Economy

Sonae Sierra Boosts Portugal’s Luxury Tourism with €60 Million Investment

01 Feb 2025 3 min reading

Sonae Sierra, in partnership with U.S.-based PGIM Real Estate, is making a bold move to strengthen Portugal’s luxury tourism sector. With a €60 million investment, the company is set to develop a high-end resort in Meia Praia, Lagos, located in the heart of the Algarve—one of Portugal’s most iconic tourist destinations.
This luxury resort will feature 158 units, divided between hotel accommodations and apartments, offering modern amenities and a design that blends seamlessly with the natural landscape. Covering 17,000 square meters, the development will include indoor and outdoor pools, a state-of-the-art spa, fine-dining restaurants, and leisure areas designed to cater to families, couples, and solo travelers.
Construction is set to begin in early 2025, with an anticipated opening in 2027. The project aims to deliver a premium experience while reinforcing Portugal’s position as a key player in the global luxury tourism market.
This initiative highlights the growing confidence in Portugal’s tourism industry and its potential to attract high-end visitors. The Algarve, known for its scenic coastline and vibrant culture, continues to draw international attention, making it an ideal location for such a development.
The resort not only adds value to Portugal’s hospitality sector but also demonstrates the importance of sustainable growth and economic stimulation. Large-scale investments like this contribute to job creation, infrastructure improvement, and increased international visibility, further boosting the country’s appeal to tourists and investors alike.
The project in Lagos marks the second investment under the joint venture between Sonae Sierra and PGIM Real Estate, following the acquisition of the Cénica Porto Hotel, Curio Collection by Hilton, in Porto earlier this year. With a focus on expanding their portfolio, the partnership plans to grow its asset value to approximately €200 million, targeting other strategic markets like Lisbon and Algarve before exploring opportunities abroad.
This strategy highlights the importance of diversified investments to sustain long-term growth. By focusing on luxury tourism, the partnership aims to tap into Portugal’s unique strengths—natural beauty, cultural richness, and hospitality expertise—ensuring its competitiveness on the global stage.
Sonae Sierra’s investment not only elevates the Algarve’s status as a luxury destination but also reinforces Portugal’s reputation as a thriving market for sustainable tourism and real estate development. Such initiatives are vital for economic growth, attracting global investors, and solidifying Portugal’s position as a leading destination for premium travel experiences.

Economy