GUESTS
7.2 M
+2.9%YoY
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Market Brief · QUARTERLY BRIEF
Tourism & Hospitality Brief
Portugal | Q4 2025
Portugal, Q4 2025: overnight stays +1.9% and total revenue +5.5% year on year.
Quarterly · Historical edition · Published on · Revised data · Paulo Braga, Hospitality Real Estate Advisor
Language EN
Historical edition, published on 4 September 2026 with data for Q4 2025.
EXECUTIVE SUMMARY
The quarter closed the year growing slowly
Tourist accommodation recorded 7.2 million guests (+2.9%) and 17.1 million overnight stays (+1.9%). External markets stayed dominant, but Statistics Portugal notes this was the fifth consecutive quarter in which their share was smaller: 11.8 million overnight stays (+0.9%) against 5.3 million resident ones (+4.2%).
Total revenue reached EUR 1,418.6 million (+5.5%) and room revenue EUR 1,044.7 million (+4.5%), with ADR up 2.0% and RevPAR up 1.0%. The quarter was not even: October grew 2.2% in overnight stays, November 0.7% and December 3.0%.
For owners and lenders, the close of the year shows revenue leaning ever more on rate and on the domestic market.
Executive takeaway
Total revenue grew 5.5% and overnight stays 1.9%, but RevPAR advanced only 1.0%: revenue per available room barely moved.
KEY INDICATORS
Revenue up, RevPAR nearly flat
OVERNIGHT STAYS
17.1 M
+1.9%YoY
TOTAL REVENUE
EUR 1,418.6 M
+5.5%YoY
ROOM REVENUE
EUR 1,044.7 M
+4.5%YoY
REVPAR
EUR 55.3
+1.0%YoY
revised change
ADR
EUR 109.0
+2.0%YoY
Reading: total revenue rose 5.5% and room revenue 4.5%, yet RevPAR came in at 1.0% with ADR at 2.0%. The distance between rate and RevPAR is the occupancy that was lost.
DEMAND
A fifth straight quarter of lower external weight
RESIDENT OVERNIGHT STAYS
5.3 M
+4.2%YoY
NON-RESIDENT STAYS
11.8 M
+0.9%YoY
Resident overnight stays increased 4.2% to 5.3 million and non-resident stays 0.9% to 11.8 million. Dependence on external markets remains concentrated in the same regions: 84.0% of overnight stays in Madeira, 82.1% in the Algarve and 79.0% in Greater Lisbon, against 35.6% in the Alentejo and 28.0% in the Centre.
Dependence on external markets by region
% · Q4 2025, share of non-resident overnight stays in the regional total
Madeira
+84.0%
Algarve
+82.1%
Greater Lisbon
+79.0%
Alentejo
+35.6%
Centre
+28.0%
REGIONS
Only the Azores lost overnight stays
Change in overnight stays in the regions INE singles out
% · Q4 2025, year-on-year change
Alentejo
+7.0%
North
+3.8%
Algarve
+0.8%
Centre
+0.7%
Azores
-3.0%
Among the regions Statistics Portugal singles out, the Alentejo led at +7.0% and the North followed at +3.8%; the Algarve (+0.8%) and the Centre (+0.7%) were close to flat. The Azores was the only one in negative territory, at -3.0%.
OPERATING PERFORMANCE
Occupancy held RevPAR back
Portugal, tourist accommodation establishments.
ADR
EUR 109.0
+2.0%YoY
REVPAR
EUR 55.3
+1.0%YoY
revised change
TOTAL REVENUE
EUR 1,418.6 M
+5.5%YoY
ROOM REVENUE
EUR 1,044.7 M
+4.5%YoY
ADR for the quarter was EUR 109.0 (+2.0%) and RevPAR EUR 55.3 (+1.0%). With rate rising more than RevPAR, capacity use declined. Total revenue, EUR 1,418.6 million (+5.5%), grew ahead of room revenue, EUR 1,044.7 million (+4.5%): the room was the weaker part of the top line. Since Statistics Portugal releases no quarterly occupancy, the utilisation reading is indirect.
REAL ESTATE LENS
Tourism & Hospitality Real Estate Lens
A fifth quarter leaning further on the domestic market
Fact
Overnight stays +1.9%, total revenue +5.5%, ADR +2.0% and RevPAR +1.0%.
Interpretation
RevPAR of EUR 55.3 growing 1.0% with ADR at 2.0% describes a quarter in which the extra revenue came from rate and not from filled beds. That is not pricing power: it is price offsetting utilisation.
Implication
Each asset is worth testing by where its demand comes from: those leaning on external markets, as in Madeira (84.0%) or the Algarve (82.1%), rest on a segment that grew 0.9%. In a 2026 budget, a rate increase without occupancy should not be treated as structural growth.
OUTLOOK
Three signals to watch in the first quarter of 2026
- Whether the external markets' share falls for a sixth quarter.
- Whether the Azores reverses the quarter's -3.0%.
- Whether RevPAR reconnects with ADR, or occupancy keeps cancelling the rate increase.
SOURCES
- Primary source
Statistics Portugal, Tourism Activity, Q4 2025, released 13 February 2026.
- Complementary sources
- Statistics Portugal, Tourism Activity, Q1 2026, released 15 May 2026. Year-on-year changes revised for the preceding quarter.
- Release date
- Data status
Revised data
- Notes
Levels and year-on-year changes from the INE quarterly release of 13 February 2026; year-on-year changes revised in the release of 15 May 2026. Total revenue for the quarter is the exact figure in millions of euros INE printed in the quarterly release of 13 February 2026. Room revenue for the quarter is the exact figure in millions of euros INE printed in the quarterly release of 13 February 2026. INE publishes no quarterly occupancy rates.