Salgueiro 02/09/2022 0 Comments

North Americans surrendered to Portugal

In the presentation of its results, LovelyStay – a Local Lodging company – avers that in the months of June, July and August alone, it generated more than 7 million euros in gross revenue for owners. The number exceeds by 234% the figures for the same period last year and by 337% those of 2019 – considered, until then, the best year for tourism.

Among the nationalities that stayed the most in LovelyStay properties, Americans are in first place – with an occupancy rate of 13.6%, followed by the Spanish (11.4%), French (9.4%), Portuguese (7.8%) and English (6.4%).

“According to the data made available by Turismo de Portugal and the TravelBI Platform, LovelyStay is with a higher average profitability than competing properties. In Lisbon we are about 43% above average, in Porto 32% and in Algarve 18%. These results follow a positive evolution of the company that doubled its client portfolio in the last three years and has a more and more complete and efficient team”, highlights LovelyStay’s CEO, William Tonnard.

According to the company, the best way to know the profitability of a property is precisely to understand the average yield per type and per area of the country. During this summer – June, July and August, a studio apartment had an average monthly income of 2.780 euros in Lisbon, 2.338 euros in Porto and 2.428 euros in the Algarve. A one-bedroom apartment (T1) made an average of €4,307 in Lisbon, €3,417 in Porto and €3,131 in the Algarve.

As for a two bedroom property, the average monthly income during the summer months was €6,479 in Lisbon, €5,067 in Porto and €4,485 in the Algarve. In line with average price developments, the income on a three-bedroom property was €8,246 in Lisbon, €6,465 in Porto and €6,621 in the Algarve.

“These figures are important to explain to potential investors which areas of the country are best to invest in and which property typologies have the best return on investment. Obviously, if you invest in decoration, in details and comfort for guests, profitability increases significantly. That’s why we have a specialized team that helps all clients from the application for the AL license, to the decoration of the properties,” stresses Tonnard.

Fall and winter booking trend for Lisbon and Porto is still strong

For the coming months, LovelyStay already has a well defined strategy. The booking trend during autumn and winter for Lisbon and Porto is still strong and the expectation is to keep the average prices high. For these two areas of the country, between October and March, the expectation is to generate more than 10 million euros in revenue for the owners. For the Algarve, which is naturally the most challenging area of the country during the colder months, the focus will be on medium-term bookings precisely to attract those who want to escape the harsh European winter and have the possibility of working from anywhere in the world – the well-known digital nomads.