Where to Stay in the Algarve – The Most Beautiful Towns in the Algarve

The Algarve is one of the most popular summer destinations in Portugal. There are so many gorgeous towns in the Algarve, to satisfy even the pickiest travellers. No matter if you are into sunbathing, hiking, practising water sports, enjoying good food, just relaxing or partying in the evening, there is one town in the Algarve that will be perfect for you. The Algarve region is suitable for both solo travellers, couples, groups of friends and families.

If you are wondering where to stay in the Algarve, this article is for you! Read on to find out which is the perfect town in the Algarve for your perfect holiday in the South of Portugal!

Table Of Contents

Albufeira

By Samantha from Sam Sees the World

The beach in Albufeira. On the right hand side you can see the calm ocean, with people swimming in it close to the shore. On the beach there are many people sunbathing, some on their own towels, some on blue beach chairs, under brown umbrellas. On the left hand side of the photo you can see some of the white buildings in the town, among some small cliffs.

The Algarve is one of the most beautiful regions in Portugal. With its intense land formations, coastal vibes and stunning towns it is a place everyone needs to visit at least once. Although there are many beautiful towns in the Algarve, one of the most beautiful and charming is Albufeira. Albufeira is a small coastal town that sits between Faro and Lagos. It is a popular vacation spot for travellers looking for sun, beaches and great nightlife.

 Amongst all the amazing things to do in Albufeira the best thing to do is explore! The old town is stunning and made up of white-washed buildings and cobblestone streets. You will notice the architecture looks a lot like Greece which gives this town a uniqueness that is unmatched. After exploring the old town you can make your way to the vast beach to enjoy the sun. If you are looking for a more unique beach experience take the short journey to São Rafael Beach for an unforgettable beach day! What makes Albuferia even more special is that the nightlife here is incredible and you can enjoy a night out full of drinking, live music and warm ocean air. 

Albufeira is located an hour away from Faro airport and is best reached by car.

Where to Stay in Albufeira:

Budget: Orange Terrace Hostel

This beach front hostel is located in the heart of Albufeira and is a perfect choice for solo travellers on a budget. It has a gorgeous rooftop terrace, barbecue facilities and free WiFi. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: PortoBay Falesia

This beach resort features a lagoon-style pool with stunning views over the Atlantic Ocean. It includes a spa and wellness centre and an inhouse restaurant. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Salgados Palm Village Apartments & Suites

This fantastic resort has not one, not two, not three, but 10(!!!) swimming pools. It offers apartments and suites, being a perfect option for families with children. You can check out the reviews on TripAdvisor or book directly on Booking.com

Vilamoura

By Victoria from Guide Your Travel

The beach in Vilamoura on a cloudy day. The sky is cloudy and grey but there are still plenty of people sunbathing. On the right hand side of the photo there are wooden beach chairs with white cushions on them, and  white umbrellas. In front of them there are a few people sitting on their own towels. You can just sea the ocean in the left hand side of the photo.

Vilamoura is a beautiful little resort town in the Algarve, located in the Southern part of the area. This part of the Algarve is definitely wealthy and if you’re after a quiet experience in a little Portuguese fishing village this is perhaps not the right place to go. You can easily reach Vilamoura in 30 minutes by car from the Airport of Faro. The best way to reach it is definitely by car since public transport options are quite limited. There are some buses available, but they will take a while to reach Vilamoura.

This little town in the Algarve is almost like a large resort so there are plenty of things to do. You can go golfing, hire a boat for a day or simply relax by the beach. Of course, in the evenings you’ll find plenty of bars and restaurants to explore. The Algarve has an incredible coastline which is perfect for a road trip. Head to the beautiful Benagil Beach and visit its impressive caves or go on a dolphin-watching tour. The Praia da Falesia is the closest beach Vilamoura and is definitely well-worth a visit. Make sure to have a traditional Portuguese lunch in one of the little seaside restaurants. This area is famous for its seafood so definitely order some while you are here.

