Where to Stay in The Algarve: 8 Best Areas & Hotels

Planning a trip to the Algarve and not sure where to stay? We’ve got you covered!

Portugal’s southernmost region is famous for its golden beaches, but what we also love about the Algarve is that each part of it has its own personality, so there truly is something for everyone! But since we know that it’s a pretty large area, we also know that it can be difficult to work out where to stay, especially if it’s your first time traveling here.

That’s where we come in! After falling in love with this gorgeous region ourselves, we’ve put together this guide to all of the best places to stay, plus our favorite hotel picks for every budget. Let’s go! 

Where to stay in Algarve map

Overview of the Best Areas to Stay in The Algarve

The Algarve is Portugal’s stunning southernmost region. It’s also one of Europe’s most popular holiday destinations, thanks to its dramatic limestone cliffs and gorgeous golden beaches. And better still, it’s home to a ton of coastal towns that all offer something a little different! 

Before we dive in, you should know that the Algarve is pretty large. There’s no one main city, which can make it difficult to know where to stay. Some of the towns here are lively and packed with resorts, but you’ve also got quieter fishing villages with a slower pace, so the base you choose can really shape your trip. 

The best way to explore the Algarve is by renting a car. There are trains and buses connecting certain areas, but they can be slow and somewhat limited, so having your own wheels gives you a lot more freedom. Hiring a car allowed us to beach hop and visit lots of different towns, as well as stop off at some amazing viewpoints and hidden coves. 

Lagos – Best for first timers – Lagos is one of the Algarve’s most popular towns, known for its beautiful beaches and charming old town. Carvi Beach Hotel is a lovely pick located just steps from Praia Dona Ana, one of the area’s most famous beaches.

Albufeira – Best for resorts – Albufeira is a lively resort town packed with big beaches and buzzing nightlife. Vila Recife Hotel offers great value in the heart of the old town.

Carvoeiro – Best for a relaxed & romantic stay – Carvoeiro is a picturesque coastal village with whitewashed buildings and a relaxed, romantic atmosphere. Hotel Carvoeiro Plaza is a comfortable spot right near the beach and the town’s main square.

Portimão – Best for beaches – Portimão is best known for Praia da Rocha, a long sandy beach backed by cliffs and lined with restaurants and bars. Hotel Santa Catarina Algarve is a great value hotel just a short walk from the beach and the marina.

Sagres – Best for surfing & nature – Sagres sits on the wild southwestern tip of the Algarve and is famous for its surf culture and rugged coastline. Pontalaia Apartamentos Turísticos offers spacious apartments in a quiet location close to several great surf beaches.

Vilamoura – Best for luxury travelers – Vilamoura is one of the Algarve’s most upscale resort towns, known for its golf courses, luxury hotels, and yacht-filled marina. Victoria Golf Resort and Spa is a stylish resort surrounded by beautiful landscaped grounds.

Tavira – Best for quiet & culture – Tavira is a charming historic town in the eastern Algarve, known for its traditional architecture and cultural sights. OZADI Tavira Hotel is a stylish and modern hotel with a large pool and great views over the surrounding countryside.

Faro – Best for convenience – Faro is the gateway to the Algarve and home to the region’s main airport, making it a convenient base for short stays. Roots Hotel is a modern and affordable option located close to the marina and Faro’s historic old town.

Where to Stay in The Algarve

Lagos

BEST FOR FIRST TIMERS

Pros

• Easy access to some of the Algarve’s most beautiful beaches
• Lively old town with lots of restaurants and bars, and tours

Cons

• Can get busy in summer
• Some beaches require stairs to reach

Lagos is widely considered one of the best places to stay in the Algarve, especially if it’s your first time visiting the region. It offers a fantastic mix of beautiful beaches and historic charm, and there’s plenty to do here. We love how compact and walkable the town center is, as it makes it so easy to explore! 

And the old town is full of character, with cobbled streets and a great selection of restaurants and bars. You’ll also find a few historic sights here, including parts of the old city walls and the 17th-century Forte da Ponta da Bandeira. But on most days that we spent here, we just headed straight for the coastline, as some of the Algarve’s most famous beaches are just minutes from town.

Praia Dona Ana and Praia do Camilo are two of the most stunning beaches in the region, known for their golden cliffs and bright turquoise water. We think that Ponta de Piedade is another must-see, as we just fell in love with its rock formations and sea stacks.

Lagos is also a great base for boat tours to the sea caves and grottos that line the coast. It offers a little bit of everything, and we think it’s the perfect starting point for exploring the Algarve.

Lagos Avenida Hotel – $$$

Lagos Avenida Hotel is one of the most stylish places to stay in Lagos, and its location right by the marina makes it a fantastic base for exploring the town. The hotel has a modern, boutique feel with a clean design and lots of natural light. Many rooms also have balconies with views over the marina or the town.

