Chitra Stern, a British-Swiss entrepreneur with Singaporean roots and Indian heritage, is the force behind Martinhal Family Hotels & Resorts. As the CEO, Stern transformed a real estate venture in Portugal into a luxury hospitality brand that caters to multi-generational families. Beyond her achievements in the hotel industry, she is passionate about making an impact for global citizenship and education. Stern shared with Crain Currency her entrepreneurial journey, the evolution of Martinhal and her commitment to philanthropy.
As a key figure in Portugal's hospitality industry with Martinhal Resorts properties in Lisbon and the Algarve, your ventures likely began with a strong focus on real estate. What initially drew you to invest in these regions?
My husband and business partner, Roman Stern, and I had the opportunity to work on a real estate project in Zurich, Switzerland, where he is from. From here we started exploring more business opportunities in various growth markets. A group of investors showed us some real estate opportunities in Portugal. It was an interesting proposition and timing, as Portugal had been part of the European Union for 15 years at that time, and Lisbon had recently hosted the World Expo in 1998. Incidentally this is the neighborhood where we have opened our latest development and branded residences, Martinhal Lisbon Oriente, in Parque das Nações.
We relocated to Portugal in 2001 and could see that the country was experiencing a renaissance. Infrastructure was growing quickly, and airports were increasing their capacity, while connectivity across the country was improving. British travelers were already flocking to Portugal for its beaches and warm weather, but Portugal was still largely an undiscovered gem in Western Europe. We saw the appeal, especially for families: miles of white sand beaches, a safe and welcoming environment, picturesque villages, mild climate, delicious food and wine, a dynamic capital city, and a deep wealth of history and culture that was yet to be explored. English was already widely spoken, a key factor for international tourism.
We set out to develop our flagship resort in the Algarve, Martinhal Sagres, which opened in 2010. And then between 2013 and 2015, we opened Martinhal Cascais and Martinhal Quinta do Lago, also in the Algarve closer to Faro. In 2016, we opened our first property in Lisbon, Martinhal Chiado. Now with an award-winning resort in the Algarve and a growing brand following, it was a goal for us to bring the Martinhal experience to the heart of Lisbon and establish a boutique property in one of the most sought-after neighborhoods, Chiado.
I can imagine that bringing a concept of this scale to life required a tremendous amount of effort and determination. Can you share the story behind the first project you developed?
We were shown a plot of land to develop in Sagres in 2001, a small fishing village in the southwesternmost tip of the Algarve with pristine beaches. The area was quiet and had limited tourism. But English was widely spoken, and we instantly fell in love with the destination's rugged coastal position; the stunning, protected natural park. We envisioned creating a 5-star resort with families at the heart of our brand's DNA as we started to have children and we realized the pain points of families having children at an older age and wanting to spend luxury holidays together.
We acquired the land with some basic planning permissions, zoning and basic infrastructure in 2002 and started to develop the land in phases. We discovered the challenges of property development, its bureaucracies in a foreign land, the challenges of raising money from banks and from individual buyers of the houses and apartments we were building as part of the resort.
The biggest hurdles we faced were the start of the global financial crisis in 2008 and Portugal going into bailout in 2011. We lived onsite from 2009 through 2016 whilst completing the construction, starting a new hotel brand, building up a resort business in a far-flung corner of Europe whilst raising our kids. Despite the challenges, the adventure was a rewarding one. Martinhal Sagres opened to guests in 2010, and we grew the business to also include the shoulder and low seasons over time. We also managed to then discuss further properties in the Algarve and Lisbon, which we acquired to turn around using the Martinhal brand. The children also grew up understanding what an entrepreneurial life was about, which has formed them in a big way.
Let’s talk impact. How have you added to the positive impact on the local communities that you operate in?
The majority of our staff members are local, so we have provided a host of employment opportunities and cover ongoing hospitality training to foster growth and career mobility in the travel industry, whether they choose to stay within the Martinhal collection of hotels or explore opportunities abroad with the skills they've acquired. Additionally, in the case of Sagres, by creating an upscale resort that is open year-round that attracts guests throughout the different seasons, we bring tourism to a remote area that is otherwise very quiet in the winter months. Local people and the regional town hall have thanked us for doing this anchor project in their region, which has had positive impacts on their lives and their businesses. We are also highly regarded by Visit Portugal, the tourism ministry of Portugal, as an innovative group that has been led by foreign direct investment.
You started an international school during COVID. Can you tell us about that?
I was invited to join a special temporary task force for foreign direct investment, set up by the prime minister’s office from 2017 to 2019. Something I identified was that Portugal was attracting a lot of attention for foreign investment and especially startups, but the lack of international schools was a barrier to actually keep these companies in the country.
Without a background in opening schools or education, I knew this was a challenge that I wanted to explore and work toward opening a world-class international school that would offer the IB [international baccalaureate] system and with an international curriculum. In September 2020, we opened United Lisbon International School, which runs from early childhood to grade 12.
It was a difficult time to launch — in the middle of the pandemic, where there was still much uncertainty about how schools could operate safely. But we launched and started with 80 students. Today, I am proud there are over 600 students enrolled and 50-plus nationalities represented. In 2022, we brought in the Dukes Education group as a partner in our venture, which further elevates the school's position as a leader in education. Continuing with Martinhal's brand ethos, we have a deep commitment at United Lisbon toward fostering, teaching and inspiring the next generation of global citizens. It is based on the pillars of technology, global citizenship, entrepreneurship, the arts and sports, which Roman and I feel are crucial pillars in educating the next generation.
How has it changed the landscape of the area?
This is the first international school to open in this area of Lisbon in recent years, and it is especially fitting in its location in the Park of Nations neighborhood — which is the most modern district in Lisbon and where many families choose to live, thanks to its vibrant culture, entertainment and dining scene, and beautiful riverside setting. The school itself was erected in a derelict 1950s building that we were able to salvage and transform into a world-class facility for modern education, within a leading new campus, the Edu Hub — a new learning and innovation hub for Lisbon that attracts students, professors, technology and business innovators. It also has vast public spaces and sports grounds, making this a new and exciting addition to Park of Nations and the wider Lisbon area.