Where to stay in Algarve in 2025: Best places in Algarve compared (+ map)

Looking for advice on where to stay in Algarve? With so many beautiful Algarve towns and Algarve resorts to choose from, it can be hard to narrow down the best place to stay in Algarve. That’s where this guide comes in!

Out of all the popular places to visit in Portugal, the southern Algarve region maintains its reputation as one of the most beloved holiday destinations in Europe. Finding that perfect travel base not only depends on the Portugal itinerary of your choice but also on your personal interests.

This is the only guide you need to make an informed decision on where to stay in Algarve. In addition to helping you find the best places to stay in the Algarve, we include a hand-picked and carefully curated selection of accommodation suggestions. Whether you prefer stylish boutique hotels, blissful beach resorts, or the most unique vacation rentals in the Algarve, we’ve got you covered. The only thing left for you to do is to pack your bags for an unforgettable beach vacation.

Are you ready to discover the best places to stay in Algarve? Let’s dive in.

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There are so many gorgeous places to stay in the Algarve that you’ll be spoilt with choice. Then again, booking well in advance is crucial, especially if you plan to visit the Algarve during the high season.

Now, without further ado, here’s an in-depth guide on the best places to stay in Algarve as well as our hand-picked selection of amazing hotels and apartments for each.

Best places to stay in Algarve on the map

A layout of the city is essential to narrow down the best places in Algarve to stay. That’s why, for your convenience, we’ve created this interactive map that mentions all of the places in the Algarve that we’ll zoom in on further down in this article. Continue reading to discover every area in detail.

Where to stay in Algarve by region

The Algarve, Portugal’s southernmost region, covers an area of about 5,000 km² (or 1,930 mi²) and boasts no less than 200 km (or 125 mi) of Atlantic coastline. The main resort towns in Algarve are divided into 3 categories.

Eastern Algarve

The Eastern Algarve is home to the cities of Olhão and Tavira. It’s also where you’ll find the Ria Formosa Natural Park. Think deserted islands, laid-back Algarve towns and a rural vibe.

Central Algarve

The Central Algarve is the region’s most popular stretch of coast and home to the cities of Faro and Albufeira. Other popular resort areas are the sophisticated Algarve towns of Vilamoura, Almancil, Vale do Lobo and Quinta do Lago which form the Golden Triangle.

The outstanding Benagil cave is just a short boat ride away.

The only international airport in southern Portugal is located in culture-packed Faro, making this charming Algarve town the gateway to this spectacular coastal region.

Western Algarve

In the Western Algarve, you’ll find the cities Lagos, Portimão, Alvor, Sagres, and Aljezur as well as charming fishing villages such as Ferragudo and Carvoeiro. It’s also home to the Southwest Alentejo and Vicentine Coast Natural Park and the Monchique mountains.

The Algarve beaches – some of the best beaches in Portugal – and the rock formations of its southern coastline are truly spectacular. The southwest coast or Vicentina Coast offers a completely different experience with colorful wildflowers, a variety of birds, and some of the coolest surfer towns in the Algarve.

Now that you know the lay of the land, it’s time to explore each of the Algarve towns mentioned in further detail. Here are our recommendations of the best places to stay in the Algarve by travel type and interest as well as our personal suggestions for accommodation in the Algarve.

Now that you know the lay of the land, it’s time to explore each of the Algarve towns mentioned in further detail. Here are our recommendations for the best places to stay in Algarve.  Find out what the atmosphere is like and what there is to see and do in every area.

Where to stay in Algarve for couples

Olhão and Tavira

The coastal Algarve towns of Olhão or Tavira are perfect for a tête-à-tête. Go for long beach walks in the Ria Formosa Natural Park, a romantic picnic on one of the Deserted Islands (Ilhas Desertas), a stroll through Olhão’s old medina barrio, or a scenic bike tour to the Moinhos da Rocha (Pego do Inferno) waterfall. No fancy resorts here but small and intimate retreats.

Explore the pristine environment. This area offers plenty of natural delights, from uninhabited islands to lagoons and marches in the Ria Formosa natural reserve. It’s an area that’s free of high-rise, instead dotted with warm and inviting small-scale retreats that are in line with the environment. Some well-hidden pure and natural retreats in a pristine environment.

Best places to stay in Olhão

Here’s our selection of the most wonderful places to stay in Algarve’s eastern corner:

• Stylish countryside retreat Vila Monte Farm House in Moncarapacho.

