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HVS Report – Lisbon Market Pulse 2025-Image Credit Unsplash Picture
of the Lisbon hotel market in 2025 with an expedition of tourism need, hotel performance, hotel supply, the financial investment market and the marketplace outlook.
Lisbon, the capital of Portugal, stands as one of Europe’s many ancient cities, set within a city that is home to around 3 million individuals. Celebrated for its abundant cultural heritage, striking architecture, and busy business scene, the city provides a variety of attractions. To the west lies the Estoril coast, including Estoril, Cascais and the historic gem of Sintra, all bursting with leisure and recreational chances.
Source: HVS Research Study
Economic Indicators– Portugal
Source: International Monetary Fund (IMF), April 2025 Tourism Need In 2023, Portugal was called Europe’s Leading Destination at the World Travel Awards, while Lisbon itself made the title of Europe’s Leading City, a recognition it retained in 2024. These past couple of years, the country’s appeal has triggered an influx of tourists resulting in the number of arrivals and bednights surpassing historic levels by more than 15%. The USA, Spain, Brazil, France and the UK have stayed the primary source countries of Lisbon’s travelers, with US need soaring by nearly 90% over the last four years. This growth can largely be attributed to broadened air travel capability between the USA and Portugal, along with targeted marketing projects by Portugal’s nationwide tourism authority. Additionally, the Rock in Rio Lisboa celebration, which occurs every two years, drew 300,000 visitors from 106 nations in 2024. The next edition is due to happen in June 2026. Other significant occasions driving need to the city include the Web Top, kept in November, and Fish & Flavours Lisbon in early April.
An Extraordinary Year for Lisbon– Arrivals and Bednights (000s)
Source: HVS Research Study Transportation Historically, Humberto Delgado Airport has actually seen strong traveler growth, recording a substance annual development rate of 11% between 2014 and 2019. With 33.6 million arrivals in 2023, guest traffic at the airport exceeded 2019’s record-breaking 31 million arrivals by 8%. This upward trend continued into 2024, with arrivals growing an additional 4% year-on-year. To satisfy Lisbon’s increasing need, the construction of the brand-new Alcochete Airport has actually been proposed, with completion expected by 2034, set to replace the present airport. Likewise, the Port of Lisbon exceeded the variety of passengers pre-pandemic by 33% in 2023, growing an additional 1% in 2024. The port, that includes three berths for cruise liner, was recently called Best Atlantic Port in Europe. Along with those modes of transport, the rail network and underground metro system are well established, assisting in hassle-free travelling for homeowners and visitors.
Highest Airport Passenger Counts in Ten Years (000s)
Source: HVS Research Hotel Efficiency The development of hotel performances in the Lisbon Metropolitan Area is illustrated in the following charts, with 2019 utilized as the base year for comparison.
- Just like other European destinations, tenancy levels in the Lisbon Metropolitan Area just went back to pre-pandemic levels in 2023, with the increase in supply in 2024 being soaked up by greater need, resulting in steady tenancy;
- Regardless of high inflation and a very first quarter in 2022 affected by the Omicron variant of COVID-19, RevPAR recuperated to normalised levels by year-end, driven by a 40% boost in average rate over 2021. In real terms, typical rate went beyond 2019 levels by 5%;
- Driven by a double-figure substance yearly growth rate in US visitation in between 2019 and 2024, this strong momentum continued through 2023 and 2024, marked by record occupancy levels and substantial rate development. By the end of 2024, RevPAR exceeded 2019 levels by more than 20% in genuine terms.
Average Rates and RevPAR Recovered Above Inflation
Source: HVS Research Study
Hotel Supply
Overall hotel supply for the city of Lisbon stood at 32,000 spaces in 2023, growing at a compound annual rate of 3.0% between 2017 and 2023 (the 2024 supply had not been released by INE at the time of writing). Historically controlled by independent hotels, Lisbon’s market composition has been moving in reaction to increasing international interest, particularly from United States visitors, and has actually spurred increasing demand from national and international brands.
There are approximately 30 hotels in the pipeline due to be finished by the end of 2027, representing a 10% increase in the total variety of spaces. Branded hotels represent almost two-thirds of the new hotel supply, consisting of brand names from Marriott, Hyatt, Hilton and InterContinental Hotels Group. New openings in the next number of years include the 213-room ME Lisbon, the 232-room Andaz Lisbon and the 150-room Hampton by Hilton Lisbon Baixa.
Hotel Pipeline
Source: HVS Research Investment Market Deal activity in Lisbon stayed suppressed throughout 2022 and 2023, with three transactions being taped over these 2 years. Following a pickup in deals in the very first half of 2024, no offers took place in the second half of the year. According to our HVS European Hotel Valuation Index 2025, Lisbon’s hotel market price gained from 7.8% year-on-year development, going beyond 2019 levels for the very first time since the start of the pandemic.
Hotel Transactions
one As part of a Sofitel portfolio handle the Sofitel Roma Rental Property Borghese ² As part of four-hotel portfolio deal
Source: HVS Research
Outlook 2025
Lisbon’s post-pandemic healing has been exceptional, marked by a sharp rebound in tourism, increased visitor spending on hotel lodging, and growing worldwide appeal between 2022 and 2024. It is no surprise that the city was called Europe’s Leading City Destination for two successive years. The upcoming hotel stock reflects this restored confidence, with premium advancements poised to reinforce Lisbon’s upward trajectory. The outlook for the city remains extremely optimistic, supported by strong basics, continued investor interest, and a hospitality market ripe with opportunity.
Value Trends 2024 vs 2023
Source: HVS Research Maxime Gauthier signed up with the HVS London office as a consulting and evaluation analyst in January 2024. Fluent in English and French, he holds a BSc (Hons) from EHL Hospitality Company School and an MSc in Finance from NOVA School of Business and Economics in Lisbon. Prior to signing up with HVS, Maxime got experience in finance with Marriott in Singapore and with a brokerage company in France. His primary responsibilities at HVS consist of valuations of single properties and hotel portfolios, expediency research studies and market research within the EMEA area. For more details, contact [email protected].
Alexandra Dumoulin is a director at the London office of HVS. She signed up with HVS at the end of 2023 from Hilton where, as a senior manager in the Expediency Department, she carried out various forecasts for all brands in Hilton’s portfolio and across countries, primarily in Europe, acting primarily as an internal specialist for one of the largest worldwide hotel operators. Initially from Belgium, Alexandra holds a Bachelors degree in law from the Universite Libre de Bruxelles, an MBA from IMHI and is a graduate of Chaire Immobilier at ESSEC Organization School, France. Considering that signing up with HVS, Alexandra has recommended on hotel investment jobs and related tasks throughout the EMEA area. To learn more, contact [email protected].