IHG Hotels & Resorts Accelerates Luxury Expansion in Portugal with Landmark Signing of InterContinental Vilamoura Algarve Transforming Algarve into a Premier High-End Coastal Tourism Powerhouse by 2027

Written By: Ricky Acharjee

Ricky Acharjee

I am travel writer at Travel And Tour World with 3 years of experience covering global tourism, aviation, hospitality, and destination news. Dedicated to accurate reporting and compelling storytelling, Ricky explores the trends, innovations, and developments shaping the international travel industry while delivering engaging insights for travellers and industry professionals.

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June 24, 2026 11:33 PM

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IHG Hotels & Resorts has announced the signing of a new luxury property, InterContinental Vilamoura – Algarve, located in Vilamoura, Portugal, in collaboration with HDP Algarve SA. This strategic development highlights the Algarve’s rising status as one of Southern Europe’s most sought-after high-end coastal destinations and further strengthens IHG’s luxury footprint in Portugal, where it will become the fourth InterContinental-branded hotel.

The upcoming transformation will see the existing Crowne Plaza property undergo a full-scale renovation before reopening under the InterContinental brand in April 2027. Once completed, the hotel will feature 323 elegantly designed guest rooms along with a curated selection of dining venues, stylish bars, a full-service spa, wellness and fitness facilities, and extensive leisure offerings. It will also include versatile meeting and event spaces tailored for both corporate and social gatherings.

Positioned in a prime location near Vilamoura Marina, the famous Praia de Vilamoura beach, and several world-class golf courses, the rebranded hotel is expected to attract both international holidaymakers and the fast-growing premium MICE (Meetings, Incentives, Conferences and Exhibitions) segment. The project is set to capitalise on Vilamoura’s expanding reputation as a luxury tourism hub driven by increasing demand for upscale hospitality experiences.

(Mrs) Willemijn Geels, Vice President, Development, Europe, IHG Hotels & Resorts said: “We are delighted to sign InterContinental Vilamoura – Algarve, reinforcing our commitment to growing our luxury portfolio in Portugal. Vilamoura is one of Portugal’s most established and dynamic luxury resort destinations, and this signing reflects both strong owner confidence in the market and the continued demand for world‑class luxury hospitality experiences under the InterContinental brand.

It is especially rewarding to enter into this project alongside our valued long-term partners, HDP Algarve SA. This is a significant project and we look forward to welcoming guests to what promises to be an extraordinary InterContinental experience in the heart of the Algarve.” 

Mario Vasco Pereira, Chairman, HDP Algarve SA, commented: “We are proud to deepen our long‑standing relationship with IHG through the repositioning of this landmark resort to an InterContinental property. This transformation aligns with our vision to elevate the hotel’s offering and deliver an exceptional luxury experience that reflects the evolving profile of Vilamoura and the wider Algarve.”

Portugal is experiencing sustained momentum as one of IHG’s most dynamic and rapidly expanding emerging hospitality markets in Southern Europe, supported by strong year-round leisure travel and increasing demand for urban short-break experiences. This continued growth reinforces the group’s long-term strategic commitment to the region and aligns with its broader objective of strengthening its Luxury & Lifestyle footprint across key Portuguese destinations. The existing portfolio already includes prominent properties such as InterContinental Cascais-Estoril, Hotel Indigo Albufeira, Kimpton Atlântico Algarve, and Six Senses Douro Valley, each contributing to the country’s rising status as a premium travel hub.

InterContinental, recognised as the world’s first and most established luxury hotel brand, is currently undergoing a comprehensive end-to-end brand transformation. This evolution is grounded in its long-standing philosophy that travel has the power to broaden perspectives and connect cultures. The brand is actively redefining modern luxury by balancing comfort with discovery, catering to today’s globally minded travellers who seek both personalised service and meaningful cultural immersion during their stays.

The upcoming InterContinental Vilamoura – Algarve is expected to embody this renewed brand vision, delivering elevated luxury accommodation while enhancing the Algarve’s growing reputation as an upscale tourism destination. The property will further extend InterContinental’s global ambition to position refined hospitality in diverse destinations worldwide.

The hotel will become part of IHG’s fast-growing Luxury & Lifestyle division, which has now established itself as the second-largest segment in the global hospitality sector. This portfolio strength reflects sustained international demand for high-end, experience-led travel, supported by a network that continues to expand across major tourism and business destinations worldwide.

At present, the division includes more than 595 operational hotels across multiple continents, with an additional 392 properties currently in various stages of development. This strong pipeline highlights the group’s aggressive expansion strategy, aimed at capturing rising demand for premium and lifestyle-focused accommodation in both established and emerging travel markets.

Within Europe, the InterContinental brand maintains a strong and growing footprint, operating 34 properties across key gateway cities and resort destinations. Recent additions, such as InterContinental Chantilly Château Mont Royal, underline the brand’s continued investment in high-value European markets, strengthening its presence in both heritage and leisure-driven locations.

Looking ahead, the development pipeline includes nine upcoming European projects, among them InterContinental Belgrade, which is set to mark the brand’s return to Serbia after a gap of two decades. This expansion reinforces InterContinental’s long-term commitment to rebuilding and strengthening its presence across strategically important European destinations.

As InterContinental marks its 80th anniversary this year, the brand continues to reinforce its position as a benchmark in global luxury hospitality, shaping evolving expectations of high-end travel experiences worldwide.