Where to stay in the Algarve? How to find the best place…
The Algarve in Southern Portugal has so much to offer. But where is the best place to stay in the Algarve to fully experience it? Answering this question can get pretty overwhelming when you just started planning your trip.
When researching we soon learned that where you stay in the Algarve all depends on WHEN you are going and WHAT you plan to do.
Where to stay in the Algarve depends on the season, travel style, and activities. Do you prefer moving around or having a base? Generally, the best places to stay in the Algarve are Lagos, Faro, and Carvoeiro. You can easily explore the highlights of this part of Portugal from these locations.
After changing our long weekend itinerary many times, we finally decided to stay in Lagos for our entire trip.
This is pretty unusual for us. We would have done it differently if we could have stayed longer.
We love moving around and staying in different places. This way we experience the areas to the fullest plus discovering new places each day is an exciting way of traveling.
So based on our pre-travel research on where to stay and our experience traveling in the Algarve, we will give tips on how and where to find the best place(s) to stay when exploring this magnificent part of Portugal.
How to find the best place to stay in the Algarve?
Before deciding where to stay during your Algarve trip, we have listed questions you should consider. These will help you plan your holiday and determine the best place to stay.
How long will you be staying?
Unfortunately, we were in the Algarve just for 4 full days. After spending time there we would have loved to stay at least 7 days. This would have enabled us to do a proper road trip and stay in different areas of this region.
But that said, the Algarve is also an ideal destination for a couple of days since distances aren’t extremely far. We highly recommend staying in just one or two places if you plan to visit for 3 or 4 days.
Related post: The Algarve 3 Days Itinerary – Your Perfect Roadtrip
Accommodation in the city center is the best place to stay on a road trip. You will experience the place you are staying more before heading out to other nearby highlights.
Are you staying longer than a week? Then there are unique accommodations outside town where you can leave the crowd behind.
When are you going?
The time of year will likely influence where you will stay in the Algarve. We were there in February. Not only is it still winter in Portugal, but it is also the low season.
Accommodation is much cheaper, but not all are open so choices are less. This is the main reason why we stayed in Lagos our entire trip.
Restaurants in smaller villages are mostly closed too. So to avoid eating cheese omelets and Spaghetti Pomodoro for lunch every day of your holiday, it’s better to stick to the bigger towns.
This is different in the other months, especially in summer. During the peak season, prices go up and it can get busy.
Most accommodations are built to withstand the heat during the summer. This means that it can get pretty chilly indoors during the colder months. Often there is no proper heating available, so bring warm clothes and grab all the blankets you can get.
We would also choose different types of accommodation in the warmer months. For instance, accommodation with a terrace and garden located further away from the crowd would be more of a priority for us.
Or a hotel that provides private (free) parking, since finding a spot can be difficult in popular towns during the summer holiday.
How will you be traveling?
We think the best way to experience the Algarve is by going on a road trip. Spend 1 or 2 nights in different towns to see more of this beautiful Algarve region.
Don’t want to rent a car?
Then we highly suggest staying in Lagos and Faro only. There are various public transportation options between these two cities, such as the train and bus.
We could easily spend a couple of days in Lagos or Faro alone. Both are beautiful historic towns and their surrounding beaches are stunning. Additionally, you can hop on a train or arrange an Uber to take you to nearby villages.
Slow travel is very fulfilling and something you should consider. In the case of the Algarve, stick to the west or east part and focus on that region only. For instance, there is enough to experience and see for a whole week when staying in Faro or Tavira alone. Leave Lagos and beyond for another trip.
Where to stay in the Algarve?
We have selected the 6 best towns to stay in the Algarve and added a list of great accommodations. Prices of these accommodations can differ incredibly depending on which time of year you go. So make sure you check all price ranges when traveling in the off-season.
Additionally, some accommodations require a minimal stay. So if a specific accommodation isn’t available, play around with the dates to see if they request a minimal stay too.
Some towns we have listed are ideal for a road trip while others are also perfect as a base.
We have also included the best things you can do when staying in these towns, making it easier to decide which part of the Algarve is the best place for your holiday.
1. Lagos
Lagos is a good base when visiting the Algarve and should also be included in any road trip. Its old town is full of charming little streets, while the marina makes it perfect to stroll along at the end of the day.
