Pestana Group profits fall 4% to €105 million in 2023

Profits from Portugal’s Pestana Group, which has hotels all over Portugal and some in Brazil, fell 4% to €105 million in 2023 compared to the €109.5 million posted in 2022.

The group is the largest in the hotel sector in the country with 108 hotels, of which 76 are in Portugal.

The company’s CEO, José Theotónio, explained that the fall resulted from an extraordinary windfall obtained in 2022 from the sale of a hotel in the Algarve.

In May 2022, the group sold the Pestana Blue Alvor, a five-star resort with 500 rooms, to the Spanish investment and asset management group Azora Capital.

Revenues climbed 23% to €557 million in 2023 with revenues growth driven by the group’s hotels business which represents 67% of is entire income.

Revenues growth was also driven by the group’s real estate arm, which operates under the Pestana Residences brand, which represents 16% of the group’s business, says the company in a communiqué. 

The group’s other activities include golf, the Pestana Vacation Club, and beer production company Empresa de Cervejas de Madeira, all contributing with 17% of revenues.

The groups’s operational profits (EBITDA) stood at €189 million, down 5% on 2022, and in terms of recurrent EBITDA, this increased 25% like-for-like while net profit was up 30%.