Where to Stay in the Algarve Region of Portugal 🇵🇹: Best Towns & Accommodation Guide

🏡 Where to Stay in Algarve:

• 💎 Luxury Hotel: Vila Vita Parc Resort & Spa
• ✨ 5-Star: Kimpton Atlantico Algarve
• 🏨 4-Star: Lagos Atlantic Hotel
• 🛏️ 3-Star: Solar de Mos
• 💸 Cheap: Ria Formosa Guest House
• 🏢 Apartament: Sagres Time Apartamentos
• 👨‍👩‍👧‍👦 For Families: Quinta do Lago Country Club
• 🏩 For Couples: Casa Bela Moura - Boutique Hotel & Wine

👩‍🏫 Top-Rated Algarve Tours:

• Dolphins and Caves Tour from Albufeira from €35 (⭐ 4.9/5)
• Kayaking Tour from Lagos from €38 (⭐ 4.9/5)
• 4 Stops 4 Islands and Ria Formosa Natural Park From Faro from €44 (⭐ 4.9/5)
• Half-Day Excursion in the Sierra Algarve with Jeep Safari from €38 (⭐ 4.9/5)
• Albufeira Caves and Coastline Cruise with Beach BBQ from €50 (⭐ 4.8/5)

Quick Guide to Algarve Best Areas:

1. Albufeira: Best for Nightlife and Families

Nightlife Scene. Albufeira’s vibrant energy comes alive after dark, especially along the famous Strip (Avenida Dr. Francisco Sá Carneiro). I’ve found two distinct party zones here – the Strip for high-energy clubbing and the Old Town for a more relaxed vibe. The clubs don’t get busy until after 1 AM, with peak crowds around 3 AM.

Family Activities. What makes Albufeira special is how it perfectly balances its party reputation with family-friendly attractions. The marina area has become my go-to spot for families, offering pedal karts, amusement arcades, and seasonal bouncy castles.

Water Parks. Within 30 minutes of the city center, you’ll find three major water parks:

• Aquashow: Perfect for teenagers with thrilling rides like White Fall
• Aqualand: Features shallow kids’ areas and the relaxing Lazy River
• Slide & Splash: Offers reptile shows and birds of prey demonstrations

Budget Tip: Purchase a tourist train day pass for easy transportation between attractions. It’s both cost-effective and fun for kids.

Price Guide for Activities

Evening Entertainment. The Old Town offers live music venues with a family-friendly atmosphere. Places like Sir Harry’s and Central Planet feature various styles from Irish music to cover bands.

Insider Tip: For families, stay near Praia dos Pescadores in the Old Town rather than the Strip area. The atmosphere is more suitable for children while still being walkable to attractions.

Common Mistakes to Avoid:

• Avoid the Strip area if traveling with children
• Don’t skip the couvert (bread and olives) at restaurants without checking the price first

Dining Scene. Restaurant prices vary significantly between tourist and local areas. A family meal can range from €10-15 per person at local restaurants to €25-35 at upscale venues. Most establishments are child-friendly, with many offering kids’ menus.

Transportation. The city is quite hilly, making walking challenging with young children. I recommend using the tourist train or taxis for longer distances. The train offers a fun sightseeing experience while solving the transportation issue.

Best Time to Visit. For families, I suggest visiting between May-June or September-October. You’ll avoid both the intense party crowds and the scorching summer temperatures while still enjoying perfect beach weather.

Where to Stay in Albufeira:

Best Hotels

• Albuhera by Check-in Portugal – Modern apartments in Albufeira offering spacious accommodation with contemporary amenities and comfortable living areas.
• Beira Mar by Check-in Portugal – Beachfront property featuring stunning sea views and well-equipped apartments perfect for family stays.
• W Residences Algarve – Luxury residences offering sophisticated design, premium amenities, and exceptional service in a prime location.

Best Cheap/Moderate Hotels

• 3HB Falésia Garden – Modern resort complex with beautiful gardens, multiple pools, and family-friendly facilities.
• VidaMar Resort Hotel Algarve – Upscale beachfront resort offering extensive facilities including multiple restaurants, pools, and spa services.
• EPIC SANA Algarve Hotel – Luxurious 5-star resort with world-class amenities, including multiple pools, spa facilities, and direct beach access.

Best Hostels

• Hotel Mar A Vista – Charming hotel offering comfortable rooms with sea views at reasonable prices.
• Bayside Salgados – Modern resort complex near golf courses featuring extensive leisure facilities and comfortable accommodations.
• Lost & Found - Guesthouse & Suites – Boutique guesthouse offering stylish rooms and a more intimate atmosphere in the heart of Albufeira.

