For accuracy, please read the full master’s thesis in Portuguese; it can be found here.

Maria Rita de Oliveira Nunes d’Angelis published a 2019 Lisbon University master’s degree study that explores the dynamics of real estate-touristic activities in the municipalities of Óbidos, Portugal (including the ruins Bom Sucesso Resort, Royal Óbidos, Quinta de Óbidos Country, West Cliffs) and Tibau do Sul, Brazil. It investigates the causes and consequences of failed second-home enterprises, resulting in ruins. The research analyzes the impact of capitalist inconsistencies, private conjectures, and the 2008 global financial crisis on these localities. Financial issues were a major cause in Óbidos, while Tibau do Sul faced diverse factors. The study highlights the vulnerability of the real estate-touristic market when dependent on banking financing and influenced by global instability. Both locations experienced similar outcomes, revealing unmet economic expectations and the sector’s fragility.

The summary of the paper focuses on the Bom Sucesos Resort resort:

The study reveals that the ruins Bom Sucesso serve as a poignant reminder of the challenges faced by second-home investors in the region.

The Bom Sucesso – Design Resort, Leisure & Golf project obtained its construction permit in 2004 but remained incomplete until 2017. The resort, spanning approximately 156 hectares, was planned to comprise 601 houses designed by 23 internationally renowned Portuguese architects, including figures like Álvaro Siza Viera and Eduardo Souto Moura. The houses varied from one to five bedrooms, totaling 2,966 beds.

The resort featured a heliport, a Hilton hotel, a dog hotel, a supermarket, convenience stores, a laundry, a hair salon, an equestrian center, a restaurant, and an 18-hole golf course. The unique concept allowed buyers to acquire a home and a living work of art designed by their chosen architect.

Despite ambitious plans, only 338 out of the 601 planned houses were built, and the resort faced insolvency in 2014. The ownership structure was complex, involving entities such as Acordo Óbidos S.A., Bom Sucesso SGPS, the Graça Moura family, Banco Espírito Santo PME Capital Growth, and the Portuguese state through Portugal Ventures.

The resort initially benefited from the Agência Portuguesa para o Investimento (API) and COMPETE funds. It was designated a Project of Potential National Interest (PIN), a classification aimed at facilitating large investments. However, it encountered financial difficulties, and the completion of key structures, such as the Hilton hotel, was halted.

In 2014, Onebiz Group acquired BS Villas, which managed the tourist exploitation of villas and the golf course. This marked a shift towards direct tourism use rather than an investment model tied to the resort. Onebiz, a multinational company specializing in franchise management, became involved in the resort’s management. Currently, the resort focuses on tourism, renting houses to temporary users unconnected to its investment, and maintaining the golf course as its primary offerings. Despite ruins in the condominium, customers continue to use the resort’s facilities.

Failure:

According to her study, the failure of Bom Sucesso resort is attributed to various factors:

1. Banking Issues: The implosion of Banco Espírito Santo (BES) is mentioned as a significant factor. BES was a crucial partner for financing home acquisitions in the resort. The structural problems in the Portuguese banking sector, characterized by excessive optimism in funding large real estate projects and exposure to bad credit, contributed to the failure.
2. Global Financial Crisis: The resort’s emergence coincided with the global economic recession, making it a particularly unfavorable time. The international economic downturn led to a contraction in real estate purchases by both national and foreign investors, as well as a reduction in financing for project continuation.
3. Over-Optimism and Mismanagement: Stakeholders point to problems in the initial planning and management of the resort. There is criticism of the resorts’ overemphasis on golf as the main attraction and their strong connection to real estate. Some stakeholders suggest that resorts were managed and promoted by individuals from the real estate sector rather than tourism, leading to a focus on construction and sales rather than understanding and meeting the needs of the tourism market.
4. Lack of Diversification: The resorts in Óbidos, including Bom Sucesso, faced criticism for their specialization in real estate-tourism, particularly with a focus on golf resorts. The text suggests that this strategy may have been a wrong choice, as it led to high prices, difficulties in selling properties, and insufficient attractions beyond golf, which impacted the ability to attract a diverse range of visitors.
5. Financial Fragility and Dependency on Banks: The financing model, heavily reliant on bank loans, proved fragile. When the banking sector faced challenges during the global financial crisis, it affected the resorts’ ability to continue construction. The resorts were heavily dependent on bank financing for both the construction of infrastructure and the purchase of properties by consumers.

