Coastal path with hydrangea in Sao Miguel, Azores Portugal

Updated: May 6, 2026

Where to Stay in the Azores, Portugal: 4 Best Areas & Hotels

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

The Azores aren’t just one island, but nine, and each one feels a bit different, and oh so gorgeous! So how do you choose where to stay? It really depends on the kind of trip you want, whether that’s lively streets and festivals, dramatic volcanic landscapes, whale watching, or long days out hiking (but what if you want all of it?). 

The good news is you don’t have to pick just one, as it’s really easy to hop between islands by ferry. In this guide, we’ve narrowed it down to four of the best areas to stay, along with our favorite hotels in each. Let’s explore the Azores!

Don’t miss out!

Our Top Choice

This is the area and hotel we loved the most and suggest booking ASAP!

Our personal FAVORITE place to stay on São Miguel is Ponta Delgada! It has the best mix of island charm and convenience, with colorful streets, great restaurants, and easy access to famous spots like Sete Cidades and Lagoa do Fogo.

One of our favorite stays here is Hotel Do Colegio. It’s charming, comfortable, and set inside a historic former school and music conservatory, giving it way more character than your average hotel.

Hotel Do Colegio in the Azores Portugal 2
Photo credit: Hotel Do Colegio

Overview of the Best Areas to Stay in the Azores 

Algar do Carvao Cave on Terceira Island, Azores Portugal 1
Algar do Carvao Cave on Terceira
Arnel lighthouse at Sao Miguel island at the Azores Portugal
Looking down at Arnel lighthouse on Sao Miguel

The Azores are made up of nine islands, and if you have the time to visit more than one, it’s really worth it. Some are more remote and have fewer places to stay, so we’ve picked the ones that make the most sense as a base.

For this trip, we stayed on São Miguel, in Ponta Delgada, mostly because it has a bit of everything and is an easy choice for first-time visitors. If you’re more into history, culture, and getting a feel for local life, maybe even catching a festival, Terceira is a really good place to start.

Then there’s Pico, home to Portugal’s highest peak, Mount Pico, and those famous vineyards growing through black lava stone walls. It’s a great choice if you like being outdoors, whether that’s hiking or just spotting marine life. And then Faial, with the buzzing Horta Marina and the surreal landscapes shaped by the 1957 eruption of Capelinhos Volcano, feels like stepping into a completely different world.

All of these islands are actually pretty easy to get around. Grab a car on each one and use the ferries to hop between them. We suggest flying into São Miguel first, then taking the ferry to the other islands; it’s simply the easiest way to do it.

  • São Miguel – Best for first-timers – This island feels like a sampler of the Azores, with volcanic lakes, hot springs, dramatic coastlines, and a good mix of hotels and restaurants. Our favorite stay here is Hotel Do Colegio, set in a 19th-century building that used to be a private school and music conservatory, full of character and a great pick if you like central stays with a bit of history (and good value too). 
  • Terceira – Best for history and culture – If nature, history, festivals, and that strong local feel are how you imagine your trip to the Azores, the “third” island makes an easy choice. We picked Azores Book Hotel here for its charm and history, with a book-inspired theme and a library of over 5,000 books that make your morning coffee taste even better. 
  • Pico – Best for outdoor adventure – For those who want to stay active and really soak in the island’s nature, come rain or shine, Pico is the right choice, with volcanic vineyards, mountains, and plenty of whale watching. Porto Velho Boutique Lodge is a great stay, with dorm rooms and more spacious options for families looking for comfort and good value without overspending. 
  • Faial – Best for dramatic landscapes – With its buzzing marina and that almost lunar-like scenery, this island is a really easy place to explore from, whether you’re into spotting whales or hiking through unique landscapes. Apartamentos Kósmos offers spacious apartments right by the seaside, so you can watch the big ships come and go (a view you won’t mind waking up to).

Important Tip

Multiple trips to the Azores have taught us that these islands don’t reward spontaneity when it comes to planning. The good places get snapped up months in advance, leaving the overpriced and underwhelming options for last-minute travelers.

The sweet spot for booking accommodations in the Azores is 3-4 months out—enough time to secure good rates but not so far ahead that you’re locking in plans excessively early.

Where to Stay in the Azores 

São Miguel 

Furnas geothermal pools in the Azores Portugal near Sao Miguel
The geothermal pools of Furnas
Viewpoint Ponta do Sossego, Sao Miguel Portugal (1)
Viewpoint Ponta do Sossego near Sao Miguel

BEST FOR FIRST-TIMERS

Pros 

  • Diverse landscapes
  • Wide range of accommodation, from luxury to budget
  • Popular year-round
  • Main hub for flights 

Cons 

  • Can feel more crowded than other islands, especially in summer
  • Nightlife is on the quieter side, mostly bars and dining 

São Miguel is the largest and most popular island in the Azores, and for good reason. You’ve got volcanic lakes, hot springs, dramatic coastlines, and that slow, laid-back island life you packed your bags for. 

