Where to Stay in the Algarve: The 10 Best Areas
Wondering where to stay in the Algarve and don’t know where to start? Here are some of the best and most beautiful spots for every type of traveller.
The Algarve is one of the most beautiful areas of Portugal. It’s full of stunning beaches, cute little towns, seafood restaurants, and a surprising amount of history. However, it’s a pretty vast area, covering the entire southern coast of Portugal, and it can be tricky to know where to base yourself.
The Algarve certainly has some must-see places. Lagos is gorgeous, Portimao is one of my favourite places to visit in Portugal, Silves has a super chill vibe, and Albufeira is the complete opposite! So, what might work for a couple looking for a relaxing escape, certainly won’t work for a girl’s trip where you want to hit a few bars in the evening!
The Algarve has busy bars and quiet spots, and it definitely has beautiful beaches! This ultimate guide will show you exactly where to stay and the best hotels in the Algarve for any budget.
Short On Time? Here Are The Top Places To Stay!
✅ Here’s where we stayed during our first trip to the Algarve
✅ The best budget option: RR Hotel Da Rocha
✅ The best luxury option: 3HB Faro
10 Incredible Places to Stay in the Algarve
So, are you wondering what are the best areas to stay in the Algarve? Well, you’re in the right place! These are some of my favourite places to visit in the Algarve and also my top pick of a hotel in the area.
1. Portimao: best for beautiful beaches and an authentic feel
Portimao is quite possibly the best place I visited in the Algarve. The beaches were incredible. Image everything you’ve ever visualised about the beaches on the Algarve and that’s pretty much what you’ll get when you visit Portimao.
The most well-known beach here is arguably Praia da Rocha. This stretch of golden sand is dotted with Portugal’s classic limestone cliffs.
We spent at least half a day on this beach. It’s quite a long way to walk from one end to the other and, the further you walk the less busy it gets. So, of course, we had to walk the length and admire lots of amazing scenery along the way
Despite having such an amazing coastal scene, Portimao still has quite an authentic feel. Many of the areas that I thought would be overrun with tourists, were actually full of locals.
A prime example of this is the harbour. Instead of being a mass of tour stands offering boat tours to the British, it was instead full of colourful fishing boats, greenery, and waterfront cafes.
It was really nice to stroll along here, admiring the scenes. The sunsets here are also pretty epic and the seafood restaurants are delicious.
If you do decide to stay in Portimao, don’t miss simply wandering the streets of the old town. There’s plenty of historic architecture, quaint streets, and ancient churches.
RR Hotel da Rocha
This stunning hotel is the perfect affordable luxury option in Portimao. The city suites are well-designed and modern with simple yet stylish decor and lots of space.
There’s a large kitchenette with cooking facilities, so you can easily cook for yourself on some nights. You’ll also find a seating area and a large bathroom with a tub to soak in.
Some of the suites have balconies overlooking the city and the ocean. There is also a rooftop restaurant with sea views, an outdoor swimming pool, a spa, a fitness area, and a beautiful reception area full of greenery and sweeping staircases.
This hotel is also located just 50 meters from Rocha Beach, so it’s a perfect spot for those who love the natural beauty of the Algarve.
2. Lagos: best for historic sites and culture
Located in the southwest of the Algarve region, Lagos is best known for its tourist-friendly beaches, rugged cliffs, and old walled town. A big hit with first-time visitors, Lagos Old Town is a fantastic place to enjoy a stroll and take in traditional Portuguese architecture.
Two places worth visiting are the 18th-century church Igreja de Santo António and Castelo dos Governadores, a castle with watchtowers and a baroque facade. Meanwhile, the town’s picturesque coastline has fascinating rock formations and golden-sand beaches.
When you’re not soaking up the sun at Praia Dona Ana or tucking into a romantic meal at Praia do Camilo, take a walk to the impressive Ponte da Piedade viewpoint.
This iconic viewpoint features breathtaking limestone rock formations, including arches and caves, and offers panoramic views of the Atlantic Ocean.
