Where to Stay in Algarve: Hotels & Tips

When planning your visit to the stunning Algarve region in Portugal, you might be wondering, ‘Where should I stay?’ Algarve boasts a diverse array of cities, each offering a unique blend of culture, landscapes, and experiences for every traveler. From the vibrant streets of Faro to the picturesque beaches of Lagos and the historic charm of Tavira, choosing the right city to stay in is crucial for a memorable vacation.

Where to Stay in Algarve: Hotels & Tips
Where to Stay in Algarve: Hotels & Tips

In this guide, we’ll explore the top cities in Algarve, highlighting the best hotels and providing valuable tips to ensure your stay is nothing short of extraordinary. Whether you seek bustling city life, serene coastal retreats, or a blend of both, our recommendations will help you make the most of your Algarve adventure.

Planning Your Trip: Where to Stay in Algarve

When planning your trip to Algarve, consider staying in Faro for a vibrant city experience, Lagos for picturesque beaches, or Tavira for historic charm. Each city offers unique attractions. Faro has a bustling city life, Lagos boasts stunning beaches, and Tavira exudes historical charm. Choose based on your preferences.

Things to Consider When Deciding Where to Stay in Algarve

When deciding where to stay in Algarve, consider these practical factors to enhance your overall experience:

  1. Location: Choose a location based on your preferences—Faro for city life, Lagos for beaches, or Tavira for historical charm.
  2. Accessibility: Check the proximity to transportation hubs, as well as the ease of reaching key attractions from your chosen accommodation.
  3. Budget: Determine your budget range and explore accommodation options that fit. Algarve offers a variety of choices, from affordable hostels to luxury resorts.
  4. Activities: Consider the activities you want to engage in. If you’re a beach lover, a coastal town like Lagos might be ideal. For cultural experiences, Tavira may be more suitable.
  5. Season: Be mindful of the time of year you’re visiting. Some areas may be more crowded or have specific events during certain seasons.
  6. Amenities: Check for amenities that matter to you, such as Wi-Fi, parking, and proximity to restaurants and shops.
  7. Reviews: Read reviews from fellow travelers to get insights into the experiences of others who have stayed in the area.

By considering these factors, you can tailor your accommodation choice to align with your preferences and make the most of your stay in Algarve.

Best Areas & Towns in Algarve. Best Places to Stay in Algarve

Discovering the best areas and towns in Algarve is a key step in ensuring a fulfilling and tailored travel experience. Along this enchanting stretch of Portugal’s coastline, each region offers a distinctive charm and unique attractions.

Best Places to Stay in Algarve
Best Places to Stay in Algarve

The Algarve can be broadly divided into three regions along its enchanting coastline: the West Coast, the Central Coast, and the East Coast. Each region is adorned with popular cities, each with its own unique allure. Join us as we delve into the Best Areas & Towns in Algarve, unlocking the treasures of the West Coast’s vibrant cities, the Central Coast’s picturesque landscapes, and the East Coast’s historical gems.

Albufeira: Known for Vibrant Nightlife

For those seeking a lively atmosphere and an active nightlife, Albufeira is the ideal destination. This bustling town is renowned for its vibrant streets, filled with restaurants, bars, and clubs that come alive after sunset. The stunning beaches of Albufeira during the day transform into lively hubs of entertainment at night, offering a perfect blend of relaxation and excitement.

W hotel albufeira
W Hotel Albufeira

Albufeira is not only a nightlife hotspot but also boasts picturesque beaches, historic architecture, and a variety of water activities. Whether you’re a party enthusiast or looking for a dynamic coastal experience, Albufeira promises an unforgettable stay for every type of traveler.

Lagos: Perfect for First-Timers

For those visiting Algarve for the first time, Lagos is a charming town that combines historical charm with modern amenities. Its rich maritime history is evident in the well-preserved architecture and the remnants of ancient city walls. Lagos also offers stunning beaches, dramatic cliffs, and a vibrant cultural scene, making it an ideal choice for newcomers to the region.

