“Portugal Has - and Will Continue to Have - Enormous Tourism Potential,” Says Mariano Faz, CEO of AHM

Source: Executive Digest

In a hospitality sector undergoing transformation, marked by the consolidation of international brands, sustainability pressures, and new operating models, Mariano Faz, CEO of AHM - Ace Hospitality Management, closely follows the evolution of an increasingly competitive and demanding market.

With a career built across Europe, the Middle East, and the Iberian Peninsula, the executive brings a global perspective on leadership, investment, and innovation in hospitality.

In an interview with Executive Digest, Mariano Faz reflects on the challenges of scaling operations in Portugal, the role of teams in creating value, attracting talent, and the future of an industry that, in his view, is becoming increasingly integrated into the fabric of cities.

Your career has taken you through very different markets, including Europe, the Middle East, and the Iberian Peninsula. What has changed the most in your leadership style throughout these experiences?

Working across multiple cultures gives us a much broader perspective on people and on how to lead projects. In international environments, your comfort zone is often the last thing you find — and that forces you to develop a real ability to adapt to local practices, rhythms, and expectations. The result is continuous learning: we realize that there is no single “right” way to do things; there are simply different approaches to achieving the same goal.

In leadership, this translates into teams that are more open-minded, more curious, and less resigned to the idea that “this is how it has always been done.” Living and working with such diverse cultures makes us question what many people take for granted and encourages us to constantly challenge the status quo. In hospitality, in particular, I do not believe in rigid realities: the experiences we deliver and the results we achieve are built every day through our energy, motivation, and ability to execute.

What lessons do you bring today from the growth experience at The First Group?

My experience at The First Group can only truly be understood alongside what I experienced in Dubai. Both reflect a spirit of innovation, reinvention, and constant ambition to surpass expectations — and that is what I carry with me today.

Three key lessons stand out: never accept “this can’t be done.” Replace that phrase with “how can we make it happen?” Apply this mindset to everything: from hotel concepts to operational models, from repositioning assets to entering new markets, cities, and customer segments, while maintaining high standards of discipline and execution — because innovation without discipline does not scale.

Was there a defining moment in your career that reshaped the way you view hospitality?

Yes — and it happened during my very first year in hospitality. I did not follow a conventional path into the industry: I entered from a highly strategic perspective. At Barceló, my work focused mainly on analyzing investments and hospitality opportunities. I understood the numbers, but I did not yet understand “the hotel” — the operation, the details, and above all, managing people.

The defining moment was realizing how a number on paper becomes a real guest experience — and how that transformation depends on the passion and commitment of the people working in hospitality. From that point on, the way I viewed the industry changed: in everything I do, I now seek a balance between the discipline of results (the rigor of the numbers) and the human energy that makes a project come alive and become memorable.

AHM currently manages more than 1,300 rooms and has a pipeline of 2,000. What is the strategic rationale behind such rapid growth in Portugal?

Portugal has — and will continue to have — enormous tourism potential. Our rationale is based on a very asset-focused approach: we first look at the asset and its context and ask ourselves how we can maximize its performance (revenue, positioning, and guest experience), and which international brand is best suited to enhance it.

This approach leads us to analyze opportunities throughout the Portuguese market, both in primary cities and in secondary destinations with strong demand and room for value creation. That is why we have grown with a broad vision for Portugal, without limiting ourselves to a restricted group of cities — we evaluate each opportunity based on the merit of the asset and its execution potential.

Are you focusing more on asset management, operations, or hybrid models? Where is the greatest value today?

Our main focus is on hotel management — that is where our attention is concentrated and where we believe we can create the greatest value. At the same time, we are evaluating other alternatives that allow us to grow sustainably and in line with our strategy.

Over the last few years, we have invested significantly in people and in building a management structure capable of supporting future growth. Many management companies only make that investment once projects are already open; in my view, that is a mistake. First, you build the team — then you scale.

It is this human capital that allows us to respond to any operational challenge, maintain consistent quality standards, and ultimately protect investors’ profitability. Just like in soccer, the “Champions League” is won by strong teams.

We are witnessing a consolidation of the hospitality sector in Portugal. Are we entering a new phase of market maturity?

I have some doubts as to whether we are truly seeing full consolidation in Portugal’s hospitality sector. I still see room for new ideas, new concepts, and new opportunities — both in established destinations and in emerging markets.

That said, it is true that the market has matured significantly in recent years, something reflected in both the growth and improvement of the hospitality offering. Even so, I believe Portugal has not yet reached its full potential: there is still room to elevate the product, diversify the offering, and continue creating value in a sustainable way.

How are the pressures surrounding tourist housing and the debate on sustainable tourism impacting hospitality operating models?

Sustainability is no longer a topic “under discussion” — it is an unavoidable reality for all of us. When we talk about sustainable tourism, to me, we are mainly talking about quality: it is not about increasing the number of tourists, but rather about elevating the type of demand we want to attract and ensuring that growth is compatible with local communities, resources, and existing infrastructure.

In this context, it becomes even more important to work with international brands that bring strong loyalty programs with them. This helps us strengthen product consistency and attract a guest profile that is more aligned with the offering and more predictable in its spending behavior. The impact, in practice, is clear: hoteliers must continue to innovate and deliver added value through the guest experience, service, and the way hotels integrate into the city.

In your experience with multimillion-dollar projects, what makes a hospitality project truly attractive to investors today?

First and foremost, it is essential to have the right fundamentals: a solid investment rationale, realistic assumptions, and a robust operational plan. Naturally, return on investment is the main metric used to measure success. However, consistent returns do not depend solely on having “a good project” — they depend, to a great extent, on the partners and teams involved from beginning to end.

I like to quote Ed Catmull, co-founder of Pixar: “Give a good idea to a mediocre team and they will find a way to ruin it; give a mediocre idea to a great team and they will improve it.” The same applies to projects. A project becomes truly outstanding — and attractive to investors — when it is executed by the best: the right people, with the right culture, and the ability to deliver results.

Is hospitality succeeding in attracting qualified young talent, or does it remain a structural challenge?

It is a question I am asked very frequently. Hospitality is capable of attracting highly qualified young people, but it still demands something not everyone is looking for: it is an intense, highly human industry where the operational pace requires vocation and a passion for service.

I recently read an article about artificial intelligence and its impact across various industries. At first glance, technology is often seen as the field that attracts the most talent because of its innovation and growth; paradoxically, it is also one of the sectors expected to be most affected by AI. In the end, every industry has its challenges; ours is to continue making hospitality careers more attractive through training, career progression, and projects that motivate new generations.

Looking ahead to the next 10 years, how do you envision the evolution of hospitality in Portugal?

I believe there is always much more to be done in hospitality — and that the next major evolution will be making hotels more diverse and truly differentiated spaces. It may sound cliché, but I see differentiation happening mainly through food and beverage concepts designed for local audiences and through other spaces with a very clear and intentional identity.

In practical terms, I envision the hotel as a collection of “micro-spaces” within the same building: we divide the product into several areas and become highly specialized in each of them in order to attract different guest profiles throughout the day. Ultimately, hotels will become true social spaces with distinct rhythms and a more active role in city life — centers of community and experience, not just places to sleep.