A Rare Boutique Luxury Hospitality Opportunity in MadeiraQuinta da Cova represents a unique opportunity to develop a luxury boutique hotel in Funchal, Madeira, combining historical heritage, premium positioning, and a fully defined hospitality concept. The project includes:* Approximately 4,900 sqm of urban land* A historic estate with more than 200 years of history* A fully designed 34-key boutique hotel concept* Licensing and feasibility studies already prepared* Strong operational and capital appreciation potential ⸻Why This Project Stands Out1. Genuine Scarcity ValueVery few assets in Funchal combine:* meaningful urban land scale,* historic character,* privacy,* panoramic sea and city views,* and the ability to operate as a premium boutique hospitality asset.Most new developments in Madeira focus on conventional hotels or large-scale tourism products. Quinta da Cova is positioned within the higher-margin experiential luxury segment. ⸻Prime LocationLocated in an elevated residential area of Funchal:* minutes from the city center,* overlooking the bay,* surrounded by mature gardens and established residential properties,* while maintaining privacy and tranquility. This balance between accessibility and exclusivity is one of the project’s strongest value drivers.⸻A Fully Structured Hospitality ConceptThe masterplan is organized around three integrated components:* The restored historic manor house* A premium residential villa* A contemporary accommodation wing integrated into the landscape The proposed positioning focuses on:* luxury boutique hospitality,* heritage-driven experiences,* wellness and relaxation,* intimate private events,* premium international tourism.This significantly reduces conceptual risk and accelerates the execution timeline.⸻Strong Market FundamentalsMadeira continues to benefit from:* sustained tourism growth,* high occupancy levels,* increasing international demand,* and rising ADR performance within the luxury and boutique hotel segment. The project also benefits from:* limited direct competition,* increasing difficulty in securing comparable approvals within central Funchal,* strong branding potential with international lifestyle and luxury operators.⸻Financial PotentialAccording to the project study:* Stabilized EBITDA estimated at approximately €1.7M* EBITDA margins projected around 47%* Stabilized exit valuation estimated between €15.9M and €19.4M* Projected Year 4 ROI between approximately 103% and 138%, depending on exit assumptions Indicative acquisition price:€3,800,000(including land, licensing project, feasibility study, and financial model). ⸻Investment ThesisThis is not simply a land acquisition opportunity.It is:* a scarce hospitality asset,* with strong identity and heritage,* positioned for premium repositioning,* within one of Europe’s most resilient tourism markets.The combination of:* heritage,* location,* concept quality,* supply scarcity,* and operational upside,creates a compelling investment profile within the luxury boutique hospitality sector.⸻ConclusionQuinta da Cova offers investors a clear opportunity to combine:* real estate appreciation,* recurring hospitality income,* and exposure to Madeira’s growing luxury tourism market.In a market where truly differentiated hospitality assets are becoming increasingly rare, Quinta da Cova stands out as an early-entry opportunity into a premium product with substantial long-term value creation potential.

Farmhouse with gardenFunchal (Portugal)
Price :
$4,324,600
($9,463 / m²)
Surface457 m²bedrooms5 land4,900 m²

Its assets

In detail

Energy Performance Certificate

GreenHouse Gas emission