Portugal’s hospitality market continues to mature with confidence, as internationalisation accelerates and the country cements its reputation as a premium European destination.
International operators are reshaping the branded landscape at pace, while institutional investment remains robust and the pipeline of new developments signals sustained long-term commitment to the market.
From the accelerating dominance of international hotel chains to the continued strength of the Luxury and Upscale segments, the 2026 edition offers a timely, data-driven perspective on one of Europe’s most compelling hospitality markets.
Key Statistics
| Key Statistics | 2024 (Adjusted) | 2025 | % |
| Total chain hotels | 685 | 681 | -1% |
| Total chain rooms | 79,079 | 79,657 | 1% |
| Average size per chain hotel in rooms | 115 | 117 | 1% |
| Country hotels stock (overall supply) | 2,687 | 2,717 | 1% |
| Country rooms Stock (overall supply) | 178,356 | 174,313 | -2% |
| Average size per hotel in rooms | 66 | 64 | -3% |
| Chain penetration % by hotels | 25% | 25% | -2% |
| Chain penetration % by keys | 44% | 46% | 3% |
| Total number of brands | 129 | 133 | 3% |
| International brands | 72 | 75 | 4% |
| Domestic brands | 57 | 58 | 2% |
| International chain hotels | 206 | 249 | 21% |
| Domestic chain hotels | 479 | 432 | -10% |
| International chain rooms | 27,466 | 31,617 | 15% |
| Domestic chain rooms | 51,603 | 48,040 | -7% |
Market Dynamics
Stable Growth: In 2025, Portugal recorded approximately 32.5 million guests (+3.0%) and 82.1 million overnight stays (+2.2%), confirming sustained attractiveness across both domestic and international markets.
Revenue Performance: Total accommodation revenues reached approximately €7 billion, with occupancy stabilising in the 62–63% range and positive year-on-year ADR and RevPAR growth across urban and resort destinations.
Domestic Outperformance: Resident overnight stays grew by 5.4%, while the UK remained the leading international source market, followed by Germany, the US, Spain and France. North American markets continue to grow in strategic importance.
Ranking per Scale & Size
| OVERALL | DOMESTIC | INTERNATIONAL | ||||||||||
| Category | Hotels | Rooms | % | Ave. Size |
Hotels | Rooms | % | Ave. Size | Hotels | Rooms | % | Ave. Size |
| Budget & Economy |
39 | 3,040 | 4% | 78 | 22 | 1,418 | 3% | 64 | 17 | 1,622 | 5% | 95 |
| Midscale | 126 | 12,855 | 16% | 102 | 76 | 6,857 | 14% | 90 | 50 | 5,998 | 20% | 120 |
| Upscale & Upper Upscale |
372 | 40,720 | 51% | 109 | 259 | 27,292 | 55% | 105 | 113 | 13,428 | 45% | 119 |
| Luxury | 144 | 23,042 | 29% | 160 | 78 | 14,126 | 28% | 181 | 66 | 8,916 | 30% | 135 |
| TOTAL | 681 | 79,657 | 100% | 449 | 435 | 49,693 | 100% | 441 | 246 | 29,964 | 100% | 469 |
Key Highlights
Accelerating Internationalisation:
International chain hotels grew by 21% and international chain rooms by 15%, while domestic chains contracted by 10%. The total number of brands operating in Portugal rose to 133, driven primarily by international entries and expansions. Domestic chains retain the majority of branded supply but are gradually ceding ground to global operators.
Development Pipeline Remains Active:
Lisbon City leads with 32 hotels and 4,696 rooms in the pipeline, followed by Norte (25 hotels) and the Algarve (22 hotels). The Luxury segment is expanding notably, with international operators driving growth in higher-category properties. Some pipeline delays persist due to licensing, financing and construction challenges.
Premium Positioning Strengthens:
The Upscale segment accounts for 51% of total chain hotels, remaining the backbone of Portugal’s branded market. Luxury now represents 29% of chain hotels, with international operators driving above-average property sizes in this segment. Portugal’s positioning as a quality-driven lifestyle destination continues to attract premium brand entries.
Institutional Investment Remains Strong:
Davidson Kempner remains the largest institutional owner, followed by Arrow Global (8 hotels), Azora, and Square Asset. Investor confidence is underpinned by stable operating metrics and diversified, structurally sound demand fundamentals.
Source: View the original article at Horwath HTL.
