Portugal’s Hotel Investment and Tourism Growth Shows Unmatched Resilience

Portugal continues to strengthen its position as one of Europe’s most dynamic and resilient tourism markets, with 2025 shaping up to be a landmark year for both international arrivals and strategic investment across the hospitality sector.

In the first quarter alone, Portugal recorded a 3.2% year-on-year increase in hotel guest numbers, with total hotel revenue reaching €840 million—a 5.2% increase from the same period in 2024.

This continued momentum underscores the country’s broad appeal, from the energy of Lisbon to the charm of the Algarve and the natural beauty of the Douro Valley.

Tourism Growth Fuels Hospitality Investment

This upward trajectory in tourism is being matched by a significant wave of hospitality-focused investment. According to CBRE, real estate investment in Portugal reached €638.5 million in Q1 2025, more than double the figure from the same period last year—a 118% increase.

Of this, hospitality and retail assets accounted for 82%, highlighting the sector’s increasing importance in Portugal’s economic landscape.

Much of this capital is being directed toward high-end, lifestyle-driven developments, reflecting evolving traveller preferences for immersive and experience-led stays.

Boutique hotels, eco-resorts, vineyard retreats, and historic property conversions are drawing increasing attention from investors seeking long-term value in Portugal’s thriving tourism economy.

Emerging Regions Gain Investor Interest

While Lisbon and Porto remain central to Portugal’s hospitality landscape, investment is expanding beyond the urban hubs. Areas such as the Alentejo, Douro Valley, and Silver Coast increasingly attract attention, offering unique, underexplored destinations that combine authentic Portuguese culture with strong return potential.

These emerging hotspots benefit from growing infrastructure investment, improved regional transport links, and a national strategy focused on decentralisation and sustainability.

This approach helps distribute tourism-related economic benefits more evenly across the country while preserving the character and appeal of its urban centres.

Hospitality Investment Aligned with ESG and Residency Goals

The rise of ESG-focused investment is also reshaping Portugal’s hospitality landscape. Many new developments are designed with sustainability in mind, integrating renewable energy systems, low-impact construction, and community engagement strategies. These initiatives align with the preferences of global investors who are increasingly seeking socially responsible portfolios.

Portugal’s Golden Visa programme, which now excludes direct real estate purchases, has further fuelled interest in hospitality-linked investment funds.

These regulated funds often focus on sectors such as tourism and hospitality, healthcare, media and international events, renewable energy, and technology, offering a viable path to EU residency while contributing to Portugal’s long-term economic and sustainability goals.

Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, states:

“International investors and affluent families are drawn to Portugal’s Golden Visa for its flexibility.

“Requiring holders to spend just seven days per year in Portugal, the Golden Visa’s clear pathway to citizenship makes it a no-brainer for anyone looking to secure dual EU citizenship and an EU passport for themselves and their eligible family members.”

Whether through elegant vineyard estates in the Douro, boutique wellness lodges in Alentejo, or coastal eco-resorts along the Atlantic, Portugal continues to showcase how culture, sustainability, and investor confidence can converge in a world-class tourism offering.

For investors, developers, and residency applicants alike, Portugal presents not just an opportunity—but a strategic advantage. As the country continues to evolve its tourism ecosystem, 2025 is shaping up to be a pivotal year in its transformation into one of Europe’s most desirable and future-ready hospitality markets.

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To learn more about Portugal’s Golden Visa and eligible funds, arrange a discovery call with Portugal Pathways

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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 luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

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About Portugal Investment Owners Club

The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

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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.