This is also where you’ll likely fly into; it’s easy to get around, and there’s enough going on day to day (you won’t feel bored at all). It just makes sense as a base. So, if you’re new to the Azores, start here and take it from there.

Most travelers base themselves in Ponta Delgada, the island’s main hub and regional capital, with the best mix of hotels, restaurants, and easy access to places like Sete Cidades and Lagoa do Fogo, plus whale watching tours.

For a quieter, nature-focused stay, Furnas is hard to beat, with its geothermal activity, lush gardens, and relaxing thermal baths. It’s easy to imagine what your vacation would look like. Then there’s Ribeira Grande on the north coast, which offers a more local feel with black sand beaches, great surf, and quick access to scenic spots like Lagoa do Fogo. 

Altogether, São Miguel appeals to a wide range of travelers, from first-timers who want convenience to nature lovers looking to explore the island’s most iconic landscapes.

Ponta Delgada

Octant Ponta Delgada – $$$ 

Octant Hotels Ponta Delgada in Sao Miguel Portugal 1
Photo credit: Octant Hotels Ponta Delgada
Octant Hotels Ponta Delgada in Azores Portugal
Photo credit: Octant Hotels Ponta Delgada

Octant Ponta Delgada feels like luxury from the moment you walk in. As you pass through the lobby, you’ll notice striking art made from local materials, and once you step into your room, you’re greeted with panoramic ocean views. Even better, there’s a rooftop pool and bar, perfect for sunset drinks, romantic evenings, or a relaxed afternoon with a DJ set in the background.

There’s a strong eco focus here, so don’t be surprised if they use Azorean milk on you for your massage in the spa. The restaurant is another great spot, with an open kitchen, a rustic feel, and a wood-fired oven, serving a mix of Mediterranean and Portuguese dishes.

It’s near the marina and an easy walk into Ponta Delgada, so you’re close to everything without being right in the middle of it. Prices usually range from €200 to €550 per night.

If Octant Ponta Delgada is fully booked, Delta Hotels by Marriott Azores is a really good option, with a fresh design, bright rooms with movable walls (super handy for a bit more privacy), and both indoor and outdoor pools for any season. It’s less than 10 minutes from the historic center of Ponta Delgada and about 5 minutes from the harbor and airport. 

NINE DOTS Azorean Art Boutique Hotel is a nice pick if you’re into smaller stays with a bit more character, focused on local art, history, architecture, and culture, with an on-site gallery and a restaurant mixing Italian and Azorean dishes. Just a 2-minute walk from Portas da Cidade, you’re right in the middle of the buzz, surrounded by shops, cafés, bars, and the marina. 

Hotel Do Colegio – $$ 

Hotel Do Colegio in Azores Portugal (1)
Photo credit: Hotel Do Colegio
Hotel Do Colegio in Azores Portugal (2)
Photo credit: Hotel Do Colegio

Hotel Do Colegio is our absolute favorite stay in Ponta Delgada, and it was an easy pick for so many reasons, especially the value. The biggest draw for us is the building itself, a 19th-century manor that used to be a music conservatory and private school, so there’s plenty of history to keep you entertained.

The food is also really good, with a focus on local Azorean ingredients, and fresh seafood that’s hard to resist (even if it’s there every day). On scorching days, the small courtyard pool is a real lifesaver, and when you’re ready to head out, it’s just a 10-minute walk to the waterfront and into town.

Parking can be tricky, as with most historic centers; there’s a small underground garage with limited spots (paid), and street parking fills up fast (patience required). Prices start at around €130 per night, which is honestly a great deal for what you get.

Another stay we really liked in the area is VIP Executive Azores Hotel with panoramic rooftop views and a wellness center that includes an indoor pool and even a squash court. It’s about a 20-minute walk to the historic center and marina, and just 10 minutes from António Borges Garden, a great botanical park. 

MS Vila Nova is close to the city center and connected to a shopping complex, which makes it easy to spend a bit of time (and money) on shops and arcade games. We really like the heated outdoor pool here, and the rooms are spacious and well soundproofed, which help given its location closer to the airport. 

Jomafreitas – $  

Jomafreitas in Azores Portugal
Photo credit: Jomafreitas
Jomafreitas in Azores Portugal 1
Photo credit: Jomafreitas

Jomafreitas makes it easy to enjoy the Azores without blowing your travel budget, especially if you prefer a more personal, communal feel. Rooms are simple but very functional, and there are family options with kitchens if you don’t want to wait your turn in the shared one (plus free coffee and snacks, which is always a win).

Downtime is important here, and you can choose from a terrace and a small internal garden, both nice and quiet spots to relax. If you can, ask for a room at the back, as they’re away from street noise.

When you feel like exploring, it’s just a short walk from Portas da Cidade, so you’re right in the most walkable part of town. With prices starting around €60 per night, it’s an absolute steal! 

