Are you looking for where to stay in the Algarve for your next holiday in Portugal ? To help you choose the best areas and towns, I’ve listed the most beautiful seaside resorts and cities that are best located for finding accommodation. Whether you’re looking for weekly apartment rentals, hotels, or bed and breakfasts, there’s something for every taste. But be careful to choose wisely so you don’t end up in a lively party resort when you’re looking for peace and quiet—or, on the contrary, spend your stay in a family-oriented town with kids when you’re looking to party.
So, where to stay in the Algarve ? Where should you stay to be close to everything ? What are the best beachfront accommodations ? Which towns are the liveliest for nightlife ? After our road trip in the Algarve, I’m sharing my tips in this blog guide to help you find the best accommodation in the Algarve—or at least the one that best matches your expectations !
Where to stay in the Algarve : map of the best towns and areas
To give you an overview of the different places to stay in the Algarve, I’ve marked on the map below the main sights as well as the best towns and villages to find accommodation in this region of southern Portugal. I’ve only included places that are of interest to tourists, meaning they offer activities, restaurants, and bars, and for seaside resorts, a beautiful beach.
Further on in this Algarve accommodation guide, I go into detail about the different options available, along with the pros and cons of each town. That way, you’ll be able to make your choice with all the useful information and my expert advice (as always, my travel guides and tips are 100% tested).
If your travel dates are flexible, you can also check lastminute deals and packages. There are often great bargains, so it’s worth taking a look.
Albufeira : where to stay in the Algarve for nightlife
Let’s start this guide to the best places to stay in the Algarve with the most famous seaside resort : Albufeira. This former fishing village perched on top of a cliff has long since given way to a multitude of apartments for weekly rentals. The city is very popular with British tourists, and restaurants have adapted accordingly. It’s probably the place in the Algarve where you feel the least like you’re in Portugal. That said, it shouldn’t stop you from strolling through the old village, where you’ll find quiet streets, a few historical remnants, and above all, stunning views of the sea, cliffs, and beach.
Albufeira still has plenty of advantages that will appeal to many travelers looking for where to stay in the Algarve. The first is its very central location, halfway between Sagres and Tavira, the two most remote towns. This means you’re never too far from anything and can explore all the Algarve sights without spending too much time on the road.
Another advantage of Albufeira is the wide range of activities, excursions, and cruises departing from the marina located west of the town. You’ll find tours to visit all the main destinations, making Albufeira very convenient if you’re traveling without a car. As for water sports, you can try jet skiing, parasailing, surfing, and diving directly from the beach.
Albufeira also has several very beautiful beaches, some of which are accessible on foot from the town center, such as Praia do Peneco and Praia dos Pescadores. Part of the beach is private with sun loungers and umbrellas, but a large section remains public.
And of course, Albufeira will appeal to those who enjoy nightlife. It’s the liveliest town in the Algarve, especially along the avenue nicknamed “The Strip” (east of the town), where many bars are located. It’s the favorite spot for young people looking to have fun. But don’t worry—if you’re looking for where to stay in the Algarve with family, the old town area of Albufeira is quieter.
In summary, Albufeira is a seaside resort with beautiful beaches and plenty of activities that will appeal to partygoers as well as families. Those looking for a historic town with cultural sights, monuments, or museums may prefer to stay elsewhere in the Algarve.
Accommodation I recommend in Albufeira
- 75 € : Residencial Capri by Umbral, this residence located in the heart of Albufeira offers double rooms with private bathrooms at good value for money for staying in the Algarve. If you have a car, street parking is available.
- 112 € : Apartamentos Benvindo, these apartments for 3 to 5 people feature a balcony, and the residence offers two outdoor pools. Located 450 meters from Forte de São João beach. Free public parking on site.
- 114 € : Peneco Albufeira GuestHouse, this accommodation is well located in the old town, just 1 minute from the beach. It offers triple rooms, ideal for couples with a child. Rooms for 4 are also available.
