Voyage Tips - Advice
Searching for hotels in the Algarve and short on time? Discover travelers’ favorite hotels in the region on Booking.com by clicking here!
Pro tip: They’re in high demand, so book quickly!
And for an extensive guide on where to stay in the Algarve, including my top hotel picks, read my detailed article.
Where to Stay in Algarve: My Selection of the Best Accommodations
Wondering where to stay in the Algarve? Looking for the best towns and hotels?
You’re at the right place!
As I know the Algarve very well, I have created this guide of:
- Algarve’s best towns for your stay (with details about the best beaches and nearby attractions)
- For each area and town, the best hotels depending on your budget
Let’s find your dream hotel now!
My favorite towns and hotels in the Algarve
Here’s a quick summary of the best towns and my favorite hotels in the Algarve, in case you don’t have time to read my detailed article.
Simply click on the towns or hotels names in orange to access details and rates:
Where to stay in Algarve
For the first time: Albufeira
- Casa Amarela Guesthouse (Old Town) | PortoBay Falésia (beach) | EPIC SANA Algarve Hotel (beach)
Best beaches: Lagos
To party: Albufeira
- Auramar Beach Resort close to both “The Strip” (the bars street) and the beach
To see the famous caves and landscapes: Lagos
- Belmar Spa & Beach Resort (near the beach) | Hotel Marina Rio, in the marina (boat trips departure point)
For a luxury stay: Vilamoura or Albufeira
- Tivoli Marina Vilamoura | Domes Lake Algarve Vilamoura
- Vila Balaia | EPIC SANA Algarve Hotel | W Algarve – Albufeira
On a budget: Portimão
For a family trip: Albufeira
- Alfagar Village or Alfagar Alto da Colina, in the same complex, with amazing pools and slides.
For a romantic stay: West of Albufeira (best) or Tavira
- EPIC SANA Algarve Hotel (best) | PortoBay Falésia (cheaper), both with direct beach access or Vila Origens Boutique Hotel in Albufeira old town
- OZADI Tavira Hotel |AP Maria Nova Lounge | Hotel Rural Quinta do Marco (countryside)
Without a car: Lagos (best) or Faro
- Belmar Spa & Beach Resort | Clube Porto Mos | Boutique Hotel Vivenda Miranda (luxury) – Lagos
- Alto House Faro | Roots Hotel | AP Eva Senses (Marina) | 3HB Faro (luxury) – Faro
Albufeira, the Most Famous Resort Town
Best for:
- Being in a central location
- Nightlife
- Family holidays (amazing kid’s clubs)
- Nice beaches, watersports
Albufeira is the largest and most popular resort town in the Algarve.
Located in the center of the southern coast, it is famous for its vibrant nightlife, white sandy beaches, and white-washed Old Town.
It’s the best area if you want to be in the middle of the action.
In Albufeira, you can see:
- The Old Town, with its cobbled streets, restaurants, and live music.
- Praia dos Pescadores, the main beach accessible directly from the city center.
- The Strip, a long street packed with bars and clubs for party lovers.
- Zoomarine, a popular marine theme park located just a short drive away (open March to November)
- Praia da Falésia, a sandy beach know for its red cliffs.
- Do boat trips to the most famous caves (Benagil) or to see the dolphins
Where to Stay in Albufeira?
Old Town
- Cerro Mar Atlantico & Cerro Mar Garden: Located on a hill overlooking the Old Town. Spacious apartments and rooms with balconies from 110€. Strong points: stunning panoramic views, several swimming pools, gym and spa facilities.
- Casa Amarela Guesthouse: Situated very close to the historic center. Modern, renovated guest house rooms from 130€. Strong points: rooftop pool with city views, immaculate cleanliness, very helpful hosts.
- Vila Origens Boutique Hotel: An adults-only hotel just steps from the beach. Luxurious, stylish rooms from 180€. Strong points: very nice outdoor pool, spa, exclusive and peaceful atmosphere (adults only hotel). My favorite hotel for a romantic stay in the Old Town!
“The Strip” (the bars and nightclub street)
- Topázio – VIBE Beach Hotel & Apartments: Just a few steps from the bars but quiet enough to sleep. Modern rooms, apartments and bungalows from 100€, breakfast included. Strong points: nice swimming pool, youthful vibe, very friendly staff.
- Hotel Apartamento Brisa Sol: Located between the Old Town and the Strip. Studios and family apartments from 165€. Strong points: excellent pool area, very clean, great for families wanting to be near the action but not in it.
