Where to Stay in Faro, Portugal: 3 Best Areas & Hotels

Planning a trip to Faro and not sure where to stay? You’re in the right place.

Faro isn’t the first place people think of when they picture the Algarve, but chances are you’ll pass through here at some point. It’s home to the region’s main airport, and for many travelers, it’s either the start or end of their trip. That said, there’s more to Faro than just a quick stopover.

After spending time exploring the city, we’ve put together this guide to the best areas to stay in Faro, along with our top hotel picks for every budget. Whether you’re staying for a night or a few days, this will help you choose the right base.

Where to Stay in Faro map

Overview of the Best Areas to Stay in Faro

To be honest, Faro isn’t the first place people generally think of when planning a beach trip to the Algarve, but most travelers pass through here at some point thanks to the airport. It’s less of a resort town and more of a laid-back, local city. We think it works really well as a base or a short stop at the start or end of your trip.

The main areas to consider are the Marina/City Center (Baixa) and Cidade Velha (Old Town). The City Center sits along the marina and is where you’ll find most of the restaurants and hotels here, so it’s the most convenient place to stay. Cidade Velha is not as convenient, but it’s the historic heart of Faro, and it can be worth the trade-off if you love cobblestone streets and old buildings. 

Getting around Faro is easy, and you don’t necessarily need a car if you’re just staying in the city. The center is compact and very walkable, and you can easily catch a bus to the beach or nearby areas. However, if you’re planning to explore more of the Algarve, renting a car will give you a lot more flexibility.

• Marina/City Center – Best for first-time visitors – This is Faro’s main hub, set along the marina with easy access to restaurants, shops, and transport links. Occidental Faro is a great mid-range option with a rooftop pool and a super central location.

• Cidade Velha (Old Town) – Best for historic charm – This walled part of the city is full of history, and it has a quieter, more atmospheric feel. Faro Boutique Hotel is a stylish stay just outside the walls with modern rooms and easy access to the main sights.

• Montenegro/Airport – Best for short stays – This is a residential area that sits right by the airport, so it’s perfect for early flights – plus it’s more affordable! Hospedaria Frangaria is a simple but comfortable stay, super close to the airport.

Where to Stay in Faro

Marina/City Center 

BEST FOR FIRST TIME VISITORS 

Pros

• Central and walkable
• Close to lots of shops and restaurants
• Great transport links

Cons

• Less charm than the Old Town
• Can feel a bit busy in peak season

Faro’s Marina and City Center (Baixa) is the most convenient place to stay, especially if it’s your first time visiting. Everything is right on your doorstep, from restaurants and shops to transport links and tour departures, so basing yourself here makes everything easy. 

The marina itself is definitely one of the nicest parts of the city. It’s lined with cafés and bars, and it’s also where most boat tours and day trips leave from. It’s a great spot to start your day and then wind down again in the evening. Just behind it, you’ll find streets like Rua de Santo António, which is the main shopping area and a good place to find local restaurants to eat at.

Another big advantage is location. You’re within walking distance of Cidade Velha (Old Town), so you can easily head over to explore the historic side of Faro without needing transport. At the same time, you’re still only a short drive from the airport, which makes arrivals and departures really straightforward. If you want somewhere central, easy, and well-connected, we think that this is the best place to stay in Faro!

AP Eva Senses – $$$ 

AP Eva Senses is one of the most popular hotels in Faro, and the location is a big reason why. It sits right on the marina, so you’ve got great views and easy access to restaurants, bars, and boat tours. If you want to be in the middle of everything, this is about as central as it gets.

The hotel is large and it has everything you need for a comfortable stay. There’s a rooftop pool and terrace overlooking the marina, which is a great spot to relax after a day of exploring. It combines convenience, comfort, and views, so what’s not to love?

Rooms here usually start at around €180 per night and can go up to €350+ depending on the season and room type.

If AP Eva Senses is fully booked, Solar Mendonca is a great alternative, set just a short walk from the marina with a smaller, more boutique feel. It offers double rooms as well as stylish apartments with a bit more space, which is perfect if you prefer to self-cater.

Occidental Faro – $$

Occidental Faro is another great pick right by the marina, offering a slightly more modern feel than some of the older hotels in the area. The location is spot on, as you’re within walking distance of everything, including Cidade Velha and transport links.

One of the standout features here is the rooftop terrace, which has a small pool, a bar, and views over the marina and Old Town. It’s a great place to cool off with a cocktail or a dip! Meanwhile, the rooms are comfortable and contemporary, and we like the steam room and sauna. Rooms here usually start at around €140 per night, with breakfast included and the option to add dinner.

Cardeal Suites & Apartments is also a great option, just a short walk from the center. It offers modern, well-designed apartments that feel homey and receive glowing reviews! 

