Client and project details have been anonymised to protect confidentiality.

An international investor approached the Portuguese market with the intention of developing a premium hospitality concept in a low-density area of Portugal’s Alentejo region.

The opportunity was compelling: an agricultural and forest estate, a strong lifestyle proposition, and the potential to combine hospitality, wellness and differentiated experience-led tourism.

But an attractive asset and a compelling vision were only the starting point.

Before committing significant capital, the project needed to answer several fundamental questions:

• Could the concept be implemented within Portugal’s regulatory and tourism framework?
• Which activities should form part of the core business model?
• What level of investment would be required?
• How should the project be financed, and on what terms?
• Could Portuguese tourism financing instruments support part of the investment?
• And, most importantly, could the concept become a financially sustainable and financeable business?

The Challenge

One of the main challenges was to transform a lifestyle-led vision into an investment project that could be clearly understood and assessed by financial institutions, Turismo de Portugal, municipal authorities, the relevant Regional Coordination and Development Commission (CCDR), and other stakeholders involved in the process.

Hospitality projects often combine several dimensions at the same time: real estate, tourism operations, experiences, wellness, sustainability, digitalisation, licensing for different activities, and financing.

When these elements are developed independently, inconsistencies can quickly arise between the concept, the revenue model, the investment budget and the financing structure.

The project therefore required an integrated and carefully coordinated approach from the outset.

Our Approach

Lisboa Investments structured the project around four main pillars.

1. Investment and Business Model

The first step was to translate the concept into a clear and objective commercial model capable of responding simultaneously to the promoters’ vision, regulatory requirements and the conditions associated with external financing.

This involved defining the positioning of the tourism operation, its regulatory framework and operating model, identifying the main revenue drivers, and assessing how complementary services could strengthen both the guest experience and the project’s economics.

The objective was not simply to create an attractive tourism concept.

It was to ensure that the operating model could support the investment and generate returns.

2. Investment Structure

The different investment components were then organised into a coherent investment plan.

This allowed the promoters to distinguish between property-related investment, operational infrastructure, equipment, technology and other expenditure required to launch the project.

This step is particularly important when external financing is being considered, because the investment plan must remain consistent across the business plan, financial projections and financing application.

3. Funding Strategy

The funding strategy was not developed only at the end of the process. It was considered from the beginning of the investment structuring process — a particularly important principle when a project intends to access public financing instruments.

Rather than treating public support as a stand-alone opportunity, the financing strategy was designed around the project’s overall capital structure.

The project combined:

• promoter equity;
• bank financing;
• a Portuguese tourism financing instrument.

The objective was to create a balanced financing structure while preserving an appropriate level of promoter commitment, long-term financial sustainability and compliance with the requirements associated with the Turismo de Portugal financing instrument.

This distinction matters:

Public financing should not be the reason an investment exists. It should strengthen the capital structure of an investment that already makes economic sense.

4. Financial Viability

A detailed financial model was developed to test the investment against realistic operating assumptions.

The analysis covered revenues, operating costs, investment requirements, financing costs, debt-service capacity and long-term project returns.

The financial model also helped identify the periods in which the project could face greater pressure on cash flow and assess whether the proposed financing structure remained appropriate.

What This Case Demonstrates

International investors assessing hospitality opportunities in Portugal often begin with the asset.

But the strongest projects develop several dimensions in parallel:

Asset → Concept → Licensing → Investment → Financial Viability → Financing → Operations

Decisions made in one area can directly affect all the others.

For example, the operating structure may influence licensing requirements. The timing of an investment may affect eligibility for certain financing instruments. And changes to the investment budget can materially alter the capital structure and financial projections.

This is why investment structuring should begin before significant commitments are made.

The Key Takeaway

Portugal continues to offer attractive opportunities for international investors in hospitality and tourism, particularly for differentiated concepts built around distinctive guest experiences.

But an attractive property or an ambitious concept does not, by itself, constitute an investment proposition.

The transition happens when the opportunity becomes:

commercially clear, operationally viable, financially structured and executable.

At Lisboa Investments, we support international investors precisely through that transition — from opportunity to structured investment.