The Algarve is one of Portugal’s leading tourist regions. With its climate, rugged coastline and seaside resorts, it’s a popular destination all year round. That’s why it’s so important to choose the right place to stay when planning a holiday in the Algarve.
In this accommodation guide, we look at the things you need to know to identify the best place(s) to stay in Algarve. In particular: which town to choose for your hotel or apartment in the Algarve, and near which beach?
Things you need to know
Before going into the description of the places to target when selecting accommodation in Algarve, here are the essentials to know from a tourist point of view. They should give you a better idea of the region and its constraints.
Our favorite places to stay
If you’re in a hurry, here are our top places to stay in Algarve:
- $ this youth hostel, one of the cheapest available in Albufeira center
- $$ this hotel offers direct access to the beach
- $$$ this luxury establishment, 2 steps away from Pescadores Beach
Map of different areas to stay in Algarve
To give you a quick overview of the different places we recommend to stay in the Algarve, you’ll find on the map below all the Algarve accommodation recommendations we’ll be sharing in this guide. You can also use it to locate the various places we’ll be detailing.
We’ve used the following colour code: green for budget hotels, blue for mid-range hotels and red for luxury hotels.
Essentials to stay in Algarve
Areas where to stay in Algarve
Let’s get to the heart of the matter with a review of the main places where we recommend staying in Algarve.
Albufeira: stay in the heart of the Algarve's south coast
It is one of the region's main accommodation areas. Staying here for a holiday in the Algarve means being close to the beach, enjoying the historic center and, above all, being right in the center of the coast. Staying here means you can explore the region more efficiently, as it's just :
- 45 min drive from Lagos (to the west), Faro (to the east) and Tavira (almost to the far east)
- 30 minutes from Silves, a must-see medieval town in southern Portugal
- 1h15 from Cap Saint-Vincent, at the far western end of the region
To stay in this coastal town in the Algarve is to enjoy the sea (beach, water sports). It is also a departure point for boat excursions. Like dolphin-watching, or the Benagil cave, one of the Algarve's best-known spots.
Accommodation is available in the old town, but mainly by the sea. In Albufeira itself, but also further east. Indeed, Albufeira has become primarily a seaside resort, lined with long beaches. There are apartments for rent, as well as hotels.
In terms of entertainment, there are a number of restaurants in the northern part of the historic center, as well as on the seafront. Further east (approx. 3 km), you'll find bars and nightclubs along "The Strip". Nothing to compare with Las Vegas, but the image is there!
For further details, please consult our guide to choosing where to stay in Albufeira.
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Clearly focused on price, yet clean, this youth hostel only offers dormitory rooms. It's located in the center of town, just a few minutes' walk from Pescadores beach. It's a good address for those who want to stay in the Algarve on a budget.
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This central hotel offers elegantly decorated rooms with terrace or balcony. A rooftop terrace with jacuzzi and sea views is also available.
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Hotel complex for adults only. It is ideally located just a stone's throw from Pescadores Beach. The hotel offers a wide range of services, including an outdoor swimming pool with a beautiful view of the city, a wellness area with spa, a bar and a restaurant. Rooms are modern and spacious, as is the entire building.
To stay in Portimão: another beach resort
Located further west in the Algarve, between Albufeira and Lagos, Portimão is a fishing port on the banks of the River Arade, which has also turned to tourism.
Comprising a classic historic quarter with small squares, alleyways and churches, the southern part of Portimão is a seaside resort. With its large beach (praia da Rocha), it is clearly oriented towards welcoming tourists. In terms of accommodation, there are hotels and rental apartments, notably along the Tomas Cabreira avenue overlooking the beach. This area is also well supplied with restaurants.
In terms of tourism, Portimão lies just across the river from the village of Ferragudo. This small fishing village has remained more authentic. It's particularly pleasant to explore, and is also a great place to stay in the Algarve. More on this later in this guide.
In terms of activities, Portimão also allows you to discover the coast by boat, departing from one of its marinas.
In short, with its wide sandy beach and almost central location on the coast, Portimão is also a good alternative for a stay in the Algarve. For example, if you make it your base, it's located :
- approx. 1 hour's drive from Faro or Tavira
- 30 minutes from Lagos
- or 1 hour from Cape St. Vincent
Recommended accommodation
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This guesthouse has it all. Situated at the gateway to the old town and close to a number of small restaurants, it includes breakfast and has rooms decorated with refinement. To complete the picture: a small swimming pool in an inner courtyard lined with deckchairs. Affordable all year round.
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As its name suggests, this hotel is located on the edge of the Praia da Rocha. With a swimming pool, gym and restaurant, it's a great alternative for staying by the sea in the Algarve.
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Clearly oriented towards luxury, this 5-star establishment is set in a secluded historic building. It is set in a park overlooking the Praia da Rocha. Ideally located for enjoying the beach, it also boasts an outdoor pool, hammam, sauna, fitness center and gourmet restaurant. It also boasts refined decor. If your budget allows it, this charming hotel is an excellent place to stay in the Algarve.
