4-Star Hotel · Algarve
4-star hotel · Algarve, Portugal
At a glance
In 2023, this 4-star hotel in the Algarve earned around €500k in accommodation revenue, heavily dependent on summer and on Booking.com. Three years on, it has repositioned pricing, diversified distribution and the direct channel as its main source of bookings. By October 2026 it already has €570k on the books - its best year ever, +14% vs 2023 - and a first quarter that now contributes to revenue.
The challenge
The property started from around €500k in accommodation revenue in 2023, but it was a summer business: heavily dependent on peak season and on a single OTA, Booking.com. Direct bookings were almost non-existent.
The challenge was clear: sell better, reach more channels, and make the winter and shoulder months count too.
What we did
2024: raise the price
A review of the rate grid across every season. ADR rose 19% (from €171 to €203) and revenue reached €522k, the best figure to date. The cost was occupancy, which fell from 59% to 52%, mostly in winter - a lesson that shaped the following year.
2025: build channel presence
With pricing repositioned, the focus moved to distribution: six new channels, from major OTAs to niche channels, and a channel manager connected to the booking engine. Occupancy recovered to 61% and the year closed at €537k.
2026: tackle seasonality
The plan targeted winter and the shoulder season: redefined seasons and cancellation policies, the peak protected with minimum stays and room-type supplements, and exclusive perks for the direct channel.
Results
+14%
Accommodation revenue vs 2023
+52%
First-quarter revenue
64%
Occupancy (+3 pp)
#1
Direct channel, ahead of Booking.com
| KPI | 2023 (before) | 2026 (to October) | Change |
|---|---|---|---|
| Accommodation revenue | ≈ €500k | €570k | +14% |
| ADR | €171 | €188 | +10% |
| Occupancy | 59% | 64% | +5 pp |
2026 figures are revenue on the books as of October, excluding what remains to be sold for November and December.
The best year ever
€570k on the books by October: 6% more than the whole of 2025, +9% vs 2024 and +14% vs 2023 - before November and December.
Volume without losing rate
3,037 room nights (+5%) and 64% occupancy (+3 pp), with ADR edging up to €188.
Winter started to count
January-March revenue grew 52%, with January +82% and March +58%. April and May each rose more than 20%.
Peak with rate
August held 95% occupancy and lifted ADR to €324. October and November are already ahead of last year.
Direct channel in the lead
Direct bookings, almost non-existent in 2022, became the leading channel, ahead of Booking.com.
Six new channels
From major OTAs to niche channels, connected through a channel manager to the booking engine - and August 2025 set an all-time record.
What's next
In three years, the property went from a summer business dependent on one OTA to a business with repositioned pricing, diversified distribution, the direct channel as its main source of bookings and a first quarter that now contributes to revenue.
That is how a seasonal business became a sustainable, year-round one.
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