The hotel industry in Portugal is experiencing an unprecedented dynamic in 2024. A significant increase in the number of hotels for sale and for rent reflects important trends for the tourism sector and the local economy.
Let’s explore recent data and the implications of these changes for the Portuguese hotel market in 2024.
Dramatic growth in hotels for sale
Increase in offers for sale
The hotel market in Portugal has seen an impressive increase in hotels for sale in the first three months of 2024. With over 1,000 hotels available, an increase of 31% compared to the same period in 2023, this trend reveals a major transformation in the hotel property sector.
Geographical breakdown of sales
The Faro, Porto and Lisbon regions stand out with the highest number of hotel units for sale. Faro leads the way with 289 hotels, followed by Porto with 120 and Lisbon with 96. By contrast, regions such as Trofa, Penafiel and Paredes have just one hotel for sale, highlighting a notable regional disparity.
Price trends
The average price per square metre of hotels for sale has also risen, reaching €3,319, an increase of 18% on the previous year.
- Cascais: €7,213 per square metre
- Sintra: €6,995 per square metre
- Lisbon: €6,175 per square metre
At the other end of the scale, towns such as Paredes, Amarante and Penafiel have the lowest prices.
Hotel rentals: demand on the rise
Growth in rental offers
The number of hotels available to rent has also risen significantly. In 2024, 62 hotels were available to rent in the first quarter, an increase of 48% on the 42 recorded the previous year.
Regional breakdown of rentals
Lisbon, Faro and Porto dominate the rental market, with 18, 12 and 11 hotels available respectively. Other regions such as Aveiro, Santarém, Viseu, Viana do Castelo and Beja show a limited supply, with only one hotel available for rental in each of these regions.
Rental price trends
Despite the increase in supply, rental prices per square metre have fallen by 43%, from €41 to €24 in the first quarter of 2024.
- Cascais: 425 euros/sq.m
- Leiria: 196 euros/sq.m
- Oeiras: 26 euros/sq.m
By contrast, Bragança, Viseu and Aveiro have the lowest prices.
Fast-growing regions
Some regions stand out for their spectacular increases in hotel supply. Sintra, Lourinhã and Matosinhos have seen a seven-fold increase in the number of hotels available, illustrating increased attractiveness and a positive economic dynamic. Conversely, regions such as Odivelas, Baião and Coimbra recorded negative variations, indicating specific challenges.
Price fluctuations
Average prices per square metre varied significantly. Lourinhã, Madeira and Guarda posted the biggest increases, while Marco de Canaveses, Castelo Branco and Beja saw their prices fall. These fluctuations reflect the different economic and tourism dynamics across the country.
Implications for tourism and the economy
The increase in the number of hotels for sale and for rent could reflect a desire on the part of investors to capitalise on the post-pandemic recovery in tourism. It could also indicate internal restructuring in the hotel sector, with some players looking to reposition themselves or withdraw from the market.
For tourists, this increase in supply may mean a greater variety of choice and potentially more competitive rates. Regions with strong growth in hotel supply, such as Sintra and Cascais, could see an increased influx of visitors, boosting their local economies.
Outlook for the future
The Portuguese hotel industry is in a state of flux. Current trends indicate not only an increase in supply but also significant variations in prices, which could attract different investor profiles. Tourism professionals will need to adapt to these new realities to maximise the opportunities offered by this rapidly evolving market.
The hotel market in Portugal in 2024 will be marked by a significant increase in the number of units for sale and for rent, with significant variations in prices by region. These trends offer both opportunities and challenges for investors and tourism professionals. As tourist demand continues to evolve, the Portuguese hotel sector must adapt and transform itself to meet new market expectations. This summer, Portugal will not only be a popular destination for its beaches and cultural heritage, but also for its real estate investment opportunities in the hotel sector.
