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Where to stay in The Algarve

Traditional portuguese architecture in Olhao da Restauracao Algarve Portugal

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!

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, 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! 

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Lagos – Where to stay in Algarve for first timers

The combination of multiple beach options, plentiful 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 Portugal

Cheapest Backpacking Hostels in Lagos
Casa Portas de Portugal
Stumble Inn
Boutique Taghostel

Budget Hotels in Lagos
Casa das Laranjeiras
Lagos Downtown Guesthouse
LC’s Guest House
Muralha House

Mid range Hotels in Lagos
Vila Gale Lagos
Dom Pedro Lagos
Clube da Meia Praia
Marina Club Lagos Resort

Family Friendly Hotels in Lagos
Boutique Hotel Marina S. Roque
Lagos Uptown Bed & Breakfast
AquaLuz Suite Hotel
Villa Doris Suites

Affordable Luxury Hotels in Lagos
Lagos Avenida Hotel
Onyria Palmares Beach House Hotel
Cascade Wellness Resort

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

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.

Best places to stay in Portimao

Cheapest Backpacking Hostels in Portimao
Aloha Hostel
City Stork Hostel
Alameda Hostel
My Guest House

Budget Hotels in Portimao
Residencial Dom Carlos I
Residencial Arabi
Villa Rio Guest House Suites
AtlanticHotels – Studio 17

Mid range Hotels in Portimao
Jupiter Marina Hotel
Flamingo Residence
Hotel Apartamentos Mirachoro II

Family Friendly Hotels in Portimao
Residencial Sao Roque
Vista Marina Apartamentos Turisticos
Clube Vilarosa
NDS Prestige Guesthouse and Suites

Affordable Luxury Hotels in Portimao
Bela Vista Hotel & Spa
Pestana Blue Alvor
Vale d’Oliveiras Quinta Resort and Spa
Pestana Alvor Praia – Premium Beach & Golf Resort

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

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. 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 Portugal

Cheapest Backpacking Hostels in Faro
Sunlight House B&B
FaroWay Hostel
Casa d’Alagoa – Faro Hostel
Well’Come! to Algarve Hostel

Budget Hotels in Faro
The Story Guest House
Happy House

Mid range Hotels in Faro
Aqua Ria Boutique Hotel
Hotel Faro
Faro Boutique Hotel
Best Western Hotel Dom Bernardo

Family Friendly Hotels in Faro
Porta Doze Guesthouse
Hotel Alnacir
Hotel Ibis Faro

Affordable Luxury Hotels in Faro
Opus One Luxury Guest House
Eva Senses Hotel

Faro is the main town of 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.

Best places to stay in Tavira

Cheapest Backpacking Hostels in Tavira
Mi Casa Su Casa
Pousada de Juventude de Tavira

Budget Hotels in Tavira
Tavira Guest
Hotel Don Rodrigues

Mid range Hotels in Tavira
Quinta do Caracol
Monte do Alamo
Maria Nova Lounge Hotel

Family Friendly Hotels in Tavira
Vila Gale Tavira
Ozadi Tavira Hotel
Vila Gale Albacora

Affordable Luxury Hotels in Tavira
Pousada Convento de Tavira
Tavira House
Villa Tavira Terrace

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

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 acommodation in Almancil, with several golf courses attached to these resorts.

Best places to stay in Almancil

Cheapest Backpacking Hostels in Almancil
Faro Beach Life Hostel
Wax Hostel

Budget Hotels in Almancil
Hotel 3K Faro Aeroporto

Mid range Hotels in Almancil
Lakeside Country Club Quinta do Lago
Vilar do Golf by Diamond Resorts
Ria Park Garden Hotel
The Magnolia Hotel

Family Friendly Hotels in Almancil
Dunas Douradas Beach Club
Conrad Algarve
Luxury Beach Guest House
Vale do Lobo Resort

Affordable Luxury Hotels in Almancil
Quinta do Lago
Vale do Lobo
Monte da Quinta Resort
Martinhal Quinta Family Resort

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

Best places to stay in Alvor

Cheapest Backpacking Hostels in Alvor
Ria Hostel Alvor
Ar de Mar Guesthouse
Alvor Ardemar
My Guest House

Budget Hotels in Alvor
Apartamentos Santa Teresinha
Casa Largo do Poco Guesthouse
Hotel Alcaide
Plaza Real Atlantichotels

Mid range Hotels in Alvor
Luna Alvor Bay
Aguahotels Alvor Jardim
Pestana Alvor Atlantico
Pestana Delfim All Inclusive

Family Friendly Hotels in Alvor
Alvor Guesthouse
Alvor House Lagoon
AlvorMar – Apartamentos Turisticos
Pestana Dom Joao II

