In the presentation of its new report "Portugal Hotelaria - November 2017", released this week, the consultant has announced that will be in progress operations worth €300 million, and about 110 million can still be completed by the end of this year, concerning institutional funds. In any case, "2018 will continue to be a good year for investment in hotels in Portugal", says Gonçalo Garcia, from C & W's Hotel Industry.
This good time for investment is supported by a market that "has good demand, is now a consolidated destination" with all indicators of the operation to grow, notes Marta Esteves Costa, from the Research and Consulting department of ​​the consultant. «The diversification of destination is the key word», Portugal receives more tourists from different markets looking for different types of product in our country, and this also favors reducing exposure to specific geographies. And Portugal is no longer just a destination of sun and sea or city breaks, the tourism of nature, surfing, or culture is growing.

To prove this confidence, is the announcement of the opening of at least 120 tourism projects in the next 3 to 5 years across the country, excluding local housing projects, with the 4 and 5 star units to master the new offer.

Gonçalo Garcia believes that "we are selling Portugal better" and explains that the investment in hotels in our country "has been an inactive and even liquid market, and now begins to be attractive for institutional funds, and has potential for growth, if there is structures and operating models that enable it”'. These models "cross risk and benefit", from the most traditional to the most opportunistic investor.

On the one hand, core investors are looking for longer-term income operations and a guaranteed return, while others are looking for, for example, more 'mature' hotels where new operators can enter. Of greater or lesser risk, there are different hotel models, be it sale & leaseback or purchase and own management, and the opportunities are there. The creation of a tourist destination, especially in areas of the city that are not yet very well known, will help in the implementation of new hotel projects.

In the near future, C & W identifies as the main trends the "clear improvement of the product offered", greater commitment with the qualification of the workforce of the units, greater flexibility among operators, greater professionalism of management and a greater concentration of operations, in a still very pulverized market. "The participation of international investors will increase" with the separation of ownership of the operation.

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