Where to stay in Vilamoura:

Budget: Apartamentos Mar-Bel Sol

For a budget option in Vilamoura, check out the Mar-Bel Sol Apartments. The complex features an outdoors pool and snack bar areas. The apartments are spacious and have kitchens, making them a great option for travellers who like to cook their own food. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Dom Pedro Marina

This boutique hotel has beautiful views over the marina and the Atlantic Ocean. It has bright rooms, with a Mediterranean décor. The hotel features a swimming pool, a spa centre and a hot tub. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: The Lake Resort

This fantastic resort features three pools, out of which one is natural, a spa centre, three restaurants and two bars. One of the restaurants is floating! The rooms are spacious and have balconies with panoramic views. You can check out the reviews on TripAdvisor or book directly on Booking.com

Aljezur

By Bella from Whisper Wanderlust

A view of the beach from the top of the cliffs. The beach is narrow and long, at the bottom of high cliffs. The ocean is calm but there are a few white waves coming towards the shore. There is a windy road coming down from the cliff top towards the beach, between a couple of white buildings with orange roofs. Most of the sunbathers on the beach are near the end of the road.

Aljezur is a small town with cobbled streets, white buildings with colourful windows, old churches, and fabulous views, located on the border between the Algarve and the Alentejo, in the Faro district.

The road from Lisbon to Aljezur is about 3 hours. You can do this either by car or by bus. And the nearest airport is Faro, located about an hour and a half away.

The city is located along a river and is divided into the west Moorish part and the east part. A symbol of the city is the Moorish Castle, perched on a hill, dating from the tenth century.

Although the city is tiny, you have the opportunity to visit its museums, which are not few, compared to the number of inhabitants and the size of the town. The most visited museums are The Municipal Museum, Municipal Art Gallery, and Pintor Jose Cercas House-Museum.

But the main attractions of the city are the beaches and the landscape.

The most spectacular beaches in Aljezur are Arrifana, Monte Clérigo, Praia do Amado, Praia da Bordeira and Carrapateira. By far, the view that will conquer you is towards Arrifana beach, surrounded by a vast rock that meets the Atlantic Ocean.

The beaches of Aljezar have fine sand and perfect waves for surfing. Not being as famous as other cities in the Algarve, in Aljezur you can enjoy more peace and have those landscapes just for you to admire them.

When it comes to food, you must try a hamburger at Sector B or a delicious pizza at Pizzeria Italiana Pomodorino. For dessert, go to Brisamar and test the tasty acai bowls.

Where to stay in Aljezur:

Budget: Arrifana Destination Boutique

This B&B is walking distance to the beach, has a beautiful outdoors pools and barbecue facilities. Breakfast is included in the room fee. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Hotel Vicentina

This four-star hotel is located within the green hills of Aljezur and features an outdoor swimming pool and free breakfast. It offers apartments, studios and rooms, making it a great choice for families. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Quinta Alma

For a unique experience, check out the ecological retreat farm Quinta Alma. It features gorgeous accommodation options in the middle of the nature, with beautiful views over the nearby mountains. You can check out the reviews on TripAdvisor or book directly on Booking.com

Sagres

By Milene from Surf & Unwind

Two bodyborders walking towards the beach, on a path between the rocks. The are wearing black wetsuits and carry boards and swimming fins in their hands. The beach in front is rocky, with a few cliffs in the water as well.

Sitting on the windswept western coastline and rugged tip of the Algarve is Sagres. A laid-back beach town with unspoilt beaches and wild seas surrounded by dramatic ochre cliffs.
If you’re flying into Faro Airport, the easiest way to reach Sagres will be either by hiring a car or booking a private transfer, but if you’re in Lisbon, then you will also have the option of taking a local coach service.