One of the highlights here is the rooftop pool and terrace, which offers beautiful views across Lagos and the harbor. It’s a great place to relax after a day of beach hopping or sightseeing. The hotel is also just a short walk from the old town, where you’ll find plenty of restaurants, bars, and tour operators for boat trips along the coast.

Rooms start at €300 per night during the summer months.

Another hotel in the area that we like is Boutique Hotel Vivenda Miranda, which sits on the cliffs just outside town and offers incredible ocean views and a peaceful atmosphere. There’s also an amazing spa on site where you can enjoy some much-needed rest and relaxation!

Meanwhile, Marina Club Lagos Resort is another luxurious option if you prefer apartment-style rooms. It offers a fantastic location, too, since it sits right by the marina.

Carvi Beach Hotel – $$

We think that Carvi Beach Hotel is a fantastic option if you want to stay close to the beach in Lagos. In fact, this is where we stayed! It’s located right above Praia Dona Ana, one of the most beautiful beaches in the Algarve, and we loved being able to walk down to the sand in a few minutes. If you’re planning a lot of beach time, the location is hard to beat! 

The rooms are bright, simple, and comfortable, and many of them offer beautiful ocean views. There’s also a rooftop terrace with a small pool and restaurant where you can relax and take in the coastline. While it’s not in the heart of the old town, we found it easy enough to reach Lagos’ restaurants and bars with a short walk or quick taxi ride.

Rooms typically start from around €185 per night during the warmer months.

If Carvi Beach Hotel is fully booked, Agua Hotels Vila Branca is another great, stylish option with spacious rooms and two outdoor pools. You can also opt to include breakfast and dinner with your stay to make life easy!

Tivoli Lagos is also worth considering if you prefer a larger resort-style hotel located closer to the marina and town center. We love the poolside cabanas and the private balconies where you can enjoy your complimentary breakfast with a view.

LagosMar Story Hotel – $

If you’re looking for an affordable place to stay right in the center of Lagos, we think that LagosMar Story Hotel is a great budget-friendly option. It’s located just a short walk from the old town’s restaurants, bars, and shops, so it’s very convenient if you plan to spend most of your time out exploring the area.

The rooms are simple but clean and comfortable, and the hotel also has a small rooftop terrace where you can relax and enjoy views over the town. It’s not a luxury stay, but it’s a solid choice if you want something central and affordable while still being close to the beaches.

Prices here start at €100 per night for a comfortable, yet affordable stay.

If you want a budget stay, a little closer to the coast, Canavial I & II Apartamentos offers simple apartments within walking distance of the cliffs and beaches. We like the classic Portuguese style here, and the well-sized pool in the garden area.

Dom Pedro Lagos is another good option, especially if you’re the kind of traveler who likes to self-cater. It offers studios and one-bedroom apartments, and each unit has its own kitchenette.

Albufeira

BEST FOR RESORTS

Pros

• Large sandy beaches with lots of facilities
• Plenty of resorts, restaurants, and nightlife

Cons

• Can feel very busy and touristy in peak season
• Less charming than some smaller Algarve towns

Albufeira is one of the Algarve’s most popular resort towns, and for good reason! With big beaches and lively nightlife, plus great accommodation options, this place is popular with travelers looking for a fun and energetic holiday. There’s certainly a thriving nightlife scene, but there’s also a bit of something for everyone – I actually used to come here on vacations with my family as a teen! 

The town is split into two main areas. The Old Town is the most charming part, with narrow streets and a lively square filled with restaurants and bars. Meanwhile, the Strip in the newer part of town is where you’ll find Albufeira’s famous nightlife scene. It’s a lot of fun, but it doesn’t feel seedy. 

There are also some fantastic beaches here. Praia dos Pescadores sits right by the Old Town and is one of the most popular spots, while Praia da Falésia stretches for miles and is backed by dramatic red cliffs. You can also go parasailing here, which is such an exciting way to admire the coast. 

We also love Albufeira because it works well as a base for exploring the central Algarve. In addition to everything the town itself has to offer, you’ve got the Benagil Cave nearby and the traditional fishing village of Carvoeiro. 

Grande Real Santa Eulalia Resort & Hotel Spa – $$$

Grande Real Santa Eulalia Resort & Hotel Spa is one of the best luxury resorts in Albufeira, especially if you’re looking for a relaxing beachfront stay. The resort sits right above Santa Eulália Beach, so you’ll have direct access to the sand as well as beautiful ocean views throughout the property.

The rooms are spacious and modern, and many of them feature private balconies overlooking the gardens or the sea. There are also several swimming pools, a large spa, and multiple restaurants and bars on site. It’s a great option if you want a resort to spend your days relaxing at the beach, pool, and spa.

Rooms here typically start at around €350 per night during the peak summer months.

