Portugal will assume a central role in the hotel dynamism of the Iberian Peninsula in 2025, reveals real estate consultancy CBRE. In the first nine months of the year, Iberia captured 19% of European hotel investment — the largest share — for a European total of €16 billion up to September.
Compared to 2019, Portugal recorded an increase of 39% in the Average Daily Price (ADR) and 44% in Revenue per Available Room (RevPAR), numbers that show a solid recovery and a transition to higher value products. Spain shows similar increases (ADR +37% and RevPAR +44%).
“In Portugal, one of the main drivers of this appreciation is the structural change in the tourist profile, highlighting a sharp growth in tourism from the USA, which registered an increase of 91% compared to 2019”, states the Head of Research from CBRE Portugal.
Still according to José Maria Moutinho, “North American tourists, who mainly seek the luxury segment, raise the average price and quality of the offer. Despite the record results, there is room for progression in the national market. The RevPAR in Lisbon, although quite significant, is still between 18% and 25% below Barcelona, the city with the best performance in the Iberian Peninsula”, he concludes.
Hotel investment in Portugal reached 341 million euros by November 2025, consolidating hotels as the second asset class in national commercial real estate, only behind retail.
“The profile of those who invest in Portugal is still different from that in Spain. While the Spanish market is dominated by hotel chains (41%), in Portugal, investment is led by institutional investors (59%), followed by family offices and private (31%), with hotel chains representing just 10% of this volume”, highlights Duarte Morais Santos, Hotels Director at CBRE Portugal.
According to the same person, “the investors’ strategy in Portugal is clear: clear focus on luxury. 81% of the volume of investment transacted in Portugal (first three quarters of the year) was directed to 5-star hotels, contrasting with Spain, where the 4-star segment still captures the majority of capital. Geographically, in the last five years, the Algarve attracted 52% of total investment, followed by Lisbon (18%) and Porto (12%)”, adds Duarte Morais Santos.
The search for experiences and products lifestyle has allowed significant price premiums — in Lisbon, a hotel lifestyle 4-star hotel can reach an ADR of 260 euros, compared to 137 euros for a conventional hotel — while wellness and catering increase revenue per occupied room.
In accommodation, AL maintained a strong presence in Lisbon: in 2024 it represented 46% of the supply of beds and 44% of overnight stays, generating more than 531 million euros. CBRE warns that, without AL, more than 10,000 hotel rooms would be needed to support current demand.
José Maria Moutinho highlights that “optimism remains for the near future: forecasts point to 2025 ending with a growth in guests in the Iberian Peninsula (which cumulatively until September stood at +3% for Portugal and +1.7% for Spain)”.
The market will continue “to evolve through new consolidation trends, such as the growth of Branded Residences e Serviced Apartments of luxury, responding to an increasingly sophisticated demand”, he highlights.
O Head of Research CBRE Portugal also foresees “greater professionalization and integration between the hotel sector and AL, with large hotel groups entering the short-term rental segment and vice versa”.