Mercan Properties plans to expand from 12 to 31 hotels in Portugal by 2030, highlighting growing Canadian interest in the hospitality sector.
In a noteworthy development within the realm of international real estate investment, the Canadian conglomerate Mercan Properties, which made its inaugural foray into the Portuguese market in 2015, is poised to significantly amplify its footprint in the nation’s hospitality sector. The group’s ambitious strategy entails an expansion of its hotel portfolio from a current tally of 12 to an impressive 31 accommodation units by the close of the decade.
As it stands, Mercan Properties boasts a comprehensive portfolio that encompasses 31 hotels, collectively offering a staggering 3,430 rooms, underpinned by a formidable investment of approximately 1.2 billion euros. This substantial financial commitment underscores the group’s confidence in the burgeoning potential of Portugal as a prime destination for both leisure and business travelers.
According to recent reports, Mercan Properties is in the process of implementing a novel investment paradigm within the hospitality domain, facilitated through the establishment of the Mercan Private Equity Fund I, which has been endowed with a capital of 140 million euros. This innovative approach is particularly noteworthy as it aligns with the newly instituted ARI (Autorização de Residência para Investimento) regime, which mandates a minimum investment threshold of 500,000 euros in designated investment units, superseding previous options that permitted lower capital commitments.
The group’s forward-looking vision is already manifesting in the form of several exciting projects currently underway, including three new hotels in the picturesque locales of Gaia and Portimão. Among these ventures is a four-star Marriott hotel in Gaia, a five-star Hilton in Alvor, and the highly anticipated Hard Rock Hotel in Praia do Vau. The latter project is particularly ambitious, involving the rehabilitation of a previously abandoned structure and representing an investment exceeding 200 million euros.
Mercan Properties’ strategic expansion in Portugal’s hospitality sector not only reflects a robust confidence in the market’s potential but also highlights the increasing allure of Portugal as a coveted destination for global investors. As the group continues to navigate this dynamic landscape, one can only speculate on the myriad opportunities that lie ahead for both the company and the Portuguese economy at large.
