Holiday Inn Beja Is Establishing Itself as a Leading Hotel in the City, Says Director Diogo Fragoso

Source: Publituris

Holiday Inn Beja, which has been operating since August 2024, was the first internationally branded hotel to open in the capital of the Lower Alentejo and quickly became a leading name in the city. According to Diogo Fragoso, Director of Holiday Inn Beja, the hotel records an average occupancy rate of more than 70% and is preparing several new developments that promise to attract even more guests to this four-star hotel.

Publituris visited the capital of the Lower Alentejo and took the opportunity to discover Holiday Inn Beja, a four-star hotel with 95 rooms across four floors, opened by Mercan Properties Group in August 2024 following an investment of €16.8 million. It was the perfect opportunity to speak with its Director, Diogo Fragoso, about the hotel’s journey, which is already “establishing itself as a leading name in the city.”

“Mercan Properties decided to open a hotel in the heart of the Lower Alentejo, in Beja, because it identified a genuine need in the city and a business opportunity, both in terms of accommodations and the F&B concept,” explained Diogo Fragoso, offering a positive assessment of the hotel’s nearly two years of operation.

The Director therefore believes that investing in the city came “at the right time because Beja needed a hotel like this.” “We invested at the right time and have been able to achieve our goals every day,” he said, revealing that the average occupancy rate exceeds 70%, largely driven by the domestic market and, in particular, the corporate and MICE segments. Diogo Fragoso explained that, from the moment the investment was announced, the opening of Holiday Inn Beja “generated a great deal of anticipation” in the city, partly because of the building in which the hotel is located. The property had already been prepared to operate as a hotel but had spent many years waiting for a project to take shape there.

When Holiday Inn Beja opened its doors, it was no surprise that its first customers were Beja residents themselves. “When we opened under the Holiday Inn brand, people were very curious. They embraced the hotel and began visiting and looking for us,” he said, explaining that the hotel’s restaurant, which specializes in regional cuisine and is called “Chaparro,” after the Alentejo’s most representative tree, played a major role in bringing Beja residents to the hotel.

Today, as Diogo Fragoso explains, the “restaurant is just as important as, if not more important than, the accommodations.” It also serves as a way for Holiday Inn Beja to represent the city itself and introduce Alentejo cuisine, particularly to guests from outside the region. “More than thinking about the business, we also have to represent the city. The people of Beja need to see themselves reflected in us,” argues the Director of Holiday Inn Beja. He explains that this is why the “Chaparro” restaurant organizes Sunday lunches featuring Cante Alentejano, as well as buffet meals made exclusively with “Alentejo delicacies,” an offering that has appealed to both Portuguese and international guests.

Domestic Market Leads, but International Guests Are Also Present

The Lower Alentejo is not usually one of Portugal’s most sought-after regions among international tourists. It is therefore unsurprising that the domestic market is considered “vital” for Holiday Inn Beja, although the hotel also welcomes international guests, particularly from the corporate and events segments.

“In addition to the Portuguese market, which is vital for us, we have the Spanish market. The Spanish market is very important, not only because of its proximity, but also because of the business activity in the region,” he explained. He added that the ranking of international markets is “somewhat fragmented,” as the hotel welcomes “delegations of several nationalities” that travel to Beja because of the city’s Air Base.

Germany, Italy, the Netherlands, Brazil, and the United Kingdom are among the countries of origin that have been most strongly represented among international guests at Holiday Inn Beja to date. The hotel also hosts several MICE events and welcomes guests who choose the property for leisure weekends.

International tourists, Diogo Fragoso added, choose Holiday Inn Beja because they know it belongs to an international hotel brand—InterContinental Hotels Group (IHG)—which assures them that its “service, quality, and comfort standards are aligned with those of the brand itself.”

Even so, the Director acknowledges that Holiday Inn Beja is also affected by seasonality, particularly because it is located in the country’s interior. “We experience seasonality to a limited extent. It does not have a significant impact,” he explained, noting that “the corporate segment offsets the winter periods when tourism demand is lower.”