Due to its favourable conditions all year round, Sagres is a very popular spot for surfers and bodyboarders that head to Mareta and Tonel beaches in search of the perfect waves. Although its main attraction is definitely the surf, it’s also is a superb little town to stay in if you’re looking to take some time out and explore nature.


Try hiking along the cliff trails, cycling along the quiet roads or simply visiting Cabo de São Vicente, the storm-battered south-westernmost headland of Portugal that juts out over the sea.


Sagres also produces some of the best sunsets where you can experience the sun slowly dip into the Atlantic Ocean.
There are some great little restaurants, cafés and bars in the area like The Hangout, where you can head to if you’re after a beer and homemade food. It has a super welcoming vibe and it’s a good place to chill out and put your feet up after a whole day of surfing or exploring the area.

Where to Stay in Sagres:

Budget: Pontalaia Apartamentos Turisticos

This resort offers apartments and features a swimming pool, a gym and a sauna. It’s a great option for friends traveling together or families who are on a budget. Guests can book water sports lessons from the reception. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Memmo Baleeira

This designer hotel is located 5 minutes’ walk from the beach and offers a beautiful outdoors pool, inhouse restaurant, spa facilities and breakfast included in the room fee. The rooms have private balconies and gorgeous views over the Costa Vicentina Natural Park and the Atlantic Ocean.  You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Martinhal Sagres Beach Family Resort

This luxury resort is overlooking the beach and features five swimming pools, a tennis court, three restaurants and plenty of activities for children. The rooms are decorated with bright colours and have terraces with ocean views. You can check out the reviews on TripAdvisor or book directly on Booking.com  

Luz

By Anna from Big World Short Stories

Praia da Luz, the long, wide, golden sand beach from Luz. At the top of the beach there are some tall cliffs. There is nobody sunbathing on the beach, just a few people walking on the shore, close to the water. The ocean has a few waves

Praia da Luz or simply Luz is a small beach town in western Algarve very close to the famous Lagos. It is generally safer and more relaxed than Lagos, making this quiet and peaceful resort a good base for families with children. 

The top attraction in Luz is the local magnificent bay with golden sand. It is listed as one of the best beaches in Algarve. On certain days the beach of Luz becomes a perfect spot for surfing. There are many great surfing and diving schools in this area. J’hola Surf Camp, for example, offers great accommodation, local Portuguese dinners cooked by the host himself and professional surfing lessons. You can easily book this as a package and forget about the whole planning.

Another great attraction of Luz is its local promenade. There are some nice cafes and restaurants alongside the promenade with an ambient and relaxed atmosphere. If you love hiking you can take a beautiful ocean route along the cliffs going towards Lagos and Ponta da Piedade.

The closest airport to Luz is the Faro international airport about 85km to the east. From Faro city there are regular local buses going to Lagos, from where you can easily get to Luz either by taking an Uber or another short bus drive. You can also get to Lagos by train. It is generally a more comfortable option than a bus.

The main tourist season in Luz is from June to September. In autumn here is generally less busy than in summer, while the weather is still very warm and sunny.

Where to Stay in Luz:

Budget: Hotel Belavista Da Luz

This hotel overlooks Praia la Luz, which is walking distance away. It has two pools, a tennis court, a gym and a spa with free access for the guests. It also offers free breakfast and free parking. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Estrela da Luz Resort

This resort offers self-catering apartments and features two pools, a tennis court and a gym. It has modern decorations in bright colours and spacious kitchens. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Casa do Mar

This modern villa has four bedrooms, a large kitchen, a pool and a jacuzzi overlooking the Atlantic Ocean and barbecue facilities. It has a bright Mediterranean décor, it is located in a quiet location but close to local bars and restaurants. You can check out the reviews on TripAdvisor or book directly on Booking.com

Odeceixe

By Dean and Laynni from Routinely Nomadic

A view of the Praia de Odeceixe, the main beach of the town. The photo was taken from the cliffs above, and you can see the river coming from one side, meeting with the sea at the end of the cliffs, on the left hand side of the photo. On the right there are a few white houses. The ocean is white because of the foam of the waves crashing into the shore.

