Where to stay in The Algarve [Best Places to Stay for 2024]

Planning a trip to Portugal’s Algarve region can be overwhelming. With over a dozen resort towns to choose from, finding the best places to stay in the Algarve Portugal is a big decision and will depend on what you are looking for in your choice of Portugal beach resorts.

Which is why we’ve put together this guide of the best places to stay in Algarve Portugal, recommendations for the best beaches in Algarve and a selection of Algarve hotels for every budget and travel style. Now, let’s pick the best Algarve town for you!

Traditional portuguese architecture in Olhao da Restauracao Algarve Portugal

We will cover off all types of The Algarve accommodation options from Hostels to luxury The Algarve hotels as well as how to decide where to stay in The Algarve, the best The Algarve hotels.

This guide shows best places in The Algarve to visit, the best places to stay in The Algarve, hotels near The Algarve attractions, The Algarve neighborhood guide and many more. Wondering where to stay in Algarve Portugal 2023, check out the below guide! 

Below are 11 of the best neighborhoods in The Algarve to help you make the right decision when trying to work out best areas to stay in The Algarve for you. We have tried to make the guide as easy to follow as possible.

We have also included some things to do or places to visit as well as some eatery suggestions of either our favourite places or some funky places to eat at within the areas in The Algarve so you can use this as a go to guide to pick the best accommodation in The Algarve for you.

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Lagos – Where to stay in Algarve for first timers

The combination of multiple beach options, plenty of resorts, nightlife and entertainment makes Lagos Algarve the best area for tourists, especially those visiting the Algarve for the first time.

At one hour from the Faro airport, Lagos is one of the farthest resort towns from the capital city, but rental cars and resort shuttles are readily available.

Unlike many beach resort areas in the Algarve, Lagos also has a fair amount of history and culture to explore, making it the perfect destination for a family holiday that offers more than just beach time.

Lagos’ old town has monuments, museums and a historic fortress. With plenty of nightclubs in Lagos, it’s also one of the best towns in Algarve for nightlife.

Where to stay in Lagos Algarve

Cheapest Backpacking Hostels in Lagos Algarve

Budget accommodation in Lagos Algarve

Mid range accommodation in Lagos Algarve

Family Friendly accommodation in Lagos Algarve

Affordable Luxury accommodation in Lagos Algarve

Wooden walkway to scenic Praia do Camilo in Lagos coast, Algarve, Portugal. The long stairs to clear waters of Algarve. Summer holidays in Europe.

Sagres – Where to stay in Algarve for nature lovers

At the westernmost tip of the Algarve, Sagres is a nature-lover’s retreat from the chaos of other beach resorts. The lush landscape ends in dramatic cliffs and wide, sandy beaches.

The ruggedness of this area attracts surfers and beach bums and while there are fewer hotels in Sagres, it’s quite popular for campervans.

The surrounding national park and preserve offers ample hiking opportunities, as well, making this a well-rounded place for adventure travelers.

Where to stay in Sagres

Cheapest Backpacking Hostels in Sagres

Budget accommodation in Sagres

Mid range accommodation in Sagres

Family Friendly accommodation in Sagres

Affordable Luxury accommodation in Sagres

View of the lighthouse and cliffs at Cape St. Vincent at sunset. Continental Europe's most South-western point, Sagres, Algarve, Portugal.

Alvor – Where to stay in Algarve with family

Nestled between Lagos and Portimao, Alvor is a quiet, family-friendly Algarve town that offers a more laid-back alternative to the larger cities surrounding it.

The nearby Ria de Alvor Nature Preserve protects marshlands and wildlife, while the Praia do Alvor is one of the largest beaches in the Algarve.

There’s not much in the way of nightlife here, and Alvor tends to attract an older crowd, but should you wish for quiet accommodation you can stay in Alvor and make a day trip to nearby Portimao or Praia da Rocha for more entertainment options. Alvor is by far the best area to stay in Algarve for families.

Where to stay in Alvor

Cheapest Backpacking Hostels in Alvor

Budget accommodation in Alvor

Mid range accommodation in Alvor

Family Friendly accommodation in Alvor

Affordable Luxury accommodation in Alvor

ALVOR, PORTUGAL - View on the beach Alvor Poente with sun umbrellas in Algarve, Portugal.

Portimao – Where to stay in Algarve for shopping

At the mouth of the Arade River, Portimao is the largest city in the western Algarve, and was once a large hub for shipping and fishing.

