Where to Stay in Algarve

Nestled along the stunning coastline of Portugal, Algarve beckons with its sun-kissed beaches and picturesque landscapes. Choosing the perfect place to stay in Algarve might feel like navigating a labyrinth of options, given the region's diverse offerings.

I sense your dilemma – Algarve is a treasure trove of experiences, and my recent week-long escapade barely scratched the surface!

In a nutshell, Lagos steals the spotlight as the ultimate stay for first-timers or those seeking seamless access to prime attractions.

Embark on a journey through this guide to unravel the intricacies of five tourist-friendly areas in Algarve. I meticulously sifted through the myriad accommodation choices, handpicking the crème de la crème just for you! Now, securing your ideal haven is just a couple of clicks away.

💡 NOTE: Ensure your reservation is secured well in advance – Algarve's allure knows no bounds, captivating both sunseekers in summer and adventurers in the milder seasons!

So, Where to stay in Algarve? Below I will tell you about the best areas and places to stay in Algarve.

Where to Stay in Algarve: In Breif

If you want a quick rundown about Some of the best areas to stay in Algarve, here it is:

• Albufeira: Where to stay in Algarve for nightlife
• Portimão: Shopping and Praia da Rocha
• Faro: The largest city in Algarve
• Lagos: Where to stay in Algarve for first timers
• Tavira: One of the best places to stay in Algarve

These are the most popular locations for tourist that offers a wide variety of tourist attractions and amenities. You can click on the area above or keep scrooling and go directly to the best hotels in this area of Algarve.

The guide on where to stay in Algarve continues below.

Map of the Best Areas to Stay in Algarve

Here are map of the popular areas in Algarve. You can scroll down to view the live map:

🗺️ Click here to save map of where to stay in Algarve.

Best Neighborhoods to Stay in Algarve

We have broken the best neighborhoods in Algarve to stay in by interest to make it easier.

---

1. Albufeira – Where to stay in Algarve for nightlife

Albufeira is a vibrant coastal town located in the Algarve region of Portugal.

Situated along the southern coast, its prime position offers visitors a perfect blend of stunning beaches and lively nightlife.

This historic town is steeped in a rich past, evident in its charming cobblestone streets and traditional architecture.

The cultural influences here are diverse, reflecting centuries of Moorish and Portuguese heritage.

Albufeira's nightlife scene is renowned, making it the ideal destination for those seeking excitement after dark.

The bustling streets come alive with an array of bars, clubs, and restaurants, offering something for every taste and preference. From beachfront parties to intimate cocktail lounges, the options are endless.

What sets Albufeira apart is its unique combination of natural beauty and vibrant atmosphere. By day, visitors can relax on the golden sands of Praia dos Pescadores or explore the rugged cliffs and hidden coves along the coast.

Meanwhile, the evenings are filled with the sound of music and laughter as locals and tourists alike come together to enjoy the lively nightlife.

Best places to stay in Albufeira

• ⭐ Best Luxury Hotel ($$$): Palatino Hotel
• 🏨 Best Mid-range Hotel ($$): Strada Marina Hotel
• Best Budget Hotel ($): Yria Hotel

Here are map of the popular accommodation in Albufeira area.

---

2. Portimão – Shopping and Praia da Rocha

Portimão is a vibrant coastal city nestled in the heart of the Algarve region in southern Portugal. Its geographical location is characterized by stunning beaches, rocky cliffs, and a warm Mediterranean climate, making it a popular destination for tourists seeking sun, sea, and relaxation.

This city has a rich history dating back centuries, with evidence of human settlement from Roman times.

Over the years, it has been influenced by various cultures, including the Moors and the Christian conquerors, shaping its unique identity and architecture.

Today, remnants of this diverse heritage can be seen in its historic buildings, cobblestone streets, and traditional whitewashed houses.

One of the main attractions of Portimão is Praia da Rocha, a breathtaking beach renowned for its golden sands and crystal-clear waters.

This iconic stretch of coastline is lined with palm trees and vibrant beach bars, offering visitors a perfect blend of natural beauty and modern amenities.

Additionally, Portimão boasts a bustling shopping scene, with numerous boutiques, markets, and malls where visitors can indulge in retail therapy and purchase local handicrafts and souvenirs.

