Portugal strengthens its position as one of Europe's most attractive hotel investment markets, says Christie & Co report

The report highlights that overnight stays are now 17% above 2019 levels, while significant investments in connectivity, mobility, and energy infrastructure are creating new hotel development opportunities across the country.

Portugal continues to reinforce its position as one of Europe's most resilient hotel markets, as record tourism demand, an ambitious infrastructure programme, and an increasingly diversified accommodation supply across the country are opening up new opportunities for hotel investment and development nationwide.

Much of this momentum is being driven by major infrastructure projects linked to the Portugal 2030 programme and preparations for the 2030 FIFA World Cup, which Portugal will co-host alongside Spain and Morocco.

Recent performance figures underline the strength of the sector. In 2025, tourism demand stood 17% above pre-pandemic levels, while hotel occupancy reached 66.2%, slightly exceeding 2019 levels. RevPAR, meanwhile, achieved a record high of €82.4, representing an increase of 41.7% compared with pre-Covid performance. This demonstrates the market's ability to absorb new supply while maintaining healthy profitability levels.

International demand remains the key driver of Portugal's tourism sector, accounting for almost 70% of total overnight stays in 2025. The United Kingdom, Germany, the United States, Spain and France were the country's leading source markets.

Particularly noteworthy is the continued growth of the US market, which has now overtaken Spain in visitor volume and continues to grow in importance year after year, both in terms of hotel revenue generation and its contribution to reducing seasonality.

Lisbon, the Algarve, and Northern Portugal continue to account for a significant share of tourism activity. However, growth is becoming more evenly distributed across the country. Regions such as Alentejo, Setúbal, Madeira and parts of Central Portugal are recording particularly strong performance, broadening the range of opportunities available to investors and operators beyond the country's traditional tourism destinations.

Nicolas Cousin, Managing Director of Christie & Co for Spain and Portugal, commented, “Portugal is establishing itself as one of the most attractive hotel investment markets in Europe. What we are seeing today goes far beyond the strong tourism growth of recent years. The combination of record demand, substantial infrastructure investment, increasing connectivity and development costs that remain highly competitive is creating opportunities across the country.

“Alongside established markets such as Lisbon, Porto, and the Algarve, we are seeing growing interest in regions including Alentejo, Setúbal and Central Portugal, where significant growth potential remains. Taken together, these factors reinforce Portugal's position as a market with strong fundamentals and highly positive prospects for hotel investors, developers and operators.”

Supported by a thriving tourism sector, ongoing infrastructure modernisation and an increasingly diversified demand base, Portugal continues to consolidate its position as one of Europe's most promising hotel investment markets.

To read the Portugal Hotel Market Snapshot 2026, visit: https://www.christie.com/news-resources/publications/portugal-hotel-market-snapshot-2026/

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