Where to Stay in Algarve? The BEST Place to Stay in Algarve Portugal

Where to Stay in the Algarve for YOU

• THE Best Place to Stay in the Algarve: Lagos
• Best Place to Stay in the Algarve for Couples: Tavira
• Best Area to Stay in Algarve for Families: Albufeira
• Best Place to Stay in Portugal Algarve with a Baby: Alvor
• Best Town to Stay in Algarve for Nightlife: Albufeira
• Where to Stay on the Algarve for Surf: Aljezur
• Best City to Stay in Algarve for Golf: Vilamoura
• Algarve Best Place to Stay for All Inclusive Holidays: Lagos
• Where to Stay in the Algarve Portugal to Escape the Crowds: Ria Formosa
• Best Town to Stay in Algarve Portugal for History: Estoi

So there you have it, the answer to “Where is the best place to stay in the Algarve?”. If you want more info about each city including photos, best hotels and pros & cons, keep reading below!

The Best Places to Stay in Algarve Portugal

Algarve is a dream vacation place in Europe.

It’s pretty affordable, has an insane sea shore, alternating long beautiful beaches and little hidden creeks. Also, the activities available are infinite. Be it either for your entire vacation, or just a couple of days during your trip around Portugal or even Europe, this region is definitely a must see, especially for the rock formations that are famous worldwide.

The weather is the best if you’re fond of the sun. It almost never rains in summer, and very little in all the other seasons. The nature there is also fantastic with two huge natural parks, with lagoons welcoming wildlife, mostly birds.

Being a relatively big area, I’ve made for you the selection of places you might prefer in accordance with your situation, or what you’d like to get out of the trip.

Enjoy!

THE Best Place to Stay in the Algarve: Lagos

Lagos is definitely the Algarve’s finest holiday destinations. It has over 2000 years old which makes it a historic and characterful city. Located in the beautiful Western Algarve, it’s a city that prides itself with historic heritage and dramatic natural scenery.

You’ll find Portuguese culture, beautiful beaches and modern tourist facilities. Many of those beaches are safe and sheltered, and a lot of them are gifted with beautiful rock formations.

Whatever what you want to do in in the Algarve, Lagos is ideal because it can also be the base camp for further exploration. There’s everything for everyone’s taste; waterparks for daily fun, hiking treks for nature enthusiasts and many historic monuments for curious travelers. There’s also a zoo, always a great place to visit. In short, there are lots of excursions and day trip options from Lagos.

Finally, the night life there is vibrant, without being too crazy, like it can be in the strip of Albufeira.

Pros & Cons of Staying in Lagos

The Best Hotels in Lagos

Best Hotel: Cascade Wellness Resort

Cascade Wellness Resort is located on a beautiful property, and is amongst the most beautiful hotels in the Algarve. Come spend a delightful and amazing vacation in the best place to stay in Algarve Portugal. Take a romantic walk to Dona Ana Beach which has been voted one of the 50 best beaches in the world. The smart hotel decoration reflects the five continents, can you tell which is which?

Top Luxury Hotel: Iberostar Selection Lagos Algarve

Iberostar allows you to enjoy an insane sunset on the endless Praia de Mera beach. You can reach the historic city of Lagos with a train that leaves from the entrance of the hotel. Come experience the famous Portuguese hospitality based on excellence, and luxury with 4 swimming pools and a superb spa.

Best Budget Hotel: Hotel Lagosmar

This 2 star hotel has a very central location. A pretty heavy breakfast is served in a nice dining room, and the rooms are perfectly clean and well furnished. They even have a pool table. This hotel has the best value for money in the city of Lagos, and by far.

Best Place to Stay in the Algarve for Couples: Tavira

Even though many of the Algarve’s destinations are worth a visit, Tavira is the best when traveling with your significant other. It’s also the best place if you want to travel to Spain from Portugal as Tavira is only 25min drive from the border.

There you can walk around enjoying the cobbled streets filled with Moorish legacy. The city is mostly made of those 18th century buildings that were built after the infamous 1755 earthquake. It’s located close by the natural park of Ria Formosa. With its lagoons, it has been named the Venice of the Algarve.