2. Lagos: Best for History and Beaches

Historic Charm. Walking through Lagos’ cobblestone streets, I’m always struck by how perfectly the town balances its rich maritime history with modern beach life. The 16th-century walls still embrace the old town, where traditional Portuguese tiles adorn buildings and hidden squares reveal themselves around every corner.

Beach Paradise. What sets Lagos apart is its collection of stunning beaches, each with its own personality. Ponta da Piedade’s golden cliffs frame some of the most photographed coastlines in Europe. I’ve found that morning walks to Praia do Camilo offer the most spectacular views without the crowds.

Beach Access Guide

Insider Tip: Purchase a beach umbrella from a local shop (around €10) rather than renting daily (€15-20). You’ll save money after just two beach days.

Water Activities. The western location makes Lagos perfect for both swimming and surfing. The protected bay areas offer calm waters for families, while the western beaches provide excellent surf conditions.

Budget Tip: Book water activities directly at the marina kiosks rather than through hotel concierges – you’ll save about 20% and can often negotiate group discounts.

Evening Scene. Unlike Albufeira’s wild nightlife, Lagos offers a more sophisticated evening experience. The marina comes alive at sunset with street performers and outdoor dining. I’ve discovered that restaurants in the old town typically serve dinner until 11 PM, much later than other Algarve towns.

Transportation Hub. Lagos serves as an excellent base for exploring the western Algarve. The train station connects directly to Faro Airport, and the bus terminal offers regular services to surf spots like Sagres.

Price Guide

Cultural Scene. Lagos maintains its authentic Portuguese character despite its popularity. The cultural center hosts regular events, and the local museums charge modest entrance fees (€3-5). The Slave Market Museum offers crucial historical context, though it can be emotionally challenging.

Where to Stay in Lagos:

Best Hotels

• Vila Gale Lagos – A modern 4-star resort with stunning ocean views, featuring multiple pools, spa facilities, and family-friendly amenities. Perfect for both relaxation and active holidays.
• Lagos Beach Pool Villa – A luxurious villa with private pool and direct beach access, offering spacious accommodation ideal for families seeking privacy and comfort.
• Your Secret in Lagos – A boutique property offering intimate atmosphere and personalized service, featuring modern amenities and stylish design.

Best Cheap/Moderate Hotels

• Carvi Beach Hotel – A beachfront hotel with excellent location, offering comfortable rooms with sea views and easy access to Lagos’ attractions.
• Boavista Golf & Spa – An upscale golf resort featuring spacious apartments, wellness facilities, and stunning course views.
• Tivoli Lagos – A classic 4-star hotel in central Lagos combining traditional Portuguese charm with modern comfort, featuring multiple pools and restaurants.

Best Hostels

• Dom Pedro Lagos – A beachfront resort on Meia Praia offering comfortable rooms and excellent facilities for families.
• Agua Hotels Vila Branca – Modern apartment complex with multiple pools and family-friendly facilities, offering great value for longer stays.
• Aqualuz Lagos – A contemporary apartment-hotel featuring well-equipped suites, indoor and outdoor pools, and spa facilities.

3. Carvoeiro: Where to Stay in the Algarve for Relaxation

Carvoeiro Relaxation. I’ve found Carvoeiro to be the perfect blend of tranquility and convenience. This charming coastal town, tucked between dramatic cliffs, offers a more laid-back alternative to its bustling neighbors.

Local Life. The town center wraps around a picturesque cove where fishing boats still bob in the morning light. Unlike the bigger resorts, Carvoeiro maintains its Portuguese soul while offering modern comforts. I love starting my mornings at the local pastelaria, watching fishermen prepare for the day.

Beach Scene. The main beach, Praia do Carvoeiro, is a golden stretch of sand protected by towering cliffs. What I particularly appreciate is how the beach stays relatively quiet even in peak season, thanks to the town’s focus on couples and families rather than party crowds.

Beach Facilities Guide

Budget Tip: Local restaurants away from the beachfront offer “menu do dia” (daily menu) for €12-15, including wine and coffee.

Weather Note. The cliffs provide natural protection from winds, making this one of the more pleasant spots for year-round visits. Even winter days can be surprisingly warm and sunny.

Where to Stay in Carvoeiro:

Best Hotels

• Casa Primavera – A luxurious villa offering stunning sea views and private pool access. Perfect for families seeking spacious accommodation with modern amenities and privacy.
• Tivoli Carvoeiro – An elegant 5-star resort perched on the cliffs with panoramic ocean views, featuring multiple pools, spa facilities, and sophisticated dining options.