- 133 € : Oceanus Aparthotel, this aparthotel with breakfast included offers suites with balconies for two people and apartments for 4 (ideal for families looking for where to stay in the Algarve). Pool, fitness center, and beach just a 3-minute walk away.
- 215 € : 3HB Falésia Garden, for those looking for a relaxing beach holiday, this hotel offers apartments of various standards for 2 to 3 people. It has two pools, and the beach is 300 meters away. Breakfast included.
Faro : where to stay in the Algarve capital
Faro, the region’s capital, is home to the international airport. It’s often the starting point for a road trip in the Algarve or a beach holiday. Faro will appeal to travelers looking for a lively city with historical and cultural heritage. Indeed, there are several important historical sites, particularly in the old town surrounded by ramparts (see my guide to visiting Faro).
Nightlife lovers won’t be disappointed either, as the city is quite lively thanks to many students during the academic year and tourists in the summer months. You’ll easily find bars and nightclubs for going out in the evening. The city also has plenty of shops for some shopping between beach sessions.
The proximity of the Ria Formosa Natural Park makes it easy to explore this protected wetland area. It’s a great opportunity to observe the many bird species that nest here, as well as beautiful deserted beaches. You can explore the park by kayak or boat.
Beach lovers may be disappointed, as there is no beach directly accessible from Faro’s city center. If you’re looking for where to stay in the Algarve right by the sea, you may want to choose another town. However, if you have a very early flight or a late arrival, spending a night in Faro can be very convenient.
Recommended places to stay in Faro
- 85 € : São Pedro Suite Faro, a great value bed and breakfast offering beautiful rooms with private bathrooms right in the center of Faro. A good choice for staying in the Algarve capital.
- 104 € : Old Charming House Faro, if you like traditional whitewashed architecture, this well-located accommodation will likely appeal to you. The nicely decorated rooms are spacious and highly rated by guests.
- 110 € : Le Jardin Secret de Faro Guesthouse, this 25 m² studio with a terrace for breakfast is modern and well decorated. It has a kitchenette if you want to cook and avoid restaurants.
- 129 € : Cardeal Suites & Apartments, this apartment located 400 meters from the center includes a fully equipped kitchen with a dining table, ideal for eating in and saving money.
- 144 € : Lemon Tree Stay, the highlight of this bed and breakfast is its rooftop terrace with sun loungers. The rooms are modern, breakfast is included, and it’s well located near shops and restaurants.
Portimão and Praia da Rocha
Portimão is the second-largest city in the Algarve, and when arriving via the highway and seeing all those huge towers, it’s not particularly inviting. The city stretches along the Arade River and has a small old town, but it doesn’t compare to Faro, Tavira, or Lagos. However, Portimão does have a well-known museum housed in a former mackerel and sardine cannery.
The city is well connected by public transport, and there are many excursions available from Portimão to explore the surroundings, but in my opinion, that’s not enough to justify staying here for your holiday. We didn’t like the city. Moreover, there’s no beach directly accessible on foot—you’ll need to go to Praia da Rocha.
Praia da Rocha is Portimão’s seaside resort (located 3 km south of the city) and a major tourist destination in Portugal. Every year, thousands of tourists come here to enjoy the sea and the Algarve sunshine. Praia da Rocha has a huge, very wide beach, part of which is lined with sun loungers and umbrellas. Just behind, above the cliffs, is the main avenue with many bars and restaurants. It’s a shame that the succession of residential towers and luxury hotels spoils the landscape.
Praia da Rocha is an ideal destination for staying in the Algarve with family while enjoying plenty of restaurants and activities on site. It’s also a good choice for travelers on a budget, as you can find cheap apartment rentals. However, we weren’t particularly impressed and wouldn’t especially recommend it as a place to stay in the Algarve.
Best accommodation in Praia da Rocha
- 65 € : Paraiso Sol Rocha Amazing Beach Apartment, this residence offers some of the cheapest apartments for two people in Praia da Rocha. On site: outdoor pool, garden, and free parking.
