
Where to Stay in Algarve: Top 10 Unforgettable Locations
Nestled along the southern edge of Portugal, the Algarve region is a sun-soaked paradise famous for its stunning beaches, inviting waters, and picturesque villages. Here, you’ll discover old whitewashed towns and traditional fishing ports that evoke a timeless charm. With tranquil town squares dotted with quaint cafes and a plethora of golf courses boasting breathtaking coastal views, it’s no surprise that the Algarve ranks as one of Portugal’s most popular destinations.
You can choose from bustling cities like Lagos and Faro, known for their lively restaurants, vibrant nightlife, and beautiful beaches. Or, for a more laid-back experience, places like Alvor or Sagres offer a more traditional vibe. Traveling around is a breeze, thanks to the convenient train and bus network that connects the main towns. If you’re up for some adventure, hop on a boat and explore hidden coves and stunning islands along the magnificent Algarve coast.
Contents
- Key Takeaways
- Albufeira
- Best Spots to Stay in Albufeira
- The Charm of Lagos
- Best Places to Stay in Lagos
- Portimao
- Where to Stay in Portimao
- Faro
- Where to Stay in Faro
- Vilamoura
- Staying in Vilamoura
- Tavira
- Accommodation Options in Tavira
- Alvor
- Where to Stay in Alvor
- Sagres
- Best Stays in Sagres
- Carvoeiro
- Places to Stay Nearby
- Quarteira
- Where to Stay in Quarteira
- Monte Gordo
- Finding a Place to Stay in Monte Gordo
- Armacao de Pera
- Where to Stay in Armacao de Pera
- Olhao
- Where to Stay in Olhao
- Praia da Luz
- Best Places to Stay in Praia da Luz
- Algarve Region Map
- More Travel Guides
Key Takeaways
- The Algarve offers various accommodations from luxury hotels to guest houses.
- You can explore vibrant cities or peaceful traditional towns.
- Easy travel options and scenic boat trips enhance your holiday experience.
Albufeira

Best Spots to Stay in Albufeira
If you’re thinking about a trip to Albufeira, you’ve got a variety of places to stay. This former fishing village has transformed into a bustling holiday resort, making it a hotspot for travelers. Anyone can find something to their liking, whether it’s lounging on its sandy shores, exploring its nightlife, or simply relaxing.
Sao Rafael Atlantico
If you’re into the beach life, Sao Rafael Atlantico could be your go-to spot. It’s got two indoor heated pools, a large sun terrace, and sprawling gardens that make it a great place to unwind. Plus, it’s under ten minutes to Praia de Sao Rafael beach. Imagine taking a morning dip in the pool and then heading out to the beach for a lazy day under the sun.Alfagar Village
If you’re traveling on a budget, you might want to consider Alfagar Village. This all-rounder offers apartments with their own kitchens, sitting areas, and either a balcony or terrace. The views of the sparkling Atlantic Ocean don’t hurt either. It’s like having your own home by the sea, which is perfect if you want to cook your own meals and save some cash.
When night falls, Albufeira’s main strip comes alive. The bars and restaurants fill up, and you can find plenty of spots to dance the night away. Locals, who once relied on fishing, now offer boat trips. Imagine catching sight of dolphins or diving into the clear waters, making for a memorable adventure.
If you’re into something more traditional, the old town of Albufeira is a must-visit. Picture strolling along old cobblestone streets, picking up gifts and trinkets from local shops. Take a break and enjoy a coffee in the old square. It’s a nice contrast to the vibrant urban side and offers a peek into the town’s past.
The Charm of Lagos
Best Places to Stay in Lagos
Lagos is a charming mix of chill vibes, rich history, and stunning scenery. Perfect for a sunny holiday, you can wander around the ancient city walls and soak in over 2000 years of history. As the sun sets, the town comes alive with street performers in Praca de Gil Eanes and bustling restaurants and bars.
You can unwind at the relaxing marina or stretch out on the beautiful 4 km sandy beach. The Lagos railway station makes it easy to explore more of the coast too.
Looking for a place to stay? There’s something for everyone in Lagos, no matter your budget or taste. Here are a few standout options:
Costa d’Oiro Ambiance Village – Enjoy spacious rooms with views of the pool area and relax on your private sun terrace. It’s a perfect spot to unwind.
Carvi Beach Hotel – Perched on a clifftop above Dona Ana beach, this 3-star hotel offers amazing ocean views. The rooftop pool is a bonus, letting you swim with a stunning backdrop.
Make sure to carve out time to visit beautiful Praia do Camilo, known for its picturesque cove beach and clear waters. It’s just one of the many gems that make Lagos a memorable destination.
Portimao
Where to Stay in Portimao
Portimao has a special local charm. This fishing town has a sunny Mediterranean vibe, with bustling streets full of shops, cafes, and restaurants. It’s a great place to soak up traditional Portuguese culture.