Hotel Made inn Faro – $

Hotel Made inn Faro is a great budget-friendly option that still puts you close to the center. It’s located just outside the main marina area, but you can easily walk into the heart of Faro in around 10 minutes.

The hotel has a simple but modern feel, with colorful rooms that give it a bit more personality than your average budget stay. It’s clean, comfortable, and does exactly what you need if you’re planning to spend most of your time out exploring. There’s also a small rooftop terrace, which is a nice bonus at this price point.

Rooms here usually start at around €70 per night and can go up to €140 depending on the season.

If Hotel Made Inn is sold out for your dates, Roots Hotel is a solid budget-friendly alternative nearby with a clean, modern setup. It offers simple, comfortable rooms and a small outdoor pool, making it another great choice for a low-cost stay in the center of Faro.

Cidade Velha (Old Town) 

BEST FOR HISTORIC CHARM

Pros

• Beautiful historic setting with lots of character
• Quieter and more atmospheric than the City Center

Cons

• Limited accommodation options
• Less going on at night

Cidade Velha is the historic heart of Faro, and it’s easily the most charming part of the city. It’s a small, walled area filled with cobblestone streets, old buildings, and quiet squares, so it feels completely different from the more modern parts of Faro.

This is where you come if you want an atmosphere. You can walk along the old city walls, wander through narrow streets, and pass through landmarks like Arco da Vila as you explore. The Faro Cathedral is also here, and we think it’s worth a visit for both the architecture and the views from the tower. They’re spectacular! 

That said, we should mention that it’s a quieter area, especially in the evenings, and there aren’t as many places to stay compared to the City Center. You’ll likely head out towards the marina if you want more restaurant options or a livelier atmosphere.

Still, if you’ve already had your fill of beach towns elsewhere in the Algarve and want something a bit different, Cidade Velha is a great choice. It’s best suited to travelers who value charm and history over convenience.

3HB Faro – $$$

3HB Faro is one of the best hotels in the city and feels a step above most other options. It’s located right on the edge of Cidade Velha, so you’re within walking distance of both the Old Town and the marina, which makes it a really convenient base.

The hotel is sleek and glossy. The standout feature here is definitely the rooftop, which has an infinity pool, bar, and restaurant with great views of the city. Then downstairs, you’ve got a well-equipped gym and a modern spa.

Rooms here usually start at around €250 per night and can go up to €500+ depending on the season, including breakfast.

Faro Boutique Hotel – $$

Faro Boutique Hotel is a great mid-range option just outside the Old Town walls, so you’re in a really convenient spot for exploring both Cidade Velha and the marina. It’s a good choice if you want to be close to the historic area without paying premium prices.

The hotel has a clean, modern feel, with simple but comfortable rooms that work well for a short stay. There’s also a rooftop terrace, which is a nice place to unwind in the evening. It’s not the most luxurious stay in Faro, but it’s reliable, well-located, and easy.

Rooms here usually start at around €100 per night during the warmer months and can go up to €200 for a premium suite.

If Faro Boutique Hotel is unavailable, Faro Clara Suites is another great choice nearby, located between the marina and the Old Town. It offers bright and airy rooms, with a bus stop right nearby and the Cathedral just a 7-minute walk away. 

Alameda Exclusive House – $

Alameda Exclusive House is a solid budget-friendly option just outside the Old Town, offering a quieter stay while still being within walking distance of the main sights. The location works well if you want to be close to Cidade Velha without being right in the middle of things.

The rooms are fairly simple with modern, Boho chic decor. The overall feel is relaxed and low-key. There’s also a shared kitchen and common areas, which is a nice touch if you’re staying for a few days. It’s a good pick if you’re looking for something clean and well-located that won’t break the bank.

Rooms here usually start at around €70 per night and can go up to €140 depending on the season.

Another one of our favorite stays, Casa São Francisco Old Town Faro is also a great budget-friendly stay right in the Old Town. It offers simple rooms in a more historic setting, making it a nice alternative if you want to stay within the walls.

Montenegro/Airport

BEST FOR SHORT STAYS

Pros

• Very close to the airport
• More affordable accommodation 

Cons

• Lacks charm and things to do
• Further from Faro’s main sights

Montenegro is a residential area just outside Faro’s main center, and it’s best thought of as a practical base rather than a destination in itself. It sits right next to the airport, which makes it incredibly convenient if you’ve got an early flight or you’re arriving late.

However, bear in mind that this is where you stay for ease, not atmosphere. We didn’t find historic streets or a buzzing restaurant scene here, but there’s more affordable accommodation and a quieter, local feel. There are a few cafés and restaurants dotted around, but most people head into the city center if they want more options.

Getting into Faro is still easy, though. It’s a short drive or taxi ride to the marina and Old Town, and there are buses running into the center if you don’t want to rely on taxis. So while you’re not in the middle of things, you’re not far away either. 

