Where to Stay in the Algarve: Best Towns and Hotels

Where to Stay in the Algarve: Best Towns and Hotels

Wondering where to stay in the Algarve? It is a popular beach destination with beautiful sandy beaches, incredible rock formations, crystal clear turquoise waters, and exciting water activities.

It is important to plan how many days you will spend and where to stay in the Algarve so you don’t miss anything.

In our opinion, Lagos is the best base to explore the coastline as it is close to beautiful beaches such as Praia do Camilo, Praia de Dona Ana, and Praia dos Estudantes. But there are more towns on our list, and they can be great choices too, as they all have different bays and beaches.

This post will help you find the best places to stay in the Algarve, whether you’re a first-time visitor or looking for a weekend getaway.

Where to Stay in the Algarve

Don’t have time to read the whole article? Here are our favorite towns in the Algarve to stay in.

Lagos, Portugal: It is one of the most atmospheric towns and one of the most popular. Perfect for first-time visitors who want to explore the other Algarve towns but want to stay near beautiful beaches.

• Best for Couples: Charming Residence & Guest House
• Closest to everything: Casinha D’Avó Guesthouse

Carvoeiro: Charming coves, breathtaking beaches, wild rock formations, and sensational sea caves await visitors. The best choice if you want to visit the Benagil Caves or the famous Praia da Marinha beach.

• Best affordable hotel: Quinta das Andorinhas
• Close to the beach: Castelo Guest House

Portimao: It’s a good choice as it’s close to Lagos, and also a nice little town where you can spend a few hours walking the charming narrow streets or sampling some delicious seafood.

• Best for Families and Groups of Friends: RR Hotel da Rocha
• Romantic getaway: Jupiter Marina Hotel

Albufeira: It’s quite a crowded and party town, if you can, visit before or after the high season, and you’ll find much quieter and cheaper accommodation.

• Best value for money: Casa dos Arcos
• For solo travellers: Musical Hostel

Faro: A good choice for families, couples, or to spend a few days when you’ve finished exploring the coastline.

• Best for Luxury Traveler: 3HB Faro
• Good choice for Couples: Sunlight House

1. Lagos, Algarve – Best for First Time Visitors

Where to Stay in the Algarve for Your First Time? If you are traveling to the Algarve for the first time and want to explore as many beaches as possible, Lagos is one of the best choices. In Lagos, Portugal, you can choose from 3 areas where you can stay.

The historic center is the best choice if you arrive in the town by public transport and want to be close to the best restaurants, nightlife, and shops.
Away from the hustle and bustle of the tourist areas, it is close to Porto Mos beach, which is a very peaceful and relaxing area.
Or choose an area that is close to the best beaches and within a quick walk of the old town.

Recommended post → Best Areas to Stay in Lagos Portugal

We loved exploring the old town, walking the cobbled streets, shopping in the harbor, and eating seafood in the fantastic restaurants. We rented a scooter and used it to explore the best places and beaches in the area.

The town is the best place to stay if you are arriving in the Algarve by public transport or visiting for the first time.

Belmar Spa & Beach Resort

The resort is located just outside the town, in a quiet area within walking distance of the beach. It also offers many luxury spa treatments and an outdoor pool. Escape your daily routine with a massage or relax in one of the pools as the sun goes down.

Each furnished apartment has high quality, spacious rooms, and an equipped kitchen, most of which overlook the ocean. If you want to stay in a unique place in the Algarve with your family or a group of friends near the sea with a bit of luxury, this resort is one of the best choices.

Photo credit: Belmar Spa & Beach Resort

Charming Residence – Adults only

Charming Residence is a lovely adults-only hotel with an outdoor pool and rooms with balconies. It is a 10-minute walk from Lagos Old Town and a 5-minute walk from some of the Algarve’s most popular and beautiful beaches. Guests can enjoy 30 minutes of infrared sauna and Turkish steam bath daily.

A buffet breakfast is served, including a wide selection of vegetarian options. This guest house is one of the best places to stay if you are arriving in the Algarve without a car, and are looking for an ideal place to stay with your partner.

Photo credit: Charming Residence

Casinha D’Avó Guesthouse

The guest house is located in the heart of the old town, where you will find many great cafés, restaurants and bars. The apartment is beautifully decorated, creating a warm and inviting atmosphere that will make you feel at home.

Everything you need is available, from a fully equipped kitchen to high-speed Wi-Fi, making your stay comfortable and enjoyable. The location is exceptional for anyone wanting to stay in the old town of Lagos, not far from the beaches but close to restaurants, bars, and breakfast places.

Photo credit: Casinha D’Avó Guesthouse

2. Carvoeiro – Best for Everyone

With its stunning location, Carvoeiro has become one of the best holiday destinations not only in Portugal but also in all of Europe. Charming coves, breathtaking beaches, wild rock formations, and sensational sea caves await visitors.
Wondering what to do if you want to stay in this town for your Algarve getaway?