Lagos: Perfect for First-Timers

Explore the cobbled streets of the old town, visit the iconic Ponta da Piedade cliffs, and enjoy the welcoming atmosphere of Lagos. With a perfect blend of history, natural beauty, and contemporary amenities, Lagos provides an excellent introduction to the diverse offerings of Algarve.

Portimao: Great for Shopping Enthusiasts

If shopping is high on your list of priorities, Portimao is a must-visit destination in Algarve. This bustling town is renowned for its diverse shopping options, from traditional markets to modern shopping centers. Discover local crafts, souvenirs, and international brands as you explore the vibrant streets and markets of Portimao.

Beyond shopping, Portimao also offers beautiful beaches, cultural attractions, and a lively waterfront. Immerse yourself in the retail therapy experience while enjoying the overall charm of Portimao, making it an excellent choice for those with a passion for exploring local markets and shops.

Faro: Ideal for City Life

For those seeking a blend of cultural richness and city amenities, Faro is the perfect choice. As the capital of the Algarve region, Faro offers a captivating mix of historical landmarks, lively streets, and modern conveniences. Explore the charming Old Town with its medieval architecture, visit the impressive Faro Cathedral, and stroll through the picturesque Marina area.

Faro hotel
Faro hotel

Faro also serves as a gateway to the stunning Ria Formosa Natural Park, providing a unique opportunity to experience both urban life and natural beauty. With its accessibility and diverse attractions, Faro is an ideal base for travelers who appreciate the dynamic energy of city life.

Carvoeiro: Family-Friendly Destination

Carvoeiro, with its scenic beauty and family-friendly atmosphere, is a top choice for travelers seeking a relaxed and welcoming environment. Nestled along the picturesque coastline, Carvoeiro boasts golden sandy beaches, sea caves, and a charming village center. Families can enjoy the calm waters, explore nearby caves by boat, and savor the local cuisine in the village’s restaurants.

The village also offers a range of family-oriented activities, including mini-golf, water parks, and boat tours. Carvoeiro’s intimate setting and diverse recreational options make it an excellent destination for families looking to create lasting memories in the heart of Algarve.


Alvor, a quaint fishing village with a rich history, invites travelers to experience the authentic charm of Algarve. This picturesque destination features narrow cobbled streets, traditional white-washed houses, and a beautiful estuary. Alvor’s historic landmarks, such as the Alvor Castle, add a cultural touch to the village’s ambiance.

Visitors to Alvor can enjoy not only its historical aspects but also its stunning beaches, like Praia dos Três Irmãos, and fresh seafood in the local eateries. Alvor provides a peaceful retreat with a touch of history, making it an ideal choice for those seeking a serene escape in a charming coastal setting.


Vilamoura, a purpose-built resort town, offers a luxurious escape for travelers seeking upscale amenities and recreational activities. Known for its marina, golf courses, and sophisticated atmosphere, Vilamoura provides a perfect blend of relaxation and entertainment. The marina is a focal point, lined with shops, restaurants, and a vibrant nightlife scene.

Whether indulging in a round of golf, exploring the marina’s offerings, or simply enjoying the upscale ambiance, Vilamoura caters to those looking for a refined and leisurely holiday experience in the heart of Algarve.

Tavira: A Tranquil Beach Holiday Destination

For a tranquil beach holiday, Tavira is a hidden gem on the eastern side of Algarve. This historic town is known for its well-preserved architecture, charming riverfront, and a selection of pristine beaches. Cross the Roman Bridge, explore the Tavira Castle, and relax on the golden sands of Tavira Island.

Tavira offers a slower pace, making it an ideal destination for those seeking a peaceful beach retreat. With its cultural richness and unspoiled natural beauty, Tavira provides a serene escape from the hustle and bustle, allowing visitors to unwind in a picturesque coastal setting.

Sagres: Ideal for Surf Holidays

Sagres, located on the southwestern tip of Algarve, is a paradise for surf enthusiasts. Known for its rugged coastline and powerful waves, Sagres offers an exhilarating experience for surfers of all levels. The iconic Praia do Tonel and Praia da Mareta are popular surf spots, attracting wave riders from around the world.

