The savvy investor knows that many of the best investments out there are diamonds in the rough. Those are the types of projects that usually have the best return of investment (ROI). A rehabilitation project, for example, is a great chance to buy something not as expensive and turn it into something of great value. Now, you have a chance to do that in a prime location that attracts thousands in foot traffic of tourists every year, always searching for a new and great place to stay. That place can be your next investment: a beautiful Boutique Hotel in the Algarve region.
What is a Boutique Hotel, Anyway?
A Boutique Hotel is a hospitality venue that is relatively small in size, but big in comfort and amenities. It differs from big chains by having way less rooms – typically less than 100 – while still offering amazing service to the guests.
Many Boutique Hotels opt to incorporate the local culture in the decor, the menu and sometimes even in some of the amenities offered. For all that, although it may not offer huge rooms, it overcompensates in charm and uniqueness. For all that, Boutique Hotels attract a special clientele that like to have one-of-a-kind experiences wherever they go.
The very concept of a Boutique Hotel is likely to have been created by an investor. Bill Kimpton, a former mobile investment banker, got inspired by European bed and breakfasts and, after many stays at soulless hotels, decided to create his first Boutique Hotel, The Bedford Hotel. The year was 1981 and the city was San Francisco. From that point on, the concept gained life on its own, without ever losing its exclusive appeal and allurement.
Lagos: A Magnificent Destination and a Profitable Investment
Located in the vivid Western Algarve, Lagos is one of the top destinations of the Algarve Region, alluring tourists from all over the world and also many Portuguese citizens and residents. Statistics Portugal shared that, in 2023, Lagos had 1,7 million overnight stays.
The city has a charming historic centre that, especially during the summer, welcomes visitors that love to walk in its cobble stone pavements, enjoying the lovely restaurants and local shops. Beaches like Dona Ana and Camilo have been considered some of the most beautiful in the world, inviting tourists to have a dip on their pleasant transparent waters, surrounded by amazing geological formations.
Sunset lovers have a memorable time at Ponta da Piedade, seeing the sun disappear into the ocean. After that, the night starts in some of the many lively bars the city has to offer.
All in all, Lagos is a city that makes people fall in love with it and that is established as a great holiday destination while also still offering great investment opportunities. The perfect place for a new boutique hotel. All you need is to find a great property at a good price, so you can turn it into the next Lagos’ must-visit accommodation. Gladly, we have you covered on that.
Meet Your Future Boutique Hotel in Lagos
The first step to setting up your Boutique Hotel in Lagos is finding the property that will make your vision come to life. Keep in mind that location is pivotal in the hospitality industry as too far from the beach, on a coastal town, for example, might scare away your potential guests.
That is not an issue with this property we have for you. Located only 500 meters aways from the nearest beach, which is Praia do Batata, this former bar is within walking distance to the beautiful coastline of Lagos as well as of everything one might need during a stay. Great restaurants, including the dreamy The Garden, can be found within a short 2-minute walk
Your guests will have no shortage of places to go and things to do and passersby will have a chance to be charmed by your hotel and maybe choose your business for a future visit.
Even though there has been a former project to convert this space into a Boutique Hotel - which has been approved by the city council – we turned to AI to help us imagine what your delightful new business could look like. This is not a project, it is for inspiration only, but still, something that shows the great potential of this property.
Reasons to Invest in the Algarve
Tourism in Portugal, as a whole is already a great industry to invest in, as is has been increasingly growing with no signs of slowing it down. According to Statistics Portugal (INE) in August 2024 alone, the tourist accommodation sector in the country registered 3.8 million guests, a 5.9% increase when compared with the same period last year. That brought 948.1 million euros in total revenue to the industry and €765.5 million in room revenue, which is 7.7% more than in August of the previous year.
Can you guess each of the regions of Portugal was the responsible for the majority of those stays? Yes, the Algarve accounted for 36,6% of the total profit the touristic sector of the country had in that period.
Numbers aside, the Algarve is simply an amazing location, blessed with beaches so mesmerizing that one can only dream of all bathed in the clearest waters and surrounded by charming and historic city centres.
Ready to be the next successful business owner of the Algarve? Contact us now to secure this amazing opportunity.