Located right on the border between the Algarve and the Alentejo, wonderful little Odeceixe is one of the best of many great villages along Portugal southwestern coast. Essentially a two-for-one, there is the main village of Odeceixe a few kilometres inland on the banks of the Ribeira de Seixe (Pebble River), plus the delightful Praia de Odeceixe, located right on the coast. The big draw there is the unique horseshoe-shaped beach where the river reaches the ocean (the exact shape changing with the tide) overlooked by scenic cliffs on either side.

With a wide, flat beach and a choice between ocean and river, as well as vastly different currents as the tides change, Praia de Odeceixe is ideal for families and surfers alike. It even features good fishing at the mouth of the river. There is excellent coastal hiking in both directions and the small handful of hotels and restaurants at the beach are perfect spots for enjoying the spectacular sunsets.

Meanwhile, the village of Odeceixe is clean, pleasant and full of little shops and excellent restaurants. Pizzaria Central is located on a cute plaza and is a great place to enjoy a slice, a beer and watch the world go by.

Also, because this is Portugal you never need to limit yourself to just one beach. Nearby Praia da Barradinha and Praia da Quebrada offer rocky, secluded coves, while Praia das Adegas is right next to Praia de Odeceixe and is both scenic and popular with nudists.

By car, Odeceixe is about 1.5 hours from the international airport in Faro or 2.5 from Lisbon. Alternatively, there are frequent buses from Lagos (1 hr) and Lisbon (3.5 hrs).

Where to Stay in Odeceixe:

Budget: Bohemian Antique Guesthouse

This guesthouse features a unique rustic Portughese décor. It offers both private rooms and shared accommodation options, making it a great choice for solo travellers. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Monte do Cardal

This beautiful resort is located in the middle of nature, surrounded by the countryside. It features an outdoors pool overlooking the olive tree garden, spacious rooms with private patios and fantastic local food. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Casas Do Moinho

Casas Do Moinho is located 5 minutes’ drive from the Odeceixe beach, also known as one of the 7 Wonders of Portugal. It has a gorgeous infinity pool, spa facilities and an in house restaurant. You can check out the reviews on TripAdvisor or book directly on Booking.com

Lagos

By Claire from Tales of a Backpacker

The Beautiful Coastline near Lagos, with high cliffs and a secluded beach underneath. The top of the cliffs is touched by the warm light of the sun before the sunset, making the scenery look almost golden.

Lagos is a splendid town in the west of the Algarve.  It effortlessly blends Portuguese history and culture with a bustling nightlife and plenty of activities, but without the mass tourism which has taken over some of the popular resorts further along the coast.

Lagos is well connected by public transport to the rest of Portugal as there is a train line that connects the town with the rest of the Algarve and with Lisbon and Porto, via a change in Tunes.  It is however, 92km from the nearest international airport at Faro. 

This means that it is best to get an early flight into Faro to give you time to take a train to Lagos or consider spending a night in Faro before travelling the Lagos the following day, as a taxi would set you back around €100.  While this might be an inconvenience, Lagos is certainly worth the effort. 

Lagos is renowned for its beautiful coastline, with golden beaches and spectacular cliffs and rock formations.  Nearby Punta de Piedade is a must-see, where you can visit the caves and natural arches on a boat tour or admire them on foot.  It’s the best place in Lagos to watch the sunset. 

From Lagos you can also take a tour to the Benagil sea cave, a magnificent, rounded cave, carved out by the power of the water with a natural skylight in the roof.  The beaches of Lagos are stunning, and the nearest beaches are minutes from the centre of town – Praia da Batata is next to Lagos’ historic Fort, and on the other side of the marina, Praia de São Roque stretches for over two miles to the east of town.  Check out some of the smaller coves such as Praia do Camilo on the way to Ponta de Piedade.   