Beyond surfing, Sagres captivates visitors with its stunning cliffs, historical landmarks like Fortaleza de Sagres, and a laid-back atmosphere. Whether you’re a seasoned surfer or a beginner looking to catch your first wave, Sagres provides an unforgettable setting for a surf-centric holiday in Algarve.

Quarteira: Perfect for Couples

For a romantic getaway, Quarteira is a charming destination that caters to couples seeking a tranquil and intimate retreat. This coastal town, nestled between Vilamoura and Faro, offers beautiful beaches, waterfront promenades, and romantic sunset views. Enjoy leisurely strolls along the promenade, indulge in seafood dinners at beachside restaurants, and take in the serene ambiance of Quarteira.

With its relaxed atmosphere and scenic beauty, Quarteira provides a perfect backdrop for couples to create lasting memories together. Whether you’re celebrating a special occasion or simply enjoying each other’s company, Quarteira offers a romantic escape in the heart of Algarve.

Salema: Charming Small Town on the Beach

Experience the charm of a small coastal town at Salema, a hidden gem on the Algarve coastline. Nestled between golden cliffs and the Atlantic Ocean, Salema retains its traditional fishing village atmosphere while offering a tranquil beach setting. The sandy shores of Praia da Salema invite relaxation, and the colorful fishing boats add a picturesque touch to the scenery.

Immerse yourself in the local culture, savor fresh seafood at beachfront restaurants, and explore the narrow streets lined with whitewashed houses. Salema provides a peaceful and authentic escape for those seeking a quiet retreat in a charming coastal setting.

Overview of the Best Hotels in Algarve

In Algarve, tourists can choose from a diverse range of accommodations to suit their preferences and budget:

  1. Hotels: Ranging from luxury resorts to budget-friendly options, Algarve offers a variety of hotels catering to different tastes.
  2. Hostels: Ideal for budget-conscious travelers, hostels provide a communal and social atmosphere, particularly popular among backpackers.
  3. Apartments: Renting an apartment is a great option for those seeking more space and independence, with many available in prime locations.
  4. Villas: For a more private and luxurious experience, villas with amenities like private pools and stunning views are scattered across the region.
  5. Guesthouses: Charming guesthouses provide a cozy and personalized stay, often with a local touch and a more intimate atmosphere.
  6. Resorts: Algarve boasts numerous resorts offering comprehensive amenities, including spa facilities, golf courses, and beachfront access.
  7. Bed and Breakfasts (B&Bs): Enjoy a comfortable stay with a personal touch, often including a delicious breakfast to kickstart your day.
  8. Holiday Rentals: Explore the option of renting a holiday home or cottage for a home-away-from-home experience.

Accommodation Guide: Varied Stays for Your Algarve Holiday

Choosing the right accommodation for your Algarve holiday is crucial for a memorable experience. Consider these tips when selecting from the varied stays available:

Accommodation Tips for Your Algarve Holiday

Accommodation Type Advantages Disadvantages
Hotels Convenience, amenities, professional service May be pricier compared to other options
Hostels Budget-friendly, social atmosphere Shared facilities, less privacy
Apartments Independence, more space, cost-effective for longer stays Limited hotel-like services
Villas Privacy, luxury amenities Higher cost, may require transportation
Guesthouses Personalized experience, local charm Limited facilities compared to hotels
Resorts Comprehensive amenities, often located in scenic areas Higher cost, may feel isolated
Bed and Breakfasts (B&Bs) Homey atmosphere, often includes breakfast Limited amenities, fewer services
Holiday Rentals Homely feel, suitable for extended stays May lack daily services provided by hotels

Consider your preferences, budget, and the nature of your trip when choosing accommodation in Algarve. Each option offers a unique experience; finding the right fit ensures a comfortable and enjoyable stay.

