Where to Stay in Algarve
Where the Mediterranean meets the Atlantic on the southern coast of Portugal lies the Algarve, a dazzling blend of stunning beaches, peaceful retreats, rugged cliffs, charming towns, exciting nightlife, and (of course) fantastic cuisine, ready to offer you the vacation math of your dreams: 300 days of sunshine per year plus 200 km of stunning coastline. However, with so much coastline to cover and so much beauty to uncover, finding where to stay in Algarve can be a daunting task – unless, like me, you spent every summer growing up down south.
Find out which towns in the Algarve match your vibe and get recommendations for the best accommodations (for all budgets). There is something for every type of traveler, no matter the season you visit. So get all the intel you need about where to stay in Algarve from this travel guide to make the most out of your time in Portugal.
Best Algarve Hotels: Quick Picks
Are you short on time and just looking for the names of some of the best Algarve hotels with amazing locations and fantastic amenities, where you are guaranteed to have a great time? No worries, we’re here to help!
Here are three of our all-around favorite hotels where to stay in Algarve:
If these options are a bit over your budget, or if you want to learn more about the top towns to stay in, keep scrolling. We will give you a quick overview of the best areas to stay in Algarve, so you can find the one that suits you best, with accommodation suggestions catering to every budget. Making it easy to plan your trip and find out where to stay in Algarve.
Book your hotel in Algarve in advance to guarantee the lowest prices possible. The best accommodations sell out months in advance.
Best Areas to Stay in Algarve
The Algarve is one of the most popular holiday destinations in southern Europe, renowned for its stunning coastline and villages that offer unique experiences, catering to all types of travelers. The best areas to stay in Algarve will vary from person to person, depending on your interests. It is important you consider the main attractions you wish to visit, what kind of atmosphere you are looking for, and the type of accommodation you have in mind. Rest assured, one of the towns in the Algarve will have what you are looking for:
Albufeira: Best place in Algarve for lively nightlife, bustling beaches, and family fun.
Alvor: Where to stay in Algarve for a laid-back escape.
Carvoeiro: One of the top locations in Algarve for relaxation. Great for families and couples.
Faro: Best area in Algarve for city life and Portuguese culture.
Lagos: Where to stay in Algarve for first-time visitors. Famous for the amazing rock formations.
Sagres: Top place in Algarve for surfing enthusiasts and travelers seeking a quieter pace.
Tavira: Where to stay in Algarve for experiencing tranquility and natural beauty.
Vilamoura: Best location to stay in Algarve for luxury living and world-class golf.
This selection focuses only on towns in the Algarve by the coastline. If one of them sounds like the place for you, click on it to jump straight to its chapter and see our accommodation recommendations.
Although public transport is available in the Algarve, we strongly suggest renting a car. This undoubtedly offers more flexibility and allows you to explore any town, no matter where you choose to base yourself. For your reference, driving from one end of the Algarve to the other takes around 2 hours. Click here to easily rent a car in Algarve*.
Below, we have divided the towns in the Algarve we suggest you check out into three main areas for easy planning. Find out the top nearby attractions and a range of accommodation options from budget to luxury to help you find the perfect base for your visit.
Where to Stay in Algarve West
Some of the best places in Algarve for the adventurous spirits, nature lovers, and those seeking a laid-back atmosphere are in the west. Lagos, Alvor, and Carvoeiro are known for their stunning beaches, and amazing rock formations, but Sagres takes the win as the surfers’ paradise down south. The towns in the Algarve West also offer a lively atmosphere, with Lagos providing a great mix of nightlife and relaxation.
The West area is not the most suitable for individuals with reduced mobility. The steep cliffs present significant challenges, often requiring the use of many stairs to access the rocky beaches.
Alvor
Alvor is the quiet counterpart to Portimão, located nearby. While Portimão is lively year-round and offers a more city-like atmosphere, those seeking a more relaxed experience will appreciate the traditional Portuguese charm of Alvor and a more laid-back approach to bustling Algarve.
This small fishing village not only boasts a central location among the most scenic areas of the Algarve – perfect for day trips – but also features a charming Old Town packed with lovely restaurants where you can indulge in a glorious cataplana (seafood stew). Alvor also has a handful of beaches worth exploring, such as Praia dos Três Irmãos, Praia da Prainha, and, of course, Praia de Alvor. For birdwatchers, a visit to the Ria de Alvor estuary is a must.