If Jomafreitas is all sold out, Magma Hostel is worth checking out, new and modern, with rooms that come with private bathrooms, and some even have terraces or patios (not something you see in city-center hostels). It’s right in the heart of Ponta Delgada, about a 10-minute ride from João Paulo II Airport, on a quiet street, which makes it a nice, peaceful base. 

Hotel Sete Cidades is another nice option if you prefer something more modern and stylish, with free on-site parking, spacious rooms (some with balconies), and a simple but free breakfast buffet. Location-wise, it’s in a really good spot, set on a quiet street but just steps from local life, including small bakeries and markets. 

Furnas 

Octant Furnas – $$$ 

Octant Furnas in Azores Portugal (1)
Phiti credit: Octant Furnas
Octant Furnas in Azores Portugal (2)
Photo credit: Octant Furnas

Octant Furnas is where you go for a truly relaxing vacation. There are thermal pools, both indoor and outdoor, open around the clock, and you wake up to one of the most beautiful landscapes on the island (it reminds a bit of Switzerland).

The spa is designed for slow, peaceful treatments, and rooms follow a natural style that matches the surroundings; some even have private outdoor pools. Food is another thing we love about this place, with a wood-fired oven, great meat and fish dishes, pizza, and creative starters. 

Moreover, you’re right in the heart of Furnas, within walking distance of Terra Nostra Park. If you want to explore further, buses run between Ponta Delgada and Furnas a few times a day and take about 1.5 hours. Prices typically range from €200 to €800+ per night.

Terra Nostra Garden Hotel – $$$  

Terra Nostra Garden Hotel in Azores Portugal (1)
Photo credit: Terra Nostra Garden Hotel
Terra Nostra Garden Hotel in the Azores Portugal 4
Photo credit: Terra Nostra Garden Hotel

Terra Nostra Garden Hotel is an elegant stay, with Art Deco style running through both the property and the rooms. You’ve got a few options, from compact rooms to garden house suites with large terraces (waking up here comes with birdsong). They also make it easy to explore the area with bike or car rentals, which you should definitely take advantage of.

The restaurant serves local dishes and even packed lunches if you’re heading out for the day (which you probably will), while you can get drinks at the bar. The biggest highlight is definitely the 24-hour access to the Terra Nostra Botanical Park and its thermal pools (yes, that means soaking under the moonlight with no one else around).

It’s set right within the park, close to volcanic beaches and forests. Prices start at around €150 per night and can go up to €500+ per night.

Vale dos Encantos – $ 

Vale dos Encantos in Azores Portugal (1)
Photo credit: Vale dos Encantos
Vale dos Encantos in Azores Portugal (2)
Photo credit: Vale dos Encantos

If you’re traveling on a budget but don’t want to sacrifice comfort, Vale dos Encantos is a great pick. This small guesthouse is known for its peaceful feel and well-maintained rooms, many with balconies overlooking the pool and nearby park. For a place this size, you get quite a bit, including a seasonal swimming pool and a sun terrace with mountain and garden views.

The bathroom downstairs is shared, but don’t worry, it’s spotless! There’s a restaurant, but you’re just a 10-minute walk from several really good dining spots, so it’s not really an issue. Free public parking is usually available on the quiet street nearby.

We also love that it’s tucked away but still central, just a short walk from Terra Nostra Botanical Park. With prices starting at around €60 per night, we think it’s a great option for families with older kids and adult travelers.

Ribiera Granda 

Hotel Verde Mar & SPA – $$$ 

Hotel Verde Mar & SPA in Azores Portugal
Photo credit: Hotel Verde Mar & SPA
Hotel Verde Mar & SPA in Azores Portugal 1
Photo credit: Hotel Verde Mar & SPA

Your beachfront getaway will easily turn into an unforgettable trip at Hotel Verde Mar & SPA. It’s a newer addition to the area (since 2020) and has quickly become a favorite for travelers who don’t mind splurging a little (like you!). The focus here is more on wellness and a feel-good mood, so you’re spoiled with an infinity outdoor pool, a large heated indoor pool, plus a hammam and Turkish baths.

Rooms are sleek and modern, like the rest of the interiors, but despite the more polished feel, it’s very family-friendly too, with a kids’ pool, a games room with air hockey and billiards, and a small children’s library.

Let’s not forget the great location, right across from Monte Verde Beach, and close to Caldeira Velha and Lagoa do Fogo. You can also easily walk into Ribeira Grande, so it feels quieter but still well-connected. Prices start at around €120 per night.

Pedras do Mar Resort & Spa – $$  

Pedras do Mar Resort & Spa in Azores Portugal (2)
Photo credit: Pedras do Mar Resort & Spa
Pedras do Mar Resort & Spa in Azores Portugal (1)
Photo credit: Pedras do Mar Resort & Spa

You don’t have to blow your entire budget to stay in the Azores; Pedras do Mar Resort & Spa makes sure of that. Despite the reasonable rates, you still get the 5-star feel, and right in the heart of the peaceful village of Fenais da Luz. We love that it’s well-positioned for day trips around the island. 

