Investing in the Tourism Business in Portugal: Opportunities for Investors from All over the World

Tourism in Portugal is a steadily growing area, with mini-hotels gaining in popularity. The country welcomed more than 27 million tourists in 2023, 12 % more than the year before. 

Tourism revenues totalled a record €22.5 billion, with mini-hotels generating an average of 80 % occupancy during peak months.

In this article, we will describe the benefits of co-investing in mini-hotels, which generate a stable income amid growing tourist traffic, and the possibilities of buying property for resale, rental or personal use.

Investments in mini-hotels and real estate in Portugal

Let's look at two of the most promising ways to invest capital that combine high returns, reliability and long-term prospects.

1️⃣ Renovation of old villas into mini-hotels

Advantages:

• Tourists prefer unique and atmospheric places to stay, which makes such properties very much in demand.
• The authentic architecture is of enduring interest to travellers, ensuring high occupancy rates.
• Renovation and tourist rental incentives can reduce costs and increase profitability.

Why is it profitable?
Historic villas have a stable value and their value on the property market is increasing. Converting such properties into mini-hotels ensures a steady flow of guests and revenue even during seasonal changes.

What do we offer:

• Professional selection of promising objects for reconstruction.
• Full support at all stages, including obtaining an Alojamento Local rental license.
• Organization of all processes from project development to its successful implementation.

2️⃣ Purchase of real estate at the construction stage

Advantages:

• The opportunity to purchase an object with savings of up to 30% compared to finished real estate.
• A potential increase in value of up to 35% upon resale of the completed facility.
• High rental demand provides a stable income for long term ownership.

Why is this promising?

Investing in new buildings offers the potential for significant returns. You can make money from both resale and long-term rentals, making such investments versatile. In addition, Portugal's new-buildings market continues to develop steadily, which minimises risk.

How do we help:

• We analyse the market and select projects with maximum investment potential.
• We perform due diligence and organise the purchase process.
• We accompany the registration of ownership and solve all issues related to management.

Why is it profitable to invest in mini-hotels?

• High profitability: Mini hotels in popular regions such as Lisbon and Algarve yield up to 12% per annum.
• Low entry threshold: Co-investing allows you to start with relatively small amounts.
• Long-term prospects: Tourist traffic is growing steadily, and rental demand continues to increase.

Examples of successful projects

• Algarve, 2023: Renovation of a historic villa converted into a boutique hotel. The occupancy rate in the summer season reached 90% and the annual income was 120,000 euros.
• Lisbon, 2024: Joint project for the construction of a 12-room mini-hotel. The cost of the investment was €450,000 and the current market value of the property has risen to €600,000 (you can add current ones to this section)

We understand the importance of financial flexibility for our clients. Therefore, we offer:

• Full support and assistance with tax optimization.
• Consultations on reinvestment in new projects with high profitability.
• Flexible money management strategies that meet your goals.

Invest easily and profitably!

We provide not only objects and projects for investment, but also a full range of services, including remote support. It's now, not tomorrow, that is your chance to enter a market with huge potential.

Are you ready to start? Contact us to learn more!