The Algarve has once again proven why it’s the heartbeat of Portuguese tourism, recording the highest hotel occupancy rates and room prices in the country this summer.
According to the latest survey from the Portuguese Hotel Association (AHP), the region reached an impressive 88% occupancy rate between June and September, with the average price per room climbing to €206 – well above the national average of €161.
“The Algarve is the star of the 2025 summer,” said AHP’s Executive Vice-President, Cristina Siza Vieira, highlighting the region’s consistent performance despite mixed results in other parts of the country.
Lisbon followed closely, with occupancy rising to 86% and an average room price of €176, though Siza Vieira noted the capital may have reached a “plateau” in growth. She pointed to Lisbon Airport’s limited capacity as one of the main obstacles to further expansion. “We don’t expect prices or occupancy rates to increase,” she added.
The Autonomous Region of Madeira once again registered the highest occupancy in the country, reaching 91%, while the Azores saw a slight dip to 86% occupancy, even as the average room price increased to €143. The Centre region also experienced a decline in occupancy, dropping to 56%, though average prices there rose to €109.
Nationwide, prices increased in every region except Lisbon.
Financially, the picture was bright for most of the country: 70% of hoteliers said their total revenues were “better” or “much better” than in 2024. The most positive responses came from Madeira (97%) and the Algarve (95%), confirming both regions as top performers.
In contrast, Lisbon, the Centre, and the Oeste & Vale do Tejo regions showed signs of slowdown, with many hotels reporting weaker results compared to last year.
The survey also revealed key market insights: Portuguese tourists were the main source of visitors, mentioned by 81% of respondents, followed by the United Kingdom (55%) and the United States (45%)
When it comes to booking channels, Booking.com remains the undisputed leader, used by 96% of hotels, followed by hotel websites (78%) and Expedia (40%).
The data was obtained via a survey presented by AHP to 394 hotel and accommodation establishments across the country and answered between September 25 and October 10.
