Dutch Investor The July to Transform Historic Lisbon Palace into Luxury Aparthotel
The Dutch hotel investment group, The July, has officially announced its entry into the Portuguese market with the acquisition and planned redevelopment of the Palácio da Baronesa, a landmark 16th-century palace in Lisbon. The project involves the meticulous conversion of the historic property into a premium aparthotel, which is slated to open its doors in 2026. This development marks a significant foreign investment in Lisbon's high-end hospitality and real estate sector, signaling continued confidence in the city's appeal as a top-tier European destination. The project underscores a growing trend of repurposing historic buildings for luxury tourism, blending cultural preservation with modern amenities.
The future aparthotel, to be named The July Lisbon Baronesa, will be strategically located in the vibrant Largo do Conde Barão, just a three-minute walk from the new Santos metro station, enhancing its connectivity to the rest of the capital. The redevelopment plan outlines the creation of 88 premium accommodation units, ranging from studios to larger apartments, designed to cater to both short-term tourists and extended-stay corporate travelers. The project specifications detail a comprehensive suite of luxury facilities, including a signature restaurant, a full-service spa, a state-of-the-art gymnasium, an outdoor swimming pool, and an expansive 1,200-square-meter private interior garden, offering a tranquil urban oasis for guests.
Financing for the ambitious €29 million project has been secured through a Green Loan with a 15-year term, arranged by a banking syndicate. The participation of major financial institutions, with BPI of the CaixaBank Group contributing €14.5 million, highlights the project's strong financial backing and its alignment with sustainable development criteria. The Green Loan certification was awarded based on the project's commitment to urban rehabilitation and environmental sustainability principles, which include preserving the palace's historical and architectural integrity while integrating energy-efficient systems and sustainable materials. The transaction was advised by the global real estate services firm CBRE, which played a key role in structuring the deal.
The July, the investor behind the project, is a specialized Dutch hotelier founded in 2012, known for its portfolio of premium aparthotels. The company, which rebranded from City ID in November 2023, has built a reputation for creating unique, experience-driven hospitality concepts. Its expansion into Lisbon is part of a broader European growth strategy that aims to establish a network of 20 aparthotels in key capital cities by 2030. The company currently operates successful properties in Amsterdam and London, with new locations in Dublin and Amsterdam South Axis also scheduled to open in 2026. The choice of Lisbon for its next flagship project reflects the city's robust tourism growth and its status as a prime market for real estate investment.
The architectural and construction phases will be closely watched by local heritage authorities to ensure the preservation of the Palácio da Baronesa's unique character. The project is expected to generate significant local employment during both the construction and operational phases. Upon completion, The July Lisbon Baronesa will join a growing number of luxury hospitality offerings in the Santos neighborhood, an area that has undergone significant regeneration in recent years, attracting a mix of creative industries, upscale residences, and trendy restaurants. This new development is set to further cement the neighborhood's reputation as one of Lisbon's most dynamic and desirable districts for residents and visitors alike.
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