Hoti Hoteis Group Invests €16 Million to Convert Palace into Meliá Hotel
The Portuguese hotel group Hoti Hoteis has officially opened a new four-star hotel in São João da Madeira, following a €16 million conversion of the historic Palácio Conde Dias Garcia. The project was developed under the national Revive Program, an initiative overseen by the Ministries of Economy, Culture, and Finance to repurpose state-owned properties for tourism through private investment. The new establishment, operating under the Meliá brand, is located in the Aveiro district, within the Porto Metropolitan Area.
The property was granted to Hoti Hoteis via a 50-year concession. The restoration focused on preserving the original late 19th-century structure, known for its “Brazilian architecture” style, while adding a contemporary five-story block. The hotel now comprises 93 rooms, a presidential suite, a restaurant, bar, event spaces, a gym, spa, and an outdoor swimming pool. According to Manuel Proença, president of Hoti Hoteis, the project faced challenges related to the preservation of the historic mansion and the widespread labor shortages affecting the construction industry's capacity. The new hotel has led to the creation of 35 jobs, with some staff being relocated from other Hoti units to meet operational needs.
Mr. Proença stated that the group expects to recover its investment within 15 years, with revenue anticipated from both corporate clients, due to the region's industrial importance, and family tourism. The inauguration of the Meliá hotel is part of a broader expansion strategy for the Hoti Hoteis group. The company has confirmed that another hotel is already under construction in Viana do Castelo, representing an investment of approximately €18 million. Furthermore, the group plans to commence work in early 2026 on a major project on Avenida da Boavista in Porto. This development, with a budget of €30 million, will include another Meliá hotel and a residential building under the Residence brand, marking the group's official entry into the residential real estate market. A similar residential project is also planned for Aveiro. Monitor new development opportunities at realestate-lisbon.com.
