the largest deals completed so far in 2025, the Anantara Vilamoura and Cascais Miragem hotels stand out. The figures confirm continued investor interest in the sector and the robustness of the Portuguese tourism market.
Industry experts project that hotel investment will exceed 600 million euros by the end of this year, higher than the 2024 total. International investors account for 71% of this activity, and Portugal has risen to the top of European preferences. Spanish family offices, many of which already have a presence in the country, show growing appetite for prime assets, focusing on long-term strategies.
We’re also seeing increasing interest from individual investors in North and South America, drawn by the sector’s resilience and Europe’s relative stability. The hotel industry represented around 20% of Portugal’s national real estate investment in 2024, and estimates point to further growth this year.
Sustained tourism growth, especially from the US, has been fundamental to this appeal. North American visitors are driving impressive gains in both visitor numbers and average spending. This favorable environment has also stimulated new hotel construction, with C&W estimating around 110 projects scheduled to open by 2028, mostly 4- and 5-star.
Despite some licensing delays, the pipeline of new hotel developments remains solid, with Lisbon, the Algarve, and the North Region leading the charge. With promising prospects for the second half of 2025, the Portuguese hotel market demonstrates robustness and resilience, cementing its position as one of Europe’s most attractive investment destinations.
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