Tourism growth has been driving Portugal’s economy upwards. Lisbon and Porto hotel markets continue to exceed expectations, combining occupancy and prices increase. One year later, Colliers International updated information on both markets and estimates that Lisbon’s and Porto’s RevPAR will increase 13 and 15%, respectively.
The increase in room supply in Porto and Lisbon (more than 4.000 rooms until 2020) will cope with some opportunities not yet fully explored. The event segment, although performing well, maintains some growth potential. Additionally, the regulatory framework of short term lease apartments will be addressed soon, with new developments in the near future.
Gustavo Castro, Colliers International Research, points two main challenges to hotel owners and managers: “from an operational standpoint, they will have to keep accommodating price and occupancy increase, as well as they have done so far; from a strategic standpoint, they will have to identify the moment when the yearly profitability of a successful ongoing operation exceeds the potential income generated by a one-off disposal”.