• Minimalist chique Grand House in Vila Real de Santo António.

• Intimate guest house amidst almond and fig trees at Pensão Agrícola in Tavira.

• Romantic townhouse with endless sea views at The Salt House in Olhão.

• Agroturismo Quinta dos Perfumes amidst an orange grove, featuring a saltwater outdoor swimming pool and biological garden.

• Ecological floating homes such as the well-equipped Barco Casa Fuzeta or Casas da Ria houseboats in the heart of the Ria Formosa Nature Park.

Carvoeiro and Ferragudo

These two enchanting towns are located in the livelier part of the Algarve. Spend the day exploring the fishing villages of Carvoeiro and Ferragudo, discovering the spectacular Benagil Cave, enjoying a scenic cliff hike to the Senhora da Rocha chapel, and watching the world go by from a shaded terrace in Portimão.

Picturesque Carvoeiro is also home to several picturesque Algarve beaches, tucked away between the towering cliffs of the Algarve.

Best places to stay in Carvoeiro and Ferragudo

These romantic Algarve hotels and resorts are perfectly located for you to alternate cocooning with sightseeing in the nearby cities:

• Spacious setting of the Monte Santo Resort in Carvoeiro. This resort has won the title of Europe’s Most Romantic Resort in the World Travel Awards multiple times, making it the best resort in Portugal for couples.

• Understated luxury at Caneiros Luxury House & Suites in Ferragudo.

• Gastronomic excellence at Vila Vita Parc Resort & Spa in Porches.

• Coastal chic at Vilalara Thalassa Resort in Porches.

• Stylish Vila Valverde Design Country Hotel in Luz, west of Lagos.

• High-end pampering at the stately castle Bela Vista Hotel & Spa Relais & Chateaux in Portimão.

• Sparkling new setting of the Longevity Health & Wellness Hotel in Alvor.

• Adults-only elegance at Hotel Oriental in Praia da Rocha.
  

Where to stay in Algarve for families

Vilamoura, Alvor and Lagos

The Algarve is one of Europe’s most beloved family travel destinations. And with good reason, thanks to its sunny and mild climate, gorgeous beaches, convivial cities, welcoming locals, and… its excellent family-friendly resorts.

We stayed in the Algarve with our kids on several occasions and found Vilamoura, Alvor, and Lagos to offer the most child-friendly setting.

These towns are perfect thanks to their lively vibe and many amenities. You’ll find miniature golf, water parks, tourist trains, quaint ice-cream shops, and a wide selection of water activities.

Best places to stay in Vilamoura, Alvor, and Lagos with kids

• All-in family fun at the recent Pestana Blue Alvor.

• Portugal’s Leading Resort 2019 (World Travel Awards) Hilton Vilamoura As Cascatas Golf Resort & Spa.

• Gorgeous views at the timeless Cascade Wellness Resort in Lagos.

• Contemporary luxury at the five-star hotel Anantara Vilamoura Algarve Resort.

Castro Marim, Moncarapacho and Sagres

But the Algarve’s other, quieter regions have plenty to offer as well. Why not spend your family holidays away from the crowds, in a fabulous hotel that goes above and beyond for even the littlest of guests? Your family will feel right at home in the family-friendly Algarve resorts of these enchanting Algarve towns.

Best places to stay in Castro Marim, Moncarapacho, and Sagres with kids

• Inviting natural surroundings at Praia Verde Boutique & Design Hotel in Castro Marim.

• Countryside retreat Vila Monte Farm House in Moncarapacho.

• Family water sports, playgrounds, and tennis courts galore at Martinhal Sagres Beach Family Resort Hotel in Sagres.

Why not Albufeira?

One place not to consider for your family vacation is Albufeira. We even regret heading there for what was supposed to be a lovely afternoon… which we ended up spending in Carvoeiro instead. Continue reading to find out why.

Best places to stay in Albufeira with kids

There is, however, one family-friendly resort that does give some luster to Albufeira and that’s the Epic Sana Algarve. Combine a stay in this hotel with some excursions in nearby fishing villages – close to Albufeira yet worlds apart in terms of atmosphere – and you’ll have an epic family holiday.