As a larger city, this is a good option if you want to know where to stay in Algarve without a car, as you can use public transportation to get to and from Portimao, as well as getting around the city easily.

Portimao itself does not have a beach, but you can easily find a boutique hotel with an outdoor swimming pool, or simply take a day trip to nearby beach resort of Praia da Rocha, just two kilometres from the center of Portimao.

The central location of Portimao makes it easy to check out Lagos and Albufeira, each less than 30 minutes by car.

Where to stay in Portimao

Cheapest Backpacking Hostels in Portimao

Budget accommodation in Portimao

Mid range accommodation in Portimao

Family Friendly accommodation in Portimao

Affordable Luxury accommodation in Portimao

PORTIMAO, PORTUGAL - - Tourists relaxing on the beach and in the sea, Praia da Rocha, Portimao, Algarve, Portugal, Europe,

Monchique – Where to stay in Algarve for Nature Lovers

If you are coming to the Algarve for outdoor adventure rather than beaches or nightlife, then Monchique is the spot for you.

Nestled in the forested hills above Lagos and Portimao, Monchique is a destination for hiking holidays and has been called the “greenest town of the Algarve.”

The highest point in the Algarve is also known for nearby hot springs and wellness resort at Caldas de Monchique.

After a vigorous hiking holiday, should you desire a day at the beach, Praia da Rocha is just 35 minutes by car from Monchique.

Where to stay in Monchique

Budget accommodation in Monchique

Mid range accommodation in Monchique

Family Friendly accommodation in Monchique

Colorful facades of small portuguese houses in picturesque Monchique, Algarve, Portugal

Carvoeiro – Where to stay in Algarve for active people

Just twenty minutes from Portimao, the village of Carvoeiro retains an authentic feel of a Portuguese village, while still offering plenty of tourist activities and accommodations.

There is a little bit of everything in Carvoeiro: family-friendly waterparks, hiking trails, pristine beaches, cliffs, caves and boat excursions. Other activities in Carvoeiro include scuba diving, kayaking, stand-up-paddleboarding, Jeep tours, a visit to the Alfanzina Lighthouse.

Of course, fresh seafood and Portuguese specialties await you at several locally-owned restaurants.

Where to stay in Carvoeiro

Budget accommodation in Carvoeiro

Mid range accommodation in Carvoeiro

Family Friendly accommodation in Carvoeiro

Affordable Luxury accommodation in Carvoeiro

ALGARVE, PORTUGAL - View to Carvoeiro beach, Lagoa, Algarve, Portugal.

Albufeira – Where to stay in Algarve for nightlife

Just 35 minutes from the Faro airport, Albufeira Algarve is one of the liveliest towns in the Algarve.

Albufeira has an old town area with cobblestone streets and quaint restaurants, family-friendly waterparks and attractions and it’s easy to find a hotel in Albufeira. Albufeira is said to be the best place to stay in Algarve for nightlife.

If you are coming to the Algarve for nightlife, you will inevitably end up on the Strip of Albufeira, where some of Portugal’s best bars and nightclubs stay open until the wee hours.

This partying reputation attracts lots of weekend crowds and stag do’s, so if that’s your scene, this is the best area of the Algarve for you!

Where to stay in Albufeira

Cheapest Backpacking Hostels in Albufeira

Budget accommodation in Albufeira

Mid range accommodation in Albufeira

Family Friendly accommodation in Albufeira

Affordable Luxury accommodation in Albufeira

Vivid view of buildings and boats in the Porto de Abrigo de Albufeira, Albufeira Bay in Albufeira, Portugal

Vilamoura – Where to stay in Algarve for golfing

Not far from Almancil, Vilamoura is another exclusive resort area. Vilamoura is best known for several local golf courses, as well as luxury resorts and gourmet restaurants.

Vilamoura also has one of the best beaches in the Algarve and a posh marina where yachts are welcome. Nearby Quarteira Harbour is a fishing hub, meaning seafood is fresh and plentiful in Vilamour.

The marina also hosts day trips for fishing and dolphin-watching. Between golf, sightseeing and beaches, Vilamoura is easily a place you can spend a week, especially if you are looking for a five-star experience.