Pretty much everything is within driving distance from Lagos. When we arrived at the airport in Faro we rented a car and headed for Lagos stopping along the way at Carvoeiro, Ferregudo, and Silves.
Lagos Highlights
Old Town
Museums such as the Slavery Route Museum
Lagos Castles and City Walls
Fortress (Forta da Ponta da Bandeira)
Mercado Municipal de Lagos
Visit Ponta da Piedade on foot or by boat, kayak, or SUP
Related post: Best ways to visit Ponta da Piedade Lagos in Portugal
Beaches near Lagos (walking distance)
The beaches (Praia in Portuguese) are very easy to reach on foot from Lagos town. A boardwalk along the coast leads you to the best beaches in the Algarve such as Praia Dona Ana and Praia do Camilo.
Beach lovers can easily spend a couple of days enjoying the list of beaches near Lagos.
Batata Beach
Praia dos Estudantes
Praia do Pinhão
Dona Ana Beach
Camilo Beach
Praia dos Pinheiros
Day trip from Lagos
From Lagos, you can reach almost any destination in the western Algarve within an hour’s drive. Lagos to Faro takes just one hour via the toll road, making it perfect for a day trip to Faro. However, taking the toll road means missing out on the amazing sights along the way.
When staying in Lagos, we suggest renting a car and exploring these 2-day trip ideas:
West Coast Beaches
- Drive along the western Atlantic coast and visit a couple of beaches such as Vale Figueiras Beach, Praia do Amado, Praia Bordeira, and Praia Cordoama.
- End the day Farol do Cabo de São Vicente (lighthouse at the most southwestern point of Europe) to watch the sunset and have dinner at Sagres.
Algar Seco (Carvoeiro) – Ferragudo – Silves
- Visit Algar Seco and do a Benagil Cave Tour by boat from Cavoeiro.
- Afterward, drive to the cute fishing village Ferragudo and the historical city Silves. There are beautiful beaches in Ferragudo as well.
Where to stay in Lagos
Lagos Marina Guesthouse $: a wonderful budget option with various rooms including family rooms, some come with private or shared bathrooms. Walk through the marina and cross the bridge to reach Lagos Old Town.
Indigo Guesthouse $: bright and cozy guesthouse with private rooms and shared bathrooms. Spacious communal kitchen and terrace. Near the old town but also just a short walk to the beaches.
Casa da Alegria $$: entire house in the old town of Lagos. Within walking distance to the beaches. Perfect for families or two couples.
Quinta do Pinheiral: $$: nice house including pool surrounded by a garden just outside Lagos. Excellent for those who want peace and are seeking a longer stay in Lagos.
Henri’s Apartment Pateo de Santo António $$$: different themed luxury apartments in Lagos Old Town. Has an in-and outdoor pool, ideal for any time of year.
Lovely&Bright Apartment $$$: beautifully styled 2 bedroom apartment with sunny balcony. Just 5 minutes from the town center. Great for families and couples.
2. Faro
International flights to the Algarve arrive at Faro airport. Most people leave Faro as it is and head to other places in the Algarve, but Faro has a lot to offer.
Its old town is excellent to wander around while its long stretched soft sandy beaches offer more space during the peak season. There are even moments when you will feel like the only one there!
Faro Highlights
Old Town
Faro Cathedral (Se de Faro) & Bell Tower
Carmo Church & Chapel Bones
Municipal Museum of Faro
Faro Marina
Ria Formosa Natural Park – Wetlands
Beaches near Faro
Faro is known for its long-stretched sandy beaches. There are no incredible rock formations or cliff beaches here. However, the unique thing about Faro’s beaches is that many are found on sandbar islands. Therefore accessible by ferry only.
Regular ferry services run from June to September from Faro.
Faro Beach
Quinta do Lago Beach
Praia da Barreta
Lighthouse Beach & Praia da Ilha da Culatra
Day Trips from Faro
Faro is an ideal starting point to explore the east side of the Algarve. There are many characterful towns nearby. Some are even accessible by train. Perfect for those who don’t want to rent a car.
Here are 3-day trips we highly suggest when staying in Faro for two nights or more.