If you’re looking for luxury, Algarve Casino Hotel is right on Rocha Beach and just a short stroll from the marina. This hotel offers a perfect blend of luxury and convenience.
For a modern vibe, check out Hotel da Rocha. The rooms here are stylish and feel more like cool apartments than hotel rooms. It’s a 4-star spot with a variety of room sizes to suit your needs.
Traveling on a budget? Hotel Globo is a family-friendly, charming option. It’s located in a prime spot with views over Portimao town and the Arade River. Despite being budget-friendly, it doesn’t skimp on comfort or location.
Portimao offers a mix of accommodation options, from luxury hotels to affordable stays, all with easy access to the town’s laid-back atmosphere and local culture. Whether you want to be steps from the beach or in the heart of the action, you’ll find a place that fits your needs.
Faro
Faro, the capital of the Algarve, is often just a starting point for many visitors. This charming city, however, offers its own unique historical and scenic allure. With its ancient walls and rich cultural heritage, it’s not just a gateway to the stunning Ria Formosa nature park.
One of the main advantages of Faro is its relaxing vibe. Spending time here allows you to get a deeper feel for Portuguese culture while also enjoying the beautiful coastline. The international airport is conveniently located near the city, and there are easy bus and rail services connecting you to other towns.
Where to Stay in Faro
Hotel Eva
Positioned right in the center of Faro, this 4-star hotel makes it easy to dive into everything the town has to offer.
Faro Boutique Hotel
With rooms styled in a chic boutique manner, some even featuring private sun terraces, this hotel brings a touch of luxury to your stay.
Whether you opt for a budget-friendly guest house or a more mid-range hotel, Faro has something to suit your needs and make your stay a memorable one. Enjoy the blend of culture, comfort, and coastal beauty that this city has to offer.
Vilamoura
Staying in Vilamoura
Vilamoura, right in the heart of Algarve, offers a mix of luxury and charm. It’s the place to be if you enjoy upscale living. With its stunning beaches and lively atmosphere, you’ll find yourself surrounded by lavish accommodations, chic bars, and gourmet restaurants.
When choosing where to stay, the Crowne Plaza Vilamoura is an excellent option. This hotel boasts rooms overlooking Vilamoura beach, providing guests with breathtaking sea views and private balconies. For family-friendly fun, Vila Gale Ampalius offers a delightful setting where you can enjoy a cocktail by the pool while your kids are entertained at the kid’s club.
Take your time exploring the Vilamoura Marina. It’s a posh spot where luxury yachts dock, and you can even catch boats to other coastal destinations. If you’re a golf lover, Vilamoura won’t disappoint, as it has some of the Algarve’s top golf courses nearby.
Tavira
Accommodation Options in Tavira
Tavira offers a blend of traditional charm and modern comforts when it comes to places to stay. One option is the Vila Gale Tavira. This hotel captures the essence of Mediterranean style with terracotta floors and whitewashed walls. The common areas even feature touches of Moorish design, adding a unique flavor to your stay.
Another great choice is staying on the island of Ilha de Tavira, accessible by ferry from the town center. This island offers a serene beach experience and even has a campsite for those who enjoy outdoor adventures.
For a more intimate experience, you might prefer the stylish Portuguese guest houses around the town. They provide a cozy atmosphere with the classic whitewashed look and a more personal touch, setting the stage for a relaxing stay. And for those who need more space, there are larger apartment complexes available too.
Alvor
Where to Stay in Alvor
Nestled along the old harbor, Alvor has a mix of charming places to stay. If you prefer quieter accommodations without the hustle of busy nightlife, this is your spot. The old town along Ria Alvor offers many scenic hotel and guest house options.
Options for places to stay range from simple guest houses to mid-range hotels. For example, you can choose the Pestana D. João II Beach Resort, a 4-star hotel set in lush gardens. It offers two outdoor saltwater pools, a heated indoor pool, two restaurants, four bars, and even an onsite golf course.
The town still has its own attractions, like the remnants of a 13th-century Moorish castle. If you stroll along the palm-tree-lined riverfront in the evenings, you’ll see lots of dining options. With bus and boat services, exploring nearby towns is convenient too.
Sagres
Best Stays in Sagres
Sagres is a charming fishing town perched atop cliffs. It is popular with surfers and divers. You might want to find a cozy place to relax after a day of adventures here.
Mareta View
One option is Mareta View. This mid-range hotel overlooks Mareta Beach. It’s perfect for spending the afternoon with a book on the terrace. Tall palm trees dot the surrounding garden, adding to the tropical feel.
Staying in a locally run guest house can be a fun experience, too. These spots often offer a warm, welcoming atmosphere. You might even get to chat with the owners and learn more about Sagres.
The town square is lined with lovely local restaurants and bars. So, no matter where you choose to stay, you’re never far from good food and friendly faces.
