Monte Palace Hotel enjoys one of the best views of the twin green and blue lakes of Sete Cidades, Sao Miguel Azores. The area is a very popular tourist destination. The hotel, right beside the popular King’s Viewpoint, high above the lakes, is a decrepit ruin, long closed and abandoned.
How did this happen? Are there plans to re-open? We tell the Monte Palace’s interesting story and explore the ruins.
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What happened to Hotel Monte Palace?
This spot at Sete Cidades Lake was chosen as the best place to build an exclusive, luxurious, 5-star hotel on the island of Sao Miguel Azores. The hotel was built into the hillside, taking advantage of the breathtaking views of the beautiful lakes of Sete Cidades below.
The hotel opened in 1989 with great fanfare. It didn’t last long. The hotel closed soon after opening and was ultimately abandoned.
The property is now an “unofficial” Azores attraction. Today, there are several Entrada Proibida (Entrance Prohibited) signs around the property discouraging the public from entering. However, many still do.
Always fascinated with abandoned places, I couldn’t resist going in for a look at what was inside. This is what I discovered.
What is inside the Azores Abandoned Hotel?
I arrived early in the day and realized I was the only person in the hotel. Exploring an empty hotel, on my own, was both exciting and somewhat eerie.
Inside I discovered debris everywhere. I made my way toward the hotel’s central atrium. The glass of the huge skylight had disappeared long ago, letting in the rain and natural elements. Green moss covered the concrete walls and balconies. I could still imagine how incredible this atrium must have looked originally.
This five-storey hotel had more than 80 rooms, all with private balconies. The south side rooms looked out over beautiful forests with the ocean in the distance. The best rooms were on the north side. Each room had a great view of the Sete Cidades caldeira and the twin lakes.
The hotel had two restaurants and a bar. The dining room was quite recognizable with its walls still intact. Walking further down a dark corridor, I found the hotel kitchen. The kitchen fixtures had been stripped away but all the tiles, from floor to ceiling, were still intact.
Walls on both the inside and outside of the building were covered in graffiti. Framing and wire hung down from the ceilings.
I marvelled at the wide, curved, concrete staircase. In places, the stairs actually still had some original carpet. My shoes made squishing sounds as I walked on the soaked carpet to climb the stairs.
To make the tour complete, I made my way to the rooftop for another glorious view of Sete Cidades.
This dark, eerie and abandoned building makes a perfect movie setting. In 2023, the TV series, Turn of the Tide, filmed several climatic scenes inside the ruins of the hotel.
Why did the Monte Palace Hotel Close?
The simple answer is that not enough guests came.
The best feature of the hotel was the amazing view of Sete Cidades Lake. However, with so many cloudy, foggy, rainy days on the island, pleasant sunny day views were not guaranteed.
Other than the view, there was nothing else for guests to do at the hotel. There was no pool or spa. The tiny town of Sete Cidades was not close enough to walk to for a visit or shop in.
There are hiking paths near the hotel for guests to explore the beautiful natural surroundings. But, perhaps, for the upscale tourist, this was not enough.
The Azores Islands were not heavily visited by tourists in 1989. Even today, with many people enjoying the Azores as a vacation destination, the islands still don’t experience huge tourism. The remote location of the hotel, and a lengthy drive from the city of Ponta Delgada, may have been more negative factors.
Many seem to agree that building a hotel here was a bad business decision. After being open for only 19 months, the hotel closed in 1991.
What happened to Monte Palace after it closed?
The hotel remained in limbo for many years. Security guards were stationed on-site to protect the property. In 2011, the guards stopped getting paid and soon disappeared.
It didn’t take long for the abandoned hotel to be ransacked. Anything valuable or reusable (furniture, marble fixtures, etc.) was stripped and taken away. Today, all that is left is a mess.
Will this Sao Miguel abandoned hotel ever reopen?
Many people have speculated about the Hotel Monte Palace reopening. In fact, there were several news reports in 2018 that indicated that the hotel would be refurbished and reopened in 2021. But, nothing ever happened. The sad reality is that, most likely, the hotel will never open again.
Should I go inside the Sete Cidades Abandoned Hotel?
The decision, and risk, is up to you. I don’t recommend it. Signs around the property’s perimeter state, “Danger. Entry Forbidden. Private Property.”
For those that do decide to enter the hotel, take care. The hotel is decrepit. Debris is everywhere. Water has made its way everywhere in the hotel. Make sure you have solid footwear. Beware.
If you do enter, be sure to make your way to the rooftop. You’ll be rewarded with an amazing view of Sete Cidades. The view is truly better from the roof than from the King’s Viewpoint below.
Even though erected fencing and stonework are a deterrent to entry, people are still making their way into the hotel.
Over the years, authorities have been trying to deter visitors from entering the hotel. For example, the hotel’s main entrance and parking lot was closed off with a cement wall.
During my last visit, hotel’s north side entrance (by the road near the viewpoint) had been sealed off with stonework. However, myself and others were able to easily scale the wall (see photo below).
Update 2026: People are still able to enter this abandoned hotel. The doorway within the cement wall, at the hotel’s main entrance parking lot, has been completely removed.
How do I get to the Monte Palace Hotel ruins?
The ruins of the Monte Palace Hotel are on the island of Sao Miguel in the Azores. To get there, you need to rent a car in Ponta Delgada, Sao Miguel’s main city. From Ponta Delgada, it is a 20-kilometre (30-minute) drive along highways EN1-1A and EN9-1A.
Sete Cidades Trip
Include the Abandoned hotel as part of a day trip to Sete Cidades from Ponta Delgada. Be sure to check out our full article, Visiting Sete Cidades. We provide the perfect guide to exploring this beautiful region of Sao Miguel.
Explore All of our São Miguel Island Travel Guides
Discover our complete series of detailed São Miguel guides to help you plan your perfect 5 to 7-day adventure on the largest island in the Azores.
Main Article: São Miguel Island
Part 1: Ponta Delgada – Cobblestone streets, beautiful gardens and harbour promenade
Part 2: Sete Cidades – Twin crater lakes, with blue and green waters
Part 3: The Abandoned Monte Palace Hotel – Ghostly luxury hotel and panoramic crater views (You’re reading this guide now!)
Part 4: Furnas – Steaming fumaroles, relaxing mineral hot springs
Part 5: Lagoa do Fogo – Hidden crater lake and dramatic viewpoints
Part 6: Caldeira Velha – Forest hot springs and thermal bathing pools
Part 7: Ribeira and the North Coast – Tea plantations, waterfalls, and rugged coastline
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