If Grande Real Santa Eulalia is fully booked, Hotel Sol e Mar Albufeira is another fantastic beachfront option right in the Old Town. It boasts an unbeatable location overlooking Praia dos Pescadores and the ocean views from many of the rooms!

Or if you want an all-inclusive stay, Auramar Beach Resort is another solid pick. It sits on a clifftop between two beaches and offers several pools and restaurants – what more could you ask for?

Vila Recife Hotel – $$

Vila Recife Hotel is an awesome option if you want to stay close to the heart of Albufeira without paying resort prices. It’s located right next to the Old Town, which means you can easily walk to the beach and all of the restaurants in just a few minutes.

The rooms are on the simpler side, but they’re very comfortable, and many offer balconies overlooking the pool or gardens. There’s also a lovely outdoor pool area surrounded by palm trees where you can relax between beach trips. While the hotel itself is fairly relaxed, you’re still close enough to the center to enjoy Albufeira’s lively atmosphere whenever you want.

Rooms typically start from around €160 per night during the warmer months.

If Vila Recife Hotel is fully booked, Emeralds Albufeira by DK Stays is a stylish mid-range option with modern apartments and a central location. We like the spacious layouts here, which are ideal if you’re traveling with friends or family!

Apartamentos Edificio Albufeira is also worth considering if you want to stay right by the beach. Many of the apartments have balconies with fantastic sea views, which is a nice bonus at this price point.

Orada Apartamentos Turísticos – $ 

If you’re looking for an affordable apartment-style stay in Albufeira, Orada Apartamentos Turísticos is a great budget-friendly option. It’s located in the marina area, which is a little quieter than the Old Town but still close enough to reach the main beaches and nightlife easily.

The apartments are spacious and come with kitchen facilities, which makes them ideal if you prefer to self-cater. There’s also a large outdoor pool surrounded by gardens where you can relax after a day exploring the Algarve. It’s a simple stay, but the extra space and facilities make it a great value for money.

Prices here usually start at around €110 per night.

If the Orada Apartamentos are full, Cerro Atlantico by Umbral offers simple apartments with a large outdoor pool and a convenient location close to the Old Town. It also has a flexible cancellation policy, which is great news if you’re concerned that your plans might change.

Janelas do Mar Apartamentos Turisticos is another solid option if you want apartment-style accommodation. It also has two outdoor pools and a rooftop terrace with panoramic views over Albufeira, so you get holiday vibes on a budget.

Related Read: Need help planning the rest of your trip? See our guide on the best things to do in Portugal, which includes staying in the Algarve, and more!

Carvoeiro

BEST FOR A RELAXED & ROMANTIC STAY

Pros

• Beautiful coastal scenery with dramatic cliffs
• Charming village atmosphere with great restaurants

Cons

• Smaller and quieter than towns like Lagos or Albufeira
• Fewer nightlife options

Carvoeiro is one of the Algarve’s most charming coastal villages. If you’re planning a romantic trip to Portugal, we think that this is where you should stay! Things move at a slower pace here compared to bigger resort towns like Albufeira, but that’s precisely why so many travelers fall in love with it. 

The village itself is small but very picturesque, with whitewashed buildings clustered around a scenic sandy beach. The main square is lined with restaurants and cafés, and in the evenings the whole area feels pleasantly lively, but never raucous. We had a lovely, longer dinner here and then took a relaxed stroll along the cliffs afterwards – talk about a perfect date night! 

Carvoeiro is also in a perfect location for exploring the Algarve’s most famous coastal sites. Benagil Cave, the region’s heavy hitter, is just a short boat ride away, and you’ve also got the Algar Seco rock formations nearby. They offer incredible viewpoints along the cliffs, so be sure to go check them out! 

And finally, don’t forget the scenic boardwalk that runs along the coastline. It’s perfect for an early morning run, as well as one of the best places in the Algarve for sunset. 

Tivoli Carvoeiro – $$$

Tivoli Carvoeiro is easily one of the most impressive luxury hotels in Carvoeiro. The property sits dramatically on top of the cliffs overlooking the Atlantic Ocean, and the views from here are absolutely stunning. If you’re looking for a romantic stay with incredible scenery, this hotel is hard to beat!

The rooms are modern and spacious, with many featuring private balconies that face the ocean. There’s also a beautiful infinity pool, a full spa, and several restaurants and bars on site. One of the highlights is the rooftop Sky Bar, which is a dreamy place to watch the sunset with a cocktail in hand.

Rooms here typically start at around €380 per night during the summer months.

If Tivoli Carvoeiro is fully booked, Mirachoro Carvoeiro is another lovely hotel with bright rooms and a peaceful location just outside the village center. It offers a free shuttle into town, which makes getting around super easy!

Monte Santo Resort is another fantastic option if you prefer spacious suites and a more resort-style stay. We think that its large pools and landscaped gardens make it a great place to unwind.

