With the arrival of Summer 2023, tourist accommodation owners are getting ready for the high season. In order to understand the profitability prospects for Summer 2023, LovelyStay has interviewed their Revenue Manager, Arthur L., who has addressed the prospects for one, two and three-bedroom properties in Porto, Lisbon and in the Algarve during the months of June, July and August. Besides, Arthur L. has also shared information about the prospects for the amount of check-ins and if the value per night is higher this year, in comparison with last year. Read this interview in order to find out about the tourist accommodation market prospects for this Summer.
LovelyStay: Could you tell us something about the profitability prospects of one, two and three-bedroom apartments in the cities of Porto, Lisbon and in the Algarve during Summer 2023?
Arthur L.: Based on our market research, we predict that one-bedroom apartments should have an average gross profitability of 2.344 euros in Porto, 3.667 euros in Lisbon and 2.816 euros in the Algarve. As for two-bedroom apartments, the predicted average profitability is 3.925 euros in Porto, 5.134 euros in Lisbon and 3.925 euros in the Algarve. Finally, for three-bedroom apartments, there should be an average gross monthly profitability of 5.051 euros in Porto, 6.283 euros in Lisbon and 7.038 euros in the Algarve.
It is important to highlight that the real profitability may vary according to different factors, such as the property’s localisation, local tourism and the apartment’s quality.
LS: What are the prospects for the amount of check-ins during the months of June, July and August?
AL: We are expecting a total of 20.600 check-ins during those three months. That amounts to an increase of about 53% when compared to last year.
LS: Bearing in mind the performance of the first months of this year, we would like to know if there is a tendency for an increase in the value per night, when compared to the same period of 2022. If so, in what percentage?
AL: Yes, as a matter of fact we can say that there is a tendency for an increase in the value per night, when compared to last year. According to our analysis, the average value per night during the first months of this year was about 46% higher than during the same period of 2022. It’s important to safeguard that this tendency may vary according to the city and region.
LS: What are the prospects for LovelyStay’s profitability during the Summer 2023?
AL: We predict that we will generate a total gross income for our partners of about 10 million euros during the months of June, July and August.
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Based on the profitability prospects, it is possible to say that the tourist apartment market in Portugal presents excellent opportunities for the owners who wish to make a profit from their properties. It’s important to highlight the importance of having a specialised and reliable property management company, such as LovelyStay, which offers a complete management service for those who are looking to make the most of their investments. If you want to know more about our secret for success, talk to our team via email at firstname.lastname@example.org or www.lovelystay.com.
Translated by Joana Teixeira