Sierra investment vehicle invests in luxury project in the Algarve

• The project, located on the Algarve beachfront, will comprise a total of 158 keys across hotels and apartments, featuring a leading international luxury brand
• The project will represent an investment of over €60m, with construction scheduled to begin in the first quarter of 2025
• This will be the joint venture’s second investment, following the first acquisition completed in April of the recently opened Cénica Porto Hotel, Curio Collection by Hilton, located in the centre of Porto and positioned as a 5* upper-upscale
• The joint venture with PGIM aims to acquire, develop and manage differentiated hotel assets with a global value of around €200m GAV
• This operation is in line with Sierra’s investment management strategy, which aims to establish partnerships with recognised investors in the market, to promote attractive investment opportunities

Sierra, the multinational company that operates in an integrated manner in the real estate sector, in partnership with PGIM Real Estate, one of the largest real estate managers in the world, has announced a new strategic investment in the Algarve. The project consists of the development of a luxury resort, in Meia Praia, in Lagos, through the joint venture established in 2024.

This investment is supported by Iberian Hospitality Solutions (IHSP), whose operational team brings extensive experience in hotel management and operations, ensuring excellence in execution and maximising the value of the asset.

With a target GAV of €200 million, the joint venture focuses on acquiring hotels of relevant size in consolidated destinations, implementing strategies that maximise value creation. This investment is part of PGIM Real Estate’s value-add strategy for the European market.

Luis Mota Duarte, Deputy CEO and Executive Director, Investment Management at Sierra, says: “We are very pleased to announce the second asset in our strategic partnership with PGIM Real Estate. This project highlights our commitment to diversifying the portfolio with high potential assets, reinforcing our presence in strategic sectors, such as the hotel industry. The choice of the Algarve, combined with the profile of this project, reflects our ambition to contribute to the development of stand-out tourism in Portugal.”

Offering panoramic sea views, the resort will have a gross construction area of ​​approximately 17,000 m2, with its opening scheduled for 2027. The hotel’s future facilities will include indoor and outdoor pools, a state-of-the-art spa, sophisticated restaurants and leisure areas. The design, integrated with the natural landscape, celebrates the unique essence of the Algarve, creating an exclusive experience for different types of guests – couples, families and individual travellers.

This investment underlines Sierra’s strategy of creating partnerships with renowned global investors, such as PGIM, and of identifying opportunities with high profitability.