The coast in this area is great for long seaside walks and for bathing, as its waters are warmer than anywhere else in the Algarve.
There’s also a very large choice of restaurants, from local food to fine dining. Many of them offer wine tastings from the region and live music. You’ll easily find the perfect romantic spot for your dinners.

Definitely one of the best places to stay in the Algarve Portugal!

Pros & Cons of Staying in Tavira

The Best Hotels for Couples in Tavira

Best Hotel: Maria Nova Lounge Hotel – Adults Only

The central location is indeed very nice. A resort of the foremost luxury, with a rooftop bar, and a breakfast of the finest quality.
They offer a buffet dinner, which has delicious and tasty options. Finally, your significant other will probably love the large lounging beds in the garden.

Top Luxury Hotel: Vila Gale Tavira

This hotel is a roman villa, but bigger, with its interior patio furnished with a pool. The blue and yellow colors of the interior spaces are soothing. The products are very well chosen, hence a very good food. Service there is top notch.

Best Budget Hotel: Quinta do Morgado – Apartamentos Turisticos Monte Da Eira

This apartment resort is only 20 min walking from the town. With its 2 pools, it’s quite a nice choice for a romantic getaway on a budget. For a three star resort it’s impressively clean and spacious. More than the price, it’s the value for money that is very good. A perfect hotel for a couple trip!

Looking for more best places to stay in the Algarve for couples ? Check out this guide of the best places in the Algarve for couples.

Best Area to Stay in Algarve for Families: Albufeira

Albufeira is the biggest town of the Algarve coast. It thrives with energy, and activity. To put it simply, if you want to do something in Algarve, you can find it in Albufeira.

The town has an exceptional charm, and all the infrastructures are dedicated to family. There’s an aquatic park and a theme park close by, which will be the favored choice of youngsters.

For the parents there’s a large selection of activities. The boat tours are a very popular attraction of the city. It allows you to get close to the famous Algarve’s rock formations from the sea, and spend a little time far from the shore, which is always nice. You can also rent a boat if you have a license indeed, and practice almost any kind of water front activities.

Finally, there are a lot of different types of accommodations in Albufeira such as villas, and many of those are tailor made for families. Be sure to check them out.

Pros & Cons of Staying in Albufeira

The Best Family Friendly Hotels in Albufeira

Best Hotel: Adriana Beach Club Hotel Resort – All Inclusive

The resort is located on top of the huge Falésia beach, minutes from Albufeira. Adriana Beach Club will be the theater of many activities the resort has to offer. You can learn Portuguese there! The 17 hectares of the resort have many more surprises for you.

Top Luxury Hotel: Pine Cliffs Hotel, A Luxury Collection Resort

Pine Cliffs Residence offers generous private spaces surrounded by a pine forests and abundant indigenous flora. The staff there is highly qualified, caring for your every need, and assisting you in any way. You’ll enjoy to the fullest all the hotel has to offer.

Best Budget Hotel: Alfagar Village

The location of this resort is ideal, but not in the immediate center. Take your pick in one of the 63 well-equipped apartments. Your family will find everything they need to enjoy the perfect relaxing holiday they had been waiting for. On a budget!

Couldn’t find the perfect place for your family? Find more best places to stay for families in Algarve on this post.

Best Place to Stay in Portugal Algarve with a Baby: Alvor

Alvor is a lovely picturesque village, situated in the western part of the Algarve. The town has kept its charm from before the mass tourism era. The traditional white washed houses; the medieval churches and its old castle; the narrow streets and Alvor’s amazing beaches and river make Alvor one of the best places to stay in Portugal Algarve for a calm and peaceful holiday.

The newly done waterfront allows you for peaceful walks along the shore, with a collection of nice restaurants and a lot of boats that might take you on for a ride.

You can walk without minding cars in the town center as there are none. Indeed it’s strictly pedestrian, and this can make a difference when with young children.

You have several choices regarding beaches. Praia de Alvor, with a lot of sunbeds, the secluded cloves of Dona Ana and Camilo which are perfect to protect yourself from the wind than in the prior one. Traveling without a car? The regular bus shuttle will take you to the nearby cities and beaches.

Pros & Cons of Staying in Alvor

The Best Baby Friendly Hotels in Alvor

Best Hotel: Quinta David

Take your pick among one of the 4 individual houses Quinta David offers. They all come with a charismatic architecture and are surrounded by open landscapes and gardens. It’s a safe and has a friendly environment adapted for children. You can pick up amazing vegetables from the organic garden.

