Serviced Apartments Take Center Stage in Portugal’s Hospitality Boom

Serviced Apartments: A New Focus in Portugal’s Hospitality Surge.

Portugal’s hospitality market is in the midst of a renaissance, and serviced apartments have rapidly emerged as the centerpiece of this boom. As tourism in Portugal hits all-time highs, this niche – offering apartment-style accommodations with hotel-quality services – is proving to be the prime investment opportunity for those looking to capitalize on the country’s success. The numbers tell a compelling story: Portugal welcomed a record 31.6 million guests in 2024 (an impressive 77% growth over seven years) and generated €27.7 billion in tourism revenue . Hospitality assets across the nation saw occupancy averages in the mid-60s% and healthy RevPAR, reflecting robust demand . Yet, within this broad upswing, serviced apartments stand out. They have become “the most promising segment in travel accommodation,” often outperforming traditional hotels by blending the comfort of home with the consistency of a branded hotel stay . For investors, they offer not only a play on Portugal’s thriving tourism, but also a chance to tap into steady, rental-like income streams backed by professional management.

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Why Serviced Apartments Shine for Investors.

The attraction of serviced apartments as an asset class lies in their flexible, resilient business model. Unlike conventional hotels, serviced apartments cater to a growing cohort of travelers – digital nomads, families, extended-stay corporate guests – who seek kitchen-equipped, spacious units without sacrificing concierge or cleaning services. This hybrid model yields multiple advantages. First, it translates into higher occupancy and longer average stays, supporting reliable cash flows. Second, operating costs can be lower per unit than a full-service hotel, allowing for attractive yield margins. In Portugal, yields on quality hospitality real estate (including serviced apartments) are notably robust – roughly 5.5–6.0% in Lisbon – outpacing many European peers .

Crucially, these yields have demonstrated remarkable stability despite recent interest rate volatility—driven by sustained investor demand and a limited supply of prime assets. As one industry expert noted, even as bond yields increased, “these yields have remained stable over the years… appetite is still strong.” For investors seeking consistent income, this resilience is highly attractive. Serviced apartments, in particular, proved to be a safer asset class during the pandemic, significantly outperforming hotels. Moreover, they align well with institutional investment trends, offering scalability and meeting growing consumer demand—making them a natural target for global capital.

In Portugal, where there is a “longstanding tradition of tourist apartments,” the professionalized serviced apartment sector is “gaining ground” rapidly, drawing interest from major international investors and operators . The segment’s ability to offer “more flexible business models, attractive yields, and rising demand” from travelers makes it a logical choice for smart investors in 2025 .

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Ando Living: Pioneering the Lifestyle Serviced Apartment Model.

At the forefront of Portugal’s serviced apartment surge is Ando Living, the country’s leading lifestyle-branded serviced apartment operator. Founded in 2019, Ando Living set out to redefine hospitality by fusing upscale design, community features, and turnkey management in apartment residences. The timing was ideal. “We discovered that serviced apartments were the fastest-growing segment in hospitality,” recalls Ando Living’s Founder & Chairman Hakan Kodal . What began as a handful of projects in Lisbon has since scaled into a pan-European vision. Today, Ando Living group manages over 1,500 units mainly in Lisbon and Porto, all in prime locations. The group has also acquired recently City Aparts in London managing over 200 apartments and is expanding to other European Cities, targeting to reach 6.000 units in the next 3 years.

Ando Living branded serviced apartments will be integrated with exclusive Clubhouse facilities (pool, gym, co-working lounges, restaurant bar and a concept store) to enhance the guest and resident experience . Ando Living branded properties now represent about €500 million in real estate holdings – a testament to how quickly the concept has taken off. Importantly for investors, Ando Living’s growth has been underpinned by operational excellence. With its affiliate LovelyStay (Portugal’s largest specialized property manager), the group has welcomed half a million guests and handled over 175,000 bookings in 2024, all while maintaining guest satisfaction above 90% . Such a track record signals that the model works: high occupancy, happy customers, and dependable revenue. It’s no surprise, then, that Ando Living group has attracted substantial investor backing – raising €67.5M from Prima Europe fund – and earned recognition as Portugal’s market leader in serviced apartments . For investors evaluating where to put their capital, Ando’s success story provides a blueprint of what a well-executed serviced apartment strategy can achieve.

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The Ando Europe Fund: Marrying Golden Visa Benefits with a stable income.

Building on this operational success, OptylonKrea (Ando Living group’s invesment management arm) launched the Ando Europe Fund – a dedicated investment fund managed by Stag Asset Managers to expand the serviced apartment business and portfolio under management. This fund is noteworthy not just for its focus but also for its structure: it is a CMVM-regulated Portuguese investment fund designed to qualify for the Golden Visa program.

For global investors eyeing Portugal, this creates a two-fold opportunity. First, by investing €500,000 (the minimum for Golden Visa) into the fund, investors secure eligibility for residency in Portugal – including the right to live, work, and eventually

apply for citizenship – without needing to manage property directly . Second, their capital is put to work in the fastest-growing hospitality segment: private rental serviced apartment management business, targeting consistent annual returns in the high single digits through a mix of income and capital appreciation. The Ando Europe Fund’s strategy centers on investing into long term management contracts with short term stay license, elevating apartments standards and revenue under the Ando Living brand and design. By doing so, it leverages Ando’s proven formula to drive occupancy and rates, which in turn underpin stable income.

Moreover, the fund’s regulated nature means transparency, professional oversight, and compliance with EU fund standards – factors that appeal to the “sophisticated investors” now gravitating towards fund-based Golden Visa options . “Western investors appreciate the transparency and structure of regulated funds,” notes Hakan Kodal, OptylonKrea’s chairman, in highlighting why this model resonates . Indeed, the Ando Europe Fund has quickly gained traction, testament to OptylonKrea’s leadership: having launched the first Golden Visa-eligible fund in 2018, the team now manages over €200 million across several funds on behalf of more than 650 investors from 40+ countries . This track record provides assurance that new investors are joining a platform with deep experience and a history of delivering on promises.

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