Kayak tours and boat trips are popular here and with good reason.
Charming Residence & Guest House Dom Manuel I
This gorgeous Lagos hotel features traditional Portuguese decor, an outdoor pool, a lush garden, and elegant rooms complete with a balcony. You’ll get complimentary breakfast thrown in with your booking as well as access to a sauna and steam bath.
Every room has free Wi-Fi and a satellite TV, and most rooms feature large double beds, a spacious bathroom, a seating area, and plenty of cupboard space.
In terms of location, Charming Residence is just 600 metres away from Lagos Castle, 500 metres away from Praia Dona Ana. There are countless bars and restaurants nearby too.
✅ Check prices and book a room at Charming Residence and Guest House
3. Alvor: best for chilled-out vibes
We stayed in Alvor during our first time in the Algarve and I loved it. It was the ideal place for us because, while we love to stay connected and not be too far from the attractions, we also aren’t a huge fan of busy tourist cities and destinations that don’t feel very authentic.
Alvor was quiet in the evenings, full of local restaurants, and just a short bus ride away from the more popular destinations of Portimao, Albuferia, and Lagos. It was perfect.
It also had a beautiful beach, the Praia da Alvor. It’s not the same type of beach as you typically see in the Algarve. Instead, it’s a large expanse of soft sand with a few sun loungers, surrounded by small sand dunes.
There is also a boardwalk there and the evening walks along it were the perfect way to end the day.
Alvor, by default, is a fishing village. In its centre, you’ll find winding cobbled streets, whitewashed buildings with colourful bougainvillaea, and another harbour dotted with little boats. You’ll also find lots of cosy cafes here and restaurants serving traditional Portuguese food.
We had a stunning Cataplana one night and it was amazing. The owner of the restaurant also let us try oysters, although, I’ll be honest, I was not keen at all!
Pelican Alvor
I was very impressed with the Pelican Alvor. We stayed in an apartment on the second floor and we had gorgeous views over the pool and out across the town.
The apartment was spacious, with a comfortable bed, stylish decor, and a modern bathroom. I also loved the convenience of having our own kitchenette as this meant we could make lunch on a few of the days.
Despite being self-catering, we also had breakfast included in our room rate. And let me tell you, eating croissants and fruit outside in the morning in the sunshine is the perfect way to start the day!
4. Sagres: best for surfing and a relaxed atmosphere
If you’re looking for quieter beaches, less crowded streets, and the best surf in Portugal, head to Sagres. Sitting at the end of Portugal’s southwestern tip, this somewhat unkempt town features dramatic landscapes, unique rock formations, and windswept beaches.
Dubbed the end of the world, thousands of surfers visit Sagres to tackle the large swells and catch a wave. As such, you can expect to find plenty of surf schools and rental shops.
Everyone from surfing beginners to more experienced surfers can catch a wave. Alternatively, you can kick back and relax at Praia da Mareta (the main beach in Sagres) and Praia do Beliche (a unique spot with rock formations and plenty of waves).
Away from surfing, marvel at Cabo de São Vicente – an impressive ‘end-of-the-world’ cliff face, and stroll through the town. The Lighthouse of Cabo de São Vicente is also well worth visiting, as is Sagres Fort.
Mareta Beach – Boutique Bed & Breakfast
Mareta Beach is a charming boutique hotel that offers convenience, affordable luxury, and sea views. It’s only 200 metres away from Mareta Beach, so you’ll easily be able to access the surf.
Other nearby attractions include Sagres Fort, Beliche Fortress, and Tonel Beach.
The air-conditioned rooms at Mareta Beach feature a minimalist interior, and every room has an ensuite bathroom, TV, and minibar.
Every stay includes a delicious breakfast and pool access, and the friendly staff are happy to help organise activities such as surfing and windsurfing.
5. Albufeira: best for golden-sand beaches and a vibrant nightlife
Located in the centre of the southern Algarve coast, Albufeira is the liveliest destination in the region. Once a sleepy fishing village, Albufeira is now a major resort town, with travellers flocking to the area in droves during the summer months.
