Monte Palace: The Story of the Abandoned Hotel in São Miguel

A ridiculously gigantic building is falling apart on the rim of a dormant volcano, surrounded by dense vegetation. When visiting Miradouro da Vista do Rei on São Miguel island, it is impossible not to notice this immense and eerie concrete structure behind it. Every traveler passing the road to Sete Cidades will wonder about it and probably search for it. This is the Monte Palace Hotel.

From the outside, it is impossible to see exactly what it is or even imagine how huge it is. There are no signs or indications that tell the story of this structure. It appears unfinished, but just 30 years ago, it was the most luxurious hotel in the Azores. Today, it stands abandoned and vandalized, with nothing but crumbling concrete.

Let’s discover the history of Monte Palace Hotel, which once was the finest 5-star hotel in the Azores!

What is the Monte Palace Hotel

Monte Palace was a sumptuous 5-star hotel in São Miguel, Azores. It is in the Miradouro da Vista do Rei, Sete Cidades, Ponta Delgada county. This viewpoint is particularly renowned for its panoramic view over the lakes of Sete Cidades and the village inside the volcanic crater. On the main road, going up towards Sete Cidades from Ponta Delgada, it is impossible to miss it.

Built into the hillside to take advantage of the view over the Atlantic Ocean or the colored lakes, the hotel had a great chance to attract plenty of visitors and be successful. However, it was abandoned in 1990 and only opened for 18 months.

Monte Palace was awarded for being Portugal’s finest hotel the same week it closed its door for good. What was once one of the most luxurious achievements of the islands is now in a deteriorated state that one cannot imagine unless one sees it themselves.

The Fascinating History of Monte Palace Hotel

In 1977, Indústria Açoriana Turístico-Hoteleira (IATH), backed by French and Belgian shareholders, began investing in the Azores. They planned to build two luxury hotels on São Miguel Island: Monte Palace in Sete Cidades, nestled in the mountains, and Bahia Palace in Água d’Alto, right on the beach.

Both were designed by the Architect Olivier Clément Cacoubd (Official conservator of museums in France) and Yves Roa, with S and P Einstein Architects and the group Creusot Loire Entreprise. The fact that it was a foreigner’s idea led the Azorean press to name it the French Hotels.

The architects were guided by many guidelines when completing their projects. Namely, the buildings had to blend in with their surroundings and complement the landscape. Monte Palace’s hotel had to be physically linked to the mountain in the East. Furthermore, neutral colors had to be used to conceal the landscape. The total investment for the construction of the hotels was 2 billion escudos (about 10 million euros).

The Opening

After many years of delay, the first of the two 5-star hotels — Bahia Palace — opened in 1984. However, it was challenging to earn something out of it. It closed and opened several times. It was not until the 15th of April 1989 that both hotels opened, with a debt of 12 million escudos (about 60,000 euros). There were many critics, credits, and debts around those hotels.

An outside investor was necessary to avoid a collapse, so the new administration began with ESTA (Estoril Sol and Tap Air Portugal). They managed help from the government with refundable subventions for repairs. Bahia Palace is still open today, although it is a 4-star hotel. Unfortunately, Monte Palace did not benefit from the same history.

Inside the Hotel

Monte Palace Hotel had five floors with 88 rooms, including one presidential suite, four deluxe suites, four double rooms with parlors, 27 double rooms, and 52 suites.

The hotel boasted two restaurants, Dona Amélia Grill and Dom Carlos Restaurant, in honor of the Portuguese King and Queen who visited Sete Cidades in 1901. This visit also referred to the viewpoint in front of the hotel — ‘Vista do Rei’ (the King’s View). The restaurants were elegantly appointed, with silver cutlery, crystal glasses, and embroidered napkins.

In addition, the hotel offered a bar, three conference rooms, a playroom, a hairdresser, a bank, a nightclub in the basement, and several boutiques. With more than 100 employees working daily, Monte Palace was a symbol of luxury, featuring many imported materials.

The Closing

Unfortunately, the hotel on top of the mountain closed on November 26th, 1990, only 18 months after the opening. It was quite a sad ending. On the same day, the director of Monte Palace received the award for Hotel of the Year in Lisbon, and the staff in São Miguel heard that the five-star would close within a week.

Indeed, the owners had to declare bankruptcy, and the building was left to the elements. By itself, Monte Palace was losing 16,000 escudos per month. The following weeks and months were embarrassing for Portugal. Monte Palace was ‘the scam of the century’ for newspapers. After closing, a guard and his dogs were on the spot every day for 20 years to limit vandalism. But in 2011, the guard was not getting paid anymore and left. And this was the beginning of the end. 

