In June, July and August, LovelyStay welcomed 34,000 guests and performed 12,000 check-ins. The company’s revenues more than tripled compared to the same period last year.
Tourism is back! In the months of June, July and August alone, LovelyStay – the leading company in the country’s short-term rental market – generated over €7 million in gross revenue for its owners. The impressive figure exceeds by 234% the figures pertaining to the same period last year and by 337% those of 2019 – considered, until then, the best year for tourism. See below for the monthly evolution:
Having welcomed more than 34,000 guests and performed 12,000 check-ins, the company ends the Summer with impressive figures. Regarding average values, during Summer this year, LovelyStay’s properties, sold on average for €156 per night – a 93% increase over last year and a 38% increase over 2019.
“According to the data provided by Turismo de Portugal and the TravelBI Platform, LovelyStay is averaging higher 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 a company that has doubled its client portfolio in the last three years and has an increasingly more complete and efficient team”, highlights LovelyStay’s CEO, William Tonnard.
Among the nationalities that most stayed in LovelyStay’s properties, the Americans are in first place – with an occupancy rate of 13.6%, followed by Spanish (11.4%), French (9.4%), Portuguese (7.8%), and English (6.4%).
Results by type
The best way to know a property’s profitability is to precisely understand the average income per type and 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) averaged 4,307 euros in Lisbon, 3,417 euros in Porto and 3,131 euros in the Algarve.
As for a two bedroom property, the average monthly income during the summer months was 6,479 euros in Lisbon, 5,067 euros in Porto and 4,485 euros in the Algarve. In line with average price trends, the income for 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 in which areas of the country it is best to invest and which types of property 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 specialised team that helps all clients from the request for the AL license, to the decoration of the properties,” comments Tonnard.
Autumn and Winter Expectations
For the coming months, LovelyStay already has a well-defined strategy. The trend of bookings 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 owners. For Algarve, which is naturally the most challenging area of the country during the colder months, the bet will be on medium-term bookings precisely to attract those who want to escape the harsh European Winter and have the possibility to work from anywhere in the world – the known digital nomads.
LovelyStay has been operating in the Tourist Accommodation market for over 7 years and expects to close in 2022 with a portfolio of over 850 mid-to-high segment properties spread across the country. With an extensive client portfolio, the company works with investors and accommodation owners who want to make their properties profitable, whether in large centres or in the country’s towns and villages. With offices located in Lisbon, Porto and Algarve, totalling more than 60 employees, the company has a professional and personalized service, according to the client’s needs, offering remote and complete management, and even consulting services for a wide range of topics, from construction to dynamic price management, from interior design to hospitality.
Translated by Miguel Marinho Soares