So, what makes Albufeira so popular?
In typical Algarve fashion, Albufeira features an array of breathtaking beaches and a charming Old Town. However, it also has a vibrant nightlife.
You can stroll through the maze of alleyways in the Old Town, admire Largo Engenheiro Duarte Pacheco Square, visit Benagil Cave, relax at Praia de Albufeira, and party the night away on the ‘Strip’.
Albufeira’s main ‘Strip’ is in the Montechoro part of town. Here, you’ll find endless bars, clubs, pubs, beach resorts, and food establishments. I highly recommend visiting Libertos Bar for an entertaining evening.
Hotel California Urban Beach
Hotel California Urban Beach is a beautiful hotel situated in the heart of Albufeira. It’s an adult-only accommodation option and is a great place to stay if you seek convenience, luxury, entertainment, and a peaceful retreat.
The rooms are spacious, modern, stylish, and clean, and the amenities are brilliant. When you’re not exploring the Old Town, which is less than 100 yards away, relax at the rooftop lounge and pool area.
Alternatively, head to Pescadores Beach, which is only 200 yards away, or visit the hotel spa.
✅ Check prices and book a room at Hotel California Urban Beach
6. Carvoeiro: best for family holidays and hiking
Next, we have Carvoeiro, a scenic coastal town between Lagos and Albufeira. Carvoeiro is the perfect destination if you’re looking for a quieter alternative to the Algarve’s busier towns.
The town is situated in a breathtaking horseshoe-shaped bay atop picture-perfect limestone cliffs. Aside from the traditional-looking whitewashed town, the main attraction is Praia de Carvoeiro.
This small yet beautiful stretch of golden sand beach is perfect for relaxing, swimming, and sunbathing. Other noteworthy beaches include Praia do Carvalho and Praia da Marinha, but they aren’t as easy to reach.
The Slide & Splash Park isn’t too far away, either.
There are also lots of hiking opportunities in the region. From Carvoeiro, you can follow the Trail of Headlands to Ferragudo. The O Percurso dos Sete Vales Suspensos cliff-top trail is also popular.
Hotel Carvoeiro Plaza
Hotel Carvoeiro Plaza is perfectly located in the heart of Carvoeiro, just 25 metres from the main beach. It features an outdoor pool area, a sun terrace with sun loungers, and an outside bar, providing a great place to relax after a day of hiking and exploring.
This hotel offers double, twin, and suite rooms with sea views and balconies. All rooms have air conditioning, ensuite bathrooms, and satellite TV.
Breakfast is included, and the hotel will happily help you book any day trips and tours. What’s not to like?
7. Ferragudo: best for romantic getaways and traditional Portuguese charm
If your dream Algarve holiday features whitewashed houses, quiet beaches, flower-covered walls, and old-town charm, Ferragudo is perfect for you!
This traditional fishing village sits at the mouth of the River Arade. It offers couples a relaxing break away from the crowds while still providing some of Portugal’s best beaches and exciting attractions.
Spend time walking along the town’s cobbled streets, admiring the architecture and exploring the local shops. Key points to look out for include Igreja de Ferragudo Church at the top of the small village, Praça Rainha Dona Leonor square, and the ancient Fort of São João de Arade.
Of course, you should also spend plenty of time at the beaches. Praia dos Caneiro and Praia do Pintadinho are my top recommendations! If you’re looking for a romantic excursion, you could take a boat trip to Benagil Cave.
One2Seven, Ferragudo
One2Seven hosts several gorgeous bedrooms and apartments in the heart of Ferragudo. Located along the Arade River, the accommodation is modern, stylish, spacious, and affordable.
The apartments have a spacious lounge area, balconies, a kitchenette, multiple bedrooms, and at least one bathroom. Guests have access to an outdoor pool, roof terrace, garden, and gym, and you’re only ever a short walk from the town’s most popular attractions and restaurants.