- Auramar Beach Resort: Right on the beach, overlooking the ocean. Simple double rooms from 185€, all-inclusive options available. Strong points: direct beach access, large outdoor pool, free parking, stunning views. Simply the best hotel and enjoy both the beach and the Albufeira’s nightlife!
For a beach holiday – Hotels outside of the city
- PortoBay Falésia: Overlooking the red cliffs with direct access to the beach. Elegant rooms from 160€, breakfast included. Strong points: breathtaking views, excellent service, indoor and outdoor pools. A great choice for its excellent value for money.
- Algarve Marriott Salgados Golf Resort & Spa: A 5-star complex next to the Salgados golf course. Large rooms with contemporary design from 180€. Strong points: three outdoor pools, great breakfast, large garden, free small train taking you to the beach.
- EPIC SANA Algarve Hotel: A stunning 5-star hotel located right on Falésia Beach. Modern luxury rooms from 250€. Strong points: 2 Outdoor pools, extensive spa, gourmet dining. The perfect choice for a romantic stay in Albufeira!
- Vila Balaia: 5-star luxury villas situated in a lush garden, from 375€. Strong points: heated outdoor pool, tennis courts, very peaceful atmosphere. The best luxury option in Albufeira if you’re looking for a more intimate holiday!
For families:
- Alfagar Village: Located on a cliff top in Olhos d’Água. Apartments with direct garden access from 120€. Strong points: amazing swimming pools with slides, direct beach access, tennis court. A great choice choice if you’re traveling with kids!
- Alfagar Alto da Colina: located a bit higher on the hill and also part of the Alfagar complex. Apartments with large balconies from 120€. Strong points: access to all resort facilities including the water slides, soccer pitch, tennis court, padel court… a true kids paradise! Same as above, for sure they will have a lot of fun!
- Moradias Vila Joinal: Situated in the quiet Galé area, west of the city center. Spacious villas surrounded by gardens from 125€. Strong points: large outdoor pool, very peaceful atmosphere. A full 130 m² villa for this price? Perfect if you want some space!
Lagos
Best for:
- History and culture
- Nice beaches
- Boat tours to the famous Benagil Caves and Ponta da Piedade
- Relaxed and authentic atmosphere
Lagos is widely considered the most beautiful town in the western Algarve.
It offers a perfect mix of historic heritage and natural scenery.
Staying in Lagos allows you to enjoy a more authentic Portuguese atmosphere while being close to some of the region’s most famous rock formations.
This town is perfect for discovering:
- Ponta da Piedade, a group of rock formations and sea arches that you can explore by boat or on foot.
- Meia Praia, a massive sandy beach that stretches for 4 kilometers.
- Lagos Old Town, surrounded by 16th-century walls.
- Praia do Camilo, a small cove accessible by a long wooden staircase.
- Slave Market Museum
Here are my favorite hotels in Lagos
Historic center and modern city center
- Lagos Uptown Bed & Breakfast: Located in the modern part of Lagos, 5 minutes walk from the old town. Modern and bright double rooms from 120€, breakfast included. Strong points: fantastic rooftop terrace, modern design, very comfortable beds. A great choice for its excellent value for money.
- Vila Luna B&B: The villa is situated on a quiet street, in an upscale area of Lagos. Comfortable rooms from 130€. Strong points: Superb swimming pool and terrace, large modern bedrooms, very welcoming host. My favorite option for a romantic stay if you have a car!
- Villa Zawaia: A cozy B&B in the old town. Elegant double rooms from 150€, breakfast included. Strong points: peaceful atmosphere, small plunge pool, excellent breakfast.
In the Marina (boat trips departure point)
- Hotel Marina Rio: Facing the marina. Warm double rooms from 150€, breakfast included. Strong points: heated rooftop pool, view of the boats, friendly staff.
- Lagos Avenida Hotel: Located right on the main avenue. Modern rooms with balconies from 220€, breakfast included. Strong points: rooftop infinity pool with marina views, modern design, great location. Simply the best hotel in the Marina!
Near the beaches:
- Dom Manuel I Charming Residence: Located near Dona Ana Beach. Adults-only double rooms from 130€, breakfast included. Strong points: very quiet and peaceful, charming Portuguese architecture, lovely pool area. A great choice for its excellent value for money.
- Lagos Atlantic Hotel: Located near Porto de Mós. Modern rooms with sea views from 135€, breakfast included. Strong points: outdoor pool, clean facilities, peaceful location.