Once you’ve had your fill of the coastline, wander the streets of Lagos, looking out for the street art which you can spot all over town.  As for food in Lagos, try Cataplana seafood stew, served in a large copper pot – a mix of shrimp, mussels, clams, fish and potatoes.  You’ll find it on most menus, Taberna do Comilão is a great place to try it if you like no-frills local restaurants.

Where to Stay in Lagos:

Budget: Carvi Beach Hotel

This budget hotel offers spacious rooms with a sea view and a beautiful rooftop swimming pool. It is located directly on the beach and has its own restaurant and bar. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Belmar Spa & Resort

This resort offers studio and apartments, which makes it perfect for couples or families with children. The rooms feature a modern décor and patios or balconies. The resort has a pool and a spa centre. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Iberostar Selection Lagos

This luxury hotel is located by the beach and features a pool with ocean panoramic views, a spa, a restaurant and a bar. All rooms offer panoramic views over the pool or the Atlantic Ocean. You can check out the reviews on TripAdvisor or book directly on Booking.com

Carvoeiro

By Sarah from CosmopoliClan

A view of the beach in Carvoeiro. In front of the photo there is a large palm tree near a pot of red flowers. Behind, you can see the beach, with cute white buildings framed with red and blue paint.

The former fishing village of Carvoeiro, tucked away between the towering cliffs of the southern Algarve coastline, comprises a charming collection of winding streets, hidden alleys, lively restaurants and shops. The central road of this compact town town opens up to a gorgeous beach fringed by cliff-perched fisherman’s houses. East of the beach, a whitewashed staircase leads up to the top of the cliff where it connects to pathway leading to the Forte de Nossa Sengora da Encarnação. This 17th century fortification is the starting point for the Carvoeiro boardwalk, a wooden walkway overlooking the spectacular coastline that connects Carvoeiro to the Algar Seco rock formations.

Other coastal highlights of Carvoeiro include the picturesque Alfanzina lighthouse and Vale Centeanes beach, from where local boat excursions to the Benagil cave operate. But the fun doesn’t have to end there since Carvoeiro’s central location, halfway between Lagos and Albufeira, allows easy access to some of the most popular Algarve attractions.

If you plan on staying in the direct area, then you could rely on boat tours, the Carvoerio tourist train and the tuk tuk to get around. A car is recommended for excursions further afield and can easily be rented at Faro airport where most visitors arrive. From there, Carvoeiro is a 45 minute-drive away (seasonal traffic not taken into account).

Where to stay in Carvoeiro:

Budget: Rocha Brava Village

This beautiful resort is an attractive budget option for larger groups of travellers. It has affordable apartments and villas, in a complex which features 7 outdoors pools, 4 tennis courts and a gym. Located on top of a clifftop, the resort offers fantastic views as well. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Valle da Lapa Village

This resort offers luxurious private villas for a mid-range budget. The resort has its own golf course, outdoor pools and a spa. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Tivoli Carvoeiro

For a luxurious experience, treat yourself with a room at Tivoli Carvoeiro.  Located on top of a cliff, this hotel offers spacious, modern rooms with luxurious finishes, bathrooms with tubs overlooking the ocean and a spa centre. You can check out the reviews on TripAdvisor or book directly on Booking.com

Silves

By Tanya from My Right Sock

A view of a street in Silves going downhill. The houses are all the same heigh, most of them white, some coloured in bright colours such as orange and green. On top of the houses, each four houses or so, there are vintage street lamps.

Silves, a hidden gem in an otherwise extremely touristy country, is a municipality in southern Portugal’s Algarve region. 

Travellers can easily reach the city by public transportation from larger cities including Lagos and Portimao. The nearest airport is located in Faro and is approximately 63.1 kilometers (45 minutes) away from Silves.