Olhão – Tavira
- Head to the train station in Faro and enjoy a short 10-minute ride to the fishing town Olhão. This little town isn’t tourist-oriented but is considered an authentic Portuguese town. The red market building, the many churches, and the beautiful houses make it worth the visit. A ferry service takes you to the deserted beaches of Culatra and Armona.
- From Olhão grab the train to Tavira which is just 30 minutes away. This town is becoming more popular for its cute streets, pretty buildings and the beautiful Roman bridge.
Loule – Praia da Falésia
- Hop in the car and head to the traditional city of Loule. Highlights are the indoor market (the Saturday Gypsy market is extremely popular) and the beautiful historic center.
- After lunch head down to the coast, more specifically Praia da Falésia. This red cliff beach is spectacular and shouldn’t be missed when visiting the Algarve.
Boat Tour to Benagil Cave
- Bengali Cave Tours is one of the most popular sea caves in the Algarve. This cave is only accessible by water. Tours are leaving from Faro, passing the beautiful Algarve coastline, and taking you all the way to the caves.
Where to stay in Faro Portugal
À da Avó -The Guesthouse $: Meaning ‘At Grandmother’s place’, this charming and with lots of love decorated guesthouse is a pleasure to stay at. It has 7 uniquely styled rooms in various price ranges with a private or shared bathroom. Ideally located in town.
Baixa Terrace Hostel $: Clean hostel with bunkbeds and double rooms, all with shared bathrooms. It has a communal kitchen and terrace. A perfect place to meet other travelers or if you just want a bed to sleep in after a day exploring.
Faro Downtown Ria Formosa Studios $$: Want to know what the colorful houses in Faro look like from the inside? This large and bright studio offers a nice stay. It has two large double beds and a balcony.
Vila Milreu Guest House $$: Located in Estoi, just 20 minutes from Faro. The ideal place if you want to escape the crowd, and enjoy a traditional feel with a beautiful garden, pool and mountain views. Perfect for the summer months.
Watermelon Sugar Apartment $$$: Not only beautifully located in the old city center of Faro but also lovely designed and decorated. It’s a large accommodation (has 2 bathrooms) and ideal for 2 couples or a family of 4. There is a small public pool
Typical Quiet Algarve cottage$$$: A cute cottage with a private pool with a view of the mountains. An excellent getaway and starting point to explore the east side of the Algarve. Located 15 minutes by car from Faro.
3. Carvoeiro
This little town is a popular place to stay. In the summer Cavoeiro becomes alive and it can get crowded. It isn’t as bad as the Albufeira area and there are luckily fewer highrise buildings. Therefore we still recommend checking this town out.
Unlike other small villages in the Algarve, there is still some action in the off-season. So Carvoeiro is also great for a winter escape.
It is located somewhat in central Algarve, so everything is just a short distance away by car. This makes Carvoeiro an ideal base but also perfect as a stop during a road trip through the Algarve.
Highlights Carvoeiro
Boardwalk
Algar Seco
Carvoeiro Beaches
Carvoeiro Beach
Praia de Vale Covo
Praia do Paraíso
Daytrips from Carvoeiro
Carvoeiro is a great place to start exploring the west and eastern parts of the Algarve without being in the car too long.
Besides visiting Faro and Lagos and their highlights, other day trips we highly suggest are:
Ferragudo – Silves
- Hop in the car for a short drive to the small fishing village Ferragudo. Their main attractions are the colorful houses found in narrow streets. At the marina you can arrange a water taxi to take you to the other side, or you can head to the many soft sandy beaches in and around town and stroll to the big fort Forte de São João do Arade.
- From Ferragudo, it’s a small drive north to Silves, a beautiful town with its dominant red castle. Stroll through the little streets and wander through the well-preserved castle while taking in the view of the Algarve’s countryside.
Praia da Marinha – Seven Hanging Valleys Trail
- Visit the stunning Praia da Marinha just a 15-minute drive from Carvoeiro.
- Here you can also find the starting point of the Seven Hanging Valleys Trail. It’s a 6km moderate hike leading you along the coastline, past the beaches Praia do Carvalho and Praia de Benagil. The trail ends at Praia do Vale. It is about a 30-minute hike from Carvoeiro, so this is an option if you don’t mind the extra miles.