Affordable Luxury Hotels in Alvor
Pestana Alvor Praia – Premium Beach & Golf Resort
Pestana Blue Alvor
Onyria Palmares Beach House Hotel

ALVOR, PORTUGAL - View on the beach Alvor Poente with sun umbrellas in 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
Du 4 Arte Hostel
Rich & Poor Hostel
Hostel Casa dos Arcos
Wish & Stay

Budget Hotels in Albufeira
Casa Algarvia Boutique & Suites
Apartamentos Turisticos Regina
Hotel Vila Recife
Albufeira Beach Hotel

Mid range Hotels in Albufeira
Hotel Mansao Bertolina
Hotel Baltum
Hotel Sol e Mar
Cerro Mar Atlantico & Garden

Family Friendly Hotels in Albufeira
Hotel California Urban Beach
Hotel Almar
Alfagar Cerro Malpique
Cerro Mar Atlantico Touristic Apartments

Affordable Luxury Hotels in Albufeira
Sao Rafael Suites
Grande Real Santa Eulalia Resort & Hotel Spa
Sao Rafael Luxury Villas

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

Best places to stay in Olhão

Budget Hotels in Olhão
Pensao Bela Vista
Hospedaria Por do sol

Mid range Hotels in Olhão
Real Marina Hotel & Spa

Family Friendly Hotels in Olhão
Real Marina Hotel & Spa
Hotel Cidade De Olhao
Casa do Poco

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

Monchique – Where to stay in Algarve for beach 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 desier a day at the beach, Praia da Rocha is just 35 minutes by car from Monchique.

Best places to stay in Monchique

Budget Hotels in Monchique
Miradouro da Serra
Albergaria Do Lageado

Mid range Hotels in Monchique
Hotel Termal

Family Friendly Hotels in Monchique
Casa dos Batalim

Affordable Luxury Hotels in Monchique
Monchique Resort & Spa
Central Suites & Apartments – Monchique

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

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.

Best places to stay in Sagres

Cheapest Backpacking Hostels in Sagres
Alojamento Local Mareta
The Lighthouse Hostel

Budget Hotels in Sagres
Residencia Quinta do Poco
Apartamentos Atalaia

Mid range Hotels in Sagres
Casa Azul Sagres – Rooms & Apartments
Sagres Time Apartamentos
Mareta Beach Boutique Bed and Breakfast
Mareta View Boutique Bed & Breakfast

Family Friendly Hotels in Sagres
Casa Grilo
Casa do Cabo de Santa Maria
Pousada de Sagres – Charming Hotel
Aparthotel Navigator

Affordable Luxury Hotels in Sagres
Memmo Baleeira Hotel Sagres
Mareta Beach House Boutique Residence
Martinhal Sagres Beach Resort & Hotel

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

Vilamoura – Where to stay in Algarve for golfing

Not far from Almancil, Vilamoura is another exlusive 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.

Best places to stay in Vilamoura

Cheapest Backpacking Hostels in Vilamoura
Hostel Victoria Vilamoura
Conii Hostel & Suites

Budget Hotels in Vilamoura
Residencial Triangulo
Hotel Atismar
Hotel Zodiaco
Apartamentos Carteia

Mid range Hotels in Vilamoura
Dom Pedro Marina
Vila Gale Ampalius
Vila Gale Marina
Luna Olympus

Family Friendly Hotels in Vilamoura
Dom Pedro Vilamoura
Four Seasons Vilamoura
Laguna Resort Vilamoura
Vilamoura Garden Hotel

Affordable Luxury Hotels in Vilamoura
Tivoli Marina Vilamoura
Blue & Green The Lake Spa Resort
Hilton Vilamoura As Cascatas Golf Resort & Spa
Anantara Vilamoura Algarve Resort

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

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.

Best places to stay in Carvoeiro

Budget Hotels in Carvoeiro
Pestana Gramacho Residences

Mid range Hotels in Carvoeiro
Colina Village
Vale da Lapa Resort & SPA
Lagoa Hotel

Family Friendly Hotels in Carvoeiro
Placid Village
Hotel Mirachoro Praia
Hotel Carvoeiro Plaza
Pestana Palm Gardens

Affordable Luxury Hotels in Carvoeiro
Tivoli Carvoeiro Algarve Resort
Monte Santo Resort
Vale d’Oliveiras Quinta Resort and Spa

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

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Where to stay in The Algarve

Where to stay in The Algarve

Where to stay in The Algarve

Article written by:

Hi, my name is Samantha, Finance Managing Guru by day, Travel Blogging Enthusiast by... well... day too! Haha! Travelling King is the destination hotspot for the wannabe traveller! Showcasing affordable, luxurious getaways for the budget conscious! With the combination of my financial knowledge and travelling experiences I aim to show you, with a little planning, the right budget and a realistic goal you can fulfil your travel fantasies and explore the world whatever your budget or desires may be!