All in all, we think that Montenegro is best for short stays, especially if your priority is convenience. If you’re just passing through Faro, it does exactly what you need.

Ria Formosa Guest House – $$ 

Ria Formosa Guest House is a great option if you want something close to the airport but with a bit more personality than a standard hotel. It’s set in a quiet residential area, so it feels relaxed and low-key, which is ideal if you’ve just arrived or have an early flight.

The rooms are chic, and the overall setup feels more like a boutique guesthouse than a typical airport stay. There’s also a small rooftop area with a pool and bar, as well as an indoor hot tub.

All in all, we think that this is a solid choice if you want something easy and convenient without it feeling too basic. Rooms here usually start at around €140 per night and can go up to €180 depending on the season.

If Ria Formosa Guest House is all booked up, Hotel Monaco is another reliable option close to the airport with a more traditional hotel setup. It offers a pool, restaurant, and shuttle service, making it a convenient choice for short stays.

Hospedaria Frangaria – $$

Hospedaria Frangaria is one of the most popular stays near Faro Airport, and it’s easy to see why. It’s simple, affordable, and very well run, which is exactly what you want for a short stopover. The location is super convenient, just a few minutes from the airport and close to the main road into the city.

The rooms are clean and comfortable, and while they’re fairly basic, everything is done well. The on-site restaurant is actually one of the area’s most popular spots, and it’s known for its Portuguese dishes and generous portions.

It’s a great option if you want something easy, reliable, and good value for money. Rooms here usually start at around €90 per night and can go up to €160 depending on the season.

If you can’t get in at Hospedaria Frangaria, Fly House Faro is another convenient option very close to the airport. As the name suggests, it’s literally designed for quick overnight stays, and it offers simple, modern rooms and a no-fuss setup. 

Hotel 3K Faro Aeroporto – $ 

Hotel 3K Faro Aeroporto is about as convenient as it gets if you’ve got an early flight! It’s located right next to the airport, so you can be at the terminal in minutes, which takes a lot of the stress out of travel days.

The hotel is modern and simple, with clean rooms and a straightforward setup that does exactly what you need. There’s also a small outdoor pool, which is a nice bonus if you’ve got a bit of time to relax before or after your flight.

It’s not somewhere you’d stay for a full holiday, but for a quick stopover, it works really well. Rooms here usually start at around €70 per night and can go up to €140 depending on the season.

Another solid choice, Hotel ibis Faro Algarve is a reliable option nearby with a similar setup. It offers comfortable rooms, a pool, and consistent service, making it a solid backup choice.

Top Activities to do in Faro

Now that you’ve picked your favorite area and hotel, it’s time to start planning your adventures in Faro! While the marina and old town are lovely to explore on foot, there are so many incredible experiences just beyond the city that really bring this region to life. From island-hopping in Ria Formosa to dolphin spotting and tasting local food, here are a few tours we think you shouldn’t miss. 

• Visit Ria Formosa Natural Park – Ria Formosa Natural Park is one of the most beautiful parts of the Algarve, with lagoons, islands, and sandy walking trails to explore. We loved heading out here on this half-day excursion to escape the city and see a quieter, more natural side of the region.

• Go on a dolphin-watching cruise – One of the best things to do from Faro is heading out on the water to spot dolphins in the wild. We loved this top-rated cruise because we saw two different types of dolphins and tons of sea birds! 

• See the iconic Benagil Cave – The Benagil Cave is probably the Algarve’s most iconic attraction! It’s about an hour from Faro, so if you don’t have a car, we think this tour is a great choice, plus it also visits several other must-see viewpoints.

• Explore Faro by tuk tuk – This tuk tuk tour is an easy and fun way to get your bearings, especially if you’ve only got a short amount of time in Faro. It’s a relaxed and personal experience, with lots of historical context and fun local insights along the way.

• Taste your way around the city – We love a good food tour, and this city highlights tour is the ultimate way to discover Faro’s best eateries. We tried so much yummy food, from oysters to madrone jellies and jams, and washed it all down with local beer and wine – yum! 

Related Read: Planning to explore beyond Faro? Check out our guide to the best things to do in Portugal for even more unforgettable experiences across the country.

Thanks for reading!

Faro tends to fly under the radar, but that’s exactly why we love it. It’s easy to navigate, full of local character, and perfectly placed for exploring the Algarve. Whether you base yourself by the marina, in the Old Town, or near the airport, picking the right spot helps you make the most of your time here without any hassle.

Before you start packing, be sure to check out our other Portugal travel guides here. We love sharing our favorite stays and experiences to help you plan a trip that’s smooth, memorable, and genuinely fun. Or check out some of our favorite blogs below for more ideas and inspiration!

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