You can also do this hike the other way around, ending at Praia da Marinha. Uber is present in the Algarve, so you can easily arrange a ride back.
Trail of Headlands
- Hike from Carvoeiro to Ferrgudo or vice versa. The 6km trail is along the magnificent Algarve coast and will pass many stunning beaches. This trail is less known compared to the popular Seven Hanging Valleys trail. This makes it a perfect alternative to avoid a crowd in the high season. Bring enough food and water with you as there aren’t many villages along the way.
Benagil Beach and Sea Caves
- Benagil Beach is just around the corner from Cavoeiro. You can reach it by car. But an even better way is to book a boat tour from Carvoeiro. Boat tours leave from Carvoeiro and will take you to the many sea caves, including the famous Benagil cave, which is only accessible by water. The trip is an experience to admire the Algarve coast from the water.
Where to stay in Carvoeiro Portugal
Villa Welwitshia $: This small run guesthouse with a pool is located just outside town, providing a relaxing setting. The spacious rooms vary from family to twin rooms. There is free parking onsite.
Carvoeiro Travel$: Located in the heart of Carvoeiro, next to the restaurants and shops. We recommend staying here during the low season only. The central location makes it easy to explore Carvoeiro if you are there for a day or two during a road trip. A great price-quality place to stay.
Quinta Do Paraiso $$: This is a huge resort, but we still wanted to add it to the list as it is a family-friendly hotel that offers all types of accommodation from villas with pool to 2-bedroom bungalows. It is a great option if you choose Carvoeiro as a base for your Algarve holiday.
Castelo Guesthouse $$: Perched on the cliff facing Carvoeiro beach, this castle-looking guesthouse offers incredible views from all rooms. The luxury rooms have a modern and refreshing look. Just minutes away from the historic town.
Casa Tuia Resort $$$: This designer resort offers all types of accommodations, even (upgraded) tents. The style of this luxury resort reminds us of Bali. It’s a wonderful place where the accommodation will add to your experience of visiting Carvoeiro.
Vila Alba Resort $$$: Despite being located pretty far from Carvoeiro (20 minutes drive) we still want to suggest this resort if you want a luxurious get-away. Their amenities are top-notch, there are several pools and the beach is just a stroll away. It is a good place to stay if you have Cavoeiro as a base and you want to spend a couple of days enjoying the resort as well.
4. Ferragudo
Once a quiet fishing village, now a popular town to visit or even to stay. The old town offers a maze of cobbled little streets and alleys with white houses with painted frames in all colors.
When we were there in February it was deserted, except for the fishermen at the marina preparing the nets for their next catch. However, in the peak season, you will find numerous little terraces within these narrow streets. This makes it a wonderful setting to try some traditional Portuguese dishes and drinks.
Ferragudo is the perfect alternative for those who want to skip the busyness of Carvoeiro and stay in a small cute town. It’s great for couples traveling through the Algarve in the high season.
Ferragudo Highlights
Colorful houses at Rua Dr. Luiz António dos Santos
River crossing
Ferragudo Beaches
The beaches closest to the old town of Ferragudo are Praia Grande and Praia da Angrinha. Both are long-stretched beaches with soft sand and are mainly visited by locals. This makes it perfect for avoiding the heavy tourist crowds. They do get busy though in the summer months…
More towards the south you can find the beautiful cove beach Praia da Infanta. It’s a tiny beach making it different to the other beaches in Ferragudo.
Day trips from Ferragudo
Similar to Carvoeiro, Ferragudo is ideally located to explore the western and eastern parts of the Algarve. You can easily visit Lagos and Faro within a one-hour drive. And even the west coast of the Algarve is not that far away.
Of course, a visit to Carvoeiro and its highlights is a must. The suggested Carvoeiro day trips can be done from Ferragudo as well.
Where to stay in Ferragudo
Alma da Vida Ferragudo $: What a gem! This accommodation is set in a historical building (those that make Ferragudo so special!) and its decoration is extremely tasteful. It is set in a quiet little street, yet minutes on foot to the bars and restaurants. They have 1 double bed, so suitable for couples or single travelers only.