Locals began to steal everything from the abandoned hotel, even the lift! All that is left are the concrete walls, roof, and floor. The hotel is full of graffiti and debris. Tourists used to think the building was still under construction when it was completely abandoned because you could hear a lot of noise inside. But that was nothing else than people tearing out bathtubs. A year later, the government decided to remove all the glass in the hotel to avoid harming people, which accelerated the stealing and deteriorating process of the building.

In 2016, Catalan visual artist Javier de Riba painted the lobby floor with blue flowers in one week. It took 2 days to clean the dirt. This painting was for the annual art festival Walk and Talk. However, due to the poor conditions of the hotel, the painting deteriorated quickly and is not visible nowadays.

Why Didn’t Monte Palace Work Out?

Several factors can explain why Monte Palace didn’t work out. It was a very ambitious project at the wrong place and time. Firstly, the Azores was not a popular tourist destination at that time. Most visitors would only be locals or Portuguese from the mainland.

Then, the hotel was in a very remote location. People would need to hire a car, and the roads were not so good in the nineties. There was nothing near the hotel to do. The aimed clients were rich people or VIPs, but around the hotel were only trails, while hiking was not so popular among the higher class.

Moreover, the wonderful view over the lakes and the ocean was most often in the clouds. Being at altitude, this spot is colder and receives about 200 days of rain annually. Another factor was that there were few things to do inside the hotel. There was no spa, gym, or grocery store, meaning customers would have to go quite a long way to buy anything. Tourists and locals tended to visit the hotel’s restaurants and bars, but not many people would sleep in it.

What Now?

Although nothing is special inside but gray concrete rooms, it was once a luxury travel hotel. It was for sale, and in 2015, someone bought it for only 380,000 euros, but then it went another time for sale for 1.5 million euros on local sales platforms OLX and Imovirtual. It has a total implantation area of 2.396 m2 and a construction area of 13,104 m2.

Monte Palace needed investors with enough capital to rebuild and give this high-potential building another shot. In 2017, a group of Chinese investors bought it — Level Constellation. It was supposed to reopen in 2021, 30 years after closing. However, nothing happened, and construction hasn’t even started yet.

What to Do at Monte Palace Hotel?

Monte Palace has become a unique spot for pictures and a visit from the most curious travelers. There are many great things to do around the area of Monte Palace. Let’s see this now!

Can I Go Inside the Abandoned Hotel?

It is important to know that entering the Monte Palace Hotel is forbidden due to its deteriorating condition and potential danger. Signs warn against trespassing, and climbing walls to enter is not easy or safe. Despite these risks, some urban explorers venture inside the ruins. Ultimately, the decision is yours, but you must assume the risks.

What’s inside Monte Palace that draws so many visitors? The lobby is impressive, but the real attraction is the breathtaking view from the rooftop, offering a higher perspective of the lakes and ocean, much like the view from the Miradouro da Vista do Rei.

However, be cautious if you go up to the roof — there are many hazards, such as deep elevator shafts, missing glass ceilings, and no barriers or railings. The stairs can be slippery, and the building has no security. Help may be far away if something goes wrong, especially if you’re alone.

Inside, you’ll encounter a haunting atmosphere, with debris, graffiti, and moss covering the walls. Although some rooms are still recognizable, most are in a state of decay, adding to the eerie experience.

See the Lakes From the Miradouro da Vista do Rei

At Miradouro da Vista do Rei, you are standing on the spot of some of the most famous postcards of the Azores. The green and blue lakes are one of Portugal’s seven natural wonders. And once you look at it from Vista do Rei, you can truly understand why. 

From this viewpoint, you can also take a look at Sete Cidades village on the shore of the blue lake and also at the stone bridge separating the colors of the lakes, which is, in fact, only one lake. Indeed, the water runs under the bridge, which is a two-colored lake. On a sunny day, you can see the color difference very well. There is a scientific explanation for the blue and green lake and a love legend.

The facts are that the colors vary due to the depth of the lake. On the green side, it is shallower, and on the blue side, it is deeper. The sky reflecting on the lakes reveals these beautiful colors. On the other hand, the local legend says that a blue-eyed princess fell in love with a green-eyed peasant. When her father, the King, forbade their love, they met at the bridge and cried so much that the color of their eyes created the lake.

Hike Down to Sete Cidades Village

There is a linear hiking trail called PR3SMI Vista do Rei. It starts at the viewpoint and goes down to Sete Cidades village. You will pass by wonderful natural features and amazing landscapes. The 7.7 km trail is easy and goes mostly downward for approximately 2 hours.

The lakeshore is a great place to stop by and have a picnic. There, you can find our activity center and experience kayaking in the crater lakes, among other adventures. At the end of the trail is the unmissable church of São Nicolau in the center of the village.