Regarding the guest profile, in addition to their nationalities, Diogo Fragoso revealed that Holiday Inn Beja is often chosen by “families with young children,” generally around 40 years old, as well as older tourists seeking a “more peaceful type of tourism, where they can experience the region’s wines and cuisine.”

Motivation: “Everything the Alentejo Has to Offer”

Diogo Fragoso is convinced that many Holiday Inn Beja guests who visit the region for tourism are motivated by “everything the Alentejo has to offer.” “It is the complete experience: the landscapes, the tranquility that the Alentejo provides, the cuisine, the people, the wines, and the olive oils,” he said, also highlighting the importance of Cante Alentejano in motivating tourists to visit the region.

“Music currently plays a very important role. Cante has been rediscovered and reinvented. In fact, Beja is a center of innovation for Cante Alentejano,” he explained, arguing that “Beja has Cante artists who are already becoming well known throughout the country,” which also helps attract domestic guests to Holiday Inn Beja. However, it is not only the city of Beja’s offering that helps attract tourists. As Diogo Fragoso noted, “the Alentejo is currently one of the greatest highlights of Portugal’s tourism offering.”

“Some destinations, such as the Algarve and Lisbon, are becoming saturated, while the Alentejo offers great diversity, partly because of its geographical area, which is one of the largest in the country. The Alentejo can offer a peaceful vacation in the countryside, at a traditional Alentejo estate, or at a city hotel like ours, where guests can still enjoy gastronomic experiences and other activities, such as a hot-air balloon ride or a simple bicycle ride,” he highlighted, also recalling the museums and beaches, including river beaches, that the Alentejo has to offer.

For this reason, the Director of Holiday Inn Beja believes that “the Alentejo has everything it needs to become the pinnacle of hospitality in Portugal,” establishing itself as “a highly valid and competitive alternative” for those who prefer to avoid more popular destinations, which are also more expensive and crowded.

Despite the region’s unique offering, there are also challenges. Diogo Fragoso first points to transportation connections. “We cannot ignore the fact that we are located in the interior, and we feel its effects every day,” he said, lamenting that transportation connections are “very limited,” although he acknowledged that, since the hotel opened, “work has been underway to improve them, and improvements can already be felt.” “I believe that, with everything being done, transportation connections will become less of an issue,” he added.

Another unavoidable challenge in the Alentejo is the labor shortage. Diogo Fragoso acknowledged that this issue “greatly concerns” Holiday Inn Beja and that the hotel is trying to address it, including by hiring immigrants. Therefore, although 80% of the hotel’s 40 to 45 employees are local, the property also employs international team members and people from other parts of Portugal.

The Future Will Bring New Developments

Diogo Fragoso is confident about Holiday Inn Beja’s performance. Although he acknowledges that the hotel has experienced some impact from current global geopolitical tensions, particularly in international markets, he remains optimistic about the summer and the rest of the year. “At the moment, the indicators are very favorable compared with last year. We believe we will achieve growth,” he said.

The Holiday Inn Beja Director’s positive expectations are also linked to several new developments planned for the hotel. Although he could not yet reveal all the details, Diogo Fragoso announced that Holiday Inn Beja is preparing to join the Network of Literary Hotels that Alentejo Tourism is creating in partnership with Turismo de Portugal, especially since the hotel has been associated with this theme since it opened.

“I believe we meet the conditions to join, and I think it is something that will greatly energize our hotel. In addition to the restaurant and the Holiday Inn brand, our theme is inspired by Florbela Espanca and Mário Beirão, the latter being a poet from Beja and a native of the city. We have many references to these poets and their writing throughout the hotel lobby and guest rooms, as well as in the area leading to the meeting rooms. It makes perfect sense for a hotel like ours to embrace a project of this kind,” explained Diogo Fragoso.

Joining this network of literary hotels, the Director of Holiday Inn Beja added, would also allow the property to host literary events, supporting a type of “tourism that is only now beginning to be explored.”

“We have a great deal to gain, and so does the region, because there is an extensive cultural offering in this area. Therefore, this is an initiative that will also prove successful,” concluded the Director of Holiday Inn Beja.