The Pestana, Vila Galé and Hoti groups, contacted by Lusa, reported what they expect for the upcoming festive season, pointing to similar or higher demand than last year.

Portuguese hotels estimate occupancy rates between 65% and 95% for Christmas and New Year's Eve, a "positive" evolution compared to 2024, but which varies according to the region of the country. “Forecasts for the festive season point to average occupancy rates between 65% and 95%, varying according to the region and period. In Lisbon and Porto hotels and in Pousadas de Portugal, occupancy is estimated to be between 65% and 85% at Christmas and between 85% and 95% at New Year's Eve, with an average stay of two nights,” said the Pestana Hotel Group.

In the Algarve and Madeira, “occupancy during Christmas should be between 65% and 80%, while New Year's Eve could reach 90% to 95% occupancy, with longer average stays — around four nights at Christmas and five nights at the end of the year,” it highlighted.

For his part, Miguel Proença, CEO of the Hoti Hotéis Group, said he expects an occupancy rate of 70% at Christmas and 90% for New Year's Eve. “Considering the Group as a whole, demand is evolving in line with last year, with a view to stabilization,” he added, noting that, considering that Hoti Hotéis “includes 20 hotel units in Portugal, there are diverse realities, but, overall,” he does not see “significant changes compared to 2024.”

According to the CEO, “Madeira is the area with the highest demand throughout the season,” and “for the other regions, demand is quite high, especially at the turn of the year.”

In turn, Pedro Ribeiro, marketing and sales director of Vila Galé, said that “in general, the month of December is positive compared to the same month in 2024,” pointing out that in the various regions of Portugal where the group has hotels, “there is interesting and higher demand.” “It varies considerably from region to region, but we will always have the Portuguese market as the primary market for most hotels, followed by the English market in the Algarve,” he highlighted, pointing out that the other hotels are quite diversified in their markets. He further added that “in comparative terms for both periods” the hotel group is “above last year in terms of revenue forecast”.

The Pestana Hotel Group detailed its outlook by region, pointing out that it has positive prospects for Christmas and New Year's Eve. “Porto should register a performance superior to the previous year, while Lisbon should maintain similar levels. In the Algarve, an increase of between 5% and 7.5% is expected during the Christmas season, with New Year's Eve in line with 2024. Madeira confirms its very positive dynamic, with increases between 7.5% and 10% – both at Christmas and New Year's Eve,” it indicated.

Growth

As for the Pousadas de Portugal, according to the group, “they should show growth between 4% and 17%, depending on the region, with revenue per room increasing between 5% and 8%, reflecting the strengthening of the average price and the demand for differentiated experiences”.

For the Pestana Group, “this is a crucial time to mitigate the typical seasonality of December, especially in hotels in Lisbon, Porto, and Pousadas de Portugal, where there is strong performance in restaurants, banquets, and corporate events.”

The hotel group also outlined its expectations for 2026, following a “positive” 2025. “For 2026, expectations point to a scenario of market slowdown, with some price pressure in several European capitals, resulting from increased supply and stabilizing demand,” it stated, indicating that in the Algarve, “an impact associated with the collapse of the British market is expected, while Madeira should maintain a positive year, albeit with a more restrained growth rate.”

According to the Pestana Group, “the biggest problem could arise from airport infrastructure. The experience of airport users in Portugal, in Lisbon throughout the year and in the Algarve during peak seasons, is very poor, and this will obviously have impacts on future demand.”