PT
A small nature resort in the hills of Algarve — private cabins, silence, pool, sunsets and space to breathe.
Slow down. Stay longer. Feel Algarve.
A small nature resort in the hills of Algarve —
private chalets, silence, pool, sunsets and space to breathe.

Not a hotel. Not a campsite. A small village in nature.

Merra — a thoughtfully designed nature getaway in Algarve, built for sustainability, serenity, and long-term visitor loyalty.

  • Concept

    A low-density hospitality concept: only eight privately owned chalets on a lush Algarve property — easy to operate and easy to market.

  • Place

    A place where space, silence and slow living create premium pricing potential and strong guest loyalty.
Get the investment model
Excel • 5-year forecast • CAPEX • assumptions included
Merra is a boutique Turismo em Espaço Rural project in Algarve, Portugal. The concept is a low-density nature retreat with only 8 private chalets, 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 chalets (~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:
  • Chalets
  • Breakfasts
  • BBQ & food sales
  • Drinks & mini market
  • Activities & tours
  • Transfers
  • Equipment rental

This reduces dependence on occupancy only.
Business model
Multi-revenue model
Annual accommodation revenue~€290k

Operating expenses~€117k

EBITDA~€173k

EBITDA margin~60%

Net profit (after IRC 17% + VAT 6%)~€133k
Finance
Financial performance
A small project. A clear model. Predictable returns.
Merra is an 8-unit nature resort designed for operational simplicity and strong cash flow.

Low fixed costs, diversified revenue, and conservative assumptions create a resilient, profitable hospitality business in the Algarve.

Growth & Expansion

Beyond accommodation — how Merra scales revenue without scaling complexity.

Stream

Conservative

Optimistic

F&B

€20k

€40k

Experiences

€8k

€20k

Transfers

€6k

€15k

Long-stay

€12k

€25k

Total ancillary

€46k

€100k


Base financial model includes accommodation revenue only. Ancillary streams represent additional upside above base case projections.

  • Food & Beverage

    Simple, local, honest.
    • Fresh breakfast baskets delivered to the cabin (€15–25/person)
    • BBQ packs with local meat, wine, and bread (€35–60/pack)
    • Local wine selection + craft beer at reception
    • Snacks, basics, kids essentials at mini-market
    Estimated contribution: €25–40k/year at full capacity. Zero kitchen staff — outsourced prep, local suppliers.

  • Experiences & Local Partnerships

    The Messines area is surrounded by authentic Algarve culture within 20 minutes:
    • Wine tastings at local quintas (partnership, commission-based)
    • Cheese & charcuterie farm visits
    • Guided nature walks and cork oak trails
    • Fishing trips and river kayaking
    • Sunset tours to Silves castle and old town
    • Kids farm experiences
    Model: partner referral (15–20% commission) or pre-packaged add-on at booking. Zero operational overhead for Merra.
    Estimated contribution: €10–20k/year at stabilized occupancy.

  • Transfers — The Defender Experience

    Not just a transfer. A first impression.
    A restored Land Rover Defender will serve as the project's signature vehicle — airport pickup from Faro (~45 min), town runs, and local tours. Guests arrive in character before they even reach the property.
    • Airport transfer Faro ↔ Merra: €60–80/trip
    • In-region day trips: €80–120/day
    • Available for external bookings when not in use
    Estimated contribution: €8–15k/year.

  • Long-Stay & Remote Work (Low Season)

    November through March: instead of leaving units empty, offer monthly rates below the cost of renting a local apartment.
    • Monthly rate: €700–900/month per chalet
    • Includes utilities, Wi-Fi, weekly cleaning
    • Targets: digital nomads, remote workers, retired Europeans wintering in Algarve
    • Capped at 2–3 units to preserve short-stay availability for shoulder season
    Why it works: average 1-bedroom apartment in Messines/Silves area rents for €900–1,200/month. Merra offers nature, pool access, and community at the same price or less — with no lease commitment.
    Estimated contribution: €15–25k/year (2–3 units × 4–5 months).

Why risk is limited

✔ 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.

  • Planning status

    • Land classification verified
    • No REN/RAN restrictions
    • The PIP project has been received and approved by the municipality of Silves
    • Designed under Turismo em Espaço Rural regulations
    Low-impact rural tourism project aligned with PDM policies.

  • Investment opportunity

    Merra is open to a strategic co-investor or partner who shares the vision of building a sustainable, cash-flow positive hospitality business in Algarve.
    Equity partnership: €150–300k for a minority stake (25–40%).
    Debt financing: We are also open to loan structures — secured against the asset or revenue-share based. Suitable for investors who prefer fixed return over equity upside.
    Two exit paths:
    — Share buyout in Year 4–5 (~€1.4M enterprise value at 8× EBITDA)
    — Full asset sale in Year 5–7 (€1.4–2.1M at 8–12× EBITDA)
    Not looking for a lender only — looking for a partner who believes in the project.