Choosing a hotel, guesthouse or apartment for your time exploring the Algarve, Portugal’s southern coast, is not like picking a neighbourhood in a city like Lisbon.
The Algarve isn’t a singular place – it’s a region of about 150 kilometres (100 miles) of gorgeous coastline with charming villages, modern cities, historic towns, and golf resorts. I giggle every time I hear someone say “I’m visiting Lisbon, Porto and the Algarve” as the Algarve is so large that where you choose to stay changes everything.
In this article I’m sharing a handful of towns, villages, and cities across the Algarve that I can suggest or recommend as an accommodation base. I’ve also carefully selected hotels, guesthouses and resorts that would make a perfect base in each area.
Stay in western Algarve, central Algarve or eastern Algarve?
This is probably the first question to ask yourself when choosing where to stay in the Algarve.
The western Algarve is quite relaxed, with surf culture, gorgeous beaches and cute towns. Lagos makes a great base for exploring the stunning orange cliffs and hidden beaches nearby. You’ll find the classic rocky landscapes of the Algarve at a few spots in the western and central Algarve but Lagos is a great pick for first-timers.
The central Algarve is my least favourite. It’s more modern with towns built around holiday apartments, golf courses, and all-inclusive resorts. But there are some beautiful natural spots to explore here, and it would make a good central base to take day trips in every direction (though you’ll never catch me staying in Albufeira town).
East Algarve is quiet and historic. Time slows down and it attracts a different sort of tourist. The Ria Formosa wetlands block the Atlantic Ocean from reaching the mainland, meaning you often have to catch a little ferry to sand bars that face the ocean. But the towns are better preserved, the produce is out of this world, and it’s a place where I feel truly relaxed thanks to the luxury of simplicity.
For each area of the Algarve I’ll list my top picks for a base, and then some alternative ideas from smaller villages or off-beat spots.
How many days do you need for the Algarve?
Great question. I’d say three at a minimum, but ideally five to seven days. Anything less and you’re missing out. There’s so much to see, plus it’s a beach destination where you’ll want time to relax and switch off. I’ve linked my 7-day Algarve road trip that goes deep into detail about how I’d spend each day.
Read next… Itinerary: My ideal 7-day Algarve road trip
Where to stay in the western Algarve
Lagos: historic little Algarve city with a great vibe and gorgeous beaches
Lagos makes for a brilliant base, especially for first-time visitors to the Algarve. This large town in the western Algarve has a historic city centre, complete with fragments of ancient walls and a castle. Within you’ll find shops, cafés, buzzing nightlife and a great selection of restaurants, with something to entertain you each night.
There are museums, a great daily market, and a marina where you can join boat tours or do watersports. Plus it’s walking distance from some of the Algarve’s most famous beaches.
Some suggestions for where to stay in Lagos
- Central: Lagos Avenida Hotel – 4-star central hotel with rooftop pool
- Luxury: Palmares Beach House Hotel – 5-star adults-only luxury resort with private-ish beach
- Boutique: Hotel Vivenda Miranda – 4-star hotel near Porto de Mos beach
- Mid-tier: Casa da Moura – guesthouse at edge of old town with pool
- Budget: Olive Hostel Lagos – chill feel, instead of a party hostel
- Family: Vila Gale Lagos – 4-star resort with spa, kid’s club, two pools near Meia Praia
Want more tailored suggestions for where to stay and what to do around Lagos? I offer 1-on-1 video calls – and a chat with me will short-cut your research and ease any doubts or questions.
Ferragudo: fishing village with a castle on the beach
The tiny fishing village of Ferragudo looks like a postcard. Boats bob in the harbour, a castle overlooks the beach to one side and small white-washed houses with colourful doors snake up cobbled streets covered in blooming purple bougainvillea.
Along the Arade River, every restaurant has huge outdoor barbecues wafting smoke from the catch-of-the-day in your direction. A Ria is one of those spots.
