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Hilton Signs $112 Million Deal with Mercan To Develop Two Hotels in Portugal

Portuguese Developer’s First Property With Hilton Opened in March

The new Mercan and Hilton project comes on the heels of the opening of their first joint venture, the 77-room Sé Catedral Hotel Porto, Tapestry Collection by Hilton, which debuted in March. (Mercan Properties Group)
The new Mercan and Hilton project comes on the heels of the opening of their first joint venture, the 77-room Sé Catedral Hotel Porto, Tapestry Collection by Hilton, which debuted in March. (Mercan Properties Group)

Portuguese hotel development firm Mercan Properties Group has signed a two-hotel deal worth 107.8 million euros ($112 million).

It has also lined up Hilton to manage the hotels, both of which are due to open in 2024 in Lagos in Portugal’s popular vacation destination, The Algarve.

Covering an area of approximately 250,000 square feet, the site of the two Lagos hotels will be an urban redevelopment project, including the 180-room Lagos Marina Hotel, Curio Collection by Hilton and the Hilton Garden Inn Lagos, with 90 rooms including 27 extended-stay-style suites.

The deal is Mercan’s third agreement with Hilton, following the opening of the 77-room Sé Catedral Hotel Porto, Tapestry Collection by Hilton, which opened in March; and the 130-room Hilton Garden Inn Évora in Portugal's Alentejo region, due to open in late 2022 or early 2023.

“The agreement now signed with Hilton is a proof of the development and interest that the city of Lagos has generated,” said Jordi Vilanova, president of Mercan Properties Group.

Carlos Miro, Hilton’s managing director of development in Spain and Portugal, added “this announcement solidifies our commitment to Portugal as a key strategic market for Hilton, with plans to more than double our portfolio in the coming years.”

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