Where to stay in Algarve Portugal 2021: Algarve towns compared

Out of all popular places to visit in Portugal, the southern Algarve region maintains its reputation as one of the most beloved holiday destinations in Europe. The fact that it’s home to some of the best beaches in Portugal definitely adds to the Algarve’s attraction but that’s not its only charm. Historic cities, spectacular hikes, intriguing castles, thrilling surfs, top-rated golf courses, creepy chapels, towering cliffs and mouth-watering dishes, you’ll find them in the Algarve. With so many interesting must-sees and must-do’s in this vast region, it can be confusing to pick out the best place to stay in Algarve.

Finding that perfect travel base not only depends on the Portugal itinerary of your choice but also on your personal interest and your travel type. That’s where this Algarve guide comes in: In order for you to actually keep your cool, we’ll save you the trouble of figuring out where to stay in Algarve. The only thing left for you to do, is to pack your bags for an unforgettable beach vacation.

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Map of the best towns in the Algarve

This Algarve map indicates all the best places to stay in Algarve as mentioned in this article.

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, home to cities Olhão and Tavira as well as the Ria Formosa Natural Park. Think deserted islands, laid-back Algarve towns and a rural vibe.

• Central Algarve, the region’s most popular stretch of coast and home to cities Faro and Albufeira and 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 or kayak 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, home to cities Lagos, Portimão, Alvor, Sagres and Aljezur, the charming Ferragudo and Carvoeiro fishing villages. as well as the Southwest Alentejo and Vicentine Coast Natural Park and the Monchique mountains. The Algarve beaches and rock formations of its southern coastline are truly spectacular. The south-west coast or Costa Vicentina offers a completely different experience with colorful wildflowers, a variety of birds and some of the coolest surfer towns in the Algarve.

Renting a car in Algarve is advisable, especially if you plan on taking some day trips from Lagos to explore the wider area. Rental cars come pretty cheap in Portugal, just do in take into account that you’ll be paying toll when driving in Portugal. We tend to find the best car rental deals on Rentalcars.com or AutoEurope. 

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 Algarve by travel type and interest as well as our personal suggestions for accommodation in Algarve.

Where to stay in Algarve by travel type

Best place to stay in Algarve for couples

Are you looking to spend some quality time with your loved one? Then you’ll be delighted to learn that the Algarve is more than just a family travel destination. These are plenty of more secluded locations in the Algarve that are perfect for couples.

Especially 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. 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.
• Bright rooms and a luxury tree house at Conversas de Alpendre in Vila Real de Santo António.
• Intimate cocoon amidst almond and fig trees at Pensão Agrícola in Tavira.
• Romantic townhouse with endless sea-views at The Salt House in Olhão.

But you’re also spoiled with choice if you prefer a classy resort 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. These romantic Algarve hotels and resorts are perfectly located for you to alternate cocooning with sightseeing in the nearby cities:

• Understated luxury at Caneiros Luxury House & Suites in Ferragudo.
• Spacious setting of Europe’s Most Romantic Resort 2019 (World Travel Awards) Monte Santo Resort in Carvoeiro.
• 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.

Best place to stay in Algarve for families

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. You’ll find miniature golf, water parks, tourist trains, quaint ice-cream shops and a wide selection of water activities. These are our favorite child-friendly Algarve resorts:

• 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 Anantara Vilamoura Algarve Resort.
• This luxury family-friendly villa in Vale do Lobo with heated pool. It’s located near the beach and close to a lake, a small waterfall and a lovely playground. Baby package on request.

But the Algarve’s other, quieter regions too have plenty to offer. If you prefer to spend your family holidays away from the crowds, in a fabulous hotel that goes above an beyond for even the littlest of guests. Your family will feel right at home in these family-friendly Algarve resorts:

• Inviting natural surroundings at Praia Verde Boutique & Design Hotel in Castro Marim.
• Family water sports galore at Martinhal Sagres Beach Resort in Sagres.
• Countryside retreat Vila Monte Farm House in Moncarapacho.

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. 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.

Best place to stay in Algarve for active travelers

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, 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. These are our top-picks:

• Monte da Vilarinha 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 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.
• The Surf and Sun Escape is a bright apartment near beautiful beaches, amazing cycling routes and trekking trails. Bikes and surfboards are included.

