Description
Hotel for renovation approved by Turismo de Portugal
PROPERTY IN ITS CURRENT STATE:
The property consists of 2 side-by-side buildings and an open plot (backyard). The external load-bearing walls are in excellent condition. Renovation works have begun.
This property was acquired with a previously approved project (PIP) for the construction of 6 spacious residential apartments. A thorough analysis of the business model was conducted. This analysis found an efficient way to improve the project considering the following:
BUSINESS CONCEPT: Reconstruction of the existing property into a 4-star hotel comprising 34 independent units (rooms, apartments, commercial space, café/bar and restaurant, and parking for 9 cars).
Prime Location: Located in the historic center of Sintra, this property represents a strategic investment choice, maximizing its overall appeal.
Sustainable Tourism Growth: The local tourism industry is popular with over 5 million tourists annually and grows each year. This provides investors with the assurance of lasting appeal and sustained returns.
Exclusivity: There is only a finite amount of real estate in the historic center, and it is protected by regulations that restrict development. This limits the supply of new properties and makes existing properties more valuable. Demand for real estate in the historic center is also high, which further drives up prices. As a result, properties in the historic center are highly sought after and exclusive.
Accommodation Shortage: The ongoing shortage of tourist accommodation presents a lucrative market niche for investors ready to meet this demand.
Municipal Interest: The municipality supports the revitalization of Sintra's historic center (ARU zone) and offers tax benefits to developers (6% VAT instead of 23%).
Untapped Potential of Areas: This property offers significant untapped potential, as its previous project underutilized existing space. By exploring the unused area while maintaining the same construction volume, the investor significantly increases the project's ROI.
Ideal business model: short-term rentals in this prime location generate the highest revenue per square meter, making it a profitable and sustainable investment. Furthermore, dividing the property into smaller units increases financial flexibility and reduces risk.
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