LUSA 10/16/2025

Lusa - Business News - Portugal: Hotel occupancy rate at 81% over summer, autumn should be favourable

Lisbon, Oct. 15, 2025 (Lusa) - The Portuguese Hotel Association (AHP) on Wednesday gave a positive assessment of the summer, with occupancy rates remaining stable at 81% and the average price per room rising slightly to €161.

The results of the AHP's ‘Summer 2025 Review’ survey, covering the period between June and September, state that "the Algarve is the star of summer 2025", according to the AHP's executive vice-president, Cristina Siza Vieira.

The average price per room in the Algarve rose to €206 and the occupancy rate to 88%, maintaining its price leadership, while Lisbon maintained the average price per room at €176, with average occupancy rising to 86%.

"We are entering a plateau in Lisbon and we will not see an increase in either occupancy rates or prices," said the AHP vice-president.

Cristina Siza Vieira highlighted Lisbon airport as one of the obstacles to growth in stays in the city, considering that the structure is already operating at full capacity.

"I don't think the trend in the hotel industry will be to lower prices," said the executive when confronted with the stagnation in Lisbon.

The Azores region is on the decline, with occupancy rates falling to 86%, although the average price per room rose to €143.

Similarly, the central region also saw its occupancy rate fall to 56%, but the average price per room rose to €109.

According to data from the AHP survey, the average price per room rose in all regions of the country except Lisbon.

The region with the highest occupancy rate was once again the Autonomous Region of Madeira with 91%.

The survey data reveal a favourable evolution of "Total Revenue" at the national level, with 70% of hoteliers indicating that total revenue was “Better” or "Much Better" compared to 2024.

The best results were recorded in Madeira and the Algarve, with 97% and 95% of respondents, respectively, indicating results higher than the previous year.

Conversely, there were signs of a slowdown in the Central, Lisbon and West, and Tagus Valley regions, where a significant proportion of hoteliers reported "Worse" or "Much Worse" revenues compared to 2024.

As for booking channels, Booking.com remains the leader for 96% of respondents, with 78% indicating the hotels' own websites and 40% Expedia.

The ‘Summer Review & Autumn 2025 Outlook’ survey was conducted between 25 September and 10 October by the Office of Studies and Statistics among AHP-associated tourist developments.

Responses were obtained from 394 tourist developments, with a confidence interval of 95% and a margin of error of 4.4%.

The AHP forecasts a "more favourable quarter" for the autumn period, despite a "progressive moderation in bookings", according to today’s statement.

Based on the ‘Summer Review & Autumn 2025 Outlook’ survey, for October, 55% of hoteliers indicated that bookings are “Better” or "Much Better" than last year, with particular emphasis on the Algarve, Madeira and Alentejo regions.

For November, expectations are more cautious, with 43% of respondents anticipating improvement.

For December, 38% report higher booking rates than the same period last year, with the Algarve, Alentejo and Madeira regions standing out, where more than half of hoteliers report better bookings compared to 2024.

Portugal remains the main source market for 79% of respondents, followed by the United Kingdom (56%), the United States (42%) and Germany (33%).

AJR/AYLS // AYLS

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