Outdoor hospitality in Europe – once seen as rustic or seasonal – is experiencing a major transformation. Spurred by the pandemic, technological advances, and investor interest, this sector is evolving into one of the most dynamic and resilient parts of the tourism landscape. Travellers are now choosing nature-based experiences, combining comfort with open-air escapes.

Welcome to the 2025 Portugal Hotels and Chains Report, a comprehensive exploration of the dynamic hospitality industry in Portugal. This report delves into the unique opportunities and challenges facing this flourishing market, offering valuable insights. Portugal’s hospitality industry continues to stand out as one of Europe’s most dynamic and resilient markets. In 2024, the country reinforced its position as a top-tier global tourism destination, buoyed by sustained demand, growing international interest, and a robust investment environment. While traditional destinations like Lisbon, Porto, and the Algarve remained strongholds of growth, there was a notable surge in visitor numbers to lesser-known regions, signalling a broader diversification of tourism flows.