Very few domestic Portuguese hotel chains consist of more than a small handful of properties, but a new player has arrived on the scene.

Among Portugal's hotel chains are Fundação Inatel, Sana Hotels, Tivoli Hotels — owned by Thailand’s Minor International — VIP Hotels, Vila Galé Hotels and Pestana, which is the largest by asset count and probably the most known.

Now, hotel operations and ownership firm Discovery Hotel Management has joined this small band of Portuguese hoteliers, having created boutique Octant Hotels from its portfolio of 18 properties.

Luís Mexia Alves, CEO of Discovery, which was founded in 2012, said so far, Octant has 515 rooms in eight properties, all of which previously were in the firm’s “Design Collection.” They include:

• the 66-room Octant Douro — formerly Douro41 Hotel & Spa — in Castelo de Paiva.
• the 46-room Octant Lousã — formerly Palacio do Lousã Boutique Hotel — in Lousã.
• the 72-room Octant Évora — formerly Évora Farm Hotel — in Alentejo.
• the 32-room Octant Santiago — formerly Santiago Cooking & Nature — also in the Alentejo region.
• the 65-room Octant Praia Verde — formerly Praia Verde Boutique — in the Algarve.
• the 56-room Octant Vila Monte — formerly Vila Monte Farm House — also in the Algarve.
• the 123-room Octant Ponta Delgada — formerly Azor Hotel — in the Azores.
• the 55-room Octant Furnas — formerly Furnas Boutique Hotel — also in the Azores.

“They all share similar design principles and offer a sophisticated level of service and experiences," Alves said. "They instinctively are set apart from the other hotels and resorts within the fund and attract similar guests to one another, so the move to encompass them under one brand was a natural progression."

Alves said there has been an overhaul of service standards and management in respect to the eight hotels, but none have undergone major renovation.

At one point during the pandemic, Portugal was the only European country open to United Kingdom visitors, but that did not last long despite Portuguese hoteliers' efforts to reopen and hire staff. The U.K. is an important feeder market for Octant, Alves said, albeit second to demand from the Iberian peninsula.

“When the announcement was made, we saw an influx in interest from the U.K., but we had minimal availability across our hotels due to the popularity amongst the Portuguese," he said. “We are seeing increasing numbers from Brazil and the U.S. and see both countries as regions with huge potential."

He added Octant has been on Discovery’s drawing board since 2020.

“Since then, we have carried out work across the hotel portfolio, including the creation of the new brand itself as well as the construction of facilities, including the new pool suite at Octant Douro, heating the pools at Octant Vila Monte and the creation of a spa at Octant Lousã, just to provide a few examples,” he said.

The major overhaul at Octant's properties is in areas such as sustainability, local supply chains and accessibility of services and offerings. Alves said the onus on localism and freedom of use are the main focuses.

“Twenty four-hour pools, 24-hour gyms. … Components of the new brand include the ability to check in and check out at no set time, utilize all the hotel’s facilities at all hours and, indeed, enjoy breakfast at any time of the day," he said. “We want guests to holiday as they want, not as we tell them to do so. … This coupled with the launch of an entirely new series of luxury hotel-specific experiences will ensure that tranquility, relaxation and exploration go hand in hand."

The new brand reflects a strong commitment to environmental, social and economic sustainability, Alves said.

“We currently have more than 200 local suppliers in our hotels, and the goal is to reach 400 in the next two years,” he added.

Menus, wine lists and design all mirror local landscapes and cultures.

“Experiences have been developed to see the very best on the hotel’s doorstep, whether it be a pottery session with a local artisan, olive-oil tasting with a local producer or cooking with a local culinary hero. Each experience provides a true immersion into life in the region,” he said.

Portugal, along with the entire hotel industry, is experiencing significant labor shortages, Alves said.

“All over Portugal, staffing is the biggest challenge right now. The Algarve and the Azores [have] the most need at the moment,” he said.

Discovery executives will concentrate brand growth domestically for the time being.

“For now, the focus is on Portugal and increasing presence for the new brand within all of the key feeder markets,” he said.

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