- 73 € : Litoralmar Beach Magic Apartment, large 75 m² apartments in a residence with a pool, garden, and free private parking. Fully equipped kitchen.
- 83 € : Praia da Rocha Modern by Homing, these apartments are located 800 meters from Três Castelos beach and 1.4 km from Careanos beach. Fully equipped for 3 people, ideal for families visiting the Algarve.
Lagos : our favorite place to stay in the Algarve
This is the town we loved most during our trip and the one that brings together everything you could look for in the Algarve. Lagos’ historic center is truly charming. The cobbled streets of the old town are lined with whitewashed, colorful houses. The pretty squares shaded by jacaranda trees (in bloom during our stay in May), along with the many bars, restaurants, and shops, make it one of the liveliest towns in the Algarve. And the historic center, surrounded by walls, has managed to preserve its authenticity without falling into excessive mass tourism.
History and culture lovers will be delighted to find several churches and museums to visit, as well as a fort. From a cultural standpoint, it’s one of the most important towns in the Algarve. Lagos also has a beach within walking distance of the town center, as well as stunning cliffs nearby (Ponta da Piedade). These can be explored on foot, by kayak, or by boat and hide secret beaches. Finally, many excursions depart directly from Lagos, making it easy to explore the region without a car, including the famous Benagil caves.
Lagos has all the advantages (atmosphere, beach, nightlife, activities, and authenticity) that make it an excellent place to stay in the Algarve for the whole family.
Accommodation I recommend in Lagos
- 66 € : Pacheco’s Guesthouse, this property offers the cheapest rooms with private bathrooms in Lagos. The decor is a bit vintage, but there’s a balcony. Located north of the old town.
- 83 € : Bedrooms AP Garden, this very well-located guesthouse, 200 meters from the old town, offers modern rooms, some with balconies overlooking the city. Guests consistently praise the host’s kindness.
- 90 € : Marina Park 205, this apartment for 4 people is especially appealing for families or groups of friends. Outdoor pool, free parking, and beach 1.9 km away.
- 97 € : Costamar, this studio located south of the center of Lagos (30-minute walk) is 550 meters from Porto de Mós beach. It includes a kitchenette, a large balcony, and free parking.
- 109 € : Marina Park – Martine et Thierry, this fully equipped 63 m² apartment (including a washing machine) accommodates 4 people. Located 1.2 km from Meia Praia beach and 800 meters from the marina. Outdoor pool.
- 163 € : Tivoli Lagos, for those who prefer hotel services, this 4-star establishment offers modern rooms for 2 to 3 people. It features a spa, a pool, and a free shuttle service to its private beach club at Meia Praia.
Sagres : where to stay in the Algarve for surfing
Sagres is located at the extreme southwest of the Algarve. Due to its geographical location, you’ll be a bit far from towns like Portimão (1 hour) and Albufeira (1h10), as well as from some of the most beautiful beaches like Praia da Marinha and the Benagil cave. That’s why I recommend staying in Sagres only if you plan to surf. It can also be a good stop on a road trip, as there are several interesting sites to visit.
Sagres has a large fortress and several forts to explore. Don’t miss the Cabo São Vicente lighthouse perched on the cliffs, offering stunning sunsets. There are also beaches suitable for families and children. The town itself is fairly ordinary but has all the necessary services for a stay or a stopover.
Where to stay in Sagres
- 25 € : PuraVida Divehouse, surf enthusiasts and budget travelers can find cheap accommodation in a 4-person mixed dormitory. The hostel is located a 5-minute walk from Martinhal and Mareta beaches. Diving center on site.
- 73 € : Mareta Beach – Boutique Bed & Breakfast, excellent value for money for a stay of one night or more in Sagres. Modern rooms and a great location just 200 meters from Mareta beach. Breakfast included and private pool.
- 75 € : Residencia Julio, this charming residence surrounded by a garden offers bright rooms and independent apartments. Located 900 meters from Tonel beach and a 10-minute walk from the center of Sagres. Free private parking on site.
