Now reopened as Hotel Indigo Albufeira, the 80-room property now features both indoor and outdoor pools and a spa.

Now part of the IHG family, the new hotel is being operated by AHM – Ace Hospitality Management, part of the Mercan Group.

Hotel Indigo Albufeira underwent renovations that maintained its original structure while breathing new life into the four-star property. The design draws heavy inspiration from the Algarve’s natural beauty, reflecting the region’s blue skies, Atlantic waters, and earthy terracotta tones in homage to the local reefs and corals. Handcrafted macramé, shells, and wave-inspired forms add to the coastal ambiance. One of the hotel’s highlights is the exclusive guest-only outdoor pool on the sixth floor, which also embodies the maritime references.

The surrounding leisure area has 40 sun loungers and hammocks that are subtly inspired by the local fishing traditions, although they invite you to relax, as do the large starfish-shaped cushions that decorate them. Right next door, a 70-seat bar welcomes guests daily from 11am to 10:30pm, with 24h service for in-house guests, including room service with both light bites and more substantial meals.

Indoors, the wellness area features a swimming pool, water circuit and spa, where treatments are rooted in local ingredients. Oranges from the Algarve are used in essential oils and the orange blossom tea is used in the welcome ritual, while sea salt from Tavira and seaweed from the Atlantic are incorporated into the treatments.

“As is the practice for this IHG brand, we sought to strengthen the connection with the community surrounding this unit, which was already well-known in the region. Due to the hotel’s location, very close to the beach, the stay already provided a strong connection with the Algarve’s nature, but we wanted this to also enhance the experience within all spaces, making it more engaging,” explains João Figueira, Director of Operations and Business Development at AHM.

The hotel unit acquired by the Mercan Properties Group, with an investment of €13 million in 2024, is the first hotel in the Algarve to be managed by AHM. Its reopening created 29 direct jobs and signals the group’s growing confidence in the region’s hospitality potential.

“The Algarve is one of the most renowned Portuguese tourist regions, with great potential to attract national and international visitors. These factors have reinforced our ambition to operate in the Algarve, bringing the experience acquired over several years in managing hotel and restaurant concepts in the North and Alentejo regions”, says Mariano Faz, CEO of AHM, a company of Mercan Group responsible for hotel management.