Accommodation in Alvor – Our top recommendations:
From Faro Airport to Alvor: 55 minute drive
From Lisbon to Alvor: 2 hours 50 minutes drive
Portimão is more famous than Alvor, as it is well-connected with a railway station and is home to some of the Algarve’s most iconic beaches: Praia da Rocha and Praia dos Três Castelos. While it is not one of our top towns to stay in the Algarve, as it feels too industrial overall, if Portimão is your vibe, check out AP Oriental Beach*, it has an unbeatable location and amenities.
Carvoeiro
Carvoeiro provides a small-town feel, nestled in a postcard-perfect, horseshoe-shaped bay. Visit nearby attractions like Algar Seco, a stunning rock formation with natural pools; Miradouro da Falésia, which offers views like no others; and Praia de Carvoeiro, which is not only lovely, but also one of the best beaches in Algarve for families. Carvoeiro is also a short drive from the famous Benagil Cave.
This is also the best area in Algarve for couples seeking a blend of luxury and relaxation, as well as golf enthusiasts for whom no holiday is complete without a hole-in-one.
While this is one of the loveliest towns in the Algarve, the roads are rather narrow, and we wouldn’t suggest it as a base for someone that intends to make frequent day trips. Additionally, if you visit during low season (November to March), many businesses close, and the town can become quite sleepy.
Accommodation in Carvoeiro – Our top recommendations:
From Faro Airport to Carvoeiro: 50 minute drive
From Lisbon to Carvoeiro: 2 hours 50 minutes drive
Lagos
Lagos is the best location to stay in Algarve for first-time visitors year-round. This town is the full package, with a beautiful Old Town packed with restaurants, bars and shops, a wide range of accommodations, lovely beaches, stunning cliffs, plenty of water sports opportunities, and a lively atmosphere.
This is one of the best areas to stay in Algarve for those who want to do some sightseeing and explore the south either by car or public transport – Lagos has a railway station. Visit Ponta da Piedade, a natural wonder of limestone cliffs and sea caves; Praia do Camilo, Praia de Dona Ana or Praia do Pinhão with its crystal-clear waters; peek inside Igreja de Santo António, a church whose exterior belies the intricately detailed interior; and taste a Dom Rodrigo (a sweet egg delicacy) while watching the sun go down.
It might sound redundant to tell you that if you want a proper beach vacation to stay near the beach (duh!), but the thing is that if you stay in town, it is quite a trip to most beaches, so bear that in mind when deciding where to stay in Lagos.
Accommodation in Lagos – Our top recommendations:
From Faro Airport to Lagos: 50 minute drive
From Lisbon to Lagos: 2 hours 50 minutes drive
Sagres
Sagres stands apart from the other towns in the Algarve. Here, the wind is constant and the waves are strong, which might not be everyone’s cup of tea, but it is undoubtedly a haven for surfers and mountain bikers. We are neither of those, and yet there is something about Sagres that makes us return every time. There is a warm solitude to it, perfect for those seeking tranquility – which attracts many yoga enthusiasts to the area.
Sagres is located at the southwesternmost point of mainland Europe, and even if you don’t stay the night, you must visit Cabo de São Vicente (for centuries, people believed the world ended here), Fort Sagres, and the beautiful beaches Praia do Beliche, Praia da Mareta and Praia do Martinhal.
Accommodation in Sagres – Our top recommendations:
From Faro Airport to Sagres: 1 hour 30 minutes drive
From Lisbon to Sagres: 3 hours 15 minutes drive
*
Where to Stay in Algarve Centre
Looking for a central base in the Algarve that allows you to explore as many destinations as possible on day trips, without the hassle of constantly checking in and out? This might be the ideal location for you. But its central position is just the beginning. Discover a diverse range of stunning beaches, top-notch golf courses, and vibrant nightlife venues.
Additionally, this is one of the best areas to stay in Algarve for those looking for all-inclusive resorts, as well as family-friendly accommodations and activities.
Albufeira
Albufeira is the best place to stay in Algarve for those looking for an active vacation under the sun. This resort town is packed with activities for all ages and some of the most amazing seafront hotels in the south of Portugal. This is the best area to stay in Algarve for families (thanks to its wide variety of family-friendly facilities), as well as for partygoers. How is that even possible? First, the party scene is easy to avoid since it is concentrated in a few areas. Additionally, the municipality is quite large and offers a wide range of accommodations and restaurants for all tastes and budgets, attracting a diverse type of traveler.