Best places to stay in Portimão

• ⭐Best Luxury Hotel ($$$): Olea All Suite Hotel
• 🏨 Best Mid-range Hotel ($$): Contessina Suites & Spa – Adults Only
• 💲 Best Budget Hotel ($): Al Mare Hotel

Here are map of the popular accommodation in Portimão area.

---

3. Faro – The largest city in Algarve

Faro is the largest city in Algarve, nestled along the southern coast of Portugal. Its geographical location is advantageous, positioned between the scenic Ria Formosa Natural Park and the expansive Atlantic Ocean.

This coastal city boasts a rich history dating back to Roman times when it served as a vital port.

Over the centuries, Faro has been influenced by various cultures, including Moorish and Portuguese, evident in its architecture, cuisine, and traditions.

What makes Faro unique is its blend of old-world charm with modern amenities, offering visitors a glimpse into its storied past while embracing contemporary comforts.

Best places to stay in Faro

• ⭐Best Luxury Hotel ($$$): Remezzo Studios & Apartments
• 🏨 Best Mid-range Hotel ($$): Kozanos II
• 💲 Best Budget Hotel ($): Amoudi Studios Apartments Hotel

Here are map of the popular accommodation in Faro area.

---

4. Lagos – Where to stay in Algarve for first timers

Lagos, nestled in the southern region of Portugal known as the Algarve, is an ideal destination for first-time visitors seeking a blend of history, culture, and natural beauty.

This coastal town is renowned for its picturesque beaches, vibrant nightlife, and charming historic center.

The geographical location of Lagos is characterized by stunning cliffs, golden sandy beaches, and crystal-clear waters of the Atlantic Ocean.

Situated along the western Algarve coast, Lagos boasts a mild Mediterranean climate, making it a popular year-round destination for travelers seeking sunshine and relaxation.

Historically, Lagos has a rich past dating back to ancient times, with influences from various civilizations such as the Romans, Moors, and Portuguese explorers. Its historic center is adorned with cobblestone streets, whitewashed buildings, and impressive landmarks like the 17th-century Church of St.

Anthony and the iconic Ponta da Piedade lighthouse.

Cultural influences in Lagos are evident in its diverse cuisine, traditional handicrafts, and lively festivals.

Visitors can indulge in fresh seafood delicacies at local eateries, explore artisanal shops selling handmade ceramics and textiles, and immerse themselves in the vibrant atmosphere of festivals celebrating music, food, and heritage.

What makes Lagos unique is its stunning coastline, characterized by rugged cliffs, hidden coves, and rock formations sculpted by the sea.

Ponta da Piedade, with its towering cliffs and grottoes, offers breathtaking vistas and opportunities for boat tours to explore its natural beauty up close.

Best places to stay in Lagos

• ⭐Best Luxury Hotel ($$$): Alykanas Village Resort
• 🏨 Best Mid-range Hotel ($$): La caretta hotel
• 💲 Best Budget Hotel ($): Valais Hotel

Here are map of the popular accommodation in Lagos area.

---

5. Tavira – One of the best places to stay in Algarve

Tavira is nestled in the eastern part of Algarve, Portugal, and is revered as one of the premier destinations to stay in this coastal region. Its location is characterized by stunning landscapes, with the Gilão River meandering through the town before meeting the Atlantic Ocean.

This strategic setting offers visitors access to both serene river views and picturesque beaches.

The history of Tavira is rich and diverse, with evidence of settlements dating back to Phoenician times.

Over the centuries, it has been shaped by various cultures, including the Romans, Moors, and Christians, each leaving their mark on the town's architecture, traditions, and cuisine.

This blend of influences creates a unique atmosphere that is both vibrant and steeped in heritage.

Cultural influences in Tavira are evident in its historic sites, such as the Moorish castle and the iconic Roman bridge, which serve as reminders of its storied past.

The town's charming streets are adorned with whitewashed buildings, traditional azulejo tiles, and quaint cafes, where visitors can immerse themselves in the local way of life.

One of the most unique characteristics of Tavira is its enchanting island beaches, accessible by ferry or water taxi.

These pristine stretches of sand, such as Ilha de Tavira, boast crystal-clear waters and a tranquil ambiance, making them perfect for sunbathing, swimming, and leisurely strolls along the shoreline.

Overall, Tavira is a captivating destination that offers a perfect blend of natural beauty, history, and culture, making it an ideal choice for travelers seeking an authentic Algarve experience.