Mainland Silves is surrounded by many beaches, the closest of which is Praia da Rocha. Besides sunbathing, tourists can immerse themselves in many fun activities like touring the beach by jeep, taking a powerboat ride, and exploring the water parks in the area.

Another beach worth visiting in Silves is Armacao de Pera. This beach’s rocky coastline is accentuated by high cliffs, with smaller strips interspersed in between. The east side of the beach has a sandy stretch running up to 5 kilometers.

In addition to the beaches, one major point of interest in the city is the Silves Castle. The monument was built between the 8th and 13th centuries, when the Moors ruled Silves for almost half a millennium. The castle represents medieval Moorish architecture perfectly with its parapets and multi-foil windows. A walk up to the parapets gives way to a panoramic and scenic view of the Serra de Monchique mountains. You can climb up a 10 feet tall cistern in the courtyard overlooking a 60 feet deep well.

On Saturdays, visitors can head to the local farmer’s market to sample Southern Portuguese food. 

Silves was once a Moorish town so it’s steeped in culture, history, and tradition. People who travel there can witness a modern city with an ancient cultural twist. Make sure to visit Silves if you’re in Algarve.

Where to Stay in Silves:

Budget: Hotel Colina Dos Mouros

This budget hotel has large rooms with panoramic windows, a terrace, a pool and a restaurant serving Portuguese cuisine. The terrace and some rooms have views over the old town of Silves. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Vivenda Balou

This guesthouse is tranquil and feels very intimate. It is surrounded by greenery and features a pool. The breakfast is included in the price and the hosts are extremely friendly. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Quinta da Luz

This luxury boutique B&B features an outdoors swimming pool, large bedrooms and breakfast included in the room fee. The rooms are surrounded by a beautiful garden, which makes the place very quiet. You can check out the reviews on TripAdvisor or book directly on Booking.com

Tavira

By Tjaša from The Travel Momento

The bridge in Tavira, over the river. The level of the water is very low and some of the rocks at the bottom are sticking out. The bridge is made out of stone and has large arches.

On the east side of the Algrave region towards the border with Spain, you can find one of the most beautiful towns in the Algarve, Tavira. The city situated along the Gilao River represents a mixture of authentic Portuguese vibes and centuries of Morish influence. The best way to visit Tavira is as a day trip from Faro (30 km) or the western part of Andalusia in Spain (85 km). You can reach it by car, which is the most efficient way, or by public transport. Using the latter, you first need to take the bus from Faro airport to Faro bus station and then take a bus (1 hour) or train (35 minutes). The journey will cost you around 8 EUR. Some of the city highlights include picturesque squares like Praça da República and Gilão bridge whilst wandering through cobbled street to reach Tavira Castle and Igreja da Misericórdia.  

Just three kilometres from the city centre you will find some of the most pristine beaches in the Algarve. If you imagine eleven kilometres of golden sand ideal for walking, sunbathing or swimming, this is the place to visit. Tavira is also a great choice to avoid crowded touristy parts of the Algarve and enjoy your little oasis.

One of the iconic beaches around Tavira is Praia do Barril due to the anchor cemetery just before the entrance to the beach. It belongs to the Taira Islands that features two other famous beaches – Terra Estreita Beach and Praia do Homem Nú. The turquoise-coloured sea, calm and peaceful area around the Ria Formoso Natural reserve makes for a unique scenario that will not leave you untouched. 

Where to Stay in Tavira:

Budget: OZADI Tavira

This hotel offers spacious rooms with a contemporary design and free WiFi. It has a pool with a bar, a terrace overlooking the Tavira salt flats and two in house restaurants. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Vila Gale Tavira

This resort features both an outdoor and an indoor heated pool, a Turkish sauna, a hot tub and a gym. This is a perfect resort for families because it also features a kid’s club. The rooms are spacious, with dark furniture and views of the Tavira river. The inhouse restaurant serves traditional Portuguese dishes. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Convento das Bernardas

This luxurious resort offers fully equipped apartments in a converted monastery. The resort also features an outdoors swimming pool, a garden and free WiFi covering the entire property. You can check out the reviews on TripAdvisor or book directly on Booking.com

Faro

By Lavinia from Continent Hop

A small plaza in the old town of Faro. In the square there are two local restaurants with terraces covered by large white umbrellas.

