Where to Stay in the Algarve

EuropeHotelsPortugal
Written By Jessica Bergin

Sun-drenched beaches and bucolic fishing villages offer an epic adventure in Southern Portugal. If you’re unsure where to stay in the Algarve, this guide breaks down the best spots for nightlife, beaches and more.

Anchoring Portugal's southernmost region, the Algarve is illustrated by a stunning coastline and historic hot spots. This dreamy destination is home to a huge haul of accommodations, from rural stays to high-end hotels. If you want to know where to stay in the Algarve, look no further than this guide.

white seaside town in the algarve

Vibrant nightlife, cultural experiences and tranquil retreats are tucked around every corner. Soak in the serenity in Tavira, explore the whitewashed Faro or hang out in trendy Albufeira.

Choosing the right place to stay can make all the difference on your travels. Pristine beaches, dramatic coastal trails and character-packed coastal towns set the scene for your Portugal getaway.

For lively resorts and nightlife, Albufeira is a top choice, while Lagos boasts a blend of history and natural splendour. Avoid the crowds and opt for a more tranquil retreat in Carvoeiro.

On my 14-day road trip through Spain and Portugal, I enjoyed a unique accommodation experience in the Algarve. I stayed in a yurt in an orange grove, tucked in a rural part of Sagres. The location was far away from the bustling crowds, but still close enough to enjoy the conveniences of local restaurants, cafes and shops.

See the best of the Algarve on this 10-day Portugal itinerary. You’ll combine hot spots like Lisbon and Porto with the best travel destinations in Southern Portugal.

Each area in the Algarve offers something unique for travellers. Portugal’s lush greenery, soaring cliffs and crystal-clear waters will make your Algarve trip unforgettable. So, let’s get straight into this travel guide.

10 Best Areas to Stay in Algarve

benagil beach in the algarve

Make the most of your Portugal trip with this guide on where to stay in the Algarve region.

We cover the top areas to stay in the Algarve, the best time to visit, things to do, how to get around and more.

Swim in hidden coves in Carvoeiro, shop til you drop in Portimao and hike the coastal trails in Lagos.

The best things to do in Algarve come in no shortage. Here’s a summary of the places we cover in this guide:

  • Carvoeiro

  • Portimão

  • Albufeira

  • Tavira

  • Lagos

  • Vilamoura

  • Sagres

  • Quarteira

  • Faro

  • Alvor

 

Carvoeiro

Carvoeiro is crowned for its dramatic cliffs and golden sand beaches. This picturesque town in the Algarve is known for its charming village vibes, and unlike larger resort towns, it has a more relaxed setting.

This town is slewed with a range of activities, restaurants and spectacular coastal scenery. Marvel at the lyrical landscapes of the famous Algar Seco rock formations, an oasis for nature enthusiasts and photographers.

Carvoeiro is located near some of the most beautiful beaches in the Algarve, like Praia de Carvoeiro, Praia da Marinha and Praia do Vale de Centeanes. Spend the day lounging on the soft sand and swimming in the turquoise waters at Carvoeiro Beach.

If you want to know where to stay in the Algarve with a family, Carvoeiro is a top pick for amenities and convenience. This former fishing village offers a mix of villas, apartments and boutique hotels.

Best Places to Stay in Carvoeiro

 

Portimão

Portimão flaunts a rich fishing heritage and modern amenities, making it one of the most vibrant cities in the Algarve. This beach oasis is well-known for its bustling marina and shopping scene.

With close proximity to some of the coast’s best beaches, Portimao's picturesque harbour provides the perfect backdrop for your next getaway. Learn about the city's industrial and maritime history in the Portimão Museum and spend the evening in the Portimão Marina. This modern marina overlooks the Arade River and is lined with restaurants, bars and a bustling nightlife.

Meander around the museums and churches or hit the green on some of the best golf courses in Europe. Get your heart racing in the watersports scene with activities like fishing, sailing, kayaking and surfing.

Amp up your Algarve trip with an adventure in Praia da Rocha, a famous beach known for its sandy shore and lively promenade. Spice it up with a kayak tour of the Benagil Caves, a classy catamaran cruise and beach BBQ or a pirate ship cave cruise. Argh, me hearties!

If you’re unsure where to stay in the Algarve with kids, Portimao is a great fit. Accommodation varies from long-stay apartments and high-end hotels to budget-friendly stays.

portimao in the algarve

Make the most of your Portimao trip by coupling it with this 14-day Portugal itinerary.

You’ll enjoy the best of the Algarve while visiting popular places like Lisbon, Sintra, Cascais and Porto.

Best Places to Stay in Portimão

 

Albufeira

This former fisherman’s village has transformed into a buzzing tourist hot spot. Albufeira is dominated by The Strip (Avenida Sá Carneiro), a nightlife hub fringed with bars and clubs.

Albufeira is coined as one of the Algarve’s most exciting destinations, thanks to its mix of trendy bars and beach clubs. Soak up the buzzing atmosphere as you trail through the Old Town’s charming streets. Navigate the narrow lanes and admire the traditional architecture before indulging in local delicacies in the lively squares.