- 110 € : Tonel Apartamentos Turisticos, offers double rooms with private or shared bathrooms (your choice) just 50 meters from Tonel beach (the surfers’ beach). Apartments with kitchenette and sea-view balcony are also available.
Tavira : one of the most charming towns
Along with Lagos, this is one of the most beautiful towns in the Algarve. It is located in the far east of the region, 35 minutes (38 km) from Faro. Its location is not the most strategic for exploring the Algarve, but it makes up for it with a beautifully preserved old town. It’s a good choice for where to stay in the Algarve if you have limited time and want to focus on the eastern part.
Tavira, founded in the 8th century BC by the Phoenicians, was occupied by many civilizations, including the Romans and the Moors, who left numerous traces throughout the town. The old town’s streets are lined with beautiful white houses typical of the Moorish period, and there are several landmarks to visit (churches, palaces, and a castle). Tavira will particularly appeal to history and culture lovers who don’t want to see only beaches.
The Tavira bridge connecting the two sides of town is its emblem. North of the old town, the newer district with many azulejo-covered buildings offers excellent restaurants. It’s a perfect place for a romantic dinner or getaway. Along the river, bars provide a cozy and relaxed atmosphere for a drink.
From Tavira, you can explore the Ria Formosa Natural Park (as in Faro) or the tiny village of Cacela Velha with its blue houses. Tavira’s beaches are not directly in the town center, but a boat shuttle takes you to Tavira Island, where you’ll find a beautiful golden sand beach. Several excursions depart from the town to explore the surroundings, with dolphin watching being the most popular.
Best value accommodation in Tavira
- 60 € : Discovery Tavira, very well located, offering rooms with terraces overlooking a garden. Apartments with a living and/or dining area are also available for self-catering.
- 63 € : Fazendinha – Spacious and tranquil, located outside the town for a peaceful countryside stay. Offers rooms for 2 to 4 people with a large pool. Tavira center is just a 5-minute drive away.
- 80 € : Downtown Alegria B&B, in the heart of the historic center, this guesthouse offers beautiful rooms with views of the town or the castle. Perfect location to be close to everything. Free street parking available if you have a rental car.
- 102 € : Authentic Tavira Hotel, this 2-star hotel offers modern rooms for two or three people, with optional breakfast. The rooftop pool is perfect for relaxing after a day of sightseeing in the heat.
- 105 € : Casa Branca, This countryside house with a beautiful pool offers rooms with terraces. Breakfast and free parking are included. This was our accommodation for exploring eastern Algarve, and we highly recommend it !
Silves : where to stay in the Algarve inland
If having a beachfront hotel or apartment isn’t essential for you, I recommend staying in Silves. Located just 20 minutes from the coast and the most beautiful beach (Praia da Marinha), this town is a peaceful and authentic gem.
The old town of Silves is stunning, with cobbled streets lined with pretty whitewashed houses, some more colorful than others. And above all, there are far fewer visitors compared to the coastal resorts—you’ll almost have the historic center to yourself, especially if you visit off-season. Silves is also home to the largest fortress in the Algarve, built by the Moors between the 8th and 10th centuries. Its cathedral is also considered one of the most remarkable in the region.
If you’re looking for where to stay in the Algarve to enjoy cultural visits and rich heritage, Silves should be high on your list. Especially since its central location and proximity to the coast make it an excellent base for exploring the entire region. Wine lovers can also visit (and taste) local Algarve vineyards. However, there are very few activities for children here.
This was our choice during our Algarve road trip (we visited in May, and the beach wasn’t a priority). We chose accommodation in a quinta between Albufeira and Silves (see address). This type of accommodation in former 17th-century estates is very common in the Algarve countryside—and we love it!
Accommodation I recommend in Silves
- 60 € : Casa à Porta do Torreão, this 66 m² house located 200 meters from the fortress offers good value for a stay of several days in Silves. It has a kitchen and a large bedroom.
- 100 € : Silves Historical House, if your dream is to stay in a historic house in the old town, this accommodation is perfect. Its main highlight is the rooftop terrace with views, ideal for breakfast or dinner.