In summary, Bom Sucesso’s failure is attributed to a combination of factors, including banking issues, the global economic downturn, poor planning, over-optimism, mismanagement, lack of diversification, and heavy reliance on bank financing. These challenges collectively contributed to the downfall of the resort project.

Solutions:

The text discusses the future prospects and proposed solutions for the continuation of the projects in light of the ruins of the developments in Óbidos. When stakeholders were questioned about the solution, there was a lack of hope for a short-term resolution. According to the interviewee from the Câmara de Óbidos, the future involves exercising more caution and attempting to sell the resorts, claiming that this situation will normalize. There is a legal gap concerning the insolvency of resorts, leaving uncertainties about who should take responsibility for completing the works in case of bankruptcy.

The interviewee from CCDRLVT mentioned that future projects will be subject to the new legal framework, requiring proof of financial viability for project execution. The recent revision of land policy laws ensures that if the construction of large-scale projects, such as tourist complexes, is authorized and the installation deadline is not met, the land will revert from urban to rural. However, there is no clear legal directive from the Portuguese government regarding what to do with the existing resorts, leading to complex debates and conferences to find a solution.

CCDRLVT is cautious about revising master plans in other municipalities, integrating discussions to anticipate and control situations similar to those in Óbidos, which were ultimately dependent on the actions of the property owners.

All interviewees agreed that any action towards the resorts should come from the private sector, as they are the legitimate entities to handle such projects.

Regarding solutions proposed by resort managers, they leverage the initially implemented tourism facilities, such as golf, hotels, and country clubs, to make the investments profitable, albeit insufficiently. The Resort Bom Sucesso, for instance, resold the tourist operation of the houses to the Onebiz company to make the constructed properties profitable. The resort still offers the built houses for tourist accommodation. Additionally, the golf course hosts national and international championships, accommodating players in the resort’s houses and ensuring all equipment rentals, carts, as well as the use of restaurant spaces.

Other resorts like Royal Óbidos and Quinta de Óbidos adopt similar strategies, focusing on hotels, golf courses, and additional amenities to enhance profitability. The text concludes that these solutions are precarious and do not allow for results as lucrative as when the developments were fully operational.

Please read the original Blog here and watch the News report from Sexta as 9 in Potugess here.

On January 18, 2019, the RTP1 Friday at 9 program presented an exposé titled “António Godinho, the Truth About a Hoax,” aiming to unveil the reality behind the actions of the former Montepio presidential candidate. The program disclosed Godinho’s alleged involvement in a simulated purchase using a check from Montepio.

The investigation highlighted a potentially questionable relationship between an insolvency administrator of BS Villa and a Spanish bank. The implication of this relationship suggested that the Portuguese State might need to repay 4 million euros in community funds. The Quintas de Óbidos, initially envisioned as a luxury resort, faced insolvency, prompting a Public Ministry investigation into António Godinho, who had been previously regarded as an advocate for ethics.

The report delved into a tourist investment valued at 35 million euros, eventually acquired by Grupo Abanca for less than half its assessed value. The insolvency process surrounding this transaction raised suspicions, leading to expectations of a protracted legal battle. The intricate plot involves an insolvency administrator chosen by Abanca and implicates António Godinho in the controversial proceedings.

See the News report from Sexta as 9 in Potugess here.

Please read original article of Jornal De Negocios from September 30th 2017 here.

Summary about Bom Sucesso Resort:

The Bom Sucesso resort, located in Óbidos, initially received the status of Project of Potential National Interest (PIN) in 2006, but later lost it. Despite this setback, the luxury development continued, featuring houses designed by renowned architects like Álvaro Siza Vieira. Plans for a Hilton hotel were also in place, but construction had to be halted. The companies behind the project, Agreement Óbidos and Bom Sucesso SGPS, ultimately filed for insolvency in 2014. However, the majority of the houses were sold to foreigners, including Ricardo Salgado, the former president of Banco Espírito Santo (BES), who himself bought a property in the resort.