Top Luxury Hotel: Pestana Blue Alvor All Inclusive Beach & Golf Resort

An all-inclusive resort, a little outside of Alvor, The Pestana Blue Alvor is a 5-star hotel built for families in the Algarve.
You don’t need to worry about a thing, just enjoy all the comforts of the luxury resort, and let your children have fun at the kids club.

Best Budget Hotel: Apartamentos Santa Teresinha

Those apartments are very appreciable for families. With a very good value for money. You have a little pool and spacious exterior areas. The facilities are nothing fancy really but of very good quality. The balcony overlooking the garden is a nice spot to enjoy the end of the day, enjoying life at its best.

Couldn’t find the perfect place to stay with your baby? No worries, you can find more places to stay in Algarve with a baby here.

Best Town to Stay in Algarve for Nightlife: Albufeira

Whatever you want to do in your Algarve vacation, you can find it in Albufeira. The town is charming, and is the best place to have a party. It’s the biggest town of the Algarve coast.

The boat tours are very popular. It allows you to see the famous rock formations from the sea, and spend a little time cruising, which is always nice. All the infrastructures are dedicated for you to have a good time.

For example, the nightlife scene is more than entertaining. The New Town has a street crammed with themed bars and clubs, which actively encourages people to have a good time. It’s called the Strip, and is only 2 km away from the Old Town and it can easily rival any of Europe’s other party holiday destinations.

Pros & Cons of Staying in Albufeira

The Best Hotels in Albufeira

Best Hotel: Adriana Beach Club Hotel Resort – All Inclusive

Located in Olhos de Agua, next to Albufeira, the Adriana Beach Club is on top of the huge Falésia beach. This will be the theater of one of the many activities the resort has to offer. It has “club” in the name, you’ll soon realize why.

Top Luxury Hotel: Hotel Sol e Mar

A very nice beach front 4 star hotel, the property is impeccable, and the various bars are very welcoming. Located a few meters from the city center, we can say on this occasion that luxury is being in the center of attention. A place not to be missed.

Best Budget Hotel: Alfagar Cerro Malpique

This apart’hotel boasts with an enchanting view. The pool is a bit small and can get crowded in the summer, but for when in Albufeira, you won’t stay in too long. The rooms are very nice which make it a good choice for a budget hotel in Albufeira.

Where to Stay on the Algarve for Surf: Aljezur

Aljezur has a charming rural architecture, whitewashed buildings, typical from the Algarve, with colored windows, old churches, castles, and beautiful surfing beaches. The town is set along a narrow river, and is quite small. The center is not close to the beach, but follow the river and you’ll find it.

The cliffs are so beautiful there, you’ll be amazed by the rawness of nature. It’s good for surfing, with the Praia do Amado, which has pipe waves. Very good for those wanting to learn how to surf.

For those a little bit more advanced, you have Praia da Arrifana, which you may have seen on TV as it sometimes hosts surfing competition.

If you’re willing to drive a little further, the Praia do Castelejo is also good for surfers, and its remote location makes it less crowded.

Finally, if you just want to enjoy the beach in a more relaxing way, the Praia da Bordeira will be your best pick.

Pros & Cons of Staying in Aljezur

The Best Hotels in Aljezur

Best Hotel: HI Arrifana Destination Hostel

Hostelling international is a world known organization that operates hostel all over the world. Once again they did it right with a very fashionable place, not missing any of the comfort one can expect in a cheap hotel. If you’re OK with less privacy, this is where you should go.

Top Luxury Hotel: Herdade Monte Do Sol

Herdade Monte do Sol is a villa featuring private terraces, hammocks, views of the countryside, and an outdoor swimming pool. It’s very luxurious, and honestly a bit expensive, but with a very good value for money. The decoration is very smart and cozy, and the pergola next to the pool makes a huge difference.

Best Budget Hotel: Utopia Guest House

Not nearly as cheap as our best hotel in Aljezur, the guesthouse is relatively affordable. Decorated with warm colors and stone walls, it has a lot of style. Come relax in the swimming pool, or play tennis in the private court.