The outdoor infinity pool is perfect for lazy afternoons, while inside, the rooms are modern with glass-walled bathrooms (yes, you can look out at the ocean or mountains while showering). Breakfast is really good too, with a buffet of 40+ items (good luck choosing). There’s also a tennis court, a games room with billiards, a small library, and a playground for kids.

Since it’s a little remote, renting a car makes more sense than relying on taxis. Prices start at around €150 per night and can double in peak season. 

Surf & Guest Lorena´s House – $ 

Surf & Guest Lorena´s House in Azores Portugal (1)
Photo credit: Surf & Guest Lorena´s House
Surf & Guest Lorena´s House in Azores Portugal (2)
Photo credit: Surf & Guest Lorena´s House

Surf & Guest Lorena´s House has that personal, intimate feel, more like staying with a relative, but with the bonus of being just a short walk from sandy beaches (unless you already have family living by the sea). Either way, it’s a great base if you’re looking to save where you can, especially since you can cook your own meals in the shared kitchen.

It’s also a nice spot if you enjoy socializing, sitting out in the garden, firing up the grill, and turning it into a relaxed picnic day. Inside, rooms are modern and spotless, with balconies and open views.

We think it works really well for both families and couples, as it has family rooms and plenty of outdoor space for kids to run around. Plus, the hosts are some of the warmest people you’ll meet. With prices starting at around €60 per night, we’d book it without overthinking.

Related Read: If you’re planning to spend time on São Miguel, make sure to browse through our detailed São Miguel itinerary guide here for the best hot springs, viewpoints, food spots, whale watching tours, and hidden gems we discovered while exploring the island.

Terceira 

A traditional house on Terceira Island, Azores Portugal
A traditional house on Terceira
Algar do Carvao Cave on Terceira Island, Azores Portugal
Algar do Carvao Cave

BEST FOR HISTORY & CULTURE

Pros 

  • Feels very local, with festivals and cultural events year-round
  • Lots of religious and historical landmarks
  • More going on at night (bars and restaurants) than more nature-focused islands

Cons 

  • Prices can get pretty high during festivals and peak season
  • Can feel crowded in summer

Terceira, also known as the “festive island,” dates back to the 15th century, when it was first discovered. The name literally means “third,” since it was the third island found in the Azores. Here, days go by quickly, but they feel full. You can spend time outdoors, learn about the history, get lost in small streets, and end up in the middle of a street celebration by evening.

You’ll absolutely love the picturesque towns here, especially Angra do Heroísmo, a UNESCO World Heritage site with colonial architecture and historic squares. The moments you’re sure to remember are walking through Rua de Jesus, a quiet pedestrian street with colorful houses, basalt tiles, and cobblestones, where it feels like you’ve stepped back in time.

From here, it’s easy to explore Algar do Carvão, swim in Biscoitos Natural Pools, spend time at Praia da Vitória beach, and just go with the flow of the island. Even better, if you visit during the Sanjoaninas Festival, you’ll be part of something bigger and louder, with parades, food, dancing, and the whole island gathered in one place. 

Overall, we think that a stay on Terceira is great if you want a balance of culture, nature, beaches, local food, and a slightly off-the-beaten-path feel.

Boutique Hotel Teatro – $$$ 

Boutique Hotel Teatro in the Azores Portugal 1
Photo credit: Boutique Hotel Teatro
Boutique Hotel Teatro in the Azores Portugal
Photo credit: Boutique Hotel Teatro

Boutique Hotel Teatro looks like it came straight out of a fairytale. Inside, it’s all “French-like,” with period furnishings and gold tones, while outside, there’s a quiet garden and a Greek-style pool for refreshing dips. We love the history here; it’s an 18th-century home that took seven years to restore. 

Despite the classic feel, it’s very welcoming, with staff often praised for going above and beyond. It may look small, but there’s a full spa with a sauna, Turkish bath, jacuzzis, and a small gym. Breakfast is delicious and gourmet, with fresh local products and made-to-order options.

As for location, it’s set on a quiet street just steps from Sé Cathedral of Angra do Heroísmo and Teatro Angrense. Prices start around €85 per night, which feels like a great deal for this kind of stay.

If Boutique Hotel Teatro is booked for your dates, The Shipyard – Angra is a great alternative, with spacious apartments that come with fully equipped kitchens, and a rooftop terrace with stunning views of Forte de São Sebastião and the Atlantic. From here, it’s an easy stroll along the marina into the historic center. 

Palacio Santa Catarina Hotel offers a unique stay in a centuries-old palace, with an on-site chapel, an outdoor pool, elegant rooms, and a breakfast spread worth waking up early for. The location is hard to beat, set on a hill for the views and a bit of peace, but still close to beaches, main sights, and the historic town. 