Where to stay in Algarve for active travelers

Costa Vicentina

Remember the Algarve’s wild side? The Southwest Alentejo and Vicentine Coast Natural Park offers a sublime setting for active travelers. No beach resorts here, but rather boutique retreats that blend in perfectly with the spectacular environment.

This area is known for its excellent surfing conditions, scenic hiking trails, deserted beaches, downhill mountain biking, colorful wildflowers, and unique wildlife.

The Natural Park stretches out from Sagres in the south and even crosses the Algarve – Alentejo border in the north. It’s home to several gorgeous white-washed villages such as Aljezur and Odeceixe.

The Southwest Alentejo and Vicentine Coast Natural Park is home to the Rota Vicentina network of trails. It’s a hikers’ paradise with unpaved roads, green hills, endless beaches, and plenty of wildflowers. And why not alternate you hiking adventures with other outdoor activities such as cycling or horse riding?

Best places to stay on the Costa Vicentina

• Monte da Vilarinha is near the gorgeous Bordeira beach, where you’ll find pristine Portugal at its best.

• Boutique hotel slash stud farm Monte Velho Equo-Resort offers the same breathtaking setting.

• Monte do Cardal near Odeceixe beach, another spectacular natural setting.

• Memmo Baleeira Hotel in Sagres, spectacular panoramas near Portugal’s westernmost point.

• Vila Valverde Design Country Hotel offers the best of both worlds, located in between the Southwest Alentejo and Vicentine Coast Natural Park and lively Lagos.

Where to stay in Algarve for jet-setters

The Golden Triangle

The Golden Triangle sounds like music to your ears? Then the area where you’ll want to stay evolves around the Algarve’s liveliest resort towns of Vilamoura and Almancil, including the renowned gated communities of Vale do Lobo and Quinta do Lago.

The Golden Triangle features palm-fringed lanes, sparkling yachts anchored in the Vilamoura marina, and the towering cliffs of Falesia beach. It’s dotted with luxury hotels, high-end villas, and four Michelin-starred Algarve restaurants (Gusto, Henrique Leis, São Gabriel, and Willie’s).

Best places to stay in the Golden Triangle

Of the many luxury hotels and resorts in the Golden Triangle, here are our recommendations:

• Elegant refinement at Dunas Douradas Beach Club in Vale do Lobo.

• Fresh and modern Conrad Algarve in Quinta do Lago

• Classic charm at Dona Filipa Hotel in Vale do Lobo.

• Beachfront location of the Dom Jose Beach Hotel in Quarteira.

• Contemporary luxury at Anantara Vilamoura Algarve Resort.

• Prime location of The Lake Resort in Vilamoura.

• Crisp apartments of Laguna Resort in Vilamoura.

• Stately residence for families Villa Villa Verde in Vilamoura.

Where to stay in Algarve for nightlife

Albufeira

No better place to dance the night away than Albufeira. Especially The Strip in the Montechoro district is a popular party scene. But, that’s about it. It was the only Algarve town that disappointed us when exploring southern Portugal.

We were aware of its reputation as the party capital of the Algarve but still expected to find some local charm during the day. Albufeira is home to some beautiful beaches nearby and enjoys a privileged location in the heart of the Algarve’s south coast, after all. So, setting-wise, this is a lovely Algarve city. But the overload of cheap souvenir shops, tacky bars, and daytime drunks kind of ruined the experience for us.

Then again, we’re not the city’s target audience either. If pub crawls, karaoke, and dance clubs are what you’re after, then you’ll find them in Albufeira. Just don’t expect the fanciest party scene.

Best places to stay in Albufeira

• Click here to find Albufeira hotels that fit your travel style.

• The only hotel in Albufeira we can recommend in the area is the Epic Sana Hotel Albufeira but it doesn’t fit the category of a party hotel.

Praia da Rocha & Vilamoura

If you’re looking for an alternative with a lively party scene that does have more to offer on the side, then Praia da Rocha is a good choice. Spot 3 and NoSoloÁgua are said to be the places to be. The Caniço Club near Alvor enjoys quite a reputation too.

And also Vilamoura offers plenty of nightlife options as well as a casino.

Best places to stay in Praia da Rocha and Vilamoura

• Both Hotel da Rocha and Jupiter Algarve Hotel are within walking distance of the bars and clubs of Praia da Rocha.

• The Tivoli Marina Hotel Vilamoura is home to Purobeach and a casino. In addition, it’s located at the marina where you’ll find plenty of bars.