Best places to stay in Tavira

• ⭐Best Luxury Hotel ($$$): Aliv stone suites & spa
• 🏨 Best Mid-range Hotel ($$): Nobelos Seaside Lodge
• 💲 Best Budget Hotel ($): Fexulis Studios & Suites

Here are map of the popular accommodation in Tavira area.

---

6. Carvoeiro – Where to stay in Algarve for relaxing holidays

Carvoeiro, nestled along the stunning coastline of the Algarve, is an idyllic destination for those seeking tranquil and rejuvenating holidays.

This picturesque village is renowned for its breathtaking cliffs, golden beaches, and crystal-clear waters, making it a haven for sun-seekers and nature enthusiasts alike.

This charming village's history dates back centuries, with evidence of human settlement found as far back as the Neolithic period.

Over the years, Carvoeiro has evolved from a humble fishing village into a beloved tourist destination, while still retaining its authentic charm and character.

The cultural influences in Carvoeiro are diverse, reflecting its rich history and heritage.

Visitors can immerse themselves in the local culture by exploring quaint cobblestone streets lined with whitewashed houses, indulging in delicious seafood at traditional taverns, and experiencing lively festivals and events throughout the year.

What sets Carvoeiro apart are its unique characteristics, including its dramatic coastline dotted with hidden caves and grottoes, such as the famous Benagil Cave, accessible by boat or kayak.

Additionally, the village boasts a laid-back atmosphere, perfect for unwinding and soaking in the natural beauty that surrounds it.

Best places to stay in Carvoeiro

• ⭐Best Luxury Hotel ($$$): Ionian Hill Hotel
• 🏨 Best Mid-range Hotel ($$): Diana Palace Hotel
• 💲 Best Budget Hotel ($): Hotel Palmyra

Here are map of the popular accommodation in Carvoeiro area.

---

7. Sagres – Where to stay in Algarve for surfing

Sagres is a coastal town nestled in the southwestern tip of Portugal's Algarve region.

Known for its rugged cliffs, golden beaches, and prime surfing conditions, this destination attracts wave riders from all over the globe. Its geographical location is characterized by dramatic cliffs that plunge into the Atlantic Ocean, offering breathtaking views and a sense of raw natural beauty.

The history of Sagres is rich and diverse.

This area was once believed to be the edge of the world by ancient mariners, and it was here that Henry the Navigator established his famous 15th-century navigation school.

The town has since evolved into a hub for surfers, backpackers, and adventurers seeking the thrill of the waves and the tranquility of the coastline.

Cultural influences in Sagres reflect its maritime heritage and the laid-back lifestyle of coastal Portugal.

Visitors can immerse themselves in the local surf culture, sample fresh seafood dishes at beachside cafes, and explore historic landmarks such as the Sagres Fortress and the nearby Cape St. Vincent, known as the “End of the World” due to its dramatic cliffs and stunning sunsets.

What sets Sagres apart is its unique combination of natural beauty, historical significance, and vibrant surf culture.

Best places to stay in Sagres

• ⭐Best Luxury Hotel ($$$): The Bay Hotel & Suites
• 🏨 Best Mid-range Hotel ($$): Koukis club
• 💲 Best Budget Hotel ($): Stamiris Beach Hotel

Here are map of the popular accommodation in Sagres area.

---

8. Quarteira – Great beach, golf, shopping, restaurants, and nightlife

Quarteira is a vibrant coastal town nestled in the heart of the Algarve, Portugal.

Situated along the stunning southern coastline, its prime location offers visitors access to a plethora of attractions.

The history of Quarteira is rich and diverse, reflecting its roots as a traditional fishing village transformed into a bustling tourist destination.

This town is renowned for its pristine beaches, where golden sands meet the crystal-clear waters of the Atlantic Ocean.

Whether you seek relaxation under the sun or thrilling water sports, Quarteira's beach is a haven for all.

Additionally, golf enthusiasts will find themselves in paradise with several world-class golf courses dotting the landscape.

Exploring Quarteira reveals a vibrant culinary scene, where fresh seafood dishes tantalize the taste buds alongside authentic Portuguese cuisine.

The town's bustling markets and boutique shops offer a unique shopping experience, perfect for indulging in souvenirs or local crafts.

As evening falls, Quarteira transforms into a lively hub of nightlife, with bars, clubs, and entertainment venues catering to every taste.

