15 HOTELS FOR SALE TOTAL 81.2 MILLION

Tobi Hughes·
Madeira News

The hotels for sale in Madeira pile up. The Charming Hotels group decided to place its four units (the photo illustrates Quinta do Monte) on the market for an estimated 40 million euros. But there are more spaces in several real estate agencies and prices vary between 800 thousand and 16 million euros. Some hotels can be readjusted to health or housing spaces. 

From Jornal Madeira

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Tobi Hughes

6 Responses

  1. Not just as a result of Covid19, far too many hotels and AL accommodation on Madeira now and just not enough tourists to fill them. Just not enough business to go around even in good years. The market has reached saturation point and it’s hardly surprising that those clinging on by their fingertips now need to sell.

    1. Selling hotels is part of the business. Every year there are at least a dozen hotels for sale in Madeira and a dozen are taken by new owners. In what was considered a “golden year” for tourism in Madeira, 2017, more than a dozen hotels were sold. Those hotels have not been abandoned.

      The “too many hotels” is not based on perception, it is based on numbers. Hotels don´t need 100% occupancy to be profitable. I can tell you most 4- and 5-star hotels are profitable with anything above 30% occupancy. The figures used to see whether there are too many hotels in a region is the combination of the average occupancy and the Revenue per Room. Within the whole Portugal, Madeira is the region with the ahighest average occupancy across the year and the one with the largest revenue per room. So, it is hard to argue with this performance that “there are too many hotels”. Numbers don´t show it.

      As I said, selling hotels has always been part of the industry. Just like at a given moment, someone may decide to sell their home if they can make a good deal out of it.

      1. Its a tourist destination island so its hardly surprising that hotels are being built, its currently in vogue and hotel groups do their research, and as we say competition is good for the customers. Maybe bringing more tourists to fill more rooms will fill more taxis ( my golly they need it) and put more bums on seats in the over abundance of restaurants.

  3. The pandemic has probably tipped some smaller hotel chains over the edge! Until more flights (bringing in more tourists) are available, there is a limit to the tourist numbers in Madeira needed to fill the increasing number of hotels/ apartments (airbnb etc) capacity!
    The new Savoy Palace might struggle to fill its large number of rooms. Can the airport handle many more flights at peak times?

  4. And yet more and more hotels are being built on Madeira all the time.
    This last year has just seemed as though I live in the middle of a building site

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