Group to close four hotels in winter

Vila Galé hotel group is to close four of its nine hotels in the Algarve next winter.

Speaking to Jornal de Negócios, Gonçalo Rebelo de Almeida, marketing director for the group, said the Vila Galé Albacora, Marina, Praia and Náutico would be closing during the next winter season due to the current economic crisis and the existing hotel offer in the region.

The hotel group’s two main markets, the national and Spanish, which account for 50% of receipts, are down by 15%.

Gonçalo Rebelo de Almeida said: “Although the Dutch and German markets are up by 10% to 15%, it is not enough to compensate for the losses.

“Also, Easter bookings are significantly down, although the summer numbers are looking more positive.”

The hotel group, like many others in the region, is now promoting all-inclusive deals to attract customers, something which is concerning restaurateurs, who are now facing fierce competition from hotels and resorts.