Please read the original article here provided by Gazeta das Caldas. This blog post gives some insight into the previous owner’s structure.

Summary:

The Onebiz Group, based in Matosinhos, has acquired the tourist operation of Bom Sucesso houses and golf from Sociedade BS Villas for 63,500 euros. The group aims to relaunch the Bom Sucesso development, positioning it as a contemporary destination with increased integration with the West region. The strategy includes a focus on strategic products such as golf, water sports, gastronomy, and heritage. Onebiz has already launched a new brand for golf and villas, reworked marketing, and enhanced tourism offerings. Currently, Bom Sucesso has over 100 houses in tourist operation, with plans to make 200 available by the end of the year. The group emphasizes sustainability, with an investment forecast of around 250 thousand euros. Despite initial focus on real estate, the group aims to promote tourism, with good acceptance from the national market. The Clubhouse and restaurant are operational, and the project also includes a cultural initiative called CAL (Culture, Art, and Literature). Bom Sucesso, currently under the direction of Pedro Portugal, anticipates a transition year in 2015, with a solid foundation for a significant relaunch in the following year. The group aims to complete the project within two to three years, considering it a formidable undertaking.

Please read the full article at Publico, published September 29, 2014 

Summary:

The Bom Sucesso Design Resort, Leisure & Golf, once hailed as one of Europe’s finest tourist developments, is currently facing insolvency. Originating as a PIN project during the Sócrates government, the 150-hectare luxury development near Óbidos lagoon transformed into a high-quality, internationally acclaimed project, anchored by a golf course and a proposed five-star Hilton hotel. However, the resort is now bankrupt, grappling with a complex shareholder structure and significant debt.

The project’s financial troubles stem from the housing market contraction during the economic crisis, leading to a plunge in home sales. The fall of BES, the primary financier, further accelerated the resort’s financial decline. The shareholder structure involves a closed-end real estate fund, Concordo Óbidos SA, Bom Sucesso SGPS, and other entities, all facing insolvency.

Despite bankruptcy, efforts are being made to salvage the golf course, seen as crucial for maintaining the real estate value of the luxury homes surrounding it. The completion of the Hilton hotel, currently suspended, could provide a significant boost to the project.

Various entities, including Portugal Ventures and the Graça Moura family, are creditors seeking to recover investments. The Hilton Worldwide chain remains committed to expanding its presence in Portugal, but the completion of the Hilton Bom Sucesso Óbidos Resort is uncertain.

While the resort still presents a high-quality appearance, with security measures in place, a closer inspection reveals areas of halted construction and abandoned shipyards. The project’s completion is no longer the primary concern; instead, the focus is on saving the resort. The financial future of the Bom Sucesso resort remains uncertain, and the challenges faced by creditors and investors are intricate and multifaceted.

Please read full article of Gazeta Das Caldas from 20th April 2014 here.

Summary:

The Bom Sucesso Design Resort in Óbidos faces financial challenges, with dozens of house owners demanding payment of approximately one million euros related to the tourist exploitation contract. President of the resort’s board of directors, Paulo Graça Moura, acknowledges the debt and aims to propose an agreement ensuring payments to customers, contractors, and banks. The resort operates under two contracts: Vacations and Hotelier, with criticism mainly directed towards the Hotelier system, where owners use their houses for six weeks a year. Despite attempts to regularize the situation, some owners report unpaid returns and problems with construction and maintenance. However, the resort’s debts do not hinder the opening of the Hilton Hotel, as the company responsible for its implementation has no outstanding debts. Bom Sucesso remains optimistic about the hotel’s opening, seeing it as a potential catalyst for the resort’s growth despite challenges in the real estate market.