Azores Book Hotel – $$ 

Azores Book Hotel in Azores Portugal (1)
Photo credit: Azores Book Hotel
Azores Book Hotel in Azores Portugal (2)
Photo credit: Azores Book Hotel

Azores Book Hotel is a fairly new hotel housed in a modernized 18th-century building. The best part is, it’s actually the first “literary hotel” in the Azores, with a library of over 5,000 books you can read, borrow, or even buy (not ideal if you’re trying to travel light). So if you love a good book with your coffee, this is your kind of place.

The rooms follow the same idea, inspired by classics like The Odyssey or Romeo and Juliet. Surprisingly, there’s also a great spa with an indoor pool, outdoor pool, jacuzzi, Turkish bath, and a small gym (not what you’d expect from a hotel of this size). Breakfast is really good too, with fresh pastries and even a pancake machine.

It’s right by the historic center too, within walking distance of the beach and main sights. Prices start around €80 per night.

If you’re after something more modern and spacious, Angra Marina Hotel is a great base, with a rooftop bar for sunset views over the marina. It’s built on a slope (downhill into town, uphill back), just an easy walk to Angra Harbor and the historic center. 

Azoris Angra Garden is the very first hotel on Terceira, set in a listed historic building, and a great option if you like to stay active or unwind, with an indoor heated pool, sauna, steam bath, and a fitness center. It sits right on Praça Velha, surrounded by the Duque da Terceira Botanical Garden. 

Hotel Monte Brasil – $  

Hotel Monte Brasil works really well if you want comfort without paying extra for things you won’t use. It was recently renovated (2022), and rooms are simple, modern, and spacious, with options from standard doubles to suites with extra seating space.

Breakfast is included (and you can have it in your room if you’re in a PJs kind of mood), plus there’s a 24-hour reception, laundry, and ironing, making longer stays super convenient. There’s also a rooftop spot where mornings start with absolutely stunning views over the city and bay.

It’s right in the center, close to Prainha Beach, Sé Cathedral of Angra do Heroísmo, and the gardens, so you can walk pretty much everywhere. Prices start at around €60 per night, which is hard to beat for the location.

Farol Guesthouse is a great, affordable seaside escape in the heart of São Mateus da Calheta, surrounded by seafood restaurants and just steps from local landmarks. The nautical theme runs throughout the property, and there’s a shared kitchen and lounge, plus a really good breakfast with a nice variety of local cheeses and fresh fruit. 

Hotel Varandas do Atlântico is a great modern beachfront option in the heart of Praia da Vitória, just a 10-minute drive from Lajes Airport, and a solid choice if you want to stay close to the water. You’ve got a sun terrace, bar, and lounge, plus bike and car rentals to explore the island at your own pace.

Pico 

Pair of Common Dolphins in front of volcano Pico, Pico, Azores Portugal
This is an amazing place to go dolphin and whale spotting!
Part-of-the-summit-hike-Pico-do-Arieiro-to-Pico-Ruivo-in-Madeira-Portugal
Part of the Pico do Arieiro to Pico Ruivo hike

BEST FOR OUTDOOR ADVENTURE

Pros 

  • Great for adventures, both on water and land
  • Really unique vineyard landscape
  • Quieter and more authentic than São Miguel

Cons 

  • Limited public transport, so renting a car is necessary (which might not be a real disadvantage)
  • More rural feel, with fewer options for shopping and dining

Pico is known as the “black island,” and it actually makes perfect sense once you’re there. Everything here is shaped by volcanic rock, from the slopes of Mount Pico to the UNESCO-listed vineyards growing straight out of lava fields. Winemaking here goes back to the 16th century, so you can imagine what wine tastings are like, especially when paired with local staples like lapas (limpets), sausage with yams, Pico cheese, and honey.

This island really is a dream for outdoor enthusiasts, with challenging hikes, whale watching, and unforgettable views across the island and nearby Faial. Whale and dolphin tours here are as common as a walk through town, with a very high chance of spotting marine life. And then there’s volcano hiking, of course (6 to 8 hours to hike Mount Pico if you go all the way).

So if you’re an adventurous traveler, or a nature-loving family, and don’t mind fewer amenities in exchange for raw, untouched beauty, this really does feel like your own little piece of heaven. Once in town, whether in Madalena or Lajes do Pico, it feels quieter and less crowded than São Miguel, with a more relaxed, authentic Azorean atmosphere, which feels especially nice after all those outdoor adventures.

Aldeia da Fonte Hotel – $$$ 

Aldeia da Fonte Hotel in Azores Portugal
Photo credit: Aldeia da Fonte Hotel
Aldeia da Fonte Hotel in Azores Portugal 1
Photo credit: Aldeia da Fonte Hotel

If you want a quiet, more secluded stay surrounded by nature, Aldeia da Fonte Hotel fits really well. It feels tucked away but is still easy to reach, about a 5-minute drive from Lajes do Pico. We love it because it’s actually designed to look like a village, spread across six volcanic stone houses.

This is the perfect spot to leave your worries behind, with Tai Chi gardens, a Zen room, a sea lounge, and paths leading down to natural rock pools (the water can be turbulent here, which is when the pool and wooden deck come in handy).