Casinha de Ferragudo $$: This studio is within walking distance of the town’s highlights. It is a practical place as it has a kitchenette and washing machine. The terrace is an ideal spot to relax after a day exploring the Algarve. Perfect stay during a road trip or for two nights.
Vila Castelo Parque $$$: This luxury hotel complex has different modern-styled apartments for 4 to 6 people. The outdoor swimming pool is heated during national holidays in the off-season, plus they have a gym and a wellness area. Their reception and pool area are very welcoming.
5. Sagres
Surfing and beaches are the main things that draw people to Sagres. It is located on the southern tip of the Algarve and is pretty remote. The landscape is barren and rough, just like the sea. Hence the surfers…
Like many popular surfing towns, Sagres is very laid back. It can get busy in the summer, but if you wish to experience a surf vibe in the other months then this little town is a great option to stay the night.
During the winter months, there is still a lot going on since this is the best time for surfing. So unlike other smaller villages, you won’t find the Sagres deserted and all the restaurants closed.
Sagres Highlights
Surfing and Surf Schools
Fortaleza de Sagres
Cabo de Sao Vicente
Sagres Beaches
The beaches of Sagres attract a large surfing community. When the waves are just right, you’ll see a line of camper vans parked near the beaches.
However, most beaches are quite spacious and have soft sand. So, even if you don’t surf, Sagres is a wonderful place for a beach holiday.
Mareta Beach
Praia da Baleeira
Praia do Martinhal
Other popular beaches just outside town are the cliff beaches Praia dos Rebolinhos, and Praia do Tonel
Day Trips from Sagres
Sagres is just a 35-minute drive from Lagos, making it an ideal day trip (or pitstop on a Portugal road trip) from Sagres. Check the Lagos highlights we mentioned earlier for a day visit to this historic town.
West Atlantic Coast Beaches
The main road that takes you straight into Sagres is also the road that runs along the dramatic west coast of the Algarve. So it’s easy to head out, take a left turn on the dirt road, and explore the many cliff beaches along the Atlantic Ocean such as:
- Praia do Castelejo
- Praia do Amado
- Praia da Cordoama
- Plaża Murração
- Praia do Amado
- Praia da Bordeira
- west coast beaches
Where to stay in Sagres
Cercas Velhas $: This is one of those places where you know a lot of love has been put into it. 5 independent rooms with private bathrooms and kitchenettes are set in a former family house focused on agriculture. There are colorful and tastefully decorated studios and rooms to choose from.
Casa Biota $: A family-run hotel that offers the ‘hostel’ (4 single beds, ideal for families) or the ‘apartment’ with a double bed and 2 single beds and a fully equipped kitchen. The winning point is the views from every corner of the apartment. A wonderful place to stay when visiting Sagres.
Sea Salt Sagres Apartment $$: this is a good option to stay if you are traveling with children. It’s a spacious modern apartment providing amenities for everybody. Located in a quiet street, yet near the beaches and restaurants. If you feel like cooking, the kitchen is very well-equipped.
Villa Botelha$$$: Bright white villa set in a garden with a private pool. Its interior is fresh and gives a spacious feel. There is a double and 3 single beds. Families will enjoy their stay here.
6.Tavira
Tavira isn’t the first place that comes to mind when visiting the Algarve, but it’s a great option if you prefer a quieter stay compared to Faro. However, be aware that this charming village can get crowded with day visitors during the high season.
The surroundings of Tavira are beautiful, so if you have the time we highly recommend spending a couple of days here to explore the eastern Algarve.
Highlights Tavira
Historic Center
Castelo de Tavira
Igreja de Santa Maria do Castelo
Roman Bridge
Mercado Municipal
Parque Natural da Ria Farmosa
Pego do Inferno (Waterfall)
Tavira Beaches
Tavira is blessed with a beautiful coastline. Its long-stretched beaches are known for their soft clean sand and calm clear waters. Like many beaches in this part of the Algarve, you have to take a ferry to reach them. Ferries leave from Tavira Center, Quatro Aguas Pier (all year round), and the neighboring village Santa Cruz.