Accommodation Specifics in Algarve

Accommodation Type Locations Description
Cliff Beach Stays Lagos Luxurious accommodations with panoramic ocean views on stunning cliffs.
Party Animals Praia da Rocha (near Portimao & Albufeira) Stylish beachfront hotels for vibrant nightlife and energetic atmospheres.
Honeymoon/Luxury Holidays Almancil & Vilamoura Romantic escapes with opulent resorts, boutique hotels, and world-class golf.
Quiet Beach Holidays Olhão, Alvor, Carvoeiro Peaceful stays in charming towns with uncrowded beaches and a slower pace.
Hiking Destinations Monchique & Sagres Nature-oriented accommodations for hiking enthusiasts in picturesque landscapes.
City Life Faro, Tavira Urban excitement with centrally located accommodations for cultural immersion.
Surfing Destinations Sagres and Aljezur Surf-friendly lodgings for wave enthusiasts near renowned surf spots.
Golf Getaways Vilamoura & Quinta do Lago Luxurious accommodations with proximity to world-class golf courses.
All-Inclusive Holidays Albufeira, Lagos, Portimao Resorts offering comprehensive packages for a hassle-free holiday experience.
Boutique Hotels Lagos, Albufeira, Tavira Unique and intimate stays blending personalized service and stylish design.
Family-Friendly Resorts Alvor, Carvoeiro, Albufeira Resorts catering to families with amenities and activities for all ages.


Where to Stay in Algarve without a Car?

Algarve offers excellent public transportation, making it possible to explore without a car. Stay in central locations like Faro, Lagos, or Albufeira, where you can easily access public transit for day trips and enjoy the local attractions on foot.

Ideal Winter Stay in Algarve

For a cozy winter stay, consider Alvor or Carvoeiro, where the pace is serene, and temperatures remain mild. These towns offer a peaceful atmosphere, and many accommodations have heating options. Enjoy the charm of the Algarve without the summer crowds.

Nightlife Hotspots in Algarve

Praia da Rocha (near Portimao), Albufeira, and Lagos are renowned for their vibrant nightlife. Choose accommodations in these areas to immerse yourself in the energetic atmosphere, with numerous bars, clubs, and beach parties that continue well into the early hours.

Best Areas for Couples

For a romantic getaway, Almancil and Vilamoura are perfect. Stay in exquisite resorts and boutique hotels, enjoy private villas with stunning views, and savor candlelit dinners in upscale restaurants. These areas offer a blend of sophistication, tranquility, and romantic ambiance.

Recommendations for First-Timers

First-timers should consider staying in Faro or Lagos. Faro offers a taste of city life and historical landmarks, while Lagos provides a mix of beautiful beaches and historic charm. Both locations serve as great starting points to explore the diverse offerings of the Algarve.

Top Beach Hotels

Explore beachfront accommodations in areas like Alvor, Praia da Rocha, or Lagos for an immersive seaside experience. These locations offer hotels with stunning ocean views, direct beach access, and a perfect blend of relaxation and coastal beauty.

Tips for Finding Accommodation

Consider your preferences, budget, and the nature of your trip. Research and read reviews to understand the experiences of other travelers. Booking in advance often ensures better rates. Choose accommodation based on your interests—be it beach stays, city life, or cultural immersion.


In conclusion, the Algarve region offers a diverse array of accommodations to suit every traveler’s preferences and needs. Whether you seek vibrant city life, serene beach retreats, or immersive cultural experiences, there are ideal options across the coastal towns.

From the energetic nightlife in Praia da Rocha to the romantic escapes in Almancil and Vilamoura, each area has its unique charm. Whether you’re a seasoned traveler or visiting for the first time, Algarve provides a perfect blend of natural beauty, cultural richness, and a variety of accommodations to ensure a memorable and personalized stay.

Explore the wonders of this Portuguese paradise, and let your choice of accommodation enhance your Algarve experience.

Where Do Most American Expats Live In Algarve Portugal
Castro Marim Guide: The Best Things to Do
Lagoa – the complete guide

Leave a Comment