Personally, I’d prefer to stay in the Old Village of Ferragudo instead of across the river in Portimão, a large city consumed by coastal apartment towers. If you stay in the old town, it is mostly small apartments so search all available guesthouses or stays in Ferragudo here. If you can’t find a stay there, Portimão is convenient but less charming.
Sagres: Algarve surf town at the edge of the earth
Sagres is one of the places where Portugal launched ships during the Age of Discoveries – hence why it was once known as the “edge of the earth”. Yes, the world “ended” right here in Portugal’s south-western corner. On past visits, I’ve found it so windy at times it can feel like the end is truly nigh!
That said, Sagres makes a solid base for the most adventurous types and those who like to surf. Here you can reach the west coast beaches where the swell is ideal, so it’s easy to rent boards or join a lesson.
You can visit the fort, lighthouses (Farol do Cabo de São Vicente and Farol de Sagres) and museums. Don’t miss a Sagres sunset atop the high cliffs, where the sun sinks into the ocean. Nearby you’ll find Cerâmica Paraíso too, a huge warehouse filled with Portuguese ceramics.
Sagres has some amazing spots to stay along with plenty of guesthouses and surf hostels.
Here’s a few spots to check out for accommodation in Sagres
- Design hotel: Memmo Baleeira – 4-star with sea views, pools, firepit
- Resort: Martinhal Sagres – 5-star family-friendly resort with 5 pools, 3 restaurants
- Heritage stay: Pousada de Sagres – 4-star historic hotel overlooking Sagres fort and Cape St Vicente lighthouse
- Bed & Breakfast: Mareta Beach – with pool
Alternative spots in the western Algarve
If you want somewhere off the beaten path or different, here are a few more ideas for where to stay in the western Algarve.
Burgau: charming village with a cool edge
Burgau is a tiny, tiny whitewashed village with a beautiful beach, a couple of charming streets, and some very cool restaurants. I hate it when Portuguese towns receive misguided nicknames; Burgau is called the “Santorini of Portugal” but don’t expect that.
If you want a quiet spot to relax, it’s a good base though a little out of the way. Eat and drink at Sul, and find accommodation here.
Aljezur: west coast surf village
If you curve up the west coast, heading north from Sagres, you’ll find Aljezur. This whitewashed village (with a castle!) stands guard on the Algarve stretch of the Costa Vicentina, a wild and untouched part of Portugal.
Expect quiet beaches, small villages, unspoilt nature, great surf, and hiking trails. For surf, try Arrifana and Monte Clérigo beaches. You can also go stand-up paddle boarding down the Amoreira River. Find accommodation in Aljezur here.
Portimão: large city with a famous beach
Some of the larger cities in the Algarve to lack charm, and I’m lukewarm about Portimão. It has a very local edge with some heritage to explore in the old town but it’s just a bit big and ugly with aged residential towers.
I often make a stop in Portimão to eat at Taberna Maré, and it would be a convenient Algarve base without a car. Find accommodation in Portimão here.
Read next…14 best things to do and see in the Algarve
Carvoeiro: relaxed (and touristy) beach town
If you want to be by the beach, another good option is the town of Carvoeiro. This former fishermen’s village is based around a beautiful protected beach with cliffs that rise up on each side, topped by village homes. There are tons of restaurants and coastal walks that make it a good base. Find accommodation in Cavoeiro here.
Silves: Moorish capital of the Algarve
Once the ancient capital of the Arab Algarve kingdom (al-Gharb), Silves is a charming inland city topped by an impressive red-stone castle. Between the 9th and 12th centuries, Silves was an important trading centre for the Moorish empire and evidence is still seen in the red castle and orange trees.
I love visiting Silves while down this way but it is inland – making it less appealing for those ready for sunshine and sand. If you do come here you can join a pottery workshop nearby, kick up dirt with this off-road buggy tour, do a premium wine tasting, tour the local market hall, or try your hand at tile painting with a workshop.
