Major Overhaul: Four Algarve Hotels Set to Transform by April 2025

Highgate Portugal's Ambitious Hotel Renovation Plans

In a recent announcement made at the inauguration of the renovated Palácio do Governador – Lisbon Hotel & Spa, Alexandre Solleiro, CEO of Highgate Portugal, disclosed exciting details about the revamp of four hotels in the Algarve. The renovations for Salgados Dunas Suites, Salgados Palace, and Palm Village are slated to commence in November 2024, with completion expected by April or early May 2025.

Transitioning to Luxury Branding

Solleiro confirmed that the São Rafael Atlântico will be rebranded under the Kimpton name. The Salgados hotels will also undergo a rebranding, enhancing their appeal in the luxury market. This transformation is part of a broader strategy to develop a family of brands tailored to each hotel within the Salgados complex, which features a golf course and a Congress Center.

Planned Closures and Market Shift

The four Algarve hotels will close at the end of October, with specific dates varying as guests check out. Renovations will officially start in November. Solleiro emphasized that the transition from an All Inclusive model to an upscale market approach will significantly alter the commercial strategy of the hotels. Branded Residences will be introduced, transforming a portion of the rooms in Palm Village and Dunas Suites into luxury branded offerings.

Growth Prospects and Future Expansion

Despite the upcoming renovations, Solleiro remains optimistic about the group's growth trajectory. They anticipate a 7% increase in RevPAR in 2024, despite some hotels being partially closed for renovations. While there will be a temporary revenue impact in the first few months of 2025 due to the closures, a swift recovery is expected post-reopening. Additionally, Solleiro hinted at potential expansion opportunities in Portugal, with new investments possibly occurring by the end of this year or in 2025.