Historic Lisbon Palace to be Converted into Luxury Aparthotel with €29M Green Loan
The Dutch hotel investor, The July, has announced it will convert the historic 16th-century Palácio da Baronesa in Lisbon into a luxury aparthotel. The project is being financed by a €29 million Green Loan from a banking syndicate involving the Portuguese bank BPI, which contributed €14.5 million.
The project specifications detail the transformation of the palace, located in Largo do Conde Barão, into a premium tourist unit with 88 accommodation suites. The development will also feature a restaurant, a spa, a swimming pool, and a 1,200-square-meter private garden. The architectural design will focus on preserving the historic character of the 16th-century building while incorporating modern luxury and sustainability standards.
The construction timeline was not specified, but the loan has a 15-year term. The project's strategic value is significantly enhanced by its location, which is just a three-minute walk from the future Santos metro station, a key piece of new infrastructure for the city. The redevelopment aims to create a landmark destination in one of Lisbon's most dynamic neighborhoods.
The financing for the project was secured with advisory services from CBRE. The 'Green Loan' facility underscores the project's commitment to environmental standards. The building is targeting BREEAM certification, a globally recognized benchmark for sustainable construction. This involves implementing energy-efficient systems, using sustainable materials, and ensuring the overall design minimizes environmental impact.
The July, a hotel chain founded in 2012 specializing in premium aparthotels, is the lead investor. This project marks a significant entry for the Dutch group into the Lisbon market. BPI's participation in the financing syndicate highlights the banking sector's support for sustainable urban rehabilitation. A statement from the bank noted that the operation aligns with its '25/27 Sustainable Banking Plan.'
The project has received the necessary regulatory approvals and planning permissions for the conversion. The focus on sustainability is expected to appeal to environmentally conscious travelers and enhance the project's long-term value. The local economic impact will be considerable, involving job creation during the construction and operational phases, and contributing to the revitalization of the Santos district.
There has been no announcement regarding pre-sales or market interest, as the property will be operated as an aparthotel by The July. The quality standards will be aligned with the luxury segment and the requirements of the BREEAM certification. This project is a notable example of the ongoing trend of repurposing historic assets in Lisbon for the high-end tourism market. Monitor new development opportunities at realestate-lisbon.com.