Best place to stay in Algarve for jet-setters

The Golden Triangle sounds like music to your ears? Then the area where you’ll want to head evolves around the Algarve towns of Almancil and Vilamoura, 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 restaurants (Gusto, Henrique Leis, São Gabriel and Willie’s). 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.
• 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.

Best place to stay in Algarve for eco-lovers

If a pure and natural retreat in a pristine environment is what you’re looking for, then an escape towards the outer corners of the Algarve is your winning strategy.
The area around Tavira 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. Here are an eco-lover’s best places to stay in the Algarve region around Tavira and Olhão:

• Agroturismo Quinta dos Perfumes amidst an orange grove, featuring a salt water outdoor swimming pool and biological garden.
• Ecological Casas da Ria houseboat in the heart of the Ria Formosa Nature Park.
• Well-equipped Barco Casa Fuzeta houseboat, also located within the reserve.
• The Mulibinba SeaHouse, anchored in paradise and bathed by the unique waters of Ria Formosa.

If you prefer a destination near a livelier Algarve town, then the Casa Vale Da Lama Eco Resort in Odiaxere might check your sustainable boxes. It’s located inland yet close enough to Lagos to enjoy the best of both worlds.

Best place to stay in Algarve for party people

Albufeira is the place to be to dance the night away, especially at The Strip in the Montechoro district. 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.

• Click here to find your perfect Albufeira hotel. (The only one we can recommend in the area is the Epic Sana Algarve Hotel but it doesn’t fit the category of a party hotel.)
• This super-original houseboat in the Albufeira marina, close to beaches and nightlife.

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 the reputation too. And even Vilamoura offers plenty of nightlife, as well as a casino.

• Both Hotel da Rocha and Jupiter Algarve Hotel are at walking distance of the bars and clubs of Praia da Rocha.
• The Tivoli Marina Vilamoura is home to Purobeach and a casino. In addition, it’s located at the marina where you’ll find plenty of bars.

Best places to stay in Algarve by activities

Where to stay in Algarve for sightseeing

The two main cities in Algarve are Faro, the region’s capital, and Lagos, the region’s former capital. Both are incredibly charming and have a lot to offer. We dedicated an entire post to both Lagos and the Faro. Here’s where to stay in the Algarve’s main cities:

• Stylish boutique hotels Casa Mãe & Lagos Avenida Hotel in Lagos.
• The bright Casinha de Sardinha in the heart of Lagos.
• Trendy Faro Boutique Hotel in Faro.
• This fabulous townhouse in the heart of Faro.

Where to stay in Algarve for beach bumming

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 Algarve. Here are some of the best hotels and resorts to do so:

• 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.
• This amazing beach-view villa in Lagos.
• This wonderful beachfront apartment in Carvoeiro.
• The luxurious Villa Magnolia in Carvoeiro.
• This gorgeous house in Vila do Lobo, just steps from the beach.

Where to stay in Algarve for golfing

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 Golf Course, 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 Algarve for golfers are:

• 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.

Where to stay in Algarve for hiking

That’s a no-brainer, since 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? This is where to stay in Algarve’s hiking paradise:

• Monte da Vilarinha near the gorgeous Bordeira beach, where you’ll find pristine Portugal at its best.
• Monte do Cardal near Odeceixe beach, another spectacular natural setting.

Where to stay in Algarve for surfing

Surf’s up! Portugal offers some of the best surfing conditions in all of Europe. And again, the Southwest Alentejo and Vicentine Coast Natural Park is the place to be. Especially the stretch between Sagres / Vila do Bispo and Aljezur is a surfer’s paradise with beaches such as and Zavial, Tonel, Amado, Bordeira, Arrifana, Monte Clerigo and Odeceixe.

• Picturesque resort town of Aldeia da Pedralva in Vila do Bispo.
• Luxurious hostel named Wavesensations Sagres Surf House in Sagres.
• This stylish beach cabana in Carrapateira.

Our preferred Algarve towns

What we love about 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, 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, 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 to Faro Airport, the gateway to Algarve, is a bonus.

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 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?

When you’ve come this far in the article, then A: Kudos to you, you’ve earned yourself a treat and B: You’ll probably have a good idea on where to stay in Algarve. If so, then we’d love to hear all about your upcoming stay. If not, then let us know what piece of the puzzle is still missing from this article so we can perfect our Algarve travel advice. Either way, the comment box is all yours.

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