Leading hotel groups Pestana, Vila Galé, and Hoti have shared their expectations for the upcoming festive season, anticipating demand that is similar or even greater than last year.
Pestana Hotel Group forecasts average occupancy rates between 65% and 95%, depending on the region and period. Hotels in Lisbon and Porto, as well as Pousadas de Portugal, are expected to have occupancy rates of 65% to 85% during Christmas and 85% to 95% over New Year’s, with an average stay of two nights.
In the Algarve and Madeira, Christmas occupancy might range from 65% to 80%, with New Year’s rates reaching 90% to 95%, featuring longer average stays of around four nights at Christmas and five at New Year.
Miguel Proença, CEO of Grupo Hoti Hotéis, predicts a 70% occupancy during Christmas and 90% for New Year’s. He notes, “Overall demand aligns with last year’s, reflecting stability,” emphasizing that with Hoti Hotéis’ 20 properties across Portugal, there are varied performances but no significant changes compared to 2024.
Proença further points out that Madeira experiences the highest demand throughout the season, whereas other regions see peak interest mainly for New Year’s celebrations.
Pedro Ribeiro, Vila Galé’s marketing and sales director, observes, “December looks positive compared to the same month in 2024,” noting increased and promising demand across Portugal’s regions where the group operates. He mentions that while demand varies by location, the domestic market remains the primary source for most hotels, followed by the UK market in the Algarve.
Ribeiro also stated, “When comparing both periods, our revenue forecasts exceed last year’s,” highlighting growing revenue expectations.
Pestana Hotel Group presents a regional outlook, anticipating positive results for Christmas and New Year. Porto expects better performance than last year, while Lisbon should see similar levels. The Algarve might see a 5% to 7.5% rise during Christmas, maintaining last year’s levels during New Year’s. Madeira maintains its strong momentum, with increases of 7.5% to 10% for both festive periods.
The Pousadas de Portugal anticipate growth between 4% and 17% depending on the region, with revenue per room increasing by 5% to 8%, driven by higher average prices and demand for unique experiences.
Pestana Group describes this season as crucial to offset December’s typical seasonality, especially for hotels in Lisbon, Porto, and Pousadas de Portugal, where strong performance in dining, banquets, and corporate events is noted.
The group also shared its outlook for 2026 after a positive 2025. “For 2026, expectations indicate a market slowdown, with price pressures in various European capitals due to increased supply and stable demand,” predicting an impact in the Algarve from a decline in the British market, while Madeira is expected to have a positive year, albeit with slower growth.
Pestana warns of potential issues from airport infrastructure. “The user experience at airports in Portugal, especially Lisbon throughout the year and during peak seasons in the Algarve, is extremely poor, which will undoubtedly affect future demand,” they highlighted.