Best City to Stay in Algarve for Golf: Vilamoura

Vilamoura is located in the south of Algarve. Like in most towns of this region, you’ll find perfect beaches and sunny weather. It will surely be a good choice for the golf lovers though.

The sophisticated golf course ‘The Old Course’ has been designed by Penninck;  it’s the second most ancient, and probably the finest of the region.

You can find no less than 5 others golf course in the close vicinity and plenty more if you drive a little further.

The Algarve is really a great golf destination, and Vilamoura is the best choice for a place to stay to enjoy golf. However Albufeira works very well, but basically any resort next to a golf course will satisfy your golf hungers.

On top of amazing blue water, golden beaches and water sports, you can visit the historic part of the city that has a great deal of local culture and traditions. Gastronomy is also great with delicious cheesecakes and desserts, yummy steaks and so much more.

At night many venues transform into cozy bars with live music and overall a great atmosphere.

Pros & Cons of Staying in Vilamoura

The Best Hotels in Vilamoura

Best Hotel: Crowne Plaza Vilamoura

This hotel is the best hotel on the beach of the Algarve! Overall the building is magnificent, with a gorgeous pool right next to the sea. In nicely furnished rooms you’ll find exceptional king size beds. And the delicious breakfast will start you up in the morning in the best of conditions.

Top Luxury Hotel: Pestana Vila Sol Golf & Resort Hotel

Just next to one of the most sought after golf of the Algarve, designed by Donald Steel, this resort has everything you need for a great golfing vacation. One is the championship course; the other is a small 9-hole for the golf academy. Families will mostly enjoy the gardens and the swimming pools.

Best Budget Hotel: Guest House Victoria Vilamoura

Although said to be a guest house, this looks much more like a hostel to me. And it’s not a bad thing. You have mixed or female dormitory, or a four people family room for example. The hosts are extremely nice, and the decoration will remind you of the place you use to go as child next to the sea.

Algarve Best Place to Stay for All Inclusive Holidays: Lagos

Who said the same city cannot be twice in the same top ? Indeed, if it’s the best choice for 2 different types of vacation I’ll put it again, and try not to repeat myself.

This 2000 years old city boasts with resorts and beautiful hotels, which make it the best choice of the Algarve for all-inclusive vacation.

It has over 2000 years old which makes it a historic and characterful city. The legacy is all around and it makes a beautiful sightseeing trip if you want.

The dramatic natural scenery in which the city is set is also one of the perk of Lagos, and the resort took advantage of that in a very smart way.

Finally, the night life there is vibrant, without being too crazy.

In a nutshell, if you choose this town to have a good vacation, you won’t be disappointed as it’s, once again, the best place to stay Algarve Portugal has to offer.

Pros & Cons of Staying in Lagos

The Best All Inclusive Hotels in Lagos

Best All Inclusive Hotel in Lagos: Iberostar Selection Lagos Algarve

With 4 swimming pools and a superb spa, Iberostar is a 5-star hotel in Lagos that allows you to enjoy an insane way of hospitality based on excellence. Experience the beautiful sunset on the endless Praia de Mera beach. And for your getaway into town, take the small train to the city center that leaves directly from the hotel.

Best All Inclusive Hotel in Alvor (right next to Lagos): Pestana Blue Alvor All Inclusive Beach & Golf Resort

The A little outside of Alvor, The Pestana Blue Alvor is a brand new all-inclusive 5-star hotel built in the Algarve, Portugal. Guests here have access to all the comforts of a luxury resort. As it’s all inclusive, you don’t need to worry about a thing. Just breathe the fresh air of the resort.

Where to Stay in the Algarve Portugal to Escape the Crowds: Ria Formosa

30 years ago, a natural park was formed and Ria Formosa makes the greater part of it. It’s one of the seven wonders of Portugal.
Made of 5 barrier-islands and 2 peninsulas, it looks like a natural lagoon, of beautiful blue and is sometimes called the Venice of the Algarve.

It’s perfect for boat rides and birdwatching among other thing. Indeed, for the latter, the area is a stop-over point in the migration routes between Europe and Africa and as so it provides shelter for rare species such as the emblematic colorful flamingos.

You can also visit the southernmost part of inland Portugal : the Cabo de Santa Maria.

As it’s a type of tourism that is less accessible to the masses, you’ll find it pretty empty compared to cities like Lagos or Albufeira.