Hotel Carvoeiro Plaza – $$

Hotel Carvoeiro Plaza is a fantastic mid-range option located right in the heart of the village. It sits just steps from Praia do Carvoeiro, so you’ll be perfectly positioned for beach days and sunset walks along the coast.

The rooms are bright and comfortable, and many of them feature balconies with views over the square or the ocean. There’s also a rooftop pool and terrace where you can relax after a day of exploring the Algarve. But to be honest, the location really is the highlight here, as you can walk to everything in town within a few minutes.

Rooms typically start at around €200 per night during the warmer months.

If Hotel Carvoeiro Plaza is fully booked, Quinta do Algarvio Village is a beautiful boutique-style property with spacious suites and fantastic views over the countryside and ocean. It has a peaceful setting just outside the village, making it ideal for couples seeking a quieter stay.

Quinta Do Paraiso is another solid option if you prefer apartment-style accommodation. It offers large garden areas and multiple swimming pools, and there’s a relaxed resort atmosphere here.

Carvoeiro Garden Hotel – $

If you’re looking for an affordable stay in Carvoeiro, Carvoeiro Garden Hotel is a great budget-friendly option. It’s located a short walk from the village center, so you can still easily reach the beach, shops, and restaurants while enjoying a quieter setting.

The rooms are simple but modern, and the hotel has a relaxed atmosphere that suits travelers who plan to spend most of their time exploring the Algarve. There’s also a nice outdoor pool area surrounded by gardens where you can unwind after a day at the beach.

Prices here usually start at around €120 per night.

If you’re looking for another affordable stay nearby, Colina Village is a great option with spacious apartments and a large outdoor pool. We like the peaceful location here, as the place sits just outside the main village and is surrounded by greenery.

Portimão

BEST FOR BEACHES

Pros

• Home to one of the Algarve’s biggest and most famous beaches
• Great choice for boat tours and watersports

Cons

• Less charming than some of the smaller Algarve villages
• Parts of the beachfront feel quite built up and commercial

If beach time is your primary motivation for taking a trip to the Algarve, Portimão is the perfect place to stay. I mean, for one thing, it’s home to Praia da Rocha, which is one of the largest and most famous beaches in the region. The sand stretches for miles here, and it’s backed by dramatic cliffs as well as a long promenade lined with bars and cafes.

The beach itself is the main attraction here, and it’s perfect for long, lazy days in the sun. There are plenty of beach clubs and watersports on offer, plus boat tours to enjoy from the nearby marina. You can also take trips from Portimão to explore the hidden coves and sea caves along the Algarve’s coast.

While the beach area is lively and touristy, we also enjoy exploring Portimão’s historic center, which offers a more local feel. We loved checking out traditional markets and restaurants, as it was nice to see a more authentic side of the area. There’s also a nice waterfront along the Arade River, which is worth exploring. But all in all, we think that this area best suits travelers who want easy beach access and plenty of holiday amenities.

TURIM Presidente Hotel – $$$

TURIM Presidente Hotel is a fantastic luxury option if you want to stay right by the beach in Portimão. The hotel sits just a short walk from Praia da Rocha, so you’ll have one of the Algarve’s most famous beaches practically on your doorstep.

The rooms are modern and stylish, and many of them offer balconies with beautiful ocean views. There’s also a large outdoor pool and terrace area where you can relax between beach visits. All in all, it’s just a great place to unwind after a day exploring the coastline.

Rooms here typically start at around €260 per night during the summer months.

If TURIM Presidente Hotel is fully booked, AP Oriental Beach is one of our favorite beachfront alternatives! It has a more classic feel, and a large pool overlooking the ocean, as well as direct access to Praia da Rocha.

Meanwhile, RR Hotel da Rocha is a great pick if you prefer spacious suites. It sits right by the promenade, and many rooms have balconies with fantastic beach views.

Hotel Santa Catarina Algarve – $$

Hotel Santa Catarina Algarve is a great mid-range choice if you want to stay close to Praia da Rocha without paying luxury resort prices. The hotel sits just a short walk from the beach and the lively promenade, which means you’ll be perfectly positioned for restaurants, bars, and beach days.

The rooms are comfortable and many feature balconies with views of the ocean or the marina. The hotel also has a rooftop terrace where you can enjoy breakfast while looking out over the coastline – bliss! It’s a simple stay, but the location couldn’t be better.

Rooms here typically start from around €170 per night during the warmer months.

If Hotel Santa Catarina Algarve is fully booked, Algarve Casino Hotel is another popular option located right on Praia da Rocha. It offers beautiful ocean views and several restaurants, plus a large pool area overlooking the beach.

Vista Marina Apartamentos Turisticos is also a great option if you prefer apartment-style accommodation. The spacious units and large outdoor pool are absolutely perfect for longer stays! 