Your food (local and Chinese, which is very rare for this area) arrives in ceramic whaling boats, and rooms have basalt stone and restored antiques, so there’s charm all around. There’s also a whale-watching tower on site. Prices usually range from €170 to €250 per night.

If Aldeia da Fonte Hotel has no rooms left, Villa 4 Seasons is a really good alternative with a similar “village” feel, made up of four different houses, some more traditional, some more modern, all fully equipped, even with a BBQ. From here, it’s about a 20-minute walk to the Whaling Industry Museum, and the natural swimming pools of São Roque are nearby too. 

Porto Velho Boutique Lodge – $$ 

Porto Velho Boutique Lodge in the Azores Portugal (2)
Photo credit: Porto Velho Boutique Lodge
Porto Velho Boutique Lodge in the Azores Portugal (1)
Photo credit: Porto Velho Boutique Lodge

Porto Velho Boutique Lodge is a modern hostel-style stay with more options than you’d expect. There are the usual shared spaces, like a kitchen and a lovely terrace, plus classic dorm rooms.  But you also have family rooms, an indoor play area, bicycle parking, and even room service, which makes it a really easy choice if you’re traveling with kids (or just want a bit more comfort).

Breakfast is simple with pastries and coffee for something quick before heading out, but thanks to its central location, it’s easy to find a nearby café or a restaurant if you’re feeling like a proper breakfast. It’s also right by the ferry terminal, so it works really well for moving between islands, and it’s about 8 km (around 5 miles) from Pico Airport. 

Expect to pay around €75 to €140 per night, which feels like great value for the location and everything you get with it. 

For something more spacious that feels like home, Jeiroes Do Mar is a really good choice with eco-friendly apartments, fully equipped kitchens, free parking, and an absolutely stunning vineyard garden. The location couldn’t be more convenient, close to the center and port of Madalena, with two supermarkets nearby, and Piscina Natural da Madalena just around the corner.

Alojamento Bela Vista – $  

Alojamento Bela Vista in the Azores Portugal (2)
Photo credit: Alojamento Bela Vista
Alojamento Bela Vista in the Azores Portugal (1)
Photo credit: Alojamento Bela Vista

Alojamento Bela Vista makes it easy to enjoy your island getaway on a budget, with spacious rooms and self-catering apartments with kitchens that make homemade meals quick and simple. There’s a shared lounge and a sun terrace, plus a small gift shop for last-minute souvenirs or sunscreen (we’ve all forgotten at least one thing).

Breakfast here is simple, but free, a buffet with local products like pumpkin jam, fruit salads, breads, and cakes. And if you feel like getting out and doing more, the hotel can help arrange whale and dolphin watching, mountain climbs, or even horseback riding. Location-wise, you’re literally a one-minute walk from the Whalers’ Museum and just steps from the Center for Arts and Marine Sciences, so there’s always something to look forward to.

Prices range from around €50 to €120 per night, making it one of the more affordable stays on the island.

For something in the same price range and just as convenient, but with a bit more character,  Azores Youth Hostels – Pico is a really good backup. It’s set in a 17th-century convent, with both dorm rooms and standard room options with shared bathrooms. The town center and ferry port, with connections to São Jorge and Faial, are around a short drive away, so it’s still easy to get around. 

Engenho Hostel is another great option if you prefer something more intimate, set in an 18th-century old mill house with just two suites and a family room that can accommodate up to five people. It’s right on the beachfront and within walking distance of some of the best local restaurants, so everything feels easy and close by. 

Related Read: Planning a bigger Portugal adventure? Don’t miss our list of the best things to do in Portugal, filled with favorite cities, island escapes, coastal road trips, and unforgettable experiences across the country.

Faial 

Porto Pim neighborhood and beach at Faial island Azores Portugal
Porto Pim
Capelinhos volcano, Faial island in Azores, Portugal
Capelinhos volcano

BEST FOR DRAMATIC LANDSCAPES

Pros 

  • Very convenient for island hopping, with easy access to Pico by a short ferry ride 
  • Perfect if you’re into whale spotting, hiking, exploring, or diving
  • Volcanic landscapes that feel a bit otherworldly

Cons 

  • Very few sandy beaches, mostly rocky lava ones
  • Limited nightlife and entertainment options

Faial is also called the “Blue Island,” and it’s easy to see why, with hydrangeas lining roads, fields, houses, and the villages. The main, and really only town, is Horta, whose story goes back to the 16th century, when it was a stopover for ships coming from South America and Africa.

Then came the pirates, from the Moroccan coast and England, which is why parts of the old fortifications are still around today, like the walled entrance to Porto Pim. These days, Horta feels peaceful but still full of life, especially around the marina, with buzzing cafés and sailors painting murals on the seawall for good luck, and it’s an easy base for boat trips or island hopping, with frequent ferries to Pico and São Jorge.