Carvoeiro
Carvoeiro, a charming village in the Algarve, is what dream beach holidays are made of. The cliffs here look straight out of a postcard, with colorful houses perched on top, leading down to a sandy beach and clear, blue waters. It’s the kind of place where you can easily lose track of time just lounging in the sun and enjoying good food.
The best way to explore beyond this little paradise is by car. If you’re feeling adventurous, you can also hop on a boat tour from the beach to see nearby sea caves, including the famous Benagil Cave. Though it’s a popular spot, Carvoeiro offers a range of accommodations to fit different budgets, so you’ll find somewhere great to stay without too much trouble.
Places to Stay Nearby
Carvoeiro Hotel
An easy walk from the beach, this hotel has an outdoor pool surrounded by a green garden and a sun terrace where you can relax after a day of exploring.
Quarteira
Where to Stay in Quarteira
When visiting Quarteira, you have a wide range of places to rest your head. Whether you’re looking for something luxurious or budget-friendly, there are plenty of choices.
For a touch of luxury, you might consider the Dom Jose Beach Hotel. Just a stone’s throw from Quarteira Beach, this hotel offers modern style and stunning ocean views. The contemporary design draws from the nearby seascape, creating a harmonious and relaxing atmosphere.
Another option is renting an apartment. They can offer more space and flexibility. You can find high-rise self-catering apartments that fit perfectly for families or those who prefer to cook their own meals.
If golf is your thing, Quarteira won’t disappoint. The area boasts several championship golf courses. Staying near a course means you can hit the greens anytime you like.
Monte Gordo
Finding a Place to Stay in Monte Gordo
Monte Gordo has a wide range of lodging options for every budget. If you’re looking for a comfortable spot without breaking the bank, many guest houses and affordable hotels are available. Some of these budget-friendly accommodations come with cozy amenities like swimming pools, making them great for families.
For those wanting a touch more comfort, consider staying at Hotel Alba. This place mixes holiday apartments with top-notch facilities. You’ll find an inviting sauna and team room here, not to mention both an outdoor pool and an indoor spa pool. Perfect for a relaxing break after a day at the beach.
Monte Gordo’s streets are lively with cafés and restaurants, offering a variety of delicious dishes. And if you’re up for exploring beyond the town, a short train ride will take you to nearby areas where you can enjoy local cuisine.
Armacao de Pera
Where to Stay in Armacao de Pera
Finding a place to stay in Armacao de Pera is quite easy thanks to the variety of options available. You might enjoy the Pestana Viking Beach Resort, known for its cliffside location and stunning views of Tremocos beach. If you’re looking for a budget-friendly spot, there are plenty of smaller apartments in the heart of the town that give you easy access to shops and restaurants.
Whether you prefer a luxurious spa experience or a simple, cozy apartment, there’s something for every taste and budget. For those who appreciate breathtaking ocean views, staying near the Armação de Pêra Chapel can be a real treat. This area offers a tranquil setting with a touch of historic charm. No matter your choice, the friendly locals and beautiful surroundings will make your stay memorable.
Olhao
Where to Stay in Olhao
Olhão, a gem in the eastern Algarve, offers some fantastic places to rest your head. If you want to treat yourself, the Real Marina Hotel is up there with the best. Think beautiful breakfasts, a chic bar, and top-notch facilities throughout. It’s got that glimmering 5-star vibe that makes your stay feel extra special.
This town is great because it’s not just all about pricey hotels. You’ll also find lots of budget-friendly spots that let you soak up the local vibe without breaking the bank. For those who love a bit of history mixed with comfort, staying in one of the refurbished old mansions turned B&B can be a real treat.
Olhão’s prime location makes it easy to hop on a short train ride to Faro or catch a boat to the nearby islands like Farol, Culatra, and Armona. Exploring the Ria Formosa Natural Park is a must for nature lovers. Plus, wandering through the old town streets and visiting the local markets adds a unique flavor to your stay.
Praia da Luz
Praia da Luz is a bustling holiday town near Lagos, known for its variety of accommodations that suit all kinds of visitors. Despite significant development in recent years, Praia da Luz maintains its low-rise charm, with most attractions accessible within a short walk, including the beach.
The town provides a great mix of amenities to enhance your family vacation. You can enjoy shopping for souvenirs at the market stalls along the beach promenade or have lunch at one of the waterfront cafes. The beach itself is perfect for relaxing afternoons, sheltered by rocky cliffs. Close by, you can find the remains of old Roman baths, adding a touch of history to your visit.
Best Places to Stay in Praia da Luz
For families, Aparthotel Vila Luz is an ideal option. This aparthotel offers studios with sun terraces overlooking the pool, perfect for a comfortable stay.
Algarve Region Map
Understanding the layout of the Algarve can enhance your trip to Praia da Luz. Here’s a simple map to guide you:
This map highlights the various towns and key attractions, helping you plan your coastal adventures seamlessly.