Portugal's hospitality boom drives €434M in renovations and new hotels
Portugal's hospitality sector is seeing major investment, with €434 million poured into domestic projects in 2025 alone. This figure accounts for 16% of the country's total commercial real estate spending. Meanwhile, renovations—from boutique hotels to private homes—continue to reshape properties across the nation.
Renovation costs in Portugal vary widely. A full exterior overhaul can run between €700 and €1,200 per square metre. For less extensive work, prices typically fall between €750 and €900, depending on complexity. Many homeowners focus on high-impact upgrades, such as stylish flooring, to modernise their spaces.
In the hospitality sector, new developments are underway. The Manor House, a 19-room boutique hotel, will soon open in the Douro region. Elsewhere, Meliá Hotels International is expanding its presence, with an 11th property set to launch in the Dominican Republic.
Bathroom renovations have also seen a shift toward quality. Over the past two years, 87% of investment in this area has gone toward mid-range and high-end fixtures. Experts advise prioritising changes that match individual needs rather than following trends blindly.
The surge in spending reflects growing demand for upgraded properties, both residential and commercial. With costs varying by project, careful planning remains key to achieving the desired results. The trend toward premium finishes and tailored designs shows no signs of slowing down.