Accommodation in Lagos: a blend of beach resort and history
Lagos is a seaside town in the southern Algarve. However, its geographical location means that it faces east. It has two faces: a historic heart that's pleasant to visit and where you can stay. But it is also a major beach resort, in the southern part.
What makes it one of Portugal's main tourist destinations, and what has justified the boom in tourism, is the presence of some of the Algarve's best-known beaches. These are lined with rock formations that are typical of the region, including Praia Dona Ana, Praia do Camilo, Praia dos Estudantes and Praia dos Pinheiros. As you may have guessed, “praia” means “beach” in Portuguese! And some of them are lined with tourist accommodation.
But beyond these atypical beaches, Lagos is also home to a large, more classic beach to the north: the Praia de São Roque. Lagos is also home to Ponta da Piedade, at the tip of the southern tip, an emblematic viewpoint of the region. Its marina is also a departure point for numerous boat excursions. Not only to Ponta da Piedade, but also to watch dolphins at sea. Or to discover other corners of the south coast, such as the Benagil cave.
There are several ways to stay in Lagos. You can stay in the city center and enjoy its many restaurants in the evening, combining proximity to the beaches with accommodation in a typical Lagos location. Or on the seafront, or very close to it, in order to prioritize the seaside aspect first.
Lagos is a little out of the way to the west. But even so, it's a good place to spend a few days discovering this part of the region. Or even more, if you don't plan to move around too much, or only occasionally. For example, Lagos is only 1 hour's drive from Faro, or 30 minutes from Silves.
Our places to stay
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Ideally located in the heart of the historic center, on the edge of the main square, this guesthouse offers rooms with a view. Additional parking is available nearby. A good place to stay in the old town.
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Located in the southern tourist area, this aparthotel offers apartments in small independent villas. It has a very large outdoor swimming pool, 2 restaurants and a bar. The Praia de Dona Ana is a fifteen-minute walk away.
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This 5-star hotel is located close to the main beach of São Roque. It offers classic rooms, as well as suites, some with private rooftop pools overlooking the ocean. Services include a restaurant, 2 swimming pools (a large outdoor one and an indoor one), a spa center and a gym.
Faro: the Algarve's main place to stay
With its airport, it is the arrival point for the Algarve. It is also considered the region's capital. Staying here allows you to take advantage of its assets, including :
- its historic heart, which can be visited on foot
- its long, secluded beach on the other side of the lagoon (about a 20-minute drive from the center)
- its direct proximity to the Ria Formosa, a series of islets and lagoons that can be explored by boat.
In terms of accommodation, the city offers a variety of experiences. Its picturesque old town is home to a number of hotels and tourist rentals. The town center is just a few minutes' walk away. As for the beach, there are virtually no hotels, only seasonal rentals.
For a trip of a week or more, staying here is not the best solution for a single accommodation. However, it can be a good base for exploring the eastern part of the region.
On the other hand, with its beach, historic center and airport, it's a good option for a very short stay in the Algarve, on the order of 3 or 4 days. Thanks to its proximity to the airport, there's no need to rent a car.
For further details, please see our guide to where to stay in Faro.
Our recommendations for where to stay
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This beachfront studio has a terrace with sea views. Small seaside bars and restaurants are nearby. It's a good place to stop if you want to spend a few relaxing days by the sea.
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This aparthotel north of the historic city center offers elegantly furnished apartments of various sizes. Some even have a small balcony. Parking is available.
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Located in the heart of Cidade Velha, this luxury hotel is the most renowned in the capital of the Algarve. Facilities include 2 swimming pools (one indoor, one outdoor), 2 restaurants, a spa and a hammam. It's a very good 5-star place to stay in the Algarve for a short break.
Book accommodation in Tavira, historic city of the East
Tavira is a small, historic town in the eastern Algarve. Historically inhabited by Romans and Moors, it boasts vestiges of these eras, including the remains of an ancient fortress, an amphitheatre and a “Roman” bridge spanning the River Gilão.
Another special feature of Tavira is its beach. It's on an island “offshore”. It can be reached by ferry from the coast, 2 km from the center. Its off-center, relatively inaccessible, almost desert-like location makes it very different from the classic beach resorts found on the south coast. Including Faro.
As you can see, Tavira is small and authentic. Staying here allows you to combine the charm of old stones with the proximity of an uncrowded beach.
On the other hand, because of its geographical location, almost at the easternmost tip of the region, it's hardly a good choice as a single base for touring the region. But to stay here while visiting the eastern Algarve, or during a road trip, is a very good option.
Our places to stay
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This charming establishment offers rooms and suites right in the heart of Tavira, on the north shore. Set in a beautiful building, it makes a great stopover for travelers wishing to linger here for a night or two and enjoy the ambience.
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This large hotel on the outskirts of Tavira boasts a large outdoor swimming pool. Other facilities include a small indoor pool, hammam, wellness center, bar and restaurant. For those who enjoy relaxing by the pool, this is a good place to stay at good value for money.