It’s popular to take a day trip to Silves or Monchique (below) while visiting the Algarve. If you don’t have a car (or don’t want to drive), you could consider this half-day wine tasting from Lagos, a full-day trip that ticks off both Silves and Monchique, or this relaxing boat ride up the Arade River to Silves.
Where to stay in central Algarve
The central Algarve is filled with holiday resorts and hotels, so you can choose to stay in a town or park yourself in a sprawling resort complex, all-inclusive golf resort, or chic beachfront hotel.
There are two large cities – Albufeira and Armação de Pêra. Albufeira has a reputation for attracting British tourists (the loud, drunk kind) so while the region is beautiful (with some gorgeous resorts) personally I’d avoid staying in the downtown. Armação de Pêra is a big coastal city that seems to lack personality (but doesn’t a bad reputation).
I’ve actually never based myself in the central Algarve while down this way. It could be a good midway point to explore the whole 100 mile (150 kilometre) coastline on day trips, but I’ve preferred to split my time with two hotels or apartments in the west and the east.
Top picks for central Algarve resorts
If you’re seeking an all-inclusive hotel or a beachfront golf resort with enough to do that you’ll never have to leave, then the central Algarve is your area. There are a handful of gorgeous top-rated Algarve resorts are so large they might as well be a town themselves. Many resorts have so much land that they exist beyond the borders of towns, so I’ve listed a few to check out below.
- Luxe beach & golf resort: Pine Cliffs Hotel – 5-star with 5 tennis courts, a 9-hole golf course, 8 restaurants, beach club and mini golf
- 5-star luxe beachfront: Vila Vita Parc – 12 restaurants, pools, on-site nursery, spa, mini golf, tennis court
- Kid-friendly resort: EPIC SANA Algarve Hotel – 5-star with 5 restaurants, 2 pools, seasonal kids’ club
- Quiet inland luxe resort: Viceroy at Ombria Algarve – all-new luxury “village” hotel in the hills above Loulé with 18-hole golf course, spa, dining
- Dog-friendly beachfront resort: Tivoli Carvoeiro – 5-star pet-friendly resort, 2 pools, iconic beachfront spot,
- Golf resort: Pestana Vila Sol – 5-star hotel with 27-hole golf course
Vilamoura: luxury meets laid-back Portuguese warmth
Vilamoura is a laidback holiday paradise with a touch of luxury. I’ve heard it called the “Monaco” of Portugal (truly, these nicknames are terrible), but Vilamoura is more relaxed. Here you’ll find plenty of upmarket resorts, a chic marina filled with 1000 fancy yachts and fine dining, half a dozen world-class golf courses, a casino, and endless golden sands.
Nearby Praia da Falésia is an 8km beach backed by brilliant rust-orange cliffs that make it one of the Algarve’s more famous sandy stretches. If your style of vacation is sipping coffee by the water, or hitting a round of golf at a world-class green, Vilamoura is your destination.
Here’s a few spots to check out for accommodation in or around Vilamoura
- 5-star hotel: Tivoli Marina Vilamoura – overlooks marina and the beach
- Beachfront: Vila Gale Ampalius – 4-star hotel with tennis court, pool
- Golf resort: Pestana Vila Sol – 5-star hotel with 27-hole golf course
- Budget: Hotel Parque das Laranjeiras – top-rated 3-star hotel
Galé: quiet luxury by the sea
If I was a luxury traveller, boy would I have fun staying at some incredible locations along the Algarve coast. One place that has always sparked my interest is the 5-star Vila Joya, a 13-suite beachfront “home”. This destination hotel at Galé Beach, close to Albufeira, has been home to a two-star Michelin restaurant since 1999 and I hear it’s wonderful.
