Summary and analysis of Portugal's current hotel real estate market conditions.
Portugal's hospitality industry delivered robust performance in Q3 2025, with total revenue rising 7.6% YoY to €5.74 billion, despite the more modest growth in guest volumes (3.0%) and overnight stays (2.2%) – with domestic stays surging by 5.8%.
The sector demonstrated pricing discipline and revenue optimisation capabilities, with ADR increasing 4.3% to €120 and RevPAR rising approximately 6% to €73, while occupancy remained stable.
The outlook remains positive, with operators focusing on value-driven growth through premium pricing strategies and investment in higher-quality assets, reflecting a maturing market.