Best Time to Visit Monte Palace Hotel

The region of Sete Cidades is a breathtaking place to visit. Spending the whole day exploring the most out of it is a good idea. You can observe a great sunset from the Miradouro da Vista do Rei in front of Monte Palace. The early morning is also a perfect time to visit Monte Palace as the clouds cover the lakes, creating beautiful poetic scenery.

If traveling to the Azores during summer, it is important for you to know that parking lots at popular places like Monte Palace can get full quickly. So, visiting this area in the early morning is preferable if you want to avoid seeing many people. In the wintertime, it can get more cloudy and windy up there. Make sure to check the cameras around the island on SpotAzores to know if you will be able to see something from the viewpoint.

How to Go to Monte Palace Hotel

Monte Palace is right on the side of the main road from Ponta Delgada, on the way to Sete Cidades. You need to follow the signs for Sete Cidades or Vista do Rei. Renting a car is the best option for visiting Monte Palace as the buses only go to the village, but if you like to walk, it is a viable option to take the bus to Avenida do Mar, Ponta Delgada. There are buses every day. It is 20 km from Ponta Delgada and takes about 50 minutes by bus. If you rent a car, the journey takes about 30 minutes along the roads EN1-1A and EN9-1A.

There are two car parks near the hotel: a short-duration one for staying less than 20 minutes (only see the Miradouro da Vista do Rei, walking around and back to the car), and a long-duration park if you would like to explore more.

You can also go on a guided tour with our knowledgeable guides to discover the volcanic complex of Sete Cidades and pass by the gigantic hotel. They will tell you everything about the Azores and show you some spots off the beaten track.

What to Do After Visiting the Monte Palace Hotel

After visiting Monte Palace, you can head down to Ponta da Ferraria for one of the most amazing hot springs of the Azores. Located between lava rocks, the natural pools filled with Atlantic waters are a popular relaxing spot, mostly at sunset. But before going there, you should check that the tide is low to feel the warm seawater.

The place to be at sunset in São Miguel island is Praia dos Mosteiros. It is only a few kilometers away from the Monte Palace Hotel. You will have the best view of colorful pictures from the beach, a café or the barbecue areas.

If you’re more of a sunrise lover, then the Miradouro da Ponta do Sossego in Nordeste, on the other side of the island, is the perfect spot.

Between Monte Palace and Mosteiros, on the way to the coast, there is another fantastic viewpoint: Ponta do Escalvado. From there, you can have a great view over Mosteiros and the islets, and when the weather is great, something amazing happens at this spot.

Indeed, when there are no high clouds, you can see the central islands of the Azores, including Pico Mountain, the highest mountain in Portugal! There are binoculars to see it better, but you can see it without it.

Complementary Information

Useful Tools & Apps

The weather in the Azores can be variable, so using some apps is helpful before visiting the islands. Spotazores offers live camera feeds from the main tourist attractions, letting you check the weather and plan your visit. For accurate weather predictions, use Windy or Windguru to plan your days. They provide the most reliable predictions.

How to Get to São Miguel Island

São Miguel Island is easily accessible with numerous flight routes. Lisbon and Porto are the main entry points to the continent, with direct flights to Ponta Delgada available. To find the best flight, use search engines like eDreams or Skyscanner. These platforms allow you to compare prices and schedules from different airlines in one place. For more details on how to get to the Azores, look at our guide. Once you find the perfect flight, book it! You’ll reach one of the world’s most beautiful island groups in a few hours.

Best Season to Visit São Miguel Island

São Miguel Island, located in the Eastern Group of the Azores Archipelago, boasts unique climate characteristics influenced by various factors, contributing to its lush vegetation and scenic beauty.

The climate remains mild throughout the year, with minimal fluctuations in temperature. Spring averages 16 °C, summer reaches around 21 °C, autumn cools to 18 °C, and winter hovers at 14 °C. For more details on the weather in the Azores, take a look at the links below:

• The weather in the Azores in January
• The weather in the Azores in February
• The weather in the Azores in March
• The weather in the Azores in April
• The weather in the Azores in May
• The weather in the Azores in July
• The weather in the Azores in August

Cultural Agenda of São Miguel Island

The island of São Miguel offers many cultural events throughout the year. The full list of events is on the cultural agenda!

Video of Monte Palace Hotel

Conclusion

Monte Palace Hotel is a spot you don’t want to miss when visiting São Miguel island in the Azores. The impressive concrete building contrasts with the pristine natural landscape of the Sete Cidades volcanic crater. From the outside or inside the abandoned hotel, both perspectives are breathtaking and attract the curiosity of thousands of visitors every year.

So, if you intend to visit Monte Palace, we hope this article has helped you to better organize your trip and learn more about its fascinating history. Don’t forget to check out our tours passing by this mesmerizing abandoned hotel before it gets rebuilt!

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