Portugal Hotel Markets Market Dynamics, Q1 2025

Portugal's hospitality sector showed resilience and growth in Q1 2025, demonstrating an overall positive performance. There was a 3% increase in guest numbers and a significant 5.2% YoY surge in total revenue, reaching 840 million euros.

Hotel guest numbers continued their upward trajectory, albeit at a more measured pace, with a 3.2% year-over-year increase. This growth pattern signals a transition into a normal growth regime, following the exceptional 7.6% surge in 2024 and the dramatic 41% rebound two years prior.

Both the average daily rate (ADR) and revenue per available room (RevPAR) exhibited robust growth of approximately 4% year-overyear across Portugal, reaching €93 and €45 respectively in March 2025. These increases, coupled with stabilizing occupancy rates, suggest that the industry is successfully leveraging pricing strategies to drive revenue growth.