One place that really stands out is Capelinhos Volcano in the parish of Capelo, made up of around 20 volcanic cones, which make you feel like you’ve stepped onto another planet. You’ll probably spend most of your time outside on Faial, as it’s basically a playground for outdoor lovers, with natural swimming pools, volcanic landscapes, hiking, diving, and coastal views. 

Horta Bay – $$$ 

Horta Bay in the Azores Portugal
Photo credit: Horta Bay

Horta Bay is a modern aparthotel, so you get your own luxury space with a kitchenette, which makes it feel more like staying in a really nice, stylish home than a hotel. It offers front-row views of Horta Marina, and you’re surrounded by some of the best seafood spots and bakeries in Horta. Plus, the ferry terminal for Pico and São Jorge is just a 5-minute walk away, so it really doesn’t get more convenient than this.

One thing we really like about this place (and everyone else apparently) is the contactless setup, so check-ins and anything you need are handled through messaging, which makes everything feel easy (no waiting around at a front desk). There’s also a paid shuttle to and from Horta Airport (HOR), a coffee shop, and a lovely dining area for buffet breakfast. Prices start at around €75+ per night, which is a real steal if you ask us.

If Horta Bay is fully booked, Pousada Forte Horta is a great backup and a really unique stay in an old fortress, blending historic architecture with modern comforts, including an outdoor pool and spacious rooms. The location is hard to beat, with beautiful views over the marina and everything just a short walk away. 

Internacional Azores Boutique is another strong contender, set in a beautifully restored 1926 Art Deco building, with a sushi restaurant and a café on site. From here, you can easily walk to the Jardim do Infante and Horta Harbour. 

Apartamentos Kósmos – $$ 

Apartamentos Kósmos in the Azores Portugal
Photo credit: Apartamentos Kósmos

Staying at the Apartamentos Kósmos comes with plenty of perks for about half the price of nearby hotels. You can choose from spacious apartments with kitchenettes and balconies, most overlooking the harbor and the island of Pico (watching the huge cruise ships come and go from so close feels almost surreal). There’s also a café on site if you feel like a bit of socializing over a coffee or a beer.

As for location, you really can’t find a more convenient spot, right on the main street and just a short walk from the harbor and ferry terminal. Some of the best restaurants and attractions are just a stone’s throw away, and you’ve got a supermarket and a bakery just behind the apartments, so picking up ingredients for meals is quick and easy.

Prices range from €70 to €150+ per night, which is great value for the location.

For something similar but with even better views of the harbor and Mount Pico, Apartamentos Turisticos Verdemar is a great choice with a restaurant and a bar, and basic but very spacious apartments, with open-plan kitchens that are perfect if you plan to cook on the go. It’s set on a quiet street slightly uphill from the harbor, but still within a short walk of everything you need.

Located in the same building as Apartmentos Turisticos Verdemar, Hospedaria Verdemar has six one-bedroom apartments with kitchens, optional in-room breakfast (around €5), and small touches like a complimentary fruit basket on arrival. It’s just steps from Horta Marina and the black sand beach of Praia da Conceição.

Apartamentos São João – $ 

Apartamentos São João in the Azores Portugal (1)
Photo credit: Apartamentos São João

A place like Apartamentos São João makes you want to extend your stay in Faial a little longer. This recently renovated hotel (2024), although smaller and more intimate, still feels spacious, with six apartments (some fitting up to six people), a shared garden, sun terrace, and a children’s playground, which is why it’s so popular with families and groups.

It’s an easy walk from the Horta Regional Museum and the Mercado Municipal da Horta, with quite a few places to eat nearby. Nights are peaceful, so you can get a decent sleep after a day out exploring. 

Prices start at around €50 per night, depending on your room and dates. And, if you visit in the low season, you might even have the place almost to yourselves (which can be just what you need for a peaceful island getaway).

Another one of our favorites in the area is Garden’s Nest – North Villa, with nine rooms and shared kitchen, living, and dining spaces, set within the grounds of the Azoris Faial Garden. It’s about a 5-minute walk to the historic center and marina, so you can head out on foot and be where you want to be in no time.

If you’re looking for a seaside, adults-only stay, Largo Bispo Boutique Hostel is a really nice option, with private double rooms and shared dorms, all recently renovated. It’s right in the center of Horta, so you can walk pretty much everywhere, from Praia da Conceição to the Horta Regional Museum, the Clock Tower, and the ferry terminal.

Related Read: Before you fly out, check out our Portugal packing guide with the essentials we’re glad we brought to the Azores.

Top Activities to do in the Azores 

Sete Cidades crater lakes in Portugal (1)
Take a guided tour to Sete Cidades
Chouriço à Bombeiro Portugese chorizo sausage eaten on a food tour in Sao Miguel Portugal
Taste your way around Ponta Delgada

Now that you’ve picked your island and hotel, it’s time to get out and explore the Azores. Make the most of your stay with some of our favorite tours and a few of the things we loved doing ourselves.

