Merra is a boutique Turismo em Espaço Rural project in Algarve, Portugal. The concept is a low-density nature retreat with only 8 private cabins, shared outdoor infrastructure and additional revenue streams (food, activities, experiences).
The project focuses on:
slow tourism
families and long stays
low operating complexity
high margins
controlled scale
This is not a hotel. This is a compact, cash-flow oriented micro-resort.
Concept
A small-scale nature resort with strong cashflow and low risk
25–30 min to main Algarve beaches
countryside, quiet environment
car-accessible
no REN / no RAN / no Natura restrictions
classified as Solo Rústico – Espaço Agrícola
Suitable for Turismo em Espaço Rural (TER).
The area combines:
nature + privacy + proximity to the coast
ideal for family and slow tourism.
Location
Location — São Bartolomeu de Messines, Algarve
8 tourist cabins (~40 m² each)
pool & lounge area
reception + mini market
BBQ zones
outdoor cinema
bikes
padel court
local tours & experiences
septic + borehole infrastructure
Low construction density (~5% land occupation).
Product
Project composition
Algarve is Portugal’s #1 tourism region:
~28% of all national overnight stays
average stay ~4 nights
strong international demand (DE, NL, UK, US)
growing trend: nature & rural stays
Small eco-resorts benefit from:
less competition
higher ADR
longer stays
lower seasonality
Market
Algarve tourism fundamentals
Revenue is diversified beyond accommodation.
Revenue:
Cabins (core)
Breakfasts
BBQ & food sales
Drinks & mini market
Activities & tours
Transfers
Equipment rental
This reduces dependence on occupancy only.
Business model
Multi-revenue model
Indicator;Value;
Units;8
Average occupancy;50–60%
ADR;€160–190
Sold nights/year;~1,500
Accommodation revenue;~€295k
Ancillary revenue;€60–100k
Total revenue;€350–400k
✔ only 8 units → easy to fill ✔ low fixed costs ✔ diversified revenue ✔ owner-operated ✔ no large staff ✔ small footprint ✔ TER zoning compatible ✔ no dependence on beach tourism ✔ scalable model
Even with conservative assumptions (ADR 140€, occupancy 45%), the project remains profitable.