Best Cheap/Moderate Hotels

• Casa das Romanzeiras – A charming villa complex offering spacious apartments with private terraces and access to beautiful gardens. Ideal for relaxed family stays.
• Pestana Palm Gardens – A resort featuring well-appointed apartments and villas surrounded by tropical gardens, offering both privacy and hotel amenities.
• Carvoeiro Garden Hotel – A comfortable mid-range hotel with a central location, offering good value with a pool and garden setting.

Best Hostels

• Villa Welwitshia – A modern villa property offering private pools and contemporary design, perfect for families seeking independence and luxury.
• Colina Village – A budget-friendly resort offering apartment-style accommodation with access to pools and tennis courts. Great for families seeking value.
• Colina da Lapa & Villas – An upscale villa complex featuring spacious accommodations with private pools and modern amenities in a peaceful setting.

4. Faro: Best Area to Stay for Culture and Convenience

Historic Appeal. Faro’s cultural heart beats strongest in its historic center, making it an ideal base for travelers seeking both convenience and authentic Portuguese experiences. The Cidade Velha (Old Town) stands as Faro’s crown jewel, enclosed by ancient Roman walls later fortified by the Moors. Walking through its cobblestone streets, you’ll discover whitewashed buildings and citrus-scented squares that transport you through centuries of history.

Cultural Attractions. The city center houses impressive landmarks including:

• The 15th-century Sé Cathedral
• The ornate Paço Episcopal with its beautiful azulejos
• The Museu Municipal, featuring the famous Oceanus mosaic

Evening Entertainment. The nightlife scene offers sophisticated options rather than wild parties. The marina area comes alive at sunset with street performers and outdoor dining. For a perfect evening, start with sunset jazz at LAB Terrace, followed by traditional petiscos at local restaurants.

Transportation Hub. What makes Faro particularly convenient is its excellent connectivity:

• Close proximity to Faro Airport
• Central train station with regional connections
• Regular bus services to beaches and nearby towns

Marina District. The waterfront area serves as both a starting point for Ria Formosa boat tours and a major zone for dining and leisure. The area bustles with cafes, restaurants, and bars, offering stunning views over the lagoon.

Where to Stay in Faro:

Best Hotels

• Hotel Faro & Beach Club – A modern 4-star hotel in central Faro offering stunning marina views and a rooftop pool. Perfect for both business and leisure travelers, featuring contemporary rooms and a renowned restaurant.
• AP Eva Senses – An elegant hotel overlooking Faro marina with a rooftop swimming pool and panoramic restaurant. Offers sophisticated rooms and excellent facilities for families.
• 3HB Faro – A stylish boutique hotel in the heart of Faro featuring contemporary design, a rooftop pool, and wellness facilities. Ideal for travelers seeking modern luxury with Portuguese charm.

Best Cheap/Moderate Hotels

• Lemon Tree Apartments – Comfortable self-catering apartments in a quiet area of Faro, offering fully equipped kitchens and modern amenities. Perfect for families and longer stays.
• Roots Hotel – A charming boutique hotel combining traditional Portuguese elements with modern design. Features comfortable rooms and a central location perfect for exploring the old town.
• 7 Styles Apartments – Modern, well-equipped apartments in the city center offering independence and comfort. Ideal for families and groups wanting a home-away-from-home experience.

Best Hostels

• Hotel ibis Faro Algarve – A reliable budget option near Faro Airport offering clean, comfortable rooms and good value. Perfect for early flights or short stays.
• The Pocket Pillow House – A cozy guesthouse in the historic center offering intimate atmosphere and personalized service. Great for travelers seeking an authentic Portuguese experience.
• Guest House Sao Filipe – A charming budget-friendly guesthouse in a historic building offering simple but comfortable rooms. Excellent location for exploring Faro’s cultural attractions.

5. Tavira: Best Place to Stay in Algarve for Authentic Portuguese Charm

Historic Charm. Located in the stunning region of southern Portugal, Tavira stands as one of the best places to stay along the Algarve coast. Walking through its streets, you’ll be immediately struck by the perfect blend of Roman, Arab, and Christian heritage.

Local Life. Unlike the bustling central and western Algarve, this gorgeous area maintains its authentic Portuguese soul. Start your mornings at the municipal market, a great spot for experiencing local culture.

Beach Paradise. Tavira boasts some of Portugal’s most beautiful beaches, with the pristine Ilha de Tavira being one of the best beaches in the Algarve. The sandy beach stretches for 11 kilometers along the Atlantic Ocean, perfect for those looking to stay near spectacular coastlines.

Activity Prices in Tavira

Cultural Scene. The town boasts 36 historic churches, each telling its own story. For those deciding where to stay in the Algarve that fits their cultural interests, Tavira offers an authentic Portuguese experience.