The property is only 300 metres away from the Fort of São João de Arade and Praia da Angrinha.
8. Faro: best for city life with a slice of coastal scenery
The Algarve capital and the main getaway to the region, Faro is a lovely city with a lot to offer. This lively yet somewhat relaxed city is jam-packed with historical sites, natural scenery, and cultural attractions.
City lovers will enjoy strolling around the beautiful Old Town and its maze of traditional cobbled streets. One of the must-see attractions is Faro Cathedral, an impressive 19th-century Baroque building that sits atop an old Moorish Castle.
Other famous landmarks include Igreja de São Francisco, Arco da Vila, and Igreja de Nossa Senhora do Carmo e Capela dos Ossos. Don’t miss the Faro Archaeological Museum to learn more about Faro’s history.
If you want to enjoy the coastline, head to Ilha do Farol, Deserta, or Culatra. All three of these beaches are pristine and usually pretty quiet.
Ilha do Farol Beach offers the best amenities, such as beach bars, watersports, and restaurants.
3HB Faro
If you want a luxury experience, consider staying at 3HB Faro. This stunning 5-star hotel offers sensational getaways complete with all the amenities you could ever need.
You can choose from a selection of gorgeous modern bedrooms, family rooms, and suites. Units have a flat-screen TV, ensuite bathrooms, walk-in showers, air conditioning, and huge double beds.
Located in the centre of Faro, this hotel has two restaurants, a bar, a rooftop terrace, and an infinity pool. It’s also within walking distance of Carmo Church & Bones Chapel, Faro Cathedral, and the Marina.
9. Silves: best for a quieter stay and architecture
Situated on a hill above the Arade River, this historical city has a different ambience from other Algarve coastal towns. It’s an excellent place to experience daily Portuguese life.
Once the capital of the Algarve, Silves is best known for its Arabic architecture. However, The Castle of Silves is arguably the city’s best attraction. Built between the 8th and 13th centuries, it’s considered the most well-preserved castle in the Algarve.
Silves also has an Old Town to explore. Wander the cobbled streets and visit landmarks such as Silves Cathedral, Silves Square, and the Municipal Market.
If you time your visit right, you might even glimpse the Medieval Festival, when the streets around the castle turn into a medieval marketplace.
Mosaiko 5 Suites
Mosaiko 5 Suites perfectly sums up Silves. This accommodation consists of beautifully decorated rooms and suites with a traditional theme. The decor inside the property is simply gorgeous.
The rooms and suites are vibrant, luxurious, and quirky. Based in a central location, units are equipped with flat-screen TVs, WiFi, air conditioning, ensuite bathrooms, and spacious beds.
Some rooms also have a balcony, and you’ll also have access to the property’s restaurants, luggage storage, and garden. There’s a minimarket and cafe nearby and endless restaurant options.
10. Tavira: best for relaxing holidays
Finally, we have Tavira on the eastern side of the Algarve. Tavira is a small city famed for its turquoise waters, sandy beaches, and Portuguese culture.
This destination benefits from being quieter than other cities in the Algarve. More people travel here looking for some peace and tranquillity.
The Old Town is a fun place to explore. You’ll find cobbled streets, colourful, historic buildings, and historical landmarks like the medieval Castelo de Tavira, Igreja de Misericórdia Church, and the Roman Bridge.
Meanwhile, Ria Formosa Natural Park, with lagoons, waterways, and wildlife, is a fantastic place to walk. Oh, and if you still want to experience the crystal-clear waters and golden-sand beaches the Algarve is famous for, take the short walk to Ilha de Tavira, also known as Tavira Island.
Regarded as one of the best beaches in the Algarve, it’s a wonderful place to sunbathe, swim, and stroll.
AP Maria Nova Lounge
Regarding location, convenience, style, and amenities, accommodation options in Tavira don’t get much better than AP Maria Nova Lounge. Located a 5-minute walk from the centre of Tavira, this hotel finds itself in a peaceful hillside location.