Carvoeiro is the perfect base if you are planning a boat trip to the Benagil Cave or if you want to visit the famous Praia da Marinha beach. This was one of our favorite beaches, but you’ll only get there comfortably by car or Uber. Once here, don’t miss the nearby Benagil beach, where you can explore the cave by kayak.

Recommended post → 9 Best Things to Do in the Algarve

Carvoeiro’s beach is small but picturesque, and the hiking trails around the town offer beautiful views. If you want an iconic postcard photo of Carvoeiro, walk up the hill to the left of the beach, where you can get great views, especially at sunset.

This is one of the best towns in the Algarve to stay in if you want to do a variety of things and be close to the Benagil cave.

Tivoli Carvoeiro

The Tivoli Carvoeiro is the ideal choice if you’re looking for the perfect town to stay in the Algarve. The hotel is perfectly located just steps from the picturesque promenade and the village of Carvoeiro. An indoor heated pool and outdoor swimming pools ensure comfort and relaxation.

Rooms are spacious, with private balconies, and some rooms have views of the Atlantic Ocean. A wide selection is served for breakfast, and the outdoor seating offers stunning ocean views. An ideal choice if you are traveling with your family and want to stay in a luxury hotel.

Photo credit: Tivoli Carvoeiro

Castelo Guest House

The guest house is in a lovely, quiet location with easy walking access to the town and the beach. The rooms are spacious, and have ocean views, which makes your days there even more wonderful when you wake up. The friendly staff will give you recommendations for the best restaurants in the town and various tour options.

Castelo Guest House is the perfect retreat if you are looking for a more private, relaxing accommodation away from the noise of the crowds. Whether you’re planning a romantic getaway or a longer stay in the Algarve, this guest house is one of the best places to stay.

Photo credit: Castelo Guest House

Quinta das Andorinhas

This family-run hotel offers 2 outdoor pools, one of which is open all year round. The property is conveniently located if you are arriving in Carvoeiro by car, as the beach and town are 10 minutes away.

All rooms are equipped with modern facilities and furnishings, ensuring a stylish and comfortable retreat. A hearty breakfast with a healthy selection and a variety of milks is served on the sunny terrace. There is a shared lounge and common areas with a fridge and microwave.

Photo credit: Quinta das Andorinhas

3. Portimao

Portimao is a centrally located town, the perfect base for exploring the region. It is between the most popular places to visit, Lagos and the Benagil Caves. The town center is a charming area full of local shops, cafes, and restaurants where you can sample one of the town’s most outstanding dishes – grilled sardines.

It also has great train connections if you arrive by public transport, but it’s not as authentic as other towns and there’s only one beach to relax on. If you want to stay in this Algarve town and explore more places, rent a car and start with the cozy town of Ferragudo.

The pretty little town 10 minutes away was one of our favourite places when we were there. We walked through the narrow streets, visited the beautiful São João do Arade fortress, and ate delicious seafood.

RR Hotel da Rocha

Where to stay in the Algarve if I want to be just a few minutes’ walk from the beach? The hotel is perfectly located just steps from the beach, and there are plenty of dining options nearby. Enjoy king-sized beds in a spacious room, a relaxing bathroom, and a balcony for a well-deserved rest.

The hotel restaurant is the perfect place for a late afternoon cocktail, a snack after a day at the beach, or an unforgettable dinner. This is one of the best places to stay with family or friends.

Photo credit: RR Hotel da Rocha

Jupiter Marina Hotel

In Algarve, there are actually many hotels where you can stay with your partner. Still, the Jupiter Marina Hotel is one of the most romantic choices. Located in the most picturesque part of the town, with exclusive views of the Arade River, it is within easy reach of local attractions, restaurants, and shops.

The hotel bar is the ideal place for a few snacks and cocktails, and for an unforgettable view, relax by the rooftop pool. This is one of the best hotels to stay in with your partner.

Photo credit: Jupiter Marina

Hotel Alcaide

Hotel Alcaide is in a good location if you don’t want to stay in the center of Portimao. The beach is within easy walking distance. There is a bus stop nearby if you want to explore other cities by public transport. The hotel’s swimming pool and green garden are the perfect complement to a relaxing beach holiday.

The rooms are spacious, modern, and the comfortable bed is the perfect night’s sleep after a day of exploring. Hotel Alcaide offers an unrivaled blend of comfort and great service, ensuring that your stay is not just a visit but a memorable experience.

Photo credit: Hotel Alcaide

4. Albufeira – Best Nightlife in the Algarve

Where to Stay in the Algarve for Nightlife? Albufeira is one of the best known holiday destinations. Plenty of beaches and easy transport to other towns can be an advantage. There are great bars and crowded nightclubs if you like a vibrant party life.

Mostly, young people choose this city as their base, so if you want to relax, this is not the city for you. However, if you visit before or after the season, you can find much quieter and cheaper hotels. You should also try the local fish dishes, especially the grilled sardines and calamari, which are freshly prepared in all restaurants.

For those who don’t like crowds, don’t choose Albuferia, but rather visit the eastern and western Algarve, where you can stay in much quieter and more authentic towns.

