Mercan Group is set to invest €450 million in the Portuguese hotel market in 2024, commencing construction on multiple hotel projects and opening three hotels by summer.
The Canadian company said it has eight hotels – representing 1,400 rooms - in the works, including the 452-key Hard Rock Hotel at Vau Beach, Portimao which is expected to open in 2026, providing guests with multiple restaurants and bars, outdoor pools, a Rock Spa, a gym, a beach club, a Kids Club and a conference room.
Mercan added that by summer of 2024, it will open three hotels; the 91-room Holiday Inn Express Porto-Boavista on which it invested €21 million, the 76-room Holiday Inn Express Evora on which it spent €16.8 million and the 95-room Holiday Inn Beja which also saw in investment of €16.8 million. All three hotels will be managed by Ace Hospitality Management, a subsidiary of the Mercan Group.
Following completion of the projects, Mercan’s portfolio in Portugal will comprise 30 hotels across Porto, Vila Nova de Gaia, Matosinhos, Lisbon, Amarante, Santiago do Cacém, Évora, Beja, Algarve, and Madeira Island.
Why it matters
Mercan’s interest and involvement in the Portuguese hotel market further highlights the attractiveness and appeal of Portugal, especially to international investors, as ADRs rose significantly in 2023. Speaking with Hospitality Investor last year, Nicolas Cousin, managing director, Spain & Portugal at Christie & Co stated “Investors’ appetite in the main regions, especially Lisbon, Porto and Algarve, is strong. There's a very strong appetite for investors and brands to get their flags out in Portugal.”