Please read original article at Jornal das Caldas from Feb 3, 2011

Summary:

The Hilton Bom Sucesso, a five-star hotel in Óbidos, scheduled to open in the first half of 2012, is already under construction. Classified as a Project of National Interest (PIN), it will feature 120 rooms overlooking the Bom Sucesso golf course, with architecture by renowned Portuguese architect Souto Moura. With an investment of 27 million euros, the hotel will offer various amenities including meeting spaces, a business center, Spa facilities, swimming pools, restaurants, and bars.

Please read original article of Gazeta das Caldas from 17.10.2010 here.

Summary:

The company behind the construction of the “Hilton Bom Sucesso, Óbidos” hotel in the Bom Sucesso Design Resort will receive a €13.6 million incentive for the project. This five-star hotel, estimated to cost €27 million, is expected to open within two years. Paulo Graça Moura, the administrator of BS – Acttividades Hoteleiras e Turismo, emphasizes that this incentive is crucial for the project’s implementation and will significantly reduce the financial burden in the initial years. Designed by architect Eduardo Souto Moura, the hotel will feature 120 rooms, extensive garden areas, and a saltwater swimming pool, offering a panoramic view of the golf course and the lagoon. The project includes two main sections housing bedrooms, a spa, restaurants, and congress facilities.

The restaurants and businesses are not operating anymore!

Viva Maria opened in the Bom Sucesso (Tennis Club House) development

Please read original article from Gazeta Das Caldas from 2nd July 2010 here.

Summary:

The Bom Sucesso Design Resort introduces “Viva Maria,” a refined restaurant named after the 60s classic film starring Brigitte Bardot. Open daily, it offers a light lunch menu in a relaxed atmosphere and sophisticated dining experiences in the evening. Managed by Maria Mariana Palma and two other entrepreneurs, the restaurant focuses on Mediterranean cuisine with a fusion twist, emphasizing top-quality ingredients and unique flavors. With an initial investment of around €200,000, the restaurant features indoor and outdoor seating, including a patio called “Pátio das Lanternas,” with views of the kitchen. Designed by architects Nuno Graça Moura and Luísa Rosas, the building blends seamlessly into the landscape, providing a picturesque setting for guests to enjoy their meals.

First gourmet supermarket has opened in Bom Sucesso

Please read original article from Gazeta Das Caldas from 10th Augist 2010 here.

The first gourmet supermarket of its brand in Portugal, named Friends, has opened in Bom Sucesso Design Resort. Located at the main entrance in a building designed by architect Siza Vieira, the 300-square-meter establishment prioritizes diversity and quality products. Offering personalized assistance during purchases, Friends aims to create a customer-centric environment.

Maze Restaurant reinforces hotel offer in Bom Sucesso

Please read original article from Gazeta Das Caldas from 5th November 2010 here.

Summary:

The introduction of Maze Restaurant enhances the hospitality offerings at Bom Sucesso Design Resort. Led by former police officer Jonathan Winfield, Maze Restaurant adds a unique dimension to the resort experience. Accessing the restaurant involves navigating through a controlled entrance at the resort, reminiscent of a labyrinth, and descending through a terrace to reach the restaurant’s patio entrance, similar to Viva Maria restaurant nearby.

The Light design is special of this place and documented on the designers webpage here.

Other Things Gallery and Culture at Bom Sucesso

Please read orignal article of Gazeta Das Caldas from 21st of January 2012 here.

Other Things, a new company in Bom Sucesso Resort, aims to promote contemporary art and culture. Located in the resort’s commercial area, it features a gallery showcasing works by young artists like Liliana Alves and Santos Pessoa. The company also offers workshops in painting, sculpture, and video, both within the resort and in the wider region. Owner Sofia Figueiredo, supported by creative Jorge Reis, aims to make art more accessible to the public. The project has received positive feedback and plans to expand partnerships with local artists and the Óbidos City Council. Workshops covering contemporary design, painting, and jewelry making are already underway, with more planned for the future. The project received initial funding through the FiniciaOeste program, facilitated by IAPMEI.

Pharmacy at Bom Sucesso resort

Residents of Bom Sucesso Resort reported that a pharmacy was open for 1 year about 10 years ago in the commercial area. Which exact year it is unclear.

