Portugal, built to last: the country’s next wave of hotels

Beach holidays on the Algarve, weekend breaks in Lisbon and Porto – Portugal’s appeal has never been in question. With a lull in new developments over the last decade, its hotel pipeline is now proving stronger than ever.

WORDS BY SIENNA SHIPTON

Image on the left is of the Algarve. Image credit: Daniel J Schwardz. Image on the right of the Portugese Red Bridge. Image credit: Cassia Tofano

Travel trends come and go, but Portugal has never depended on them. Its fine wine, storybook castles, endless beaches and cultural cities have made it one of Europe's most reliably appealing places to holiday. As demand only grows, Portugal is building to keep pace. Investment in the property market reached €915 million in Q1 2026 – a year-on-year increase of nearly 32%, according to Colliers' latest snapshot on real estate investment in Portugal. Retail and hotel led this activity, together accounting for 75% of its total volume, with global operators like IHG, Hyatt, and Hilton, anchoring major plans across Lisbon Porto and the Algarve, where investor appetite shows little sign of slowing. Attracting both local and large-scale international investors in recent years, Portugal is no longer an emerging opportunity but instead, an established, mature market commanding serious attention.

According to Howarth’s Portugal Hotel & Chains Report, with 32.5 million guests in 2025 alone (+3.0%), racking up a total of 82.1 million overnight stays (+2.2%), Portugal’s lodging market is only going from strength to strength. Total accommodation revenue landed around €7 billion, with occupancy holding steady in the 62-63%. Domestic overnight stays climbed by 5.4%, while internationally, the UK remained Portugal’s biggest fans with Germany, the US, Spain and France not too far behind.Portugal's hotel pipeline is keeping pace with the tourism increase – the luxury segment of hospitality having its own moment, with international operators turning their focus to more exclusive, high-end properties and experiences. Though overall a positive shift, some projects are running into delays – with licensing, financing and construction hold ups all playing a part. Putting that into numbers, there is approximately 115 projects in the pipeline, projected to add 13,915 rooms to the country. This is concentrated in Lisbon, where there is a record-high of 40 projects in development, totalling at 4,476 rooms. Trailing behind is the north of Portugal with 25 hotels, and the Algarve at 22 hotels. On the ownership side, Davidson Kempner remains the largest institutional player, followed by Arrow Global, Azora, and Square Asset. SPACE takes a look at the steady demand that is being built to last.

RECENT OPENINGS

The headline opening of the recent cycle is Lenscape Coterie, Porto. Lenscape is the first hotel of Coterie Collection, a new brand created by the owners of Torel Boutiques, a luxury boutique hotel group. Opened in March 2026, with just 39 rooms, the interior design and architectural concept of the rooms at Lenscape were conceived by STUDIO Christian Haas. The vision was to create an atmosphere that feels both refined and relaxed – a space where guests can experience a contemporary expression of Portugal’s creative spirit. Similarly, along Portugal’s coast, just over an hour from Lisbon is Na Praia. The hotel opened Spring 2026 and has been developed by the landscape architect Thomas Doxiadis, alongside Karl Fournier and Olivier Marty of Studio KO. The Studio KO team designed Na Praia’s architecture to emerge from the land itself, with unimposing buildings thoughtfully designed to protect the delicate landscape. Located on 340 hectares of preserved wilderness, hosting a total of 113 keys, including a mix of rooms, suites, houses and villas. Na Praia is the second hotel project from José António Uva, eighth-generation steward of São Lourenço do Barrocal.

In Lisbon, Wilde, Lisbon Liberdade can be found on the Rua Castilho, steps from Avenida da Liberdade. The nine-storey aparthotel features 95 apartments, including studios with fully equipped kitchens and ninth-floor rooms with private terraces overlooking the city. Interiors designed by Stephanie Barba Mendoza, blending playful, functional design with Lisbon’s maritime heritage. Also in Lisbon, Studio Urquiola delivers the first Andaz property in Portugal. The hotel, which opened its doors in March 2026, reflects Lisbon’s rich cultural heritage and artistic spirit. Set within the hills of the Algarve countryside, Viceroy at Ombria Algarve opened its doors to a side of Portugal most travellers miss entirely. Designed by WATG and Wimberly Interiors, alongside Lisbon-based architecture firm Promontorio, the architecture and interior design honour the history and culture of authentic Algarvian style. The property opened in late 2024, offering 141 rooms, suites and residences all set within 5.2 hectares.

IN THE PIPELINE

Slated for 2026, debuting as the Maison’s first residential development in Portugal and Lisbon’s first luxury branded residence, is the KARL LAGERFELD Residences Lisboa. The One Atelier, an international design and architecture studio specialising in branded projects, has led the project, bringing together fashion and real estate. As the Portuguese capital is becoming a common denominator across the country’s latest luxury developments, scheduled to open imminently, is Six Senses Lisbon. Adding a second prime destination to its Portuguese portfolio after Six Senses Douro Valley, the Lisbon property is set to offer 114 guestrooms and suites across two heritage buildings within the historic centre – the converted 17^th century Palácio Lavra and the remarkable Palácio de Pedrosas. Ikos Resorts have announced a €520 million expansion plan with new properties in Greece, Spain and Portugal, including Ikos Cortesia, slated to open in 2028, with 448 rooms, suites, bungalows and villas.

Shanti-Som Wellbeing Retreat Algarve, is opening late 2027, just 20 minutes from Faro, on Portugal’s golden Atlantic coast, another addition to the country’s growing luxury wellness and lifestyle scene. The upcoming Nobu Hotel and Restaurant in Portugal will be situated in the heart of Lisbon, on the famed Avenida da Liberdade. The brand has also announced plans to launch a hotel, a restaurant, and residences in Eastern Algarve in Portugal. The new offerings will be located within the luxury Monte Rei resort and are scheduled to welcome visitors from 2029. As the pipeline continues to unfold particularly within Lisbon, Aethos Portugal is slated to open early 2027, in the neighbourhood of Penha de França - one of Lisbon's most vibrant and authentically local districts. Also, the upcoming Nobu Hotel and Restaurant in Portugal will be situated in the heart of Lisbon, on the famed Avenida da Liberdade.