Where to stay in Vilamoura

Cheapest Backpacking Hostels in Vilamoura

Budget accommodation in Vilamoura

Mid range accommodation in Vilamoura

Family Friendly accommodation in Vilamoura

Affordable Luxury accommodation in Vilamoura

Promenade full of families next to marina at the fashionable resort town of VilaMoura in the southern Portuguese region of Algarve. Luxury Tivoli Hotel visible

Almancil – Where to stay in Algarve for luxury travellers

Almancil is an exclusive area just 15 minutes from the Faro airport. It is best known for luxury resorts and empty sandy beaches.

Located in what is known as the Golden Triangle of the Algarve, visitors to Almancil will be surrounded in opulence, and foodie travelers will be rewarded with not one, but three Michelin-starred restaurants, more than any other Algarve town.

Two luxury resorts make up the bulk of accommodation in Almancil, with several golf courses attached to these resorts.

Where to stay in Almancil

Cheapest Backpacking Hostels in Almancil

Budget accommodation in Almancil

Mid range accommodation in Almancil

Family Friendly accommodation in Almancil

17th century church, dedicated to Saint Lawrence of Rome. Temple situated in Sao Lourenco, Almancil, Algarve, Portugal.

Faro – Where to stay in Algarve for day trips

Faro is the largest city in the Algarve, and anyone flying in will pass through the Faro airport. If you want an all-around cultural vacation with a few day trips to the beach, then Faro is the best place to stay in the Algarve.

Faro is also the best location from which to explore Ria Formosa Natural Park, a tranquil natural escape from the touristic beach resorts of the Algarve.

Wondering where to stay in Algarve without a car? Faro is close to Faro International Airport making it easy to get around without car.

As the largest city, Faro has more accommodation options and travellers looking for a budget-friendly hostel or hotel will easily find something to suite their tastes.

Where to stay in Faro

Cheapest Backpacking Hostels in Faro

Budget accommodation in Faro

Mid range accommodation in Faro

Family Friendly accommodation in Faro

Affordable Luxury accommodation in Faro

Faro is the main town of Algarve, Portugal

Olhão – Where to stay in Algarve for relaxation

The nearest town to both Faro and the Ria Formosa Natural Park is the old fishing village of Olhão. If you plan to take any day trips by ferry to nearby islands, they leave from Olhão, making this a good place to stay. Looking for quiet places in the Algarve?

Olhão is a quiet respite from nearby Faro and the proximity means you can still enjoy anything you’d like to see in Faro, but have a quiet retreat at the end of the day.

Wondering where to stay in Algarve for honeymoon? Olhão itself has many cute cafes, shops and restaurants, and you’ll definitely have a more local, authentic feel than in some of the larger cities and ports.

Where to stay in Olhão

Cheapest Backpacking Hostels in Olhão

Budget accommodation in Olhão

Mid range accommodation in Olhão

Family Friendly accommodation in Olhão

Affordable Luxury accommodation in Olhão

ALVOR, PORTUGAL - View on the beach Alvor Poente with sun umbrellas in Algarve, Portugal.

Tavira – Where to stay in the Algarve for couples

The best area in Algarve for couples is just 30 minutes east of Faro is the tranquil town of Tavira. Travellers come to Tavira to experience history and culture, which is most evident in the Moorish architecture of the region.

For those who wish to explore the estuaries and pristine beaches and islands of Ria Formosa Natural Park, but prefer not to stay in Faro, then Tavira is a good option.

Since this side of the Algarve is much more quiet and relaxed than the ritzy beach resort of western Algarve, Tavira is the best place to stay in Algarve for couples looking for a quiet romantic getaway.

Where to stay in Tavira

Cheapest Backpacking Hostels in Tavira

Budget accommodation in Tavira

Mid range accommodation in Tavira

Family Friendly accommodation in Tavira

Affordable Luxury accommodation in Tavira

TAVIRA, ALGARVE, PORTUGAL - : View on the old city of Tavira with beautiful white houses and the river Gilao on the sunset.

Top 5 favorites accommodation options for The Algarve

❤️ Best Area first timersLagos Algarve
💸 Best Luxury HotelTivoli Carvoeiro
👪 Best Hotel for For FamiliesAgua Hotels Alvor Jardim
🏨 Best Mid-Range HotelLagos Avenida Hotel
🛏️ Best Budget HotelHotel Made Inn
✨ Best HostelSon of a Beach Hostel

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  • Samantha King

    Sam, a seasoned traveler across four continents and 49 countries, is a leading authority in travel planning. Her website, Travelling King, offers tailored itineraries and expert guides for seamless trips. Sam's expertise in luxury travel, fast travel, and destination guides keeps her at the forefront of the travel community.

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