Please read original article at NYTimes.

Summary:

In Óbidos, Portugal, the Silver Coast is experiencing significant development after years of planning. Bom Sucesso, a 200-hectare modernist “design resort,” recently opened an 18-hole golf course and features villas designed by 23 architects. The development will eventually include over 850 residential units, a hotel, and a spa. Additionally, two other master-planned projects, Royal Óbidos Spa & Golf Resort and Quintas de Óbidos Country Club, are underway, adding 700 homes to the area. These developments are concentrated around the medieval walled city of Óbidos, a popular tourist destination, and are set to be completed within the next three years.

Please read original article from October 9, 2007  here.

Summary:

Acordo SGPS, the developer of Bom Sucesso Design Resort Leisure & Spa in Óbidos, has sold €50 million worth of units, with around 140 of the 500 sold so far going to English buyers. To strengthen its presence in this key market, the company has opened an office in central London to provide direct support to new and existing clients.

The project, featuring Portuguese architecture and technology, represents a €390 million investment and includes 1,072 units across three phases. The second phase, consisting of 250 units, will begin sales in February. Gonçalo Castelo Branco, Acordo’s director, estimates that the development will generate €45 million in tourism revenue upon completion.

See orignal article from Evening Standard Homes & Property 20th April 2005 here.

The article, titled “Portugal’s Shore Thing”, highlights Bom Sucesso, a new luxury development on Portugal’s Silver Coast near Óbidos, designed by some of Europe’s top architects. It describes the following key points:

1. Location and Vision:

Bom Sucesso is located six miles from Óbidos, a historic town near Lisbon. The project spans 160 hectares and aims to blend world-class contemporary architecture with the natural beauty of the area.

2. Unique Architectural Concept:

Fourteen renowned Portuguese architects, including Álvaro Siza Vieira and Eduardo Souto de Moura, were invited to design homes. Each property is unique, with a focus on individuality, simplicity, and harmony with the landscape.

3. Property Features:

• The project includes villas and townhouses with private or shared pools, gardens, and communal spaces.

• Prices range from €170,000 for townhouses to €1.1 million for luxury villas.

4. Development Amenities:

Planned amenities include a golf course, tennis courts, a spa, restaurants, and a hotel. The goal is to create a modern lifestyle destination.

5. Market Potential:

• Bom Sucesso is positioned as a high-end investment opportunity with demand from Portuguese and international buyers.

• Its developers aim to make it a landmark of modern architectural design in Europe.

The article emphasizes the project’s exclusivity, blending of tradition and modernity, and its potential to attract affluent buyers looking for unique, luxury homes in a scenic and culturally rich area.

Portugal best Architects are reviving the Bauhaus spirit on the cost. see article from Bricks and Mortar 15th of March 2005 here.

The article, titled “Here Comes the White”, highlights Bom Sucesso Resort as an architectural project reviving Bauhaus-inspired modernist design on Portugal’s Atlantic coast. Here are the key points:

1. Architectural Focus:

• Bom Sucesso features contributions from Portugal’s top architects, blending modernist aesthetics with functionality. The designs emphasize simplicity, clean lines, and harmony with the environment.

• Álvaro Siza Vieira and other prominent architects are among the designers, offering unique and diverse house styles.

2. Development Details:

• The resort spans 160 hectares near Óbidos, providing 601,000 square meters of urbanizable space.

• Properties include individual villas, townhouses, and shared community spaces. Prices range from €315,000 for a townhouse to over €1 million for villas.

3. Lifestyle and Amenities:

• Planned amenities include golf courses, pools, tennis courts, and leisure facilities, designed to create a luxury lifestyle experience.

• The development aims to combine modern architecture with high-end living, catering to both full-time residents and vacationers.

4. Bauhaus Influence:

• The project draws inspiration from Bauhaus principles, focusing on functional, timeless designs that prioritize quality and spatial harmony.

• The article emphasizes how this design approach revives and modernizes architectural traditions.

5. Market Position:

• Bom Sucesso is marketed as a high-end development for discerning buyers seeking unique architectural properties in a picturesque coastal setting.