Beach Access. The beautiful Praia de Tavira requires a short ferry ride, which I find adds to its charm. The journey offers stunning views of the area, making it great for nature lovers.

Budget Tip: For those planning a longer stay, purchase the ferry day pass – it’s significantly cheaper than single tickets.

Evening Atmosphere. As sunset approaches, the riverside comes alive with locals taking their evening passeio. The restaurants serve fresh seafood at prices significantly lower than in other Algarve towns.

Weather Note. Even in winter, this stunning region enjoys mild temperatures, though you’ll need a light jacket for evening walks. The shoulder seasons (April-May or September-October) offer perfect conditions for exploring the historic center and enjoying the town’s beautiful beaches.

Where to Stay in Tavira:

Best Hotels

• Quinta da Baleeira – A charming countryside retreat offering spacious rooms and apartments with traditional Portuguese architecture. Features beautiful gardens and a peaceful setting just outside Tavira.
• Quinta Dos Perfumes – An elegant property surrounded by orange groves, offering a unique blend of rural charm and modern comfort. Includes an outdoor pool and stunning views of the countryside.
• Colégio Charm House – A boutique hotel housed in a historic building in Tavira’s center, featuring stylish rooms with a perfect blend of traditional architecture and contemporary design.

Best Cheap/Moderate Hotels

• OZADI Tavira Hotel – A modern 4-star hotel offering comfortable family rooms, an outdoor pool, and excellent dining options. Located just minutes from Tavira’s historic center.
• Quinta do Morgado – Spacious self-catering apartments with modern amenities and a large outdoor pool, perfect for families seeking a home-away-from-home experience.
• Authentic Tavira Hotel – A centrally located boutique hotel offering contemporary rooms with authentic Portuguese touches and excellent access to local attractions.

Best Hostels

• Hotel Don Rodrigues – A comfortable mid-range hotel in the heart of Tavira, offering clean, well-appointed rooms and friendly service at reasonable prices.
• Pedras D'el Rei – A resort-style property with direct access to Barril Beach via private train, featuring apartments and villas perfect for longer stays.
• Pousada de Juventude de Tavira – A budget-friendly option ideal for young travelers, offering clean dormitory and private rooms with basic amenities in a good location.

Insider Tips for Booking Accommodation in Algarve, Portugal

Timing is Everything. For your first trip to the Algarve, I’ve learned that booking 4-6 months ahead is crucial, especially if you want to stay in one of the most popular coastal towns located in the algarve like Lagos.

Price Variations by Season

Regional Benefits. The west of the region is perfect for those looking to surf in the Algarve, with Sagres being the place for catching Atlantic coast waves. Meanwhile, central locations are best suited for exploring the rest of the Algarve, including the Seven Hanging Valleys Trail.

Transportation Planning. My recommendation is to stay flexible and rent a car – it’s essential for exploring the Algarve area, especially if you want to visit multiple towns or play the best golf courses.

Accommodation Types. Hotels in the Algarve often have a minimum stay requirement, particularly in peak season. You can choose the best from:

• Beachfront resorts
• Boutique hotels great for couples
• Self-catering apartments
• Surf lodges located in western Algarve

 

Insider Tip: For the best value on Algarve accommodation, consider staying anywhere just inland from the sand beaches – you’ll save significantly while maintaining easy access to Algarve’s best beaches.

Location Guide. When deciding where to stay on your Portugal travel adventure:

• Western Algarve: Best surf spots and rugged coastline
• Central Region: Perfect place to stay for exploring
• Eastern Area: More authentic Portuguese experience

Weather Watch. The shoulder seasons (May-June or September-October) offer ideal conditions for a trip to the Algarve, with perfect temperatures for both beach time and exploring the region.

FAQ ❓

When is the best time to visit the Algarve?

May and October offer ideal conditions with temperatures around 22-23°C and fewer crowds, while visiting outside June-August helps you avoid peak season crowds and save up to 30% on accommodation.

Do I need to rent a car?

If you plan to explore multiple towns and attractions across the region, renting a car provides the most flexibility and convenience. However, if you’re staying mainly at your resort, taxis and ride-sharing apps like Uber are more cost-effective for short trips.

How many days should I stay?

A minimum of 4-5 days is needed to see the main attractions and enjoy some beach time. For a more relaxed experience and to explore lesser-known villages and the Atlantic coastline, plan for at least a week.

Should I book in advance?

Booking accommodation and car rentals 4-6 months ahead is crucial, especially for stays between May and October. Restaurant reservations should be made a few weeks in advance, or up to seven days ahead for weekend dining.