The town of Faro, located in the south of Portugal in the Algarve region, is budget-friendly and one of the less touristy yet beautiful places to visit in Portugal.

However, this doesn’t make it less accessible. Faro can be easily reached by flight, but these are seasonal. Another way to get here is by taking a flight to Lisbon and either driving or taking another connecting flight here. The airport is located quite close to town.

The architecture in Faro is stunning, and some of the buildings worth visiting are the Faro Cathedral and Arco Da Vila, the gateway by the water in Faro. Take a walk-through Faro’s old town, which can be reached through the Cidade Velha, the arch by the marina. The colourful pastel palace of Palacio de Estoi is one worth a visit too.

The Capela Dos Ossos is a bone chapel made from the remains of monks for whom it also acts as their final resting place. Offbeat attraction worth a visit if it doesn’t put you off.

You can enjoy numerous beaches here, and the one you can get to by road is Praia de Faro which is quite close to the beach, and you can use the airport shuttle to get here. Ilha Deserta is another island which you can get to by ferry.

Since Faro is by the sea, the seafood here is fresh and tasty, and the shellfish, especially the razor clams and oysters, are worth trying. Arroz de lingueirao is a dish that uses clams and is delicious.

Where to Stay in Faro:

Budget: Sunlight House

This romantic B&B is a perfect choice for couples who travel on a budget. It has pretty decorated rooms, a shared kitchen and a terrace with beautiful views over the town of Faro and the sea. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Aqua Ria Boutique Hotel

Located in the centre of Faro, a few minutes away from the vibrant nightlife area, this boutique eco-friendly hotel offers modern decorated rooms. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: AP Eva Senses

For a relaxing holiday in Faro, book a room at Eva Sense Hotel. This fantastic four-star hotel has a renowned spa centre where they offer beauty treatments and massages. The rooftop pool and the panoramic restaurant will make your trip memorable. You can check out the reviews on TripAdvisor or book directly on Booking.com

Portimao

By Alice from Adventures of Alice

A view of a small square in Portimao. In the centre of the square there is a fountain surrounded by vegetation and palm trees. A woman wearing white clothes and a white hat sits on the right hand side of the photo, taking a photo of the fountain with her phone.

Portimao is a coastal town in Portugal. It’s popular for its beaches and laid-back lifestyle, but it also has some great things to do while you’re there. Whether you want to head out on the water or explore inland, there are plenty of options to keep your days busy. Plus, it’s just a three-hour drive from Lisbon, so it makes for an easy multi-trip itinerary.

Portimao is a great place to embrace traditional Portuguese life. It’s a working market town and fishing port, so there are great places to buy authentic ingredients, and live life as the locals do. There’s also a great museum down by the promenade, perfect for learning a little more about the history of the beautiful region.

The Portuguese love to enjoy life by the water and Portimao has it all; from boat trips to cafés with sweeping views of the Atlantic Ocean. The town itself is small but, due to its fishing history (which you can learn about in the museum), there are plenty of bars and restaurants that serve up delightful fresh seafood dishes.

Portimao is also home to some of the best beaches in Europe. This includes the infamous Praia da Rocha and, if you take a trip to the neighbouring village of Alvor, Praia da Alvor too, which has a completely different vibe.