The article celebrates Bom Sucesso as a modern architectural showcase, blending contemporary design with a luxurious coastal lifestyle.

The book 14 Arquitectos: Projectos do Bom Sucesso Resort is a celebration of contemporary Portuguese architecture, showcasing the vision and creativity of 14 renowned architects who contributed to the development of Bom Sucesso Resort in Óbidos. This unique project brings together modern design, functionality, and an intimate connection with nature, offering a new model for residential and leisure living.

See scan of the book here.

A Landmark Public Launch

The Bom Sucesso Resort (BSR) project was first introduced to the public at a special event held at the Centro Cultural de Belém in Lisbon. Following the launch, a multi-day exhibition was organized, featuring architectural models of the houses planned for Phase One of the resort. A printed catalog titled 14 Arquitectos: Projectos do Bom Sucesso Resort was also released to commemorate the event and present the project in greater detail.

A Collaboration of Architectural Masters

Bom Sucesso Resort brought together some of the most influential names in Portuguese architecture, including Álvaro Siza Vieira, Eduardo Souto de Moura, Inês Lobo, Gonçalo Byrne, and João Luís Carrilho da Graça. Each architect was invited to design different housing typologies and public facilities, creating a rich and diverse architectural landscape across the resort.

More Than a Place to Live

Bom Sucesso is not just a housing development—it’s a living experience. Surrounded by nature and enhanced by bold architectural thinking, it offers residents the opportunity to live in homes that are truly works of art. The collaboration of 14 architects has resulted in a visually dynamic and culturally rich environment that redefines modern living in Portugal.

Please read the full article at Publico, published December 1, 2004

Bom Sucesso Resort stands out not just for its architecture but also for its commitment to sustainability and community development. The integration of eco-friendly practices in construction and operations is designed to minimize the environmental footprint while providing a luxurious experience.

Press Release about Bom Sucesso Resort Obidos Summary:

Bom Sucesso Resort in Portugal promises a unique and groundbreaking experience as it transforms 160 hectares of land next to the Óbidos Lagoon and the Atlantic Ocean into a “Design Resort Leisure, Golf & Spa.” This ambitious project not only showcases the talents of 14 renowned Portuguese architects, including Alcino Soutinho, Álvaro Siza Vieira, Eduardo Souto Moura, and Carrilho da Graça, but also serves as a catalyst for promoting Portuguese contemporary architecture on a global scale.

To illustrate the innovative designs, each architect has created unique residential projects that reflect both modern aesthetics and functional living spaces. For instance, some townhouses will feature green roofs and solar panels, exemplifying the resort’s dedication to sustainability.

The variety of amenities is designed to cater to a diverse clientele, from families seeking recreation to individuals looking for relaxation. The equestrian center will host events and training, while the spa will offer wellness retreats and holistic therapies.

In the first phase, the project will feature 199 lots and 165 townhouses, showcasing a diverse array of designs. The architects were given creative freedom, with the only conditions being harmony in implementation and connectivity between projects while preserving the natural landscape. The resort, set to commence construction in the second quarter of 2005, aims to become the main reference in Europe for luxury real estate developments.

The development, occupying the former Quinta do Bom Sucesso, will offer an 18-hole golf course, spa, hotel, equestrian center, shopping area, football field, rowing and sailing club, tennis club, heliport, and facilities for animals. The projects emphasize respect for the landscape, with a unified theme of white as a nod to the region’s history. The resort is seen as a rare and enthusiastic collaboration among architects of various generations.

Concerns about excessive construction are addressed, with only seven percent of the 160 hectares to be occupied. This careful planning ensures that the greenery and natural beauty of the region remain intact. The golf course, designed by architect Donald Steel, will not only serve as a recreational space but also as a venue for international tournaments, promoting tourism. The second phase, dependent on market demands, plans 142 individual lots and 99 townhouses, each meticulously designed to complement the surrounding landscape. The overall investment is estimated at 250 million euros, expecting a population of 1,500 to 2,000 residents and the creation of 300 jobs, contributing positively to the local economy.