- 100 € : Quinta das Piteiras Turismo Rural, located 1 km from the historic center, this accommodation offers modern rooms with private bathrooms. The quinta has a pool, and breakfast is included.
- 102 € : Quintal do Castelo, this beautiful quinta is located in the heart of the medieval town, 500 meters from the fortress. There are three houses for rent for 2 or 3 people. You’ll enjoy a private garden terrace, an outdoor pool, and all amenities, including a barbecue.
Carvoeiro : the most beautiful beaches and caves
Carvoeiro is one of the most charming seaside resorts in the Algarve. Here, you won’t find massive residential towers like in Praia da Rocha, but rather small white houses that blend beautifully into the landscape. If large buildings put you off, I recommend choosing Carvoeiro for where to stay in the Algarve.
Carvoeiro is ideally located along the coast, halfway between Lagos and Albufeira. This part of the coastline is home to the most beautiful beaches (such as Praia da Marinha) and many caves to explore by boat or kayak. The most famous, the Benagil cave, is less than 6 km away—perfect for arriving early and visiting before the crowds.
Praia de Carvoeiro, the beach right in front of the village, is stunning, with fine golden sand. It’s surrounded by ochre cliffs offering spectacular views. The village has many shops and restaurants, making it easy to spend your entire stay without needing to travel. It’s ideal for a family holiday.
In summary, if you’re looking for a peaceful village with a family-friendly atmosphere, a beautiful beach for swimming, and plenty to do nearby, I recommend Carvoeiro for staying in the Algarve.
Recommended accommodation in Carvoeiro
- 80 € : O Quintal Guesthouse, one of the cheapest places to stay in Carvoeiro, and it’s very highly rated. The 20 m² suites are modern and stylish. Studios for 3 people are also available.
- 90 € : Hotel Carvoeiro Plaza, for those who prefer hotel services, this 3-star property offers various categories of double rooms. Breakfast included, pool, rooftop bar, private parking, and beach just 25 meters away.
- 97 € : Casa located above Carvoeiro Beach, located just above the beach (but without a direct view), this apartment for 3 people is ideal for families with one child. Fully equipped, with street parking available for rental cars.
- 111 € : Monte Dourado, this 4-star residence offers apartments for up to 6 people (3 bedrooms), making it the best value per person in town. Ideal for large families or groups of friends.
- 114 € : CASA 4YOU, this 22 m² studio with kitchenette and coffee machine is located less than 300 meters from Paradise Beach and 1.1 km from Praia dos Três Castelos. Studios for 3 people with terrace are also available.
- 204 € : Casa Castello, the main highlight of this apartment is the magnificent view over Carvoeiro beach and the village from the terrace. It includes a separate bedroom, living room, bathroom, and a fully equipped kitchenette with a fridge and microwave.
How to get to your accommodation from the airport
The most convenient way to get around during your stay is to rent a car. This allows you to reach hidden beaches and avoid wasting time on public transport. You’ll find many rental agencies at Faro Airport, but it’s essential to book in advance. To find the best deal, I always use a price comparison tool to rent a car at the best rate. All major international companies are available at Faro Airport.
If you don’t want to rent a car and are planning a relaxing beach holiday or relying only on excursions, you can opt for a private transfer from Faro Airport to your hotel or apartment. Prices depend on the destination and the number of people. The driver will wait for you in the arrivals hall with a sign bearing your name. It’s the ideal solution to quickly reach your accommodation in the Algarve—or the airport on your departure day. Free cancellation is available up to 24 hours in advance.
- Private transfer Faro Airport – Tavira
- Private transfer Faro Airport – Carvoeiro
- Private transfer Faro Airport – Albufeira
- Private transfer Faro Airport – Portimão and Alvor
- Private transfer Faro Airport – Lagos
You now know where to stay in the Algarve based on your preferences and travel style. If you have any questions, feel free to leave a comment on the blog below. You can also share your favorite accommodation addresses in the Algarve to help other readers !