Where to Stay in Portimao:

Budget: Clube Vilarosa

This resort is perfect for families with children or groups of friends travelling together. It features apartments, two swimming pools for adults and one for children, and two tennis courts. It has its own in house restaurant and a pool bar. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Jupiter Marina

This four-star hotel is couples orientated hotel. It features a spa with an indoor heated pool, Turkish sauna, baths and relaxation rooms. The rooftop infinity pool has beautiful views over the beach and the Arade River. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Hotel da Rocha

This luxury hotel is located on the beach, offering stunning views over the Atlantic Ocean. The suites are spacious and have king size beds. The hotel features an outdoors pool, a spa centre and underground parking. You can check out the reviews on TripAdvisor or book directly on Booking.com

Loulé

By Nichola from Family Hotel Expert

A photo of people parading in the carnival of Loule. They are all wearing the same green costume with feathers on their back and hold cardboard red envelopes in one hand and red boards with the @ sign on the other.

Loulé is one of the most beautiful towns in the Algarve. It has a really authentic vibe about it, it’s one of the least touristy towns in the region. In the centre is a beautiful market which is Moorish in design and full of stalls selling local produce and handicrafts. It’s the perfect place to stock up on provisions, particularly the piri piri peppers the Algarve is well known for. On Saturdays there is a fantastic farmers market which people from surrounding towns throng Loulé to get to, along with a market selling bric-a-brac and antiques. The backstreets of Loulé are particularly picturesque and the perfect place to wander through, looking at all the beautiful houses that line the roads here, many of them with gorgeous, tiled fronts.

It’s easy to get to Loulé from most of the main towns in the region thanks to its regular bus connection, including to Faro (which takes around 40 minutes). There is a train station but it is around five kilometres out of the centre of the town, so bus travel is definitely the recommended mode of transport. Loulé is a wonderful insight into the real Algarve and ideal for family holidays to Portugal which are looking for a more authentic feel to them. It is certainly not a traditional tourist town though, it is around 10 kilometres to the nearest beach, but gives something more than many of the other towns in this region do – an insight into the soul of the Algarve. If you’re visiting in winter, then look out for Loulé carnival which is a wonderful explosion of colour and music and a perfect time to visit.

Where to Stay in Loulé:

Budget: Loule Jardim Hotel

This centrally located budget hotel offers great value rooms and a beautiful rooftop pool. The rooms are bright and decorated with neutral tones. Breakfast is included in the room price. You can check out the reviews on TripAdvisor or book directly on Booking.com

Mid-range: Casa Mocho Branco

This guesthouse has an infinity pool overlooking the hills and the Atlantic Ocean. Each morning the hosts are preparing a homemade breakfast with fresh orange juice and freshly baked cakes. You can check out the reviews on TripAdvisor or book directly on Booking.com

Luxury: Villa Alegria

This beautiful villa sleeps six people in three bedrooms and it’s a perfect choice for families travelling together. The villa features two bathrooms, a hot tub, a pool, barbecue facilities and an outdoors pizza oven. You can check out the reviews on TripAdvisor or book directly on Booking.com

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19 thoughts on “Where to Stay in the Algarve – The Most Beautiful Towns in the Algarve

  1. Samantha Donnelly says:

    I have only been to Portugal once and that was years ago, I would love to visit again one day, we have often spoken about visiting

  2. Alyssa says:

    Portugal is rich in culture and I definitely want to visit Algarve! Hopefully, we can continue our plan to travel next year and choose among your hotel recommendations. Thank you!

  3. sumit walia says:

    Truly loved the way you have extensively described the entire Algarve region. Loved the vibes of Albufeira and the aloofness of Luz in the visual that you depicted.The range of accommodation suggested by you is indeed helpful

  4. knycx says:

    Portugal has one of my fondest travel memories and I had not been to Algarve, thanks for introducing this place and I am looking forward to revisiting this place someday in the future 🙂

  5. Renata Green says:

    I’ve been to Portugal and simply love it! However, I’ve visited only the Westcoast and didn’t make it to the Algarve. On my next trip there, I’ll go – and I’ll bookmark this post for future reference 🙂

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