For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   2026 | 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

As Portugal's capital, Lisbon is a city of striking contrasts, where centuries of history and architectural heritage meet a dynamic contemporary culture. Sitting along the banks of the Tagus River, the city draws visitors in with its charming historic quarters, bustling cultural life, and an enviable coastal backdrop. In terms of accessibility, Lisbon is exceptionally well connected, with strong infrastructure spanning road, rail, air and sea. Humberto Delgado International Airport sits just seven kilometres outside the city centre, while the award-winning Port of Lisbon, recognised as Best Atlantic Port in Europe, accommodates up to three cruise vessels simultaneously alongside multiple marinas for private boats. Complementing these, the city is served by an extensive metro network, a well-developed road system and an expanding rail network. Seasonality plays a meaningful role in shaping Lisbon's hotel market, a reflection of its status primarily as a leisure destination. Demand peaks between April and July, and again in September and October, when the city's Atlantic climate compares favourably to much of the rest of Europe. Recognised for its enduring appeal to international visitors, Lisbon was named 'Europe's Leading City Break Destination' at the 2025 World Travel Awards.

Lisbon has grown considerably in international prominence, particularly as a destination for US travellers, benefitting from its central location and strong air connectivity that make it a natural gateway for exploring Portugal. The hotel market suffered a sharp contraction during the pandemic before staging an impressive recovery. By 2022, RevPAR had clawed back to nominal pre-pandemic levels, underpinned primarily by strong average rate growth. Momentum continued into 2023, with occupancy closing in on 2019 levels as rates climbed further. By 2024, despite occupancy remaining three to five percentage points short of its pre-pandemic peak, sustained rate growth pushed RevPAR to approximately 15% above 2019 levels in real terms. That said, occupancy still reflects the impact of the significant supply expansion of recent years, with supply growing by roughly 15% between 2019 and 2024, while ADR is partly supported by the rising share of branded hotel properties in the market. In 2025, Lisbon's hotel market delivered a broadly stable performance. Occupancy edged up marginally, remaining below the level recorded in 2019. ADR held virtually flat year-on-year, suggesting the market may be approaching a ceiling on rate growth following several years of strong gains. As a result, RevPAR was broadly unchanged but still over 30% above 2019 levels in nominal terms.

Looking ahead, Lisbon’s hotel pipeline includes 32 projects expected to deliver a combined 2,600 new rooms by the end of 2028, representing a 9% increase in room supply if all are realised. Most upcoming projects target the upscale and upper upscale segments, with branded hotels accounting for more than 80% of the pipeline. Notable upcoming openings in 2026 include the 72-room Nobu Hotel Lisbon and the 114-room Six Senses Lisbon; the 41-room Hotel Indigo Lisbon – Principe Real; and the 194-room The Standard Lisbon.

Impacted by the high-interest-rate environment, transactions were 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. In 2025, hotel transactions in Lisbon remained relatively low with only two transactions recorded: the 192-room Hotel Mirgem Cascais sold for €125 million (€651,000 per key) and the 83-room Palacio da Baronesa was acquired by The July as part of a portfolio of four properties for an undisclosed sum.

According to our 2026 European Hotel Valuation Index, Lisbon hotel values rose by 2.7% in 2025.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change
Market Supply Growth

Change In Value For Market: (€Euro)

Lisbon RevPAR Change (€Euro)

Lisbon RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 7725781037 (m)
	Maxime Gauthier Senior Associate [email protected] +44 0 7593572865 (m)