Whether you seek a relaxed beachfront cocktail or a night of dancing under the stars, Quarteira's nightlife scene has something for everyone.

Overall, Quarteira is a dynamic destination that seamlessly blends sun, sea, and culture, making it an ideal choice for travelers seeking an unforgettable experience in the Algarve.

Best places to stay in Quarteira

• ⭐Best Luxury Hotel ($$$): Meandros Boutique & Spa Hotel
• 🏨 Best Mid-range Hotel ($$): Exotica Hotel & Spa by Zante Plaza
• 💲 Best Budget Hotel ($): Vanessa Hotel

Here are map of the popular accommodation in Quarteira area.

---

9. Vilamoura – One of Portugal´s most exclusive beach resorts

Vilamoura is one of Portugal's most exclusive beach resorts.

Nestled along the stunning Algarve coast, this destination is renowned for its luxurious amenities and pristine beaches.

The history of Vilamoura dates back to the 1960s when it was developed as a purpose-built resort town.

Over the years, it has grown into a premier holiday destination, attracting visitors from around the world.

Cultural influences in Vilamoura are diverse, reflecting Portugal's rich heritage and its status as a popular tourist destination.

Visitors can experience traditional Portuguese cuisine at local restaurants, explore historic sites such as Roman ruins and Moorish architecture, and immerse themselves in the vibrant atmosphere of the town's marina.

What sets Vilamoura apart is its unique blend of natural beauty and modern luxury. From its pristine beaches and championship golf courses to its upscale hotels and fine dining establishments, Vilamoura offers a truly unforgettable experience for travelers seeking relaxation and indulgence.

Best places to stay in Vilamoura

• ⭐Best Luxury Hotel ($$$): Mediterranean Beach Resort
• 🏨 Best Mid-range Hotel ($$): Astir Palace Hotel
• 💲 Best Budget Hotel ($): Cactus Hotel

Here are map of the popular accommodation in Vilamoura area.

---

10. Olhao – Where to stay in Algarve on a budget

Olhao is an ideal destination for budget-conscious travelers exploring Algarve.

Situated along the southern coast of Portugal, this charming town boasts a rich history and vibrant culture, making it a delightful place to stay.

Olhao's geographical location is nestled between the Ria Formosa Natural Park and the Atlantic Ocean, offering visitors stunning views and access to pristine beaches.

The history of Olhao is deeply rooted in its maritime heritage.

Once a humble fishing village, it has evolved into a bustling port town while still retaining its authentic charm.

Visitors can explore its narrow cobblestone streets, adorned with whitewashed buildings and colorful Moorish-style architecture, reflecting the town's diverse cultural influences.

The cultural influences in Olhao are a blend of Portuguese tradition and Moorish influence, evident in its architecture, cuisine, and local customs.

Visitors can sample fresh seafood dishes at the bustling markets or relax in one of the many quaint cafes lining the waterfront.

The town also hosts various festivals and events throughout the year, celebrating its rich maritime history and cultural heritage.

One of the unique characteristics of Olhao is its bustling fish market, where locals gather each morning to purchase the day's catch.

This lively market offers visitors a glimpse into the town's maritime culture and provides an opportunity to sample freshly caught seafood.

Additionally, Olhao serves as a gateway to the stunning islands of the Ria Formosa, offering visitors the chance to explore pristine beaches and untouched natural landscapes.

Best places to stay in Olhao

• ⭐Best Luxury Hotel ($$$): Eptanisos Beachfront Suites Zante
• 🏨 Best Mid-range Hotel ($$): Revera Traditional Stone Villas, Apartments & Studios
• 💲 Best Budget Hotel ($): Blue Lake

Here are map of the popular accommodation in Olhao area.

---

FAQ’s on Where to Stay in Algarve

In our endeavor to assist you in making informed decisions, we've undertaken the task of elucidating the essence of Algarve and its accommodation options.

---

In conclusion

The best places to stay in Algarve is Albufeira, Portimão, Faro, and Lagos. They provide central and safe locations, with plenty of accommodation options for all budget travelers.

Overall, Albufeira is the best area to stay in Algarve for first-timers due to its prime location and proximity to major attractions.

If you stay here, you will be located in the heart of action, short walk from the city’s best nightlife, shopping, and dining. Now as you know all the best neighborhoods, all you need to do is to book your accommodations and ready to go!