Portugal has moved from 10th to 8th place among EU countries with the highest accommodation prices in 2024. However, a study by CoStar indicates that this trend reversed in February.
In 2024, Portuguese tourist accommodation had an average revenue per available room (ADR) of €160.46, a key metric for tracking price changes. This represents a 6.8% increase, exceeding inflation, and places Portugal among the top 10 markets with the highest hotel and tourist accommodation prices.
The top positions are held by Cyprus (€288.62), Greece (€230.11), Italy (€222.44), France (€183.96), Croatia (€175.85), Malta (€171.96), and Ireland (€169.32). Spain (€158.06) and Luxembourg (€149.85) complete the top ten.
Significant increases were also observed in Russia (+15.2% to €97.27) and Serbia (+12.9% to €126.27). Israel experienced a decline, with a 9.5% drop in revenue per room to €226.98.
Portugal ranked 13th out of 43 countries included in the CoStar study, which included countries like the UK and Switzerland, an improvement of two places from 2023. In this ranking, Monaco leads (€572.74), followed by Iceland (€292.33), Cyprus, Switzerland (€262.08), and Greece.
Analyzing February data, which represents the off-peak tourist season, Portugal’s position shifted, falling nine places to 22nd, with an ADR of €108.88. This figure still reflects a 1.6% increase compared to the same period last year.
These figures align with observations by Cristina Siza Vieira, Executive Vice President of the Portuguese Hotel Association (AHP), who noted that the sector is experiencing growth in value rather than occupancy rate. “We’re growing more in value than in occupancy rate. These aren’t the growth rates we saw up to 2022, after the pandemic. In 2023, there was a slowdown in growth, and in 2024, we see a similar trend,” she stated.
The AHP study found that 56% of respondents expect better revenues this year, while 33% anticipate revenues similar to 2024. Concerns for 2025 include uncertainty regarding US commercial policies and potential impacts on tourism demand, although this may be offset by European and Asian markets.
US tourists have contributed to the growth of the sector in Portugal. Last year, 5.1 million overnight stays by non-residents were from the US, a 12% increase compared to 2023, representing approximately 9% of the total 56 million overnight stays (+4.7%). The UK, Germany, and Spain had the highest numbers of overnight stays.
