Vale do Lobo was one of the first tourist resorts to be built in Portugal, having been catalyzed by decision of the Estado Novo in 1962 to build the Faro airport after the success in 1950 of Spanish luxury resorts like Torremolinos. In 1962, Trust House Forte acquired the land that became Vale do Lobo, with the intention of turning it into a luxury resort. At the time, the region was a pine forest with a sandy beach. Townhouses and villas were built for tourists and permanent foreign residents. A golf course with 18 holes designed by Henry Cotton was built and Vale do Lobo quickly become a popular destination with the British market. In 1968, Trust House Forte and Costain Group opened the first five-star hotel in the Algarve, Dona Filipa, in honor of Philippa of Lancaster, whose marriage to John I of Portugal confirmed 700 years of Anglo-old Portuguese Alliance.
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