To stay in Silves: a medieval town in the Algarve countryside
Silves is THE town to visit on a cultural trip to the Algarve. Built on a hill on the banks of the river, Silves is home to :
- the remains of a medieval castle at the summit, whose walls can be visited
- small streets and squares, set in a steep landscape
- its Sé cathedral
- a Roman bridge
- an archaeological museum
But beyond just visiting for the day, To stay here is a good alternative for travellers who want to get away from the tourist hustle and bustle of the coast. Because of its layout, there are few hotels, but rather small houses and apartments for rent. When selecting accommodation, it's important to make sure you have a parking space nearby. There are also a number of restaurants in the lower part of the old town, some more touristy than others.
If this is the kind of atmosphere you're looking for, we recommend staying here for only part of your stay. Between one and 3 nights. Most of the things to see and do in the Algarve are right on the coast.
Our recommended accommodation
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Located in the historic heart of Silves, this charming little house is ideally placed for enjoying the city's ambience. Elegantly decorated, it includes a nearby parking space.
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This riad, located in the historic center, offers rooms and suites of various sizes, all tastefully decorated. It has its own restaurant. It's a great place to stay, combining riad charm, location and price. The photos speak for themselves!
Other villages in the southern Algarve
We've already mentioned the main beach resorts in the south where you can stay in the Algarve. But the coastline is generally lined with small towns and villages with accommodation dotted around. Without necessarily raking over all the possibilities on offer, some alternatives stand out from the crowd. These are:
- Ferragudo
- Carvoeiro
- Armação de Pêra
Ferragudo is a small fishing port to the east of Portimão, on the other side of the River Arade. With its small fishing boats, hillside houses with white facades and a few splashes of color, Ferragudo is one of the region's “cliché” villages. You can stay in independent accommodation such as small houses, aparthotels or guesthouses.
Carvoeiro lies to the east of Ferragudo, bordering a small beach. It's a beach resort similar to Albufeira, but smaller. And therefore more typical. It's more suited to travellers looking for peace and quiet, or to families. There are also a few hotels where to stay, but mainly rental apartments. Bars and restaurants can be found along the street running north from the beach, and east along Estrada do Farol.
Armação de Pêra lies to the west of Albufeira, in an area that can be considered central to the Algarve's southern coast. It's a small beach resort, with a sparsely populated town center and few restaurants. In short, it's more of a residential area, with lots of rental apartments and few hotels. The village's main assets are its large beach and its more tranquil atmosphere. It also offers better-value accommodation than the big beach resorts on the south coast.
Our choice of places to stay
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This apartment hotel is located in Ferragudo. It combines a location in this small, authentic village with proximity to the beach, just a few minutes away on foot. Features include a small outdoor pool lined with deckchairs, a gym and free parking.
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Located a stone's throw from the Praia de Carvoeiro, this establishment offers rooms with a view. It has a large swimming pool, a bar and a patio in an inner courtyard where you can enjoy a meal. It's a great place to stay in the Algarve, in a small beach resort by the sea.
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This upscale hotel complex is located in Armação de Pêra, right on the beach. It offers rooms for 2 people and family suites, as well as several swimming pools (one heated), restaurants and bars, hammam and sauna. This is a very good 5-star hotel.
Accommodation on the Algarve's west coast: a good idea?
For the sake of completeness, there's much more to the Algarve than its southern coastline. It also has a coastline on the Atlantic side to the west. This is a wilder stretch, with large beaches and small villages.
It is much less touristy, with fewer travellers on the one hand. But also clearly fewer hotels or oceanfront establishments. The main area for accommodation is Aljezur, a small inland village that also boasts a relatively extensive seafront.
Accommodation on this coast is particularly attractive for surfers. The coast is renowned for its big waves, particularly on the beaches of Arrifana, Amado and Castelejo. It's also an ideal stop-off point for travellers on a road trip to Portugal, who have landed in Faro and travelled along the south coast before heading north.
As you can see, this western part of the Algarve is not the best place for a first trip. Unless you want to stay off the beaten track, but still be close to the ocean.
Our recommendation for this area
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Located inland, 5 minutes' drive from the ocean, this relatively new hotel offers comfortable rooms. Although not particularly interesting in terms of location, it could be a good stopover on a road trip to Portugal, either leaving or arriving in the Algarve.
Summary
Although there are a few remote inland villages, the main reason for visiting Algarve is its coastline. There’s a wide range of accommodation options, from tourist resorts (Albufeira, Portimão, Lagos), to less-frequented ones (Faro, Carvoeiro), more authentic port towns and villages (Tavira, Ferragudo), or inland (Silves). In short, there’s something for everyone.
Given the size of the region, it’s a good idea to stay in central accommodation and criss-cross the region. This is the most standard solution. Other alternatives include :
- stay in 2 different accommodations, one to the east and the other to the west, or include a more atypical stopover in Silves, for example.
- take a road trip around the Algarve. This solution is rarely used, however, as distances don’t dictate it.
Bear in mind that, depending on the season, accommodation prices vary greatly, especially in seaside towns. In high season (generally from May to October), it can be very difficult to find where to stay in the Algarve at the last minute. Even more so for small and medium budgets. During this period, if you know your travel dates, we advise you to book as far in advance as possible.