- Belmar Spa & Beach Resort: Overlooking Porto de Mós beach. Luxury apartments from 150€. Strong points: extensive spa facilities, beautiful outdoor pools, sea views.
- The Editory By The Sea: 5-star hotel located close to Dona Ana and Camilo beaches. Modern and bright rooms with balconies from 160€. Strong points: indoor and outdoor swimming pools, proximity to the most beautiful coves, quiet area. Perfect for a romantic stay!
- Boutique Hotel Vivenda Miranda: Perched on the cliffs above Porto de Mós. Uniquely decorated rooms from 340€, breakfast included. Strong points: stunning ocean views, outdoor pool, spa and wellness center. Simply the best luxury boutique hotel in Lagos!
Vilamoura
Best for:
- Luxury holiday
- Nice beaches
- Golf
- Playing at the casino
Located only 25 minutes by car from Albufeira, Vilamoura is the most upscale and sophisticated resort area in the Algarve.
Built around a large marina filled with luxury yachts, it is a destination designed for leisure and relaxation.
Best things to see and do in Vilamoura:
- Vilamoura Marina, the heart of the town, perfect for an evening stroll and dinner.
- Praia da Falésia, accessible from the marina, one of the best beaches in Portugal.
- Casino Vilamoura, for evening entertainment and shows.
- Cerro da Vila, the ruins of a Roman villa located near the marina.
- Oceanico Golf Courses, specifically the Victoria Golf Course.
The Best Hotels to Stay in Vilamoura
- Pestana Vila Sol Golf & Resort Hotel: Located a 10-minute drive from the marina. This 5-star hotel sits right on a golf course surrounded by gardens. Double rooms from 150€. Strong points: large indoor and outdoor pools, very peaceful atmosphere, perfect for golf lovers. A great choice for its excellent value for money.
- Vila Galé Ampalius: Just steps away from the Casino and the beach. Classic rooms starting at 170€. Strong points: large outdoor swimming pool, tennis courts, excellent location near all the entertainment.
- Tivoli Marina Vilamoura: This iconic 5-star hotel is located directly between the marina and the beach. It offers elegant rooms with sea or marina views from 290€. Strong points: huge pool, beach club, exceptional location. The most famous hotel in Vilamoura!
- Domes Lake Algarve, Autograph Collection: This 5-star luxury resort offers a unique setting with its own private seawater lake. Beautifully designed rooms from 390€. Strong points: three pools (including one with a sand bottom), private access to Falésia beach, high-end spa. Simply the best hotel for a luxury stay in Vilamoura!
Portimão and Praia da Rocha
Best for:
- More affordable hotels/restaurants at similar quality
- Nice beach
- Boat tours to the famous Benagil Caves and more
- If you enjoy a busy resort vibe with plenty of bars and shops.
Portimão is the second-largest city in the Algarve, famous for its massive beach district, Praia da Rocha.
It offers a mix of a working Portuguese city and a beach resort.
It is generally more affordable than Vilamoura or Albufeira, making it a great option if you’re traveling on a budget and still want a great beach.
This district is perfect to discover:
- Praia da Rocha, a wide beach backed by limestone cliffs.
- Portimão Museum, housed in an old sardine canning factory.
- Fortaleza de Santa Catarina
- Ferragudo, a charming fishing village just across the river.
- The Riverside Promenade, ideal for eating grilled sardines, a local’s favorite!
Where to Stay in Portimão?
- Hotel Santa Catarina Algarve: Located just 50 meters from Praia da Rocha. Simple but comfortable double rooms from 75€, breakfast included. Strong points: unbeatable price for this location, private balconies, retro charm. The best budget option in Portimão.
- AP Oriental Beach – Adults Friendly: Situated at the quieter end of the beach boardwalk. Bright rooms with balconies and sea views from 130€. Strong points: exotic outdoor pool overlooking the ocean, direct beach access, relaxing atmosphere.
- RR Hotel da Rocha: Right on the lively main avenue. Modern and spacious suites (great for families) from 140€, breakfast included. Strong points: outdoor pool, excellent soundproofing, immediate access to restaurants and bars.
- Algarve Casino Hotel: This 5-star hotel is located directly on the sand. Elegant rooms with classic decor from 150€, breakfast included. Strong points: heated saltwater pools, spa center, easy access to the casino.
Tavira
Best for:
- Quieter, less touristy atmosphere
- Authentic Portuguese architecture and ancient churches.
