Hotel Indigo Albufeira reopens after full renovation

In just over five months, the former Hotel California Urban Beach has been transformed into a more welcoming and sophisticated destination for guests, located just a two-minute walk from the iconic Fisherman's Beach in Albufeira. Now rebranded as Hotel Indigo Albufeira, this newly opened 80-room property features both outdoor and indoor pools, a full-service spa, and is managed by Ace Hospitality Management (AHM), part of the Mercan Group.

Reopening as part of the IHG brand family, the four-star Hotel Indigo Albufeira retained its original structure while breathing new life into the space. The Algarve region served as the central inspiration for the hotel's refreshed interiors, with design elements reflecting the deep blues of the Atlantic Ocean and the terracotta hues of coastal reefs. Handcrafted macramés, seashells, and wave-inspired motifs enhance the room décor, continuing into the sixth-floor outdoor pool area – an exclusive amenity for hotel guests.

This panoramic leisure space is surrounded by 40 sun loungers and net hammocks that nod to the region’s fishing traditions, now inviting guests to relax under the sun. Complementing the atmosphere are large starfish-shaped cushions and a vibrant bar with 70 seats, open daily from 11:00 a.m. to 10:30 p.m., offering continuous service to guests, who also have access to in-room dining options.

Inside, the wellness area features an indoor pool, water circuit, and a spa where treatments are inspired by local ingredients. Algarve oranges are used in essential oils and the signature welcome tea, while sea salt from Tavira and Atlantic seaweed are incorporated into the spa rituals.

“As is customary for this IHG brand, we made a conscious effort to enhance the connection with the surrounding community, which already held this property in high regard. Thanks to its prime beachside location, the hotel naturally cultivates a strong bond with the Algarve's natural beauty – a connection we extended indoors to enrich every guest’s experience,” explains João Figueira, Director of Operations and Business Development at AHM.

This hotel represents the Mercan Group’s first operational property in the Algarve under AHM management and is the result of a €13 million investment in 2024. The project has created 29 new direct jobs, reinforcing Mercan’s commitment to the economic and tourist development of the region.

“The Algarve remains one of Portugal’s most renowned tourism destinations, with exceptional potential to attract both domestic and international travelers. These factors supported our strategic decision to bring our extensive experience in hospitality and dining – already well established in Northern Portugal and Alentejo – to this vibrant region,” says Mariano Faz, CEO of Ace Hospitality Management, the Mercan Group’s hotel management company.