Where to stay in Algarve for sightseeing

Faro and Lagos

The two main cities in Algarve are Faro, the region’s capital, and Lagos, the region’s former capital. Both are incredibly charming and are home to some of the top tourist attractions in the Algarve. We dedicated an entire post to both Lagos and the Faro. Here’s where to stay in the Algarve’s main cities:

Best places to stay in Algarve for sightseeing

• Trendy Faro Boutique Hotel, Fab’s House, or Lemon Tree Stay in Faro.

• Bright and modern townhouse with pool in the heart of Faro.

• Stylish boutique hotels Casa Mãe & Lagos Avenida Hotel in Lagos or the cozy Vila Luna B&B.

Where to stay in Algarve for beaches

Carvoeiro, Lagos and Costa Vicentina

With such a stretch of coastline, the region is home to some of the best beaches in Portugal. The – in our opinion – most interesting and picturesque Algarve beaches are located near Carvoeiro, Lagos, and in the Southwest Alentejo and Vicentine Coast Natural Park. These form the perfect travel base to go beach-hopping in the Algarve.

Best places to stay in Algarve for beaches

• Gastronomic excellence at Vila Vita Parc Resort & Spa and coastal chic at Vilalara Thalassa Resort in Armação de Pêra.

• Gorgeous views at the timeless Cascade Wellness Resort in Lagos.

Where to stay in Algarve for golfing

Golden Triangle and Lagos

The Algarve is one of Europe’s leading golf destinations and the courses are open year-round. Most renowned are the golf courses in the Golden Triangle, dominated by Dom Pedro Golf in Vilamoura with the Victoria, Old, Millennium, Laguna, and Pinhal golf courses. Also, Quinta do Lago and Vale do Lobo are a golfer’s paradise thanks to their ocean views.

Then there’s the Monte Rei Golf and Country Club, tucked away in the hills between Tavira and the Spanish border.

Other gems are located in the western Algarve, such as the Espiche golf course, the Sir Henry Thomas Cotton Championship Course (Penina), and the Onyria Palmares golf courses in the Lagos – Portimão area. Some of the best places to stay in the Algarve for golfers are:

Best places to stay in the Golden Triangle and Lagos

• Hilton Vilamoura As Cascatas Golf Resort & Spa in Vilamoura.

• Conrad Algarve in Almancil.

• Dona Filipa Hotel in Vale do Lobo.

• Monte Rei Golf & Country Club in Vila Nova de Cacela.

• Penina Hotel & Golf Resort in Portimão.

• Pine Cliffs Hotel, A Luxury Collection Resort in Albufeira.

FAQ on where to stay in Algarve

Our favorite places to stay in Algarve

What we love about the Algarve is the diversity: beaches, green hills, small villages, lagoons, wildflowers… The ideal Algarve itinerary offers a bit of everything, making it hard to pick just one favorite place.

Our personal interests include sightseeing, easy hikes, beaches, and a hint of luxury. Therefore, to us, these Algarve destinations stand out as the perfect travel bases to explore the wider area.

Lagos

We love Lagos because it’s located in between the overwhelmingly beautiful natural park and the best beaches in the Algarve. We also found the historic center to be irresistibly charming and the Ponte da Piedade cliffs truly spectacular. It’s also perfectly based for day trips, such as a visit to Silves Castle, and the marina offers plenty of boat excursions.

The Golden Triangle

We also love the Golden Triangle because it’s located near the Ria Formosa Natural Park and therefore near the beautiful deserted islands and the sleepy village of Olhão. Yet, it’s ideally located to explore historic Faro and quaint Loulé in the morning and then enjoy the Algarve coastline from a chartered yacht in the afternoon. The vicinity of Faro Airport, the gateway to Algarve, is a bonus.

Not for us: Albufeira

Our least favorite would be Albufeira. We found it to be overly touristy and tacky. It’s not the kind of place where we would like to spend our Algarve holidays. Then again, we’re probably not the target audience of this swinging town in the Algarve either. But to us, Albufeira certainly lacks the luster that makes other Algarve towns and villages so charming and inviting.

Where will you stay in Algarve?

By now, you should have a good idea about where to stay in Algarve. And we’d love to hear all about your upcoming stay. If you’re still not sure which Algarve area is right for you, then let us know what piece of the puzzle is still missing from this article so we can perfect our Algarve travel advice. The comment box is all yours.