Pros & Cons of Staying in Ria Formosa

The Best Hotels in Ria Formosa

Best Hotel: Real Marina Hotel & Spa

Located in the most central place of the city of Olhao, the biggest in Rio Formosa, this stylish 5-star hotel is the perfect base camp for relaxation and exploration. Everything is at walking distance. In addition, breakfast there is amazing.

Top Luxury Hotel: Ria Park Hotel & Spa

Ria Park hotel gives you the comfort of a 5-star hotel with the absolute beauty of a natural park. Your balcony is all that you need to enjoy the wonderful nature and the sea behind. I do encourage you to discover the area further. Take a wooden path in-between the large trees and visit the never ending beach.

Best Budget Hotel: Casa dos Ventos

An incredibly nice bed and breakfast. The price isn’t as low as the other budget options of this top, however the value is pretty high in this one. The beds are really comfortable, the garden and the pool are perfect, and the hosts are the nicest. Just lovely.

Best Town to Stay in Algarve Portugal for History: Estoi

For most tourists, Estoi is a day trip visit when visiting the Algarve region. Indeed, because it’s located quite far away from the sea, it’s not a very popular place to stay for a week. Unless you’re a history enthusiast, and then you’re in the right place.

There you’ll find one of the Algarve finest 19th century “Rococo” styled palaces. Painted in pink, it’s now a palace in which you can stay. This saved it from the ruin it was starting to become.

There is also a 2000 years old roman villa ruins that includes mosaics from that time. The house on top of it is a traditional Portuguese house, but some foundations have been excavated and have been dated to the 13th century.

Pros & Cons of Staying in Estoi

The Best Hotels in Estoi

Best Hotel: Mercedes Country House

A charming hotel that puts client satisfaction above all else. Built in an eco-friendly manner, using only materials from the region, the little plus will make your stay memorable, like the pool game, or the vegetable garden that will nourish you. Also the pool is very impressive.

Top Luxury Hotel: Pousada Palacio de Estoi – Small Luxury Hotels of the World

Indeed, I was talking about it in the presentation. A real 17th century palace awaits you in this little, beautiful area of the world.
There is a health club and a beautiful pool that shines on the immense building. Children under 12 are hosted for free, to the maximum of 2!

Best Budget Hotel: Monte da Ribeira

Monte da Ribeira is a site of agro-tourism. This new way of traveling and experience the place you’re staying at becomes more and more popular. This place does it very well, and it is often fully booked as a result. Experience all the activities the brave owners have designed for you and your friends.

If you’ve booked your trip to Algarve, where to stay is probably the question you were asking yourself. I hope you’ve found your answer in this guide!

If you didn’t, read below to access my other Algarve guides and find the best towns to stay in Algarve.

Other Hotels in Algarve

Looking for other types of hotels in Algarve?

Well, don’t worry.

I have a few other guides for you to help you make up your mind, and to find the best place for you, based on your needs.

Start here: Where Should You Stay in Algarve?

Want to see the very best hotels in Algarve? Here they are: The Very Best Hotels in Algarve

And if you prefer renting a whole villa for you, your family and friends, check out the best villas in Algarve.

Algarve Travel Guides

Ok, now that you’ve booked your trip & your hotel, it’s time to get to the fun part: planning your trip!

This is one of my favorite parts of traveling: looking up the best things to do in the area, and planning everything so that I have the best experience when I get there.

I’ve made it easy for you to plan your trip to Algarve with these travel guides:

• Global Algarve Travel Guide: The 36 Best Places in Algarve
• Algarve Photos : 50 Algarve Photos to Inspire Your Travels
• Benagil Cave : The Complete Guide to Benagil Cave
• Ponta Da Piedade: Ponta Da Piedade Travel Guide 
• Praia Do Camilo: Praia Do Camilo Travel Guide
• Albandeira Beach: Praia Da Albandeira Travel Guide
• Cao Raivoso Beach: Praia Da Cao Raivoso Travel Guide

Disclaimer: this post contains affiliate links. If you book your hotel by using one of these links, I’ll earn a small commission at no extra cost to you. This helps me keep the site free & filled with useful information!

Loved these hotels? Then share this post using the button below to find them again & help fellow travelers find the best hotels too! They will love you for it 😉

Photo credits: 7 | 12