Here’s how to best spend your days:

  • See the stunning Sete Cidades – Get to know São Miguel on this full-day tour, with stops at Lagoa do Fogo, Boca do Inferno Viewpoint, Mosteiros, and back to Sete Cidades, where you’ll see the bright blue and green lakes. You’ll grab a local lunch along the way, too. It’s a small group, so it’s better to book ahead if you can.
  • Taste your way around Ponta Delgada – Sometimes the easiest way to get a feel for a place is through the food (or just eat like the locals). This guided food tour takes you around some of the city’s best spots, with plenty of chances to try local dishes along the way. We never say no to a good food tour, especially when it mixes food, local stories, and a bit of history into a few hours, and if you’re a foodie, you shouldn’t either. 
  • Climb Mt Pico – When in Pico, do what every tourist does (well, the ones with a bit more stamina). This full-day certified guided climb takes you to the top, so take those photos, or how else are you going to prove you’ve made it up Portugal’s tallest mountain? Bring some snacks to keep you going, as there’s no meal included on this one (and you’ll definitely feel it on the way down).
  • Go whale watching in Pico – If you feel like switching things up, hop on this 2.5-hour cruise to spot whales and dolphins as you glide across the ocean, and if you’re lucky, they get really close. Don’t forget your camera, and maybe a jacket, as it can get windy out there (it’s worth it though).
  • Discover Faial Island’s scenic beauty – Spend the day exploring Faial on this guided tour that takes you from Horta to Capelinhos Volcano, from gardens to volcanoes. Then you wrap things up with a delicious lunch with the locals – a pretty great way to end the day if you ask us! 

Related Read: Want even more ideas for your trip? Check out our detailed guide to the best things to do in São Miguel, where we cover hot springs, scenic hikes, hidden viewpoints, whale watching tours, and all the can’t-miss experiences on the island

Renting a Car in Europe

A coastal road winding through Mallorca Spain

Exploring Europe by car is a fantastic way to uncover hidden gems—think charming villages, scenic countryside, and off-the-beaten-path spots that trains and buses might miss. Driving here is generally straightforward, but it’s good to be prepared for some regional quirks.

We always use Discover Cars to book our rentals and can’t recommend them enough. It’s super easy to compare prices, check company ratings, find automatic cars (which can be tricky in Europe!), and add affordable full coverage insurance. 

Tips for Renting a Car in Europe

  • Know the local rules: Most countries drive on the right, except the UK, Ireland, Cyprus, and Malta. Road signs and driving laws can vary, so do a quick check before you go.
  • Practice defensive driving: In parts of Europe, especially in the south, driving can feel fast-paced and a little unpredictable. Make sure you stay alert and keep a safe following distance.
  • Insurance is essential: I highly recommend adding full coverage insurance to your rental. Whether it’s a parking lot ding or a chipped windshield on a mountain road, full protection gives you peace of mind. Plus, it’s super affordable through Discover Cars!
  • Pick the right vehicle: Most rentals in Europe are manual, and automatic cars are limited, so book early if that’s what you need. A compact car is also ideal for narrow roads and tight parking. On Discover Cars, you can easily filter for everything you need.
  • Watch for restricted zones: Many cities have low-emission or restricted traffic zones. Driving into these without a permit can result in fines, so always check local rules if you’re heading into a city center.
  • Be prepared for border crossings: While crossing borders is usually easy within the Schengen Zone, some rental companies require you to declare your travel plans in advance. Always check with Discover Cars if you’re planning to drive into another country.

What You Need to Rent a Car in Europe

  • A valid driver’s license from your home country.
  • If you’re from outside the EU, an International Driving Permit (IDP) is recommended—and in some countries, it’s legally required.
  • A credit card in the driver’s name is typically needed for the security deposit.
  • Most rental companies require drivers to be at least 21 years old. If you’re under 25, expect a young driver surcharge—and in some countries, the minimum age may be higher.

Ready to hit the road and discover the freedom of exploring Europe on your own terms?

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Thanks for reading!

Bailey-and-Daniel-take-a-selfie-in-Portugal-on-the-Algarve-coast
Thanks for reading!

The Azores might look small on a map, but each island brings something completely different to the trip, whether that’s volcanic landscapes on São Miguel, cultural festivals on Terceira, whale watching in Pico, or the dramatic scenery of Faial. Where you stay really shapes your experience here, especially since every island has its own pace, personality, and scenery.

Before you book, make sure to check out our other Portugal travel guides here for more tips, favorite tours, and can’t-miss experiences that helped us plan our own trips. Or keep scrolling for more of our favorite blogs below to help you plan an unforgettable island-hopping adventure!

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

Where to Stay in Granada, Spain: 4 Best Areas & Hotels

Where to Stay in Córdoba, Spain: 3 Best Areas & Hotels

The Services We Recommend

From hotels to guided tours, we only recommend services we know and trust. Here are our recommended partners so you can explore Europe with confidence.

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