Hotel Made Inn – $ 

If you’re looking for a budget-friendly stay in Portimão, Hotel Made Inn is a solid option. It’s located in the town center rather than right by the beach, but you can still reach Praia da Rocha in about 10 minutes by car or taxi.

The rooms are simple but colorful and comfortable, and the hotel has a fun atmosphere. There’s also a rooftop terrace where guests can enjoy views over the city. It’s not a luxury stay, but it offers great value if you want something affordable and stylish that’s close to the coast.

Prices here usually start at around €95 per night.

If you want another wallet-friendly option nearby, Oceano Atlantico Apartamentos Turisticos offers spacious apartments with kitchen facilities and a large pool area. It’s simple, but a comfy home-from-home!

Or Flor Da Rocha is another great pick if you prefer apartment-style accommodation close to the beach. The complex also has a large outdoor pool and tennis courts, so no wonder it’s highly rated. 

Sagres

BEST FOR SURFING & NATURE

Pros

• Incredible surf beaches and dramatic coastal scenery
• Peaceful atmosphere with fewer crowds

Cons

• Far from the rest of the Algarve
• Limited nightlife and fewer restaurants

Sagres sits on the far southwestern tip of the Algarve, and it feels very different from the region’s bigger resort towns. This is a rugged, windswept corner of Portugal known for its wild coastline and surf culture. If you’re looking for dramatic scenery and a quieter atmosphere, this is a fantastic place to stay.

Surfing is the main draw here, with several excellent beaches nearby, including Praia do Tonel, Praia da Mareta, and Praia do Beliche. There are plenty of surf schools and board rentals in town, so you don’t need to be an experienced surfer to enjoy this place, as lots of travelers come here to try it out for the first time! Saying that, there’s plenty of swell to keep the pros busy.

Another thing that we love about Sagres is the fact that it’s steeped in history. The 15th-century Fortaleza de Sagres sits on a dramatic headland overlooking the ocean and offers some truly amazing coastal views, so bring your camera! 

Meanwhile, nearby Cabo de São Vicente is another must-see. This windswept cape marks one of the most southwestern points in Europe and is famous for its dramatic cliffs. We recommend coming for sunset if you can, as this is quite possibly the best place in the whole of the Algarve to see it. 

Pousada de Sagres – $$$

Pousada de Sagres is one of the most iconic places to stay in this part of the Algarve. The hotel sits on the cliffs overlooking the Atlantic Ocean, and the views here are absolutely incredible. If you’re looking for a peaceful stay surrounded by dramatic scenery, this place is hard to beat.

The rooms are comfortable and elegant, and there’s also a beautiful outdoor pool overlooking the sea. You really couldn’t ask for a better spot to relax after a day exploring the coastline! Oh, and the hotel’s restaurant is another highlight, as it serves amazing fresh seafood and regional Portuguese dishes against a panoramic ocean backdrop. In fact, even if you don’t end up staying here, we still think it’s worth coming here for dinner, as non-guests are welcome to dine.

Rooms here typically start at around €280 per night during the summer months.

If Pousada de Sagres is fully booked, Martinhal Sagres Beach Family Resort Hotel is another fantastic option located right on the beach. It’s a luxury resort with spacious rooms, multiple pools, and excellent family-friendly facilities.

Sagres Time Apartamentos is also worth considering if you prefer apartment-style accommodation. The apartments are large and modern, and their central location makes them a very convenient base for exploring Sagres and beyond.

Pontalaia Apartamentos Turísticos – $$

Pontalaia Apartamentos Turísticos is a great mid-range option in Sagres, especially if you prefer apartment-style accommodation. The property is located in a quiet area of town, but it’s still within easy walking distance of restaurants, surf shops, and several beaches.

The apartments are spacious and well-equipped, with kitchen facilities and balconies that make them ideal for longer stays. There’s also a large outdoor pool surrounded by gardens, which is a lovely place to relax after a morning of surfing or hiking along the cliffs.

Prices here usually start at around €160 per night during the warmer months.

If Pontalaia Apartamentos Turísticos is fully booked, Memmo Baleeira is another excellent option overlooking the marina and ocean. The hotel has a beautiful infinity pool and a relaxed, stylish atmosphere that fits perfectly with Sagres’ surf culture.

Casa Azul Sagres is another lovely choice if you prefer a small boutique-style stay. It offers bright modern rooms and a peaceful setting at very reasonable rates.

Aparthotel Navigator – $

If you’re looking for an affordable place to stay in Sagres, we definitely recommend Aparthotel Navigator! It offers a budget-friendly stay in a great location, as it sits on a hillside overlooking the ocean. Sure, the decor may be slightly dated, but who needs fancy furniture when you’ve got first-class sea views?