Escape the summer heat in the most popular beaches, such as Praia da Oura and Praia dos Pescadores. Hike the scenic coastal trails and hit the high seas on a boat tour in the Algarve. Mix up your Algarve itinerary with some minigolf, quad biking or a winery tour in the countryside.

If you only have a few days, don’t miss Praia dos Pescadores, a central beach known for its golden sands and vibrant ambience. Many attractions in the Algarve can be found in Albufeira, like the Salgados Golf Course, Paderne Castle and the Adega do Cantor, an exclusive winery.

If you want to know where to stay in the Algarve for young couples, Albufeira offers both romance and a party-filled getaway. There’s a wide array of accommodations, from all-inclusive resorts to long-stay apartments.

Best Places to Stay in Albufeira

 

Tavira

Tavira is lapped with laid-back vibes and an authentic atmosphere. This postcard-worthy fishing village is replete with a rich history dating back to the Phoenicians.

The town is divided by the Gilão River and linked by the Roman Bridge, offering unique scenery on every corner. Tavira is known for its well-preserved architecture, which can be found at highlights like the Tavira Castle and Igreja de Santa Maria do Castelo.

tavira in the algarve

Sitting on the east coast, Tavira’s terrace-lined plazas and whitewashed streets crown it as one of the prettiest towns in the Algarve.

Keep your eyes peeled for the traditional azulejos tiles and the time-worn Castelo from the 13th century.

See the sunset from a rooftop bar or take a boat trip to Ilha de Tavira, a scenic island with pristine beaches.

Unlike the bustling resort towns, Tavira retains its traditional charm and a slower pace of life.

This is the best place to stay in the Algarve for couples, as well as those who are seeking a peaceful escape. Tavira provides boutique hotels, guesthouses and countryside accommodations.

Best Places to Stay in Tavira

 

Lagos

If you want to know where to stay on the Algarve coast, here’s why you should consider Lagos.

Lagos is lined with buzzing beaches, a rich history and outdoor adventure aplenty. This vibrant town is world-famous for its signature Portuguese cuisine. Experience authentic food culture as you sample local delicacies like ‘frango à guia’, roasted chicken.

Once you’ve pleased your palette, spend the afternoon at the slew of spectacular beaches. Local favourites include Praia da Dona Ana, Praia do Camilo and Meia Praia. See the best coastal views from the famous Ponta da Piedade cliffs before heading into town for some sunset cocktails.

Sightseeing comes in no shortage, and the historic centre is framed with 16th-century walls, cobbled streets and landmarks like the Forte da Ponta da Bandeira and the Igreja de Santo António. Spice up your Algarve itinerary with a kayaking tour, a Golden Coast cruise or a horse-riding beach tour.

Lagos boasts a mix of boutique hotels, guesthouses and resorts. Accommodation ranges from luxury establishments to budget-friendly hostels. This is one of the best places to stay in the Algarve for families, history lovers and beach bums alike.

Best Places to Stay in Lagos

 

Vilamoura

Vilamoura is pinned as one of the most exclusive destinations in the Algarve, thanks to its luxury resorts and world-class golf courses.

The marina is fringed with high-end restaurants and boutique stores, while nightclubs can be found in the adjacent streets. Golden beaches and a vibrant nightlife attract travellers aplenty, making it one of the top places to stay in the Algarve. Hit the heights on a paragliding flight, speed around on a jet ski or enjoy a sunset sail on a luxury boat.

Spend an afternoon in Portugal's largest marina, home to over 1,000 vessels and admire the ancient Roman baths and mosaics in the Cerro da Vila.

If you tire of sightseeing and sandy beaches, hit the green at Vilamoura’s golf courses, like Ombria Golf Course and Old Course Vilamoura. Vilamoura offers luxury hotels, all-inclusive resorts and private villas and it’s best suited to luxury travellers and golf enthusiasts.

Best Places to Stay in Vilamoura

 

Quarteira

This coastal town in the Algarve is known for its long, sandy Quarteira Beach that’s backed by whitewashed buildings.

Quarteira’s palm-lined promenade and fresh seafood make it a standout in the region. Lock lips with local delicacies on the Avenida Infante de Sagres or shop for freshly caught fish at the weekly market.

Mix up your itinerary with golf courses, cuisine and cultural pursuits. Sunbathe at iconic beaches like Praia de Quarteira and Praia do Almargem. Quartiera is the best place to stay in the Algarve for beaches and food. It’s a great budget-friendly alternative to Vilamoura, as it’s just minutes away from its marina and golf courses.

Best Places to Stay in Quarteira

 

Sagres

Sagres is nestled with untamed natural splendour. Roam the rugged clifftops, surf at the wind-swept beaches and prepare for breathtaking sunsets.

sagres in portugal

Sagres is unlike any other resort town in the Algarve. This coastal oasis is popular among surfers, making it one of the best places to stay for both beginners and advanced.

With off-the-beaten-path experiences, this part of Southern Portugal is the ultimate place to spice up your Algarve vacation.

Don’t miss beaches like Praia do Beliche, Praia da Mareta and Praia do Tonel.