The most visited beaches are at Ilha de Tavira, the lagoon of Parque Natural da Ria Farmosa. As you can imagine, these beaches are unique. You will find no high-rise hotels here…
Tavira Beach
Praia da Terra Estreita
Praia do Barril
Day trips from Tavira
Sevilla Spain
Tavira is close to the Spanish border. So if you don’t mind hitting the road for a 2-hour one-way drive to Sevilla, make sure you do it. You won’t regret it!
We experienced Sevilla as one of the most amazing cities in Spain. Make sure you are allowed to take your rental car across the border.
Olhão-Faro
- This is a perfect day trip by train if you don’t want the hassle of finding a parking spot. Trains run between Tavira, Olhão, and Faro. This makes it easy to visit them.
- Check the Faro highlights we mentioned earlier. As for Olhão, it’s mainly a fishing village but known for its little cobbled street. Here you can still feel the traditional Portuguese coastal life. Ferries are leaving for the beaches from both Faro and Olhão. Not only will you see more stunning beaches but it’s a great way to get a glimpse of the Parque Natural da Ria Farmosa.
Loule – Red Cliff beaches
- We already suggested this day trip from Faro but it can be easily done from Tavira as well. It’s a perfect day trip to experience a different type of beach.
Where to stay in Tavira
Fazendinha Guesthouse $: A tranquil place to get away from it all. The guesthouse is set within a large garden including a nice pool. The house and its rooms are colorfully decorated with Portuguese touches. Great place for nature lovers and to meet other travelers too (if you wish). You will need your transportation as it is located 20 minutes north of Tavira.
Downtown Alegria B&B $: Beautifully decorated rooms with city or castle views set in a traditional Tavira house in town. It’s the ideal place to stay after discovering Tavira and its highlights. There is a communal kitchen and terrace.
Casa Beleza do Sul $$: A charming place to stay with beautifully styled floors and original features of the 19th-century building (warning!: small steps). Communal terrace is available. Just a minute’s walk from the ferry. Perfect to discover the beaches of Tavira.
OZADI Tavira Hotel $$: A large modern-styled hotel; ideal for those who want to combine day touring with some days of relaxation (pool, yoga, spa, fitness center available). There are two on-site restaurants. Perfect for a long stay plus their breakfast is very good. A shuttle bus will take you straight to Tavira town.
Authentic Tavira Hotel$$: A hippie chic fully renovated place for those who love details and personal touches. They have various types of modern-styled hotel rooms, a pool, and a great view from their terrace of the white houses of Tavira. Private parking is available.
Vila Gale Albacora $$$: This is quite a unique accommodation as it was once a former tuna fishing village near the Natural Park of Ria Formosa. The old fishermen’s houses, workshops, and warehouses have been converted into 161 rooms, the school is now a kid’s club and the former chapel still exists. A shuttle bus takes you into town, while a shuttle boat makes it easy to visit the beaches. A good choice for families with kids and those who want to be close to nature.
Conclusion: Where to stay in the Algarve
As you can tell the Algarve is a wonderful destination for those looking for an active and/or beach holiday. Each of the 6 towns we listed offers both while some are ideal for those who love to wander through historic little streets.
As mentioned earlier, the best location eventually depends on what you want to do and if you want to move to various areas during your visit to the Algarve.
Lagos is ideal for first-timers to the Algarve, a base (ideal if you don’t have a car) to explore its beaches and do small day trips. It is also a place you should stop at least for the night if you are doing a road trip.
Faro usually isn’t as popular as Lagos, since it doesn’t have stunning yellow cliff beaches. However, they are located near the Ria Formosa Nature Park ensuring that tourism development isn’t possible. Faro has enough to offer for a week’s visit to the Algarve. If you want to see more of the southern part of Portugal, then staying in Lagos and Faro will give you a more full experience.
Carvoeiro is the perfect base for those who want to be close to the beach but want to explore the Algarve without being in the car too long. It’s also the perfect pit stop for a night during a road trip. You can see a lot in just one day before jumping in the car for your next destination.
If you want to lose the crowd, we suggest looking at the 3 other smaller villages. Ferragudo is a quieter alternative and less tourist-oriented compared to Cavoeiro. Sagres offers beaches and a surfing vibe. And Tavira is a mix of culture and nature.
We understand this is a lot to process. But we hope we have given you an idea of what each village has to offer so you can arrange your accommodation knowing it will suit your trip to the Algarve.