Vila Galé marks 40 years with €275 million investment and Algarve upgrades in 2026

Vila Galé investment drive in the Algarve in 2026

In 2026, Vila Galé is combining a heavy programme of investment and building works with celebrations for 40 years in business. In the Algarve, the group is continuing to refurbish several properties ahead of the peak season, with spending of €3.3 million, while also pushing forward construction on 14 new hotels scheduled to open by the end of 2027-part of an overall investment plan totalling €275 million.

With nine hotels in the Algarve, the Portuguese group expects to grow in the region this year. “The instability we’re seeing worldwide means people are booking later,” says Rosário Ribeiro, Vila Galé’s Director of Operations in the Algarve. She adds that “bookings at the moment are in line with last year, but demand is reacting more slowly, and we’re expecting growth through last-minute reservations closer to the high season”.

Hotel Albacora expects 9% growth in summer

Vila Galé publicly presented a €400,000 refurbishment at the Albacora hotel in Tavira, focused on its public areas, including the reception and dining zone. This work follows other renovation projects under way, such as at the Ampalius hotel in Vilamoura and the group’s property in Lagos.

Heritage setting and on-site facilities at Vila Galé Albacora

Set within a former Algarve tuna-fishing camp-the Ferreira Neto camp-Vila Galé Albacora has 173 rooms, created from what were once fishermen’s houses. The site also includes a ‘master suite’ located in the space that used to be the foreman’s home.

The complex incorporates an old school building, now used as a children’s area (Clube Nep), as well as a period bakery that has been converted into a museum connected to tuna fishing. There is also a chapel where many British couples now hold weddings.

“This hotel is very special; it represents Vila Galé’s first example of restoring historic heritage,” notes Pedro Ribeiro, the hotel group’s Director of Marketing and Sales.

Within the Albacora hotel there is also a jetty where guests can catch boats to reach beaches on islands in the Ria Formosa. These facilities were upgraded too, alongside improvements to the gardens.

Guest profile, nature demand and a 2% price adjustment

“Our main customer is domestic; in August we have 90% Portuguese here, and many families,” says Luís Marreiros, Director of Vila Galé Albacora. He adds that “during the rest of the year, we see a lot of demand for birdwatching and connected to the salt pans we have nearby”.

Marreiros says that “since January we’ve seen a 5% increase in occupancy rates, and we’re forecasting 9% growth in the high season”. The leading source markets for the Tavira property are German and Portuguese, although he points out that “Nordic guests are increasing a lot, especially Danes and Norwegians, who like birds and nature-related activities, which they can do here”.

“During festive periods, like Carnival and Easter, we had a lot of Spaniards here,” Marreiros adds, underlining the importance of the food offering as well. “In Tavira, there’s plenty of tuna, and octopus does very well too,” he notes.

Despite the wars, the outlook for the Algarve hotel remains positive. “Portugal as a country, and the region, give people confidence,” says the Albacora director, explaining that in summer there will be “a 2% price adjustment, to reflect the improvements that were made and also the increase in costs”.

Six new hotels in Portugal and eight in Brazil

Alongside refurbishment spending, Vila Galé is moving ahead with the construction of six new hotels in Portugal and eight in Brazil, which are expected to be completed by the end of next year. The less positive part of the group’s outlook relates to its hotels in Cuba, which remain closed with no prospect of reopening, due to the country’s political crisis.

In Portugal, investment in the new hotels totals €120 million. This figure mainly reflects rehabilitation works for hotel projects in Lisbon (in the former B.Leza bar space, at Largo do Conde Redondo), in Caxias (at the Paço Real de Caxias, a former summer residence of kings and princes), in Penacova, in Miranda do Douro, in Golegã, and on Terceira Island in the Azores.

In Brazil, the group is proceeding with investments of 900 million reais (equivalent to around €155 million) in eight new hotels, located in the states of Maranhão, Alagoas, Minas Gerais, Paraíba and Santa Catarina. The new hotels that the Portuguese group has in the pipeline in Brazil are also expected to be completed by the end of 2027.

“This has been an important year of investment for Vila Galé, following the last few years, which were also marked by many openings of properties, both in Portugal and in Brazil,” concludes Pedro Ribeiro.