For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2025
|
2024
|
2023
|
2022
|
2021
|
2020
|
2019
|
2018
|
2017
|
2016
|
2015
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
Lisbon, the capital of Portugal, is a vibrant city known for its rich history, stunning architecture, and picturesque coastal setting. Perched on the banks of the Tagus River, it seamlessly blends traditional charm with modern innovation, offering visitors a mix of historic neighbourhoods and lively cultural scenes. Lisbon benefits from excellent connectivity across road, rail, sea, and air. Humberto Delgado International Airport is conveniently located just seven kilometres from the city centre. The award-winning Port of Lisbon – named Best Atlantic Port in Europe – offers three cruise ship berths and several marinas for private vessels. The city also boasts a growing rail network, a well-maintained road system, and a comprehensive metro system.
Lisbon’s hotel sector experiences notable seasonal variations, largely influenced by its prominence as a leisure destination. The peak period extends from April to July and then again in September and October, coinciding with favourable weather conditions compared to many other European cities. Nestled on the Atlantic coast, the city was awarded ‘Europe’s Leading City Destination’ for the second consecutive year in 2024.
Lisbon’s international profile has grown significantly, particularly among US travellers. The city’s central location and strong air links make it an ideal base for exploring Portugal. After a sharp decline in performance during the COVID-19 pandemic, the hotel market has demonstrated a strong recovery. By 2022, RevPAR had returned to nominal pre-pandemic levels, primarily driven by robust growth in average rates. In 2023, occupancy approached 2019 levels, supported by continued average rate increases. In 2024, despite occupancy levels remaining three to five percentage points below their pre-pandemic peak, sustained growth in average rates drove RevPAR in 2024 to approximately 15% above 2019 levels in real terms. However, demand has yet to fully catch up with the expanded hotel supply in Lisbon. Between 2019 and 2024, the market grew by roughly 15%, with a notable increase in the proportion of branded properties.
Looking ahead, Lisbon’s hotel pipeline includes 39 projects expected to deliver a combined 2,900 new rooms by the end of 2027, representing a 10% increase in room supply. Most upcoming projects target the upscale and luxury segments, with branded hotels comprising two-thirds of the pipeline. Notable upcoming openings include the 213-room ME Lisbon (June 2025), the 232-room Andaz Lisbon (Q3 2025), the 150-room Hampton by Hilton Lisbon Baixa (April 2026) and the 197-room The Standard Lisbon Santa Clara (May 2026).
Three properties transacted in 2023: the Palacio da Baronesa, acquired by The July Group (former City ID), the transaction price of which had not been shared; the 112-room B&B Hotel Montijo for an undisclosed amount; and the 77-room Tivoli Sintra, which was sold as part of a five-hotel portfolio, for €16 million or €206,000 per key (price allocated per key). Impacted by the high-interest-rate environment, transactions remained limited in 2024, with two portfolio deals and one single-asset transaction. Amazonia Hotels sold a 360-room portfolio across four assets in Lisbon and neighbouring cities in January 2024 for an undisclosed price, while the 96-room Miraparque Hotel was acquired in February. Finally, Extendam acquired two Sofitel hotels from Essendi, formerly AccorInvest, in April 2024, one of which being the 163-room Sofitel Lisbon Liberdad.
According to our European Hotel Valuation Index 2025, Lisbon hotel values rose by 7.8% in 2024, surpassing pre-pandemic levels for the first time. The city remains attractively priced for a European capital, with solid fundamentals and growing appeal for both urban and resort tourism, offering continued opportunities for value creation.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
|
| ADR Change
|
| Market Demand Change
|
| Hotel Occupancy Increase/Decrease
|
| RevPAR Change
|
| Market Supply Growth
|
