Portugal's Hotel Investment Hits €331 Million in First Half of 2025, Spanish Capital Leads the Charge
The Portuguese hotel investment sector demonstrated remarkable dynamism in the first half of 2025, attracting a total of €331 million in capital. This figure marks a 33% increase over the same period last year, according to a consolidated report from leading real estate consultancies Cushman & Wakefield (C&W), JLL, CBRE, and Savills. Despite a backdrop of global economic uncertainty and geopolitical instability, Portugal's market continues to be a magnet for high-net-worth private investors, with Spanish family offices being particularly active. These investors are drawn to what they perceive as a stable market with significant potential for asset appreciation.
Several high-profile transactions underscored the market's strength in the first six months of the year, including the sales of the Anantara Vilamoura resort and the Cascais Miragem hotel. Augusto Lobo, head of capital markets at JLL, stated that the figures confirm "the continued interest of investors in the sector and reflect the robustness of the Portuguese tourism market." Projections for the remainder of the year are even more optimistic. CBRE forecasts that the total investment volume for 2025 could exceed €600 million, surpassing the total recorded in 2024. José Maria Coutinho of CBRE noted that international capital continues to dominate, accounting for 71% of the investment, and highlighted that Portugal has emerged for the first time as the top destination of choice for European investors.
Spanish family offices, many with established portfolios in Portugal, are aggressively seeking assets in prime locations, indicative of a long-term strategic commitment. The market is also seeing increased interest from individual investors from North and South America, who are motivated by the sector's proven resilience and the relative stability of the European market. This influx of capital is fueling a strong development pipeline. C&W's analysis points to approximately 110 new hotel projects scheduled to open by 2028, with 30 of those expected to launch in the second half of 2025, primarily in the 4 and 5-star categories.
The scale of new development is substantial. JLL reports 115 projects are currently in development, of which 71 are actively under construction, set to deliver a total of 12,172 new rooms to the market. CBRE corroborates this, confirming 25 new hotel openings in 2025, adding around 2,800 rooms, with at least 11 more planned before year-end. The development pipeline remains solid across the country's key regions. Lisbon leads with 3,300 rooms in development, followed by the Algarve with 3,000, and the Northern Region with 2,000, demonstrating a broad-based confidence in the future of Portugal's tourism and hospitality industry. Explore investment strategies and opportunities at realestate-lisbon.com.