Tavira is often called the prettiest town in the Algarve.
Located in the eastern part of the region, it feels traditional and calm, far from the mass tourism of the west.
Staying in Tavira is ideal for couples or if you’re looking for a peaceful and cultural escape.
Best things to see in Tavira:
- The Roman Bridge, the symbol of the town that crosses the Gilão River.
- Tavira Castle,
- Ilha de Tavira, a, island with nice beaches.
- Ria Formosa Natural Park.
- Praia do Barril, famous for its “Anchor Cemetery” in the sand.
- Santa Maria do Castelo Church
My Favorite Hotels in Tavira
- Residencial Marés: Located right on the riverfront facing the Gilão River. Simple but clean double rooms from 70€, breakfast included. Strong points: sauna, great view of the river, unbeatable location in the historic center. A great choice for a stay in Tavira without breaking the bank!
- OZADI Tavira Hotel: Situated a 5-minute drive from the town center. This hotel features award-winning contemporary design. Rooms from 130€, breakfast included. Strong points: beautiful outdoor pool, kids’ club, free shuttle to the beach.
- Vila Galé Tavira: Located on the banks of the Ria Formosa. Rooms with Arabic-inspired decor from 150€, breakfast included. Strong points: huge outdoor swimming pool, spa center, family-friendly atmosphere.
- AP Maria Nova Lounge – Adults Friendly: A short walk from the castle. Modern rooms with balconies from 180€. Strong points: rooftop bar with panoramic views, large pool, great location.
If you prefer a quiet stay in the countryside:
- Hotel Rural Quinta do Marco: Located 10 km from Tavira, in the middle of nature. Double rooms from 150€, breakfast included. Strong points: swimming pool with a view, surrounded by orange and olive trees, excellent local restaurant on site.
Faro, the Capital City
Best for:
- A late arrival or early flight.
- If you don’t have a car
- If you prefer a real city over a beach resort.
Faro is the capital of the Algarve and the main entry point thanks to the airport.
Often overlooked by tourists heading straight to the beaches, Faro has a charming historic center and a distinct city vibe.
It is the perfect base for short stays or if you rely on public transport.
This city is perfect to discover:
- Cidade Velha (Old Town), entered through the monumental Arco da Vila.
- Faro Cathedral (Sé), where you can climb the tower for great views.
- Capela dos Ossos (Bone Chapel), a small chapel decorated with human bones.
- Ria Formosa Natural Park, a labyrinth of canals and islands.
- Ilha Deserta, an uninhabited island with crystal clear water.
Where to Stay in Faro?
- Alto House Faro: Located in a quiet area, about 15 minutes walk from the center. Stylish and cozy double rooms from 90€. Strong points: shared kitchen available, lovely terrace, very friendly atmosphere. A great budget-friendly option in Faro
- Guest House Jacaranda: Right in the heart of the city near the marina. Charming rooms with traditional decor from 110€. Strong points: very clean, authentic Portuguese feel, attentive host.
- Roots Hotel: Just steps away from the historic center and the marina. Modern studios with fully equipped kitchenettes from 120€. Strong points: beautiful courtyard with a pool and waterfall, very comfortable bedding.
- AP Eva Senses: Located directly on the marina overlooking the Ria Formosa. Spacious and classic rooms from 180€, breakfast included. Strong points: rooftop pool and bar with sunset views, gym, central location.
- 3HB Faro: Situated on the main pedestrian street. This 5-star hotel offers high-tech luxury rooms from 230€, breakfast included. Strong points: stunning rooftop infinity pool, indoor pool, gym, exceptional service. Simply the best luxury hotel in Faro!
What is the best hotel in the Algarve?
If you are looking for the best hotels in the Algarve, I recommend you one of the following:
- Vila Balaia | EPIC SANA Algarve Hotel | W Algarve – Albufeira
- Boutique Hotel Vivenda Miranda – Lagos
- Domes Lake Algarve – Vilamoura
And if you’re looking for something a little more affordable but still high-end, you should book a night or more at:
- PortoBay Falésia – Albufeira
- The Editory By The Sea | Vila Luna B&B – Lagos
- Tivoli Marina Vilamoura – Vilamoura
Where to stay in Algarve: The best hotels
To give you a better overview of the best hotels in the Algarve, I’ve prepared a table summarizing all the ones I talk about in this article.
You can sort them by price or by town!
Book your trip now and save money!
