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Algarve bound. Group expansion

November 10th, 2023

In the 1990s, Madeira became too small for the Pestana Hotel Group’s ambitions. It turned out that the Algarve’s beaches were the perfect destination for a company that wanted to expand.

Hotel com piscina Pestana Algarve
Pestana Alvor South Beach

In 1992, outside a large hotel in the small fishing town of Alvor, a local gave a pair of outsiders the news: “A family from Madeira are buying this.” Little did the man know that he was talking to Dionísio Pestana himself, the new owner of a series of five hotels in the Algarve. The lack of awareness was understandable: this was the first time that the name Carlton – the brand name used by the Group at the time – had expanded beyond the shores of Madeira.

Establishing a presence on the mainland was a natural step, and southern Portugal the right focus. The Pestana Hotel Group’s strengths and the Algarve’s key features coincided: sun, beach and unforgettable holidays. Madeiran experience and hospitality were applied when buying three hotels in Alvor – the Alvor Praia, Delfim (current Blue Alvor Beach) and D.João II – and another two in Lagos and Armação de Pêra.

For both Portugal and the Pestana family, investment in Algarve tourism has proved a winner. For decades now, parents, children and grandchildren have been staying at the same hotels, and everything seems to indicate that this love affair with the region is lifelong, as it continues to bear fruit. The 2000s have seen two new developments emerge, Alvor South Beach and Alvor Villas, which are located in the same place the Pestana family began their conquest of the mainland.

Pestana Algarve

Explore all the hotels of the Pestana Hotel Group on the Algarve beaches.

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