Where to stay in Galé
- Bucket-list pick: Vila Joya – a home with 13 suites, 2-star Michelin dining, luxe spa
Loulé: inland town with charm and artisans
For a more off-beat central Algarve stay I’d choose Loulé. This inland town is a busy place where life revolves around the huge daily market, built in 1908 and inspired by Moorish architecture.
Connect with local life, meet Algarve artisans through the Loulé Criativo project, wander the historic centre, and explore the 12th-century Loulé Castle. Even though you’re inland, it’s still just a 20-minute drive to the nearest beach.
Some suggestions for where to stay in Loulé
- Luxury resort: Viceroy at Ombria Algarve – all-new luxury “village” hotel in the hills above Loulé with 18-hole golf course, spa, dining
- Private mini houses: Monte Borboleta – 1- or 2-bed houses in the countryside
- Boutique guesthouse: Arts By Loulé – colourful rooms in downtown Loulé
- Central & budget: Loule Jardim Hotel – 3-star hotel with pool
Where to stay in the eastern Algarve
Personally, I’ve fallen hard for the eastern Algarve. This end of the Algarve – from the capital Faro through to the border with Spain at Vila Nova de Santo António – is quieter, calmer, and more local.
If it’s your first time visiting the Algarve, I’d start with the iconic beaches and cliffs of the western part and take a day trip this way. But if you have more time, split your stay and do a few days there, a few days here.
Olhão: small city full of character and characters
If there’s one place I always return to, it’s Olhão. Known as the cubist city due to its historic architecture, this small whitewashed Algarve town is full of character. The historic centre is defined by its flat roof terraces and ornate chimneys, where skinny streets and alleyways feel like that of a Moroccan medina.
By the water you’ll find two giant market halls, designed by Gustave Eiffel himself, including one of Portugal’s best daily fish markets. To top it off, the friendly locals are perfectly rough around the edges as you’d expect from a fishing town.
My perfect day here means visiting the fish market, catching a ferry to Culatra or Armona sand islands, and ending with dinner at Chá Chá Chá.
Personally, I love to stay in the old town, and some of my favourite memories are from when we rented a whole small house with private roof terraces. There’s no better spot to grill prawns bought at the market while mixing a sunset cocktail.
Some suggestions for where to stay in Olhão
- Pool & terraces: Casa Rosa Villa or Casa dos Mercados or Casa Amor – renovated guesthouses with pool
- Private stays (with rooftops): Casa Sala (private pool), Casa Victoria, Casa Magica, Casa das 3 Andorinhas, Casa da Trinidade, CasaWolhão Almirante, Kasa Blanca
- Budget yet boujee: Pure Formosa Concept Hotel – 3-star hotel with gorgeous rooftop pool
- Guesthouses: OlhãOmirante Guesthouse – old home with rooftop terrace
- Budget: Pension Bicuar – I’ve stayed here, and while the rooms are dated you can’t beat the rooftop!
- Nature resort: Quinta dos Poetas Nature Hotel & Apartments – 4-star hotel resort outside of town with pool, activities etc
- Unique stay: Moinhos das Marés – old mills set on salt pans close to Olhão
Read next… 15 best things to do in Olhão, an Algarve gem
Tavira: charming historic town with great restaurants
Tavira is often considered one of the prettiest towns in the Algarve. This white-washed historic gem dates back to the Bronze Age, and it was here the Phoenicians made one of their first settlements in the Iberian West.
Wander over the Roman Bridge, tour the castle gardens, Roman ruins, and through cute squares before taking a ferry out to Ilha de Tavira. While exploring, admire the rooftops – every room in historic Tavira has an individual roof, so in the old centre you’ll see little terracotta spikes across town.
You can choose to stay in a cute small guesthouse in town or at a hotel or nearby resort.
