FIFA World Cup helps fuel Portugal’s attraction for hotel investment

According to business property advisers Christie & Co, while Lisbon, the Algarve and Northern Portugal remain the country’s leading tourism hubs, growth is becoming increasingly widespread.

It says emerging destinations, including the Alentejo, Setúbal, Madeira and Central Portugal, are delivering strong performance and creating new opportunities for hotel investors and operators.

A spokesperson for Christie & Co said: “A key trend is the growing importance of the US as a source market, with visitor numbers now surpassing those from Spain.

“This shift is helping to drive hotel revenues while also reducing seasonality, contributing to a more diversified and resilient tourism economy.”

North America’s increased visitor numbers has been aided considerably by increased air routes and its perceived good value for the tourist dollar.

It now sits behind only the UK – which accounts for around 12.3% of inward tourism – and Germany (7.9%). At 6.7%, it now leads Spain on 6.3%.

Christie & Co adds: “Portugal also retains important competitive advantages over many other Southern European hotel markets.

“Hotel development costs remain approximately 30% lower on average, helping to support project viability and providing investors with opportunities for long-term growth.

“Backed by a thriving tourism sector, continued infrastructure modernisation and increasingly diversified demand, Portugal remains one of Europe’s most promising hotel markets.”

It says growth is being supported by major infrastructure projects linked to the Portugal 2030 programme – a national €23 billion funding strategy to help fuel the nation’s economic growth - and preparations for the football World Cup in 2030.

Portugal will co-host the event with neighbours Spain and Morocco.

In its report, Portugal Hotel Market Snapshot, it highlights how Portugal’s performance recovery post‑Covid has outpaced most European benchmarks.

By 2025, demand levels exceeded 2019 by 17%, despite room supply increasing by 14.6%.

It added that occupancy remained resilient at 66.2%, marginally above 2019 levels, “demonstrating the market’s capacity to absorb additional inventory”.

Supported by ADR (average daily rate) growth, RevPAR (revenue per available room) reached a record €82.4, up 41.7% versus 2019.

It says: “This performance reflects both structural strengths - international demand depth, diversified geography, strong brand presence - and tactical drivers such as improved air connectivity, favourable currency dynamics, and increased long‑haul travel from North America.”

Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club, adds: “This confidence in the marketplace demonstrates that investors can see Portugal’s growth path and are sinking money in today to capitalise tomorrow.

“Portugal’s tourism economy should not be underestimated and the growing interest from US visitors is reflected in a similar uptick in North American investors eyeing up Portugal’s potential.”

‍

To find out how you can invest in Portugal, arrange a free discovery call with Portugal Pathways.

‍

About Portugal Pathways

‍‍Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal

‍

Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.

‍