Portugal: potential for investment in hospitality

Portugal’s hospitality sector: A leading destination for global investment
With its resilient economy, strategic location, and globally recognised tourism appeal, Portugal has emerged as one of Europe’s most attractive destinations for hospitality investment. Backed by sustained visitor growth, supportive public policies, and rising interest from international capital, the country offers a unique blend of stability and opportunity for developers, operators, and institutional investors alike.

Portugal’s Hospitality Investment Landscape
Portugal’s hospitality sector continues to experience robust and sustained growth, supported by investor-friendly government policies, regulatory stability, and a thriving tourism industry.

This strong foundation has positioned the country as one of Europe’s most attractive markets for international investors seeking resilient returns and long-term opportunities in the tourism and hotel segments.

Major global investors – including Davidson Kempner, Invesco, and Arrow Global – have already invested in Portugal’s hotel market, underlining its international credibility, appeal and momentum.

In a country with a longstanding tradition of tourist apartments, the ongoing diversification of the hospitality offer is noteworthy. Sub-sectors such as serviced apartments and branded residences are gaining ground - not only from an operational perspective, but also from an investment standpoint. These segments offer more flexible business models, attractive yields, and rising demand from international travellers and institutional capital.

Branded residences, in particular, enable investors to finance developments through pre-opening sales – reducing upfront risk and accelerating returns. The number of internationally branded projects in Portugal is expected to rise steadily in the coming years, in line with rising global demand for premium, experience-driven hospitality assets.

Portugal’s hotel sector typically accounts for 25 to 33 per cent of total commercial real estate investment – a significantly higher share than in most other European countries. This reflects the sector’s strength and the confidence it inspires among both institutional and private investors.