Le Portugal remains one of Europe's most popular destinationsThe country has benefited from a number of advantages. The country has benefited from a relative flexibility on the part of the authorities in welcoming international visitors during the Covid pandemic. And also the transfer of leisure travellers to the destination with the closure of sun destinations outside the European Union.
Figures provided by Portugal's National Statistics Institute show a solid recovery in tourism activity in 2021 compared to 2020. Sn the first eleven months of 2021, the number of tourists increased by 34.4% and even by 44% for international tourists.. Compared with 2019, tourism activity in Portugal is still down by 47.5%.
Nights recorded in the first eleven months of 2021 also saw an increase of 40.4% (including +45.3 % for non-residents). Compared with the same period in 2019, however, overnight stays fell by 47.7% (-63.3 % for non-residents).
Growth in the international hotel sector
According to Horwath HTL, a consultancy firm, this relative resilience in tourism explains why, growth potential in the Portuguese hotel industry. In a study, the firm highlights the the rise of international hotel chains. Horwath HTL notes that while the market is still dominated by national players such as Pestana Hotel Group and Vila Galé Group, international players are consolidating their presence year on year.
The chain hotels represent just over a third of all hotels in the country (535 out of a total of 1,569). But in terms of number of rooms, they dominate the market with 56% of the total supply.
According to the Horwath HTL report, the number of international hotel brands has more than doubled out of the total number of chain establishments. International operations now account for 51 % of total chain hotels.
No surprise there, Accor Hotels is the leading international group in the country with 37 establishments and 3,810 rooms.. Next is Marriott Hotels & Resorts with 17 hotels and 3,159 rooms, Minor Hotels (owners of NH Hotels, Anantara and Avani) with 16 properties and 2,847 rooms, and lastly IHG Hotels & Resorts with 10 establishments and 1,871 rooms.
Four-star, four-star + and five-star hotels represent 78% of the total existing branded offer in Portugal (18% growth compared to 2018). Of this total 60% identify with 4* and 4* superior hotels and 18% with 5* and 5* superior hotels.
The least dynamic segment is the mid-rangewhose market share fell from 38% to 18% between 2018 and 2021. Budget hotels represent 5% of the current offer, a slight increase.
Lisbon and Porto under the spotlight of investment
Lisbon and Porto are the main cities where new hotels are being built, as these destinations remain attractive to both business and leisure visitors. These include 20 hotels under construction in the north with a total of 3,327 rooms; 18 hotels in Lisbon with 3,010 rooms, plus 7 other establishments in the greater Portuguese capital region, with a total of 797 rooms. To the south, theAlgarve registers the development of 10 new hotels with 2,233 rooms.
Investors are also discovering lesser-known regions. Such is the case of the Alentejo, a region to the south of Lisbon. Seven hotels are currently being built there, with a capacity of 568 rooms.
Hotels affiliated with international brands (for example, Room Mate Hotels, Radisson Red Hotels and Meliá Hotels & Resorts) represent 57% of new projects underway23% associated with national brands such as Vila Galé Hotéis and Turim Hotels. Upscale, superior upscale and luxury hotels account for 83 % of the new projects in the pipeline.
This strengthening of our position in the top-end segments should help to further improve the quality of our hotel offering," says Horwath.