Hotel Sol e Mar – Adults Only

Hotel Sol e Mar is a charming hotel with 5 floors and a total of 68 double rooms with spectacular ocean views. The design of the hotel allows direct access to the beach from the ground floor and to the old town from the fifth floor.

Rooms are spacious, with a private balcony overlooking the ocean, cable TV, air conditioning, a hairdryer, and a private bathroom. Enjoy stunning views and fall asleep to the sound of the waves in this comfortable hotel.

Photo credit: Hotel Sol e Mar

Casa dos Arcos

Casa dos Arcos is a guest house set in an 18th-century palace in the center of Albufeira’s historic district, a 5-minute walk from the beach. It has a beautiful garden where you can sit, read, or meet other travelers. It has a fully equipped common kitchen with all necessary utensils.

Staying at the guesthouse can be a great choice if you are traveling by public transport in the Algarve, as the bus stop is a few minutes walk away. There are plenty of restaurants and shops in the old town and you can easily walk to the beach.

Photo credit: Casa dos Arcos

Musical Hostel

The accommodation is located in the center of the vibrant old town, 5 minutes from the beach, which is reached by a beautiful walk through the town. Individually and entertainingly decorated, the air-conditioned rooms provide all the necessary comforts.

The hostel is in a great location, so you can get everywhere on foot. There are plenty of restaurants, bars and shops nearby. Facilities include a 24-hour reception, a shared kitchen, and free WiFi. You can store your luggage for free after check-out if you want to explore the town even more.

Photo credit: Musical Hostel

5. Faro – Stay in the Algarve for a Weekend Getaway

Faro is the perfect base for exploring beautiful lagoons, sandy beaches, and hidden coves. Explore the different islands of the Ria Formosa nature reserve, where you can find a variety of wildlife. Visit the heart of the town and try the delicious food, or visit the neighbouring villages and beaches and enjoy stunning views of the Atlantic Ocean.

You can also take a boat trip from here to the famous Benagil Caves or even take a sup tour. The town is quiet, it is a good choice for a family stay if you are planning a trip to the Algarve.

The airport and train station are located here, so it’s worth spending a few days at the beginning or end of your trip.

3HB Faro

Located in the city’s heart, 3HB Faro is a modern luxury hotel known for its urban elegance, friendly environment, and intuitive service. The port and the old town are easily accessible by foot, and there are many restaurants and shops nearby. It has an infinity pool from where you can admire views of the town and the beautiful Ria Formosa.

The buffet breakfast is made with fresh, local ingredients, from fresh fruit to traditional pastries and eggs made to order. On your trip to the Algarve, this is the place to stay if you’re planning a real luxury escape.

Photo credit: 3HB Faro

Sunlight House

Wondering where to stay in the Algarve? Sunlight House is located on the edge of Faro’s historic center, just a few minutes’ walk from the old town, the harbor, and the traditional shopping street. The rooms are clean, well furnished, and have everything you need.

If you arrive by car, you can easily find parking just a few minutes from the hotel. Breakfast is served on the roof terrace and includes toast with cheese and ham, pastries, juice, and coffee or tea.

Photo credit: Sunlight House

Hostellicious

Hostellicious hostel is centrally located just 600 meters from the central bus and train station. There are shopping streets, cafés, and restaurants nearby.

The reception is open 24 hours a day and can assist with booking airport and airport shuttle services, and planning available tours. They also have dinner every night, followed by a pub crawl, which can be a lot of fun and an easy way to meet people.

Photo credit: Hostellicious

Algarve: FAQ

Top Tours

Benagil Caves Speed Boat Tour
Boat Cruise to Ponta da Piedade
Guided Kayak Tour
Cruise by Catamaran

When is the best time to stay in the Algarve?

Portugal is the perfect all year round destination, with beautiful and sunny weather. But the best time to visit is from May to September. Alternatively, you can visit the region in winter if you have a low budget or want to avoid crowds.

How to Get to Algarve

You can easily get by plane, train, bus, or car. One of the cheapest ways to travel within Europe is by FlixBus or a low-cost airline. The nearest airport is Faro International Airport.

How many days do you need?

We recommend you spend at least 3-4 days enjoying the magical sunrises and sunsets, swimming in the crystal clear waters, snorkeling, or relaxing on the stunning beaches. If you have more time, you can easily spend 7 days exploring hidden gems and underrated destinations.

Where to Stay in the Algarve: Map of the Best Areas

We have categorized the Algarve region into 5 towns to help you find the best places to stay.

We hope our post on the best towns and hotels in the Algarve helps you plan to choose where to stay. If you have any questions or thoughts, let us know in the comment below.

More Travel Guides about Portugal

• The Ultimate Portugal Itinerary for 10 Days
• 9 Best Things to Do in the Algarve
• 10 Best Beaches in the Algarve You Must Visit
• Epic Things to Do in Lisbon, Portugal
• 9 Best Lisbon Instagram Spots

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