The units here are simple yet spacious and come with kitchenettes, making them convenient if you prefer to self-cater on vacation. There’s also a large outdoor pool where you can relax while enjoying views of the Atlantic, so if you’re looking to kick back and relax for less, this place is a great choice.

Prices here typically start from around €100 per night.

If Aparthotel Navigator is fully booked, Tonel Apartamentos Turisticos is another awesome budget option located very close to Praia do Tonel. The apartments are simple but comfortable, and the location is great if you plan to spend most of your time surfing or exploring the coastline.

Vilamoura

BEST FOR LUXURY TRAVELERS

Pros

• Upscale marina with great restaurants and nightlife
• Home to several luxury resorts and world-class golf courses

Cons

• More expensive than most Algarve towns
• Feels less traditional and more commercial 

Vilamoura is one of the most polished and upscale destinations in the Algarve. If you’re looking for luxury resorts and championship golf courses, chances are you’ll love this place. However, if you’re looking for history and character, it may not be for you. 

We took a day trip to Vilamoura and loved the lively marina, filled with yachts and lined with restaurants. It definitely feels more modern and resort-like than many of the other towns in the Algarve region, but that’s part of its appeal. Vilamoura is catered towards luxury travelers who want to dine at fine restaurants and shop ‘til they drop. 

The heart of Vilamoura is its marina, which is one of the largest in Portugal. It’s lined with stylish restaurants, cocktail bars, and shops, and the atmosphere here is especially lively in the evenings. It’s a great place to enjoy dinner overlooking the water or grab a drink and watch the boats come and go.

Vilamoura is also known for its golf scene, with several world-class courses nearby that attract players from all over Europe. And when it comes to beaches, Praia da Marina and Praia da Falésia are both excellent options. The latter stretches for miles along the coast and is backed by beautiful red cliffs, so it’s worth visiting even if you don’t end up staying in the area. 

Tivoli Marina Vilamoura – $$$

Tivoli Marina Vilamoura is one of the most famous luxury hotels in the Algarve. If you’re looking for a 5-star stay, then look no further. 

For one thing, the hotel’s location couldn’t be better. It sits between the marina and the beach, which means you get incredible views of both the ocean and the harbor. But it doesn’t end there – with a huge outdoor pool, a full spa, and several high-end restaurants and bars on site, this place is basically a playground for luxury travelers. We especially love the beach club here, which is a fantastic place to spend a sunny afternoon by the water!

Rooms here typically start at around €420 per night during the summer months, including breakfast.

If Tivoli Marina Vilamoura is fully booked, don’t cry! Domes Lake Algarve is another fantastic 5-star resort, this time set beside a peaceful private lake and lush gardens. It offers several beautiful pools and a very relaxing atmosphere, so it should come as no surprise that it attracts a lot of repeat guests.

Alternatively, you can never go wrong with a Four Seasons property, and Four Seasons Vilamoura certainly proves that. It offers beautiful grounds and excellent family-friendly facilities, plus apartment-style suites that provide plenty of space.

Victoria Golf Resort and Spa – $$

Victoria Golf Resort and Spa is a great mid-range option in Vilamoura, especially if you’re planning to spend some time on the golf courses. The hotel sits right next to the famous Dom Pedro Victoria Golf Course, which hosts several major tournaments throughout the year.

The rooms are modern and comfortable, and many feature balconies overlooking the golf course or gardens. There’s also a large outdoor pool, a spa, and several dining options on site – it’s not all about golf!

Rooms typically start from around €220 per night during the warmer months.

If Victoria Golf Resort and Spa is fully booked, we also love Apartamentos Honorio. There’s a huge pool, and the apartments are super spacious and airy, so it’s an awesome place to kick back and relax without breaking the bank.

Vilamoura Garden Hotel is also worth considering if you prefer a smaller hotel. We really like the stylish rooms and the relaxed pool area!

Hotel Parque das Laranjeiras – $

Hotel Parque das Laranjeiras is a well-rated budget-friendly option just outside the center of Vilamoura. While it’s a little removed from the marina, the quieter setting makes it a peaceful place to stay while still being within a short drive of the beach and restaurants.

The rooms are simple but comfortable, and the hotel has a lovely garden and pool area surrounded by orange trees. It’s a relaxed and friendly place to stay, especially if you’re planning to spend most of your time exploring the Algarve with a rental car.

Prices here usually start at around €120 per night.

If you’re looking for another affordable stay nearby, Cegonha Country Club offers spacious apartments and a peaceful setting surrounded by greenery. It’s perfect if you’re looking to relax for less!

We also think that Apartamentos Mar-Sol Villas is a smart option if you prefer self-catering accommodation. The apartments are simple but comfortable and come with kitchen facilities, so they make a nice base for exploring Vilamoura.