Where to stay in Tavira
- My pick: Colégio Charm House – beautiful stay close to old town
- Historic luxe: Pousada Convento de Tavira – 5-star historic stay in a renovated convent
- Central B&B: Tavira House – boutique historic stay with rooftop terrace and ballroom lounge
- Rural resort: Hotel Rural Quinta do Marco – 4-star resort with pool, space and farm animals
- Rural guesthouse: Quinta Dos Perfumes – saltwater pool, breakfast and orange groves
Faro: underrated capital of the Algarve
Many will cast Faro off as the “big city” where the Algarve airport is, but Faro is full of excellent restaurants and cute historic streets to explore. Wander through Arco da Vila and the old town, take a ferry to Ilha do Farol or join a boat cruise, and snap pictures of the beautiful doors found in Faro.
Here’s where to stay in Faro
- Top hotels: Hotel Faro & Beach Club or AP Eva Senses – 4-star hotels with rooftop pool and bar
- ApartHotel: Roots Hotel – top-rated apartment hotel in centre
- Charming B&B: Sunlight House – cute guesthouse in downtown
- Stylish stay: The Modernist – architectural apartments
- Budget: Madalena Hostel e Suites – stylish, modern hostel
- Unique guesthouse: 7 Styles Apartments – themed apartments in downtown
Read next: Where to stop between Lisbon and Lagos
Alternative spots in the western Algarve
Fuseta: authentic coastal fishing town
Fuseta, a small fishing town near Olhão, isn’t particularly beautiful, but its rustic, rough, and raw edge makes up its understated charm. While other towns have more of a vacation feeling, here you’ll rub shoulders with local life.
Join swearing fishermen at the bar, drop into the local market, stop for craft beer at a tiny brewpub owned by Norwegians, and eat at my favourite fish grill in Portugal ( the best grilled prawns in the universe), Casa Corvo. I’ve stayed at Casa da Avò Nina, and you can find more accommodation in Fuseta here.
Read next: Where to eat in the Algarve
Castro Marim: ancient history and salt pans
Castro Marim, set high on a hill, looks out over salt fields, the Guadiana River and Spain – it’s a strategic village with a long history. The best place to soak in these views is from the 14th-century castle walls that give you a bird’s eye view over the town as well.
Castro Marim is close to the beach, but has more character than the new resort towns that have cropped up on the sands. Find accommodation in Castro Marim here.
Where to stay in the Algarve without a car
Do you have a car? Personally, I would look into renting one as I can’t imagine exploring the Algarve coast without the freedom of my own wheels.
That said, it is possible to enjoy the Algarve without one. Just consider that this is a big region of Portugal to explore, not a singular city. If you don’t have a car you can join day trips or boat trips to see a lot of the coast – though of course where you stay matters.
There is a regional train line connecting Lagos in the west to Faro, and Faro to Vila Nova de Santo António at the Spanish border. There seems to be at least seven services a day, and if you’re arriving from Lisbon by train the timetable has been designed to line up.
If you plan to visit the Algarve without a car, I’d recommend staying in Lagos, Portimão, Faro, Tavira or Olhão. Besides offering lots of things to do and great restaurants, these larger towns or small cities have marinas where you can join boat tours, or are the start point for small group guided day trips. The train also stops at these towns.
How to get to the Algarve coast without a car
- Fly into Faro
- Train from Lisbon to Algarve, then switch to the regional train line
- Coach bus from Lisbon or other towns
If you’re coming in from Spain, you’ll need to take a coach or private transfer – the train line does not meet up between the two countries.
So that’s my guide on where to stay in the Algarve. I hope this helped weigh up the pros and cons of each town or city and made your choice easier.
You should also read my 7-day Algarve road trip that goes deep into detail about how I’d spend each day.
Read next…
- Itinerary: My ideal 7-day Algarve road trip
- 14 best things to do and see in the Algarve
- Where to eat in the Algarve
- My favourite towns in the Eastern Algarve
- What to eat in the Algarve
- Best tile painting workshops in Lisbon, Porto and the Algarve
- 22 most beautiful castles in Portugal
- 16 most beautiful villages and small towns in Portugal