As one of the most popular towns in the Algarve, it does attract crowds. If you're seeking a quieter spot, consider exploring other towns. That being said, this is one of the best areas to stay in Algarve during the low season, offering a lively atmosphere even during Winter time.
Explore the Old Town with its whitewashed buildings while enjoying a pastel de nata, stroll down the colorful Albufeira Marina, relax by the water in Praia dos Pescadores, visit Praia da Oura for lively nightlife, and join a fun boat trip to spot dolphins.
Accommodation in Albufeira – Our top recommendations:
From Faro Airport to Albufeira: 45 minute drive
From Lisbon to Albufeira: 2 hours 30 minutes drive
Vilamoura
Vilamoura is located in the Quarteira municipality and is known for its luxury resorts, lovely long beaches, golf courses, casino, and marina with its luxury yachts, upscale shops and restaurants.
This is the best area to stay in Algarve for families with small children and for those who enjoy long walks on the beach. The scenery here is quite different from the western towns – instead of cliffs and rock formations, there are long, flat, sandy beaches perfect for walking and playing for hours on end. It is also near one of the most well-known Algarve waterparks, Aquashow, which offers a wonderful day out.
Accommodation in Vilamoura – Our top recommendations:
From Faro Airport to Vilamoura: 30 minute drive
From Lisbon to Vilamoura: 2 hours 40 minutes drive
If you enjoy the description of the area but find the price tag a bit over your budget, consider staying in Quarteira town, which has plenty of apartments for rent and is more budget-friendly. Click here to see the best accommodation options available in Quarteira*.
Where to Stay in Algarve East
The East is one of the best places in Algarve for those seeking a more traditional local-town feel, a simple and tranquil atmosphere, calm waters, and superb natural beauty, as found in gems like Ria Formosa Natural Park. Generally speaking, this area is not as busy as the West, but expect it to be a bit warmer in the summer due to being less windy.
Both Faro and Tavira, the East Algarve towns we will go over, have railway stations and serve as good bases for exploring the eastern Algarve.
Faro
Faro is the capital of the Algarve and is where the airport is located. Have access to big-city facilities, while enjoying a mix of history, culture and beautiful sightseeing. Walk through Arco da Vila and explore Faro’s cozy Old Town with its cathedral and historic buildings; visit the eerie bone chapel of Igreja de Nossa Senhora do Carmo; pay a visit to Ria Formosa Natural Park, and, while at it, explore Ilha Deserta, a wonderful pristine island.
Faro may not be the best choice for beach lovers, as the city is part of an estuary and you will need to drive or take a boat to reach the nearest beaches. That being said, it is a great base if you plan to rely on public transport and tours to explore Algarve. It is also a very convenient starting point for island-hopping to destinations such as Culatra, Armona and Farol. Contrary to the Faro mainland, these islands feature stunning sandy beaches.
Accommodation in Faro – Our top recommendations:
From Faro Airport to Faro City Centre: 10 minute drive
From Lisbon to Faro: 2 hours 40 minutes drive
Tavira
Tavira is one of the nicest towns in the Algarve East, with a picturesque look, very quiet atmosphere, and long white sand beaches on the nearby islands. It is a wonderful base if you are interested in doing some sightseeing in eastern Algarve, and even taking a day trip to Spain – Seville is a 2 hour drive away.
If you have a car, make sure to pay Cacela Velha a visit. This village boasts one of the most unique beaches you will ever visit.
Explore the historic center, with its Moorish Castle and Roman Bridge, join a tour to the Ria Formosa Natural Park, or spend the day lounging in the sun on the beautiful Tavira Island white sand beach. Tavira is also a fantastic place to indulge in freshly caught seafood and try all things olive related – the region is known for its high-quality olives.
Compared to other coastal towns in the Algarve, Tavira offers more affordable accommodations. However, this lower price is due to the fact that the beach is not as easily accessible as in other areas, requiring – like Faro – either a car or boat to reach.
Accommodation in Tavira – Our top recommendations:
From Faro Airport to Tavira: 35 minute drive
From Lisbon to Tavira: 2 hours 50 minutes drive
Planning Time
If you are ready to start planning your next trip, here you have all the usefull links you need to make it happen! By using them you are supporting our work as we might get a small fee from it. But hey! You pay the same (or might even get a discount), so is a win-win situation!
.png)
This applies to all the links in this website marked with a *