Tavira

BEST FOR QUIET & CULTURE

Pros

• Charming historic town with beautiful traditional architecture
• Much quieter and more authentic than the central Algarve

Cons

• Beaches require a short ferry ride or drive
• Less nightlife and fewer resort-style hotels

Tavira sits in the eastern Algarve and has a very different feel from the busier resort towns further west. It’s known for its beautiful historic buildings and authentic Portuguese atmosphere. We decided to stay here on our second trip to the Algarve, after we had already explored much of the region and were looking for something a bit different. If you’re in the same boat, or just want somewhere quiet with lots of charm, then we think Tavira is a wonderful place to stay!

Tavira also makes a great base for exploring the eastern Algarve in general, which again is much less touristy and more traditional than other parts of the area. If you enjoy history and culture without the crowds, we think you’ll love it here!

The town itself is incredibly picturesque, with whitewashed houses lining the banks of the Gilão River, and the elegant Roman Bridge connecting the two sides of the old town. As we wandered through the narrow streets, we came across churches, small squares, and lots of traditional cafés that gave the whole place an authentic, laidback character.

Although Tavira isn’t directly on the beach, the beautiful Ilha de Tavira is just a short ferry ride away. This barrier island offers long sandy beaches that feel far less crowded than many others in the Algarve, so it’s a wonderful spot to visit. 

Pousada Convento de Tavira – $$$

Pousada Convento de Tavira is one of the most unique places to stay in the Algarve. The hotel is set inside a beautifully restored 16th-century convent, and the historic architecture gives the entire property a very special atmosphere.

The rooms combine modern comforts with historic charm, and many of them overlook the peaceful courtyard gardens. There’s also a lovely outdoor pool surrounded by stone walls and greenery, which makes it a fantastic place to relax after exploring the town. We also love the elegant hotel restaurant, which serves beautifully plated, traditional Portuguese dishes.

Rooms here typically start at around €320 per night during the summer months.

If Pousada Convento de Tavira is fully booked, Palácio de Tavira is another beautiful boutique hotel located in a restored historic building in the center of town. The rooftop terrace and elegant rooms make it a lovely place to stay!

Or São Paulo Boutique Hotel is another fantastic option. It’s a super stylish boutique hotel that’s the perfect blend of classic and modern.

OZADI Tavira Hotel – $$

OZADI Tavira Hotel is a stylish hotel located just outside the historic center of Tavira. We absolutely love the slick, modern design, and the service is so warm and friendly. There’s a beautiful outdoor pool area with plenty of sun loungers, as well as a kids’ play area and a lovely restaurant terrace where you can enjoy dinner and drinks at sunset. 

For us, one of the major selling points of this place is that they offer a free shuttle service to Tavira’s old town and nearby beaches. So even if you don’t want to rent a car, getting around is super easy! 

Rooms typically start at around €170 per night during the warmer months.

If OZADI Tavira Hotel is fully booked, Vila Gale Tavira is another great option located close to the historic center. It has a large outdoor pool and spacious rooms that are ideal if you want to kick back and relax!

AP Maria Nova Lounge is also worth considering if you’re looking for a hotel with all the trimmings, as it has a large pool, a rooftop cocktail bar, a full-service spa, and a golf course just a few kilometers away.

Hotel Don Rodrigues – $

Hotel Don Rodrigues is an ideal place to stay if you’re looking for somewhere that offers a lot of bang for your buck. It’s a small, family-run spot, with a welcoming atmosphere and modern rooms. There’s a swimming pool on site and a restaurant serving traditional Algarve dishes, so it’s perfect if you want to eat like a local while you’re here! 

There’s a complimentary breakfast buffet each morning, and the staff is always on hand to offer tips and advice on exploring the area. If you’re more about homely stays than fancy hotels, we think this place is perfect.

Prices here usually start at around €110 per night.

If you’re looking for another affordable stay nearby, the Authentic Tavira Hotel is a great option located within walking distance of the historic center. There’s also a rooftop terrace with a small pool that offers gorgeous views over the town – bliss! 

Faro

BEST FOR CONVENIENCE

Pros

• Home to the Algarve’s main airport
• Charming historic old town with good restaurants

Cons

• Not the best base for beaches
• Many travelers only stay here briefly

Faro is the capital of the Algarve and home to the region’s main airport, so it’s certainly a convenient place to stay! Most visitors actually just pass through on their way to the beach towns, but there’s actually more to Faro than just convenience. The city is home to a beautiful Old Town (Cidade Velha), which is surrounded by ancient walls and filled with gorgeous historic buildings. 

The Faro Cathedral sits right in the center of the Cidade Velha, and its tower offers fantastic views across the city and the nearby Ria Formosa lagoon. Speaking of which, Faro also serves as the gateway to the Ria Formosa Natural Park. It’s a beautiful coastal lagoon which is dotted with islands and sandbanks that are home to beautiful beaches and wildlife, so it’s well worth checking out!

