Portuguese hotels estimate occupancy rates between 65% and 95% for Christmas and New Year’s Eve, a “positive” evolution compared to 2024, but which varies according to the region of the country.
The Pestana, Vila Galé and Hoti groups, contacted by Lusa, gave an account of what they expect for the upcoming festive season, pointing to similar or higher demand than last year.
“Forecasts for the festive season point to average occupancy rates between 65% and 95%, varying depending on the region and period. In hotels in Lisbon and Porto and in Pousadas de Portugal, occupancy is estimated to be between 65% and 85% at Christmas and between 85% and 95% on ‘New Year’s Eve’, with an average stay of two nights”, said the Pestana Hotel Group.
In the Algarve and Madeira, “occupancy during Christmas is expected to be between 65% and 80%, while ‘New Year’s Eve’ could reach 90% to 95% occupancy, with longer average stays — around four nights at Christmas and five nights at the end of the year”, he highlighted.
In turn, Miguel Proença, executive president (CEO) of the Hoti Hotéis Group, said he expected an occupancy rate at Christmas of 70% and for New Year’s Eve of 90%.
“Considering the entire Group, demand is evolving in line with last year, with a view to stabilization”, he added, noting that, considering that Hoti Hotéis “integrates 20 hotel units in Portugal, there are different realities, but, overall”, there are no “significant changes compared to 2024”.
According to the CEO, “Madeira is the area where there is the greatest demand throughout the season”, while “for the remaining regions demand is quite high, especially at New Year’s Eve”.
In turn, Pedro Ribeiro, director of marketing and sales at Vila Galé said that “in general, the month of December is positive in relation to the same month in 2024”, pointing out that in the various regions of Portugal where the group has hotels it can “see an interesting and higher demand”.
“It varies a lot from region to region, but we will always have the Portuguese market as the first market in most hotels, followed by the English market in the Algarve”, he highlighted, pointing out that the remaining hotels are quite diversified in their markets. He also added that “in comparative terms in both periods” the hotel group is “above last year in terms of revenue forecast”.
The Pestana Hotel Group detailed its prospects by region, pointing out that, for Christmas and New Year’s Eve, it has positive prospects.
“Porto is expected to register a ‘performance’ better than the previous year, while Lisbon is expected to maintain similar levels. In the Algarve, an increase of between 5% and 7.5% is expected during the Christmas season, with the end of the year being in line with 2024. Madeira confirms its very positive dynamics, with increases between 7.5% and 10% – both at Christmas and ‘New Year’s Eve'”, he indicated.
Pousadas de Portugal, according to the group, “are expected to show growth between 4% and 17%, depending on the region, with revenue per room increasing between 5% and 8%, reflecting the increase in the average price and the demand for differentiated experiences”.
For the Pestana group, “this is an essential time to mitigate the seasonality typical of December, especially in hotels in Lisbon, Porto and Pousadas de Portugal, where there is a strong ‘performance’ in restaurants, banquets and corporate events”.
The hotel group also outlined its expectations for 2026, after a “positive” 2025.
“For 2026, expectations point to a scenario of market slowdown, with some pressure on prices in several European capitals, resulting from the increase in supply and stabilization of demand”, he pointed out, indicating that in the Algarve “an impact associated with the collapse of the British market is expected, while Madeira is expected to maintain a positive year, albeit with a more contained growth rate”.
According to the Pestana group, “the big problem could arise from airport infrastructure. The experience of airport users in Portugal, in Lisbon throughout the year and in high seasons in the Algarve, is extremely bad and this will obviously have an impact on future demand”.