It has modern rooms with private balconies, a rooftop bar and terrace, an outdoor pool, a poolside snack bar, multiple restaurants, and panoramic mountain and city views. Each spacious room comes equipped with an ensuite bathroom, minibar, TV, and WiFi.
Other attractions you’ll find nearby include Tavira Castle, the Roman Bridge, and Praia dos Tesos.
FAQ About Where to Stay in the Algarve
So, now that we’ve covered the best resorts and areas to stay in the Algarve, let’s dive into some of the questions you might have about the region.
Is it easy to get around the Algarve?
From our experience, it’s not the easiest. We once spent what must’ve been an hour at one bus stop waiting for a bus which never came. We ended up getting a taxi instead.
What should’ve been a quick 30-minute journey to Lagos from Portimao, ended up taking an hour and a half!
But, unreliable buses aside, the Algarve does have public transport connections. You can technically get from Sagres in Western Algarve all the way to Faro by public transportation.
However, for the easiest and most convenient way to get around the Algarve, I recommend hiring a car.
How to get to the Algarve
Most tourists visiting the Algarve will get there by flying into Faro Airport. From there, it’ll typically be anything from 15 minutes to an hour and a half to drive to your hotel.
Of course, you could also get to the Algarve by public transport.
During our first visit to Portugal, we actually spent 3 days in Lisbon first. After exploring the capital and taking a trip to Sintra, we then got a bus down to the Algarve.
This was just as easy to do and affordable too. Perfect for if you want to see a little more of the country before heading to Southern Portugal.
Is the Algarve safe for tourists?
Yes, the Algarve is completely safe for tourists. As with any destination in Europe, don’t flash your valuables and watch out for pickpockets in tight crowds. However, the region is generally completely safe to visit.
When is the best time to visit the Algarve?
In my opinion, the best time to visit the Algarve is during the off-season. Avoid July and August like the plague – it’ll be very busy during these times and almost certainly be rammed with tourists everywhere you look.
The Algarve is one of the best places to visit during May. It’s also a wonderful Easter travel destination (although possibly busier), and a great spot to visit for a bit of winter sun too.
I also love the Algarve in October. The weather is perfect and the crowds and prices are much lower outside of peak season.
Where should I stay in the Algarve for the first time?
If this is your first time visiting the Algarve, I recommend staying somewhere central. When we first visited the Algarve, we stayed in Alvor, but Albufeira and Portimao are also both great options.
These places all have lots of wonderful things to do there and beautiful beaches. Plus, the location in central Algarve means you should be able to get around and visit the other areas in the region without too long a journey.
What is the most beautiful part of the Algarve?
In my opinion, the most beautiful part of the Algarve is Lagos. The rock formations and the beaches here are simply stunning. Plus, the town has a quintessentially Portuguese feel to it and is much more authentic than many other areas.
Is Portimao or Albufeira better?
I personally preferred Portimao because it was still lively yet it had a more authentic feel at the same time. I also thought that the beaches were more impressive. However, if you’re after liveliness and nightlife, I recommend Albufeira.
Is Lagos or Albufeira better?
This depends on what you’re looking for. If you’re after beautiful scenery, culture, and authentic towns, Lagos is the better choice. Whereas, if you’re after a more lively atmosphere, lots of attractions, and a more central location, I’d go for Albufeira.
Final Thoughts on Where to Stay in the Algarve
Overall, there are lots of wonderful places to stay in the Algarve. The region has some of the best beaches in Europe and is ideal for those who love the sun, sea, and sand. Yet it also doesn’t have to be a completely relaxing trip if you don’t want it to be.
There’s lots of rich history to be found in the Algarve. There are plenty of hiking trails, outdoor activities, castles, and small towns and villages.
So, if you’ve been dreaming of visiting the Algarve, book your flight right now and use this guide to determine where to stay in the Algarve. Whether you’re looking for luxury hotels or a self-catering apartment complex, there’s something for your budget!
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