It’s true that Faro doesn’t have the same beach-town vibe as places like Lagos and Albufeira, but don’t discount it! It’s a great base for a short stay in the Algarve due to its proximity to the airport, especially if you have an early flight. 

3HB Faro – $$$

3HB Faro is easily one of the best hotels in the city and a fantastic choice if you’re looking for a stylish and comfortable stay. The hotel is located right near the marina and the entrance to the Old Town, so you’ll be in the perfect position for exploring Faro on foot!

This place is sleek and chic, with enough touches of character to keep it interesting. One of the biggest highlights here is the rooftop terrace, which features a stunning infinity pool overlooking the city. There’s also a rooftop restaurant and bar where you can enjoy fantastic views over Faro and the lagoon. 

Rooms here typically start at around €280 per night during the summer months.

If 3HB Faro is fully booked, AP Eva Senses is another great hotel located right by the marina with beautiful views across the harbor.

Occidental Faro is also a fantastic option if you enjoy rooftop pools. The rooftop terrace offers incredible panoramic views of the Old Town and the lagoon.

Roots Hotel – $$

Roots Hotel is a modern option located just a short walk from Faro’s marina and historic center. Its central location makes it very convenient if you want to explore the Old Town and the waterfront on foot.

The rooms here are bright, comfortable, and designed in a simple modern style. Many of the units also include small kitchen areas, which can be handy if you prefer a bit of flexibility during your stay. The hotel also offers a relaxed atmosphere and friendly service, which makes it a comfortable base in the city.

Rooms typically start from around €160 per night during the warmer months.

If Roots Hotel is fully booked, Hotel Made Inn Faro is another great option with colorful rooms and a convenient central location. It’s modern and minimalist with lovely views of the water, and we think it delivers excellent value for money.

Cardeal Suites & Apartments is also a great choice if you prefer apartment-style accommodation. The units are modern and spacious, and the location near the Old Town is excellent.

Hotel ibis Faro Algarve – $

If you’re looking for an affordable place to stay near the airport, Hotel ibis Faro Algarve is an ideal budget-friendly option. The hotel sits just a short drive from both Faro Airport and the city center, which makes it very convenient for early flights.

The rooms are simple and modern, with everything you need for a comfortable short stay. There’s also a small outdoor pool and a restaurant on site, which is handy if you arrive late in the evening.

Prices here usually start at around €95 per night.

If you want another affordable option close to the airport, Hotel 3K Faro Aeroporto is a great pick, located just a few minutes from the terminal.

Meanwhile, Hotel Sol Algarve by Kavia is another good choice if you’d prefer to stay closer to the city center. It’s a simple hotel, but the location near the marina makes it the perfect place to explore.

Related Read: Looking for more options? Head to our full guide on where to stay in Faro for the best areas and hotel picks for every budget.

Top Activities to do in The Algarve

Now that you’ve picked out your favorite area and perfect hotel, you can plan all of your activities! Depending on the length of your trip, most people will stay in one or two areas and take day trips to explore around. So here are a few of the can’t miss activites in the most popular areas to base yourself in.

• Go on a dolphin spotting cruise – Based in Albufeira, this dolphin spotting excursion can’t be missed! As one of the most popular activities in the Algarve, you can see dolphins swimming alongside the boat and enjoy stunning views from the water.

• Explore the Benagil caves – From Faro, you can see the Benagil Caves on this full-day excursion! Exploring the famous Praia da Marinha, Benagil Caves, and swimming in stunning turquoise waters is the iconic Algarve, and simply a must!

• Eat your way through Lagos – One of my favorite travel activities? A food tour, specifically this food tour! This is the ideal way to experience Portugal’s flavors and culture, and discover some hidden gems and local favorites in Lagos.

• Go parasailing – See the Algarve Coast from above on this exciting parasail adventure. We couldn’t believe how much fun this was, and seeing the coast from a bird’s eye view is something I’ll never forget. It’s an easy addition to your Albufeira itinerary!

• Visit the Ria Formosa Natural Park – Enjoy the Algarve’s rugged outdoors on this tour to Ria Formosa Natural Park. From Faro, this tour makes it easy to see local villages, wildlife, islands, and simply enjoy the views.

Thanks for reading!

We absolutely love how diverse the Algarve region is. From historic city centers to staggering cliff sides and relaxed golden beaches, it is beautiful all around. Where you stay can really shape your trip, though, so choosing the right spot is important! After visiting for ourselves and picking out our favorite areas, I know you’ll find the perfect area and hotel for your travel style.

If you need help planning the rest of your trip, see the rest of our Europe blogs. As long-term travelers, we love helping people plan their next trip, from where to stay to choosing the right activities, or providing helpful information about travel in general! Here are a few other blogs you might be interested in as you plan. Enjoy!

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