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Holiday Inn Beja is establishing itself as a landmark in the city
Holiday Inn Beja, open since August 2024, was the first international hotel brand to open in the capital of Baixo Alentejo, and has quickly become a landmark in the city. According to Diogo Fragoso, director of Holiday Inn Beja, the property records an average occupancy rate above 70% and has several upcoming developments that promise to attract even more guests to this four-star hotel.
As part of this special feature, Publituris visited the capital of Baixo Alentejo and took the opportunity to explore Holiday Inn Beja, a four-star property with 95 rooms spread across four floors, opened by Grupo Mercan Properties in August 2024 following an investment of €16.8 million. It was the perfect occasion to speak with its director, Diogo Fragoso, about the journey of a property that is already “establishing itself as a landmark in the city.”
“Mercan Properties decided to open a hotel in the heart of Baixo Alentejo, in Beja, because it identified a genuine need in the city and a business opportunity, both in terms of accommodation and the F&B concept,” explained Diogo Fragoso, offering a positive assessment of nearly two years of operations.
For this reason, the director says the decision to invest in the city “came at just the right time, because it was something Beja was missing.” “We made the right call, and we are meeting our goals on a daily basis,” he added, noting that average occupancy exceeds 70%, largely driven by the domestic market and, in particular, the corporate and MICE segments.
Diogo Fragoso revealed that, from the moment the investment was announced, the opening of Holiday Inn Beja “generated a great deal of anticipation” in the city, partly due to the building itself, which had long been prepared for hotel use but had remained vacant for many years, waiting for a project to take root there.
So it came as no surprise that the first guests were the residents of Beja themselves. “When we opened under the Holiday Inn brand, people were very curious, they came in, they explored, they started returning,” he recalled, noting that the property’s restaurant, “Chaparro”, named after the most iconic tree of the Alentejo region, was one of the main draws that brought locals through the door.
Today, as Diogo Fragoso puts it, the “restaurant is as important as, if not more important than, the rooms,” also serving as a way for Holiday Inn Beja to represent the city itself and showcase Alentejo cuisine, particularly to guests arriving from elsewhere. “Beyond thinking about business, we also have a responsibility to represent the city and its people. The people of Beja need to see themselves in us,” he said, explaining that it is for this reason that “Chaparro” hosts Sunday lunches featuring traditional Alentejo singing (cante alentejano), as well as all-Alentejo buffets, an offering that has resonated with both domestic and international guests.
Domestic Market Dominates, But International Visitors Are Also Present
Baixo Alentejo is not typically among the country’s most visited regions by international tourists, so it comes as no surprise that at Holiday Inn Beja, the domestic market is seen as “vital,” even as the property also welcomes foreign guests, particularly corporate travelers and event attendees.
“In addition to Portuguese guests, who are a vital market for us, we have the Spanish market. Spain is very important, not only because of geographic proximity, but also because of the business activity in the region,” he explained, adding that the international guest mix is “somewhat spread out,” as the property receives “delegations of various nationalities” visiting Beja on account of the city’s Air Force Base.
Germany, Italy, the Netherlands, Brazil, and the United Kingdom are among the top countries of origin for international guests at Holiday Inn Beja, which also hosts various MICE events and welcomes leisure travelers over the weekends.
International guests, Diogo Fragoso adds, choose Holiday Inn Beja because they recognize it as a property belonging to an international brand, namely, the InterContinental Hotels Group (IHG), which gives them confidence that “service standards, quality, and comfort are aligned with the brand itself.”
That said, the director acknowledges that Holiday Inn Beja is not immune to seasonality, given its inland location. “Our seasonality is felt only mildly, it doesn’t have a major impact,” he noted, explaining that “corporate demand makes up for the winter months, when leisure tourism slows down.”
As for the guest profile, beyond nationality, Diogo Fragoso reveals that Holiday Inn Beja tends to attract “families with young children,” typically around the age of 40, as well as older travelers seeking “a more relaxed kind of tourism, one focused on wine and regional cuisine.”
Motivation: “The Full Range of What Alentejo Has to Offer”
Diogo Fragoso is convinced that the majority of leisure guests who visit the region come for “the full range of what Alentejo has to offer.” “It’s everything together, the landscapes, the tranquility Alentejo brings, the food, the people, the wines, the olive oils,” he summarized, also highlighting the role that Alentejo’s traditional choral singing plays in motivating tourist visits.
“Music is something that carries great weight right now. Cante alentejano has been rediscovered and reinvented. In fact, Beja is a hub of innovation in Cante Alentejano,” he explained, adding that “Beja has cante artists who are now known throughout the country,” which also helps draw domestic visitors to Holiday Inn Beja.
But it is not only Beja’s own offering that attracts tourists, as Diogo Fragoso notes, “Alentejo, right now, is one of the standout highlights of everything this country has to offer.”
“There are destinations that are starting to feel saturated, like the Algarve or Lisbon, and Alentejo offers great diversity, partly due to its geographic size, which makes it one of the largest territories in the country. Alentejo can offer a peaceful vacation in the interior, whether at an Alentejo farmhouse or at a city hotel like ours, where we still offer gastronomic experiences and other activities such as hot air balloon rides or a simple bike ride,” he noted, also referencing the museums and beaches, including riverside beaches, that Alentejo has to offer.
For this reason, the director of Holiday Inn Beja believes that “Alentejo has everything it takes to become the pinnacle of hospitality in Portugal,” positioning itself as “a very strong and highly competitive alternative” for those looking to escape busier, and pricier, destinations.
Despite the region’s unique offering, challenges do exist. Diogo Fragoso points first and foremost to accessibility. “We can’t help but feel, every single day, the reality of being in the interior,” he lamented, citing what he described as “very limited” transport links, while also acknowledging that improvements have been underway since the hotel opened and that progress is already being felt. “I believe that, with everything being done, accessibility will become a minor issue,” he added.
Another unavoidable challenge in Alentejo is the shortage of labor, with Diogo Fragoso admitting this is a topic that “concerns Holiday Inn Beja considerably” and that the property works to address, including through the recruitment of immigrants. While 80% of the hotel’s 40 to 45 employees are local, the property also employs foreign nationals and staff from other parts of the country.
The Future Will Bring New Developments
Diogo Fragoso is optimistic about Holiday Inn Beja’s performance and, while acknowledging some impact from current global geopolitical tensions, primarily at the international market level, he remains upbeat about the summer and the remainder of the year. “Right now, the indicators compared to last year are very positive. We believe we are on track for growth,” he said.
The director’s positive outlook is also fueled by a number of upcoming developments at the property. While he was not yet in a position to reveal all the news, Diogo Fragoso disclosed that Holiday Inn Beja is preparing to join the Literary Hotels Network being created by Turismo do Alentejo in partnership with Turismo de Portugal, a fitting move, as the hotel has been associated with a literary theme since its opening.
“I believe we have what it takes to join, and I think it’s something that will greatly boost our hotel. Our theme, beyond the restaurant and the Holiday Inn brand itself, draws inspiration from Florbela Espanca and Mário Beirão, the latter a poet from Beja, a son of this land. There are many references to these poets and their works throughout the hotel lobby, the rooms, and the meeting room areas. It makes perfect sense for a hotel like ours to embrace a project like this,” explained Diogo Fragoso.
Joining this literary hotels network, the director added, would allow the property to host literary events as well, tapping into a form of “tourism that is only just beginning to be explored.”
“We have a great deal to gain, and so does the region, because there is so much cultural richness in this space. It is a bet that will pay off,” concluded the director of Holiday Inn Beja.