Portugal's role as co-host of the 2030 FIFA World Cup is helping cement its reputation as one of the most attractive hotel investment destinations in Europe, according to business property advisers Christie & Co.
While Lisbon, the Algarve and Northern Portugal remain the country's established tourism hubs, growth is becoming increasingly widespread. Christie & Co points to emerging destinations, including Alentejo, Setúbal, Madeira and Central Portugal, as delivering strong performance and creating new opportunities for hotel investors and operators.
A spokesperson for Christie & Co said: "A key trend is the growing importance of the US as a source market, with visitor numbers now surpassing those from Spain.
"This shift is helping to drive hotel revenues while also reducing seasonality, contributing to a more diversified and resilient tourism economy."
The rise in North American visitors has been supported by increased air routes and the perception of strong value for the tourist dollar. The US now sits behind only the UK, which accounts for around 12.3% of inward tourism, and Germany on 7.9%. At 6.7%, it has overtaken Spain, which sits at 6.3%.
Christie & Co adds: "Portugal also retains important competitive advantages over many other Southern European hotel markets.
"Hotel development costs remain approximately 30% lower on average, helping to support project viability and providing investors with opportunities for long-term growth.
"Backed by a thriving tourism sector, continued infrastructure modernisation and increasingly diversified demand, Portugal remains one of Europe's most promising hotel markets."
Much of this growth is being underpinned by major infrastructure projects linked to the Portugal 2030 programme, a national €23 billion funding strategy designed to support the country's economic growth, alongside preparations for the 2030 World Cup, which Portugal will co-host with neighbours Spain and Morocco.
In its report, Portugal Hotel Market Snapshot, Christie & Co highlights how the country's post-Covid recovery has outpaced most European benchmarks. By 2025, demand levels exceeded 2019 figures by 17%, despite room supply increasing by 14.6%.
Occupancy remained resilient at 66.2%, marginally above 2019 levels, "demonstrating the market's capacity to absorb additional inventory". Supported by ADR (average daily rate) growth, RevPAR (revenue per available room) reached a record €82.4, up 41.7% versus 2019.
The report states: "This performance reflects both structural strengths, international demand depth, diversified geography, strong brand presence, and tactical drivers such as improved air connectivity, favourable currency dynamics, and increased long-haul travel from North America."
Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club, said: "This confidence in the marketplace demonstrates that investors can see Portugal's growth path and are sinking money in today to capitalise tomorrow.
"Portugal's tourism economy should not be underestimated and the growing interest from US visitors is reflected in a similar uptick in North American investors eyeing up Portugal's potential."
About Portugal Investment Owners Club
The Portugal Investment Owners Club, or PIO Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal
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