Enjoy the scenery at Praia do Telheiro, frolic around the Sagres Fortress, go wild on a cliff jumping tour or hop on a sunset jeep tour.

Best Places to Stay in Sagres

 

Faro

The capital of the Algarve serves as more than just a gateway to untramelled natural beauty. It’s a history-ridden city that oozes charm at every angle.

Get a taste of Faro’s natural beauty on a tour to Benagil Cave and Marinha Beach or on a dolphin-watching cruise. Wander astray in the cobbled streets of the Old Town, marvel at the historic architecture and sip local wines in a scenic café.

Visit the Arco da Vila, check out Faro Cathedral and don’t miss the iconic Carmo Church with its Bone Chapel. If you want to know where to stay in the Algarve without a car, Faro is an ideal base. Home to an international airport, the Algarve’s capital is well-connected by public transport.

Best Places to Stay in Faro

 

Alvor

Tucked on the west side of Portimao, Alvor is a smaller town that serves as a great base for sightseeing.

The main beach, Praia de Alvor, is similar to the beaches in the eastern Algarve. Two of the best beaches are Praia dos Três Irmãos and Praia da Prainha, which are well-known for their staggering rock formations.

Similar to Ria Formosa Natural Reserve, there is also a big lagoon. The Vale da Lama (Mud Valley) in the Alvor Lagoon is home to many oyster farms, offering a unique experience for foodies and culture vultures.

If you want to know where to stay in the Algarve for couples, Alvor’s laid-back ambience and amenities make it an appealing option. The Old Town is lined with restaurants, bars and nightlife, similar to that of Albufeira or Vilamoura.

Best Places to Stay in Alvor

 

7-Day Algarve Itinerary

beach in the algarve in portugal

Now that you’re up to speed on the top places to stay in the Algarve, Portugal, let’s get into some of the logistics.

Make your holiday in Portugal memorable with this 7-day Algarve itinerary.

  • Day 1: Faro

  • Day 2: Ria Formosa Natural Park

  • Day 3: Vilamoura & Albufeira

  • Day 4: Lagos

  • Day 5: Sagres & Cabo de São Vicente

  • Day 6: Ferragudo & Portimao

  • Day 7: Historic Towns

 

Best Time to Visit the Algarve

The best time to visit the Algarve in Portugal depends on your personal preferences, travel style and budget. Here’s a breakdown of what to expect in each season.

Summer

From June to August, the Algarve boasts hot temperatures, long days and lots of sunshine. This is peak season - most tourist areas get overcrowded and prices go up on accommodation and airfares.

The best places to stay in the Algarve book out months in advance, so be sure to reserve your accommodation well ahead of time.

Tip for visiting the Algarve in summer: The most famous beaches are accessible by car, but parking is limited. Arrive early to avoid the crowds!

Autumn

From September to November, the weather remains warm and the beaches become less packed than during the summer months. Autumn is an ideal time to discover the Algarve’s natural beauty, play golf and enjoy outdoor activities.

The Algarve’s beaches are best visited in early autumn, September to mid-October, when the weather is warm and the crowds are significantly lighter.

Winter

From December to February, there are colder temperatures and lots of wind. Some tourist facilities reduce their schedules or close entirely. If you prefer a peaceful experience and lower accommodation rates, this is a great option.

Spring

March to May is the ideal time for outdoor activities like hiking, biking and sightseeing. You can swim at the beaches in the Algarve towards mid to late May. Spring is one of the best times to visit the Algarve, especially if you want to avoid the summer crowds.

 

Top Things to do in the Algarve

Whether it’s palette-pleasing adventures or adrenaline-inducing activities you seek, the Algarve is most undoubtedly worth the visit. Here are some of the top activities and attractions in Southern Portugal:

 
 

How to Get Around the Algarve

Now that you know where to stay in the Algarve, let’s figure out the best way to get around.

By Flight

Want to know how to get to the Algarve? If you're coming from Lisbon, there are frequent flights to Faro Airport (FAO). This flight takes around 45 minutes, making it a time-effective option.

By Train

You can reach the Algarve on an intercity train route in around 4 hours. When you reach the Algarve, there are four different train lines under the Comboios De Portugal. Make your way through the Alfa Pendular (AP), Intercidades (C), Regional (R) and InterRegional (IR) train lines by booking your tickets online and in advance.

By Car

Hiring a rental car allows you to explore the hidden gems and idyllic beaches in Southern Portugal. You can reach the Algarve from Lisbon via a 2.5-hour car drive, making it a quicker option than train or bus.

If you want to see the best things to do in the Algarve, having a car is essential. You’ll enjoy the freedom to create your own schedule, travel at your own pace and make as many stops as you want along the way.

Driving in Europe can be an intense experience for many travellers. Like Lisbon and Porto, traffic congestion can be intense in popular areas. Avoid the crowds by arriving early in the morning and planning your route ahead of time.

 

FAQs

What is the nicest part of the Algarve?

The Algarve is a top travel destination that’s known for its stunning beaches, charming towns and vibrant nightlife. Experience the lively party scene in Albufeira, soak up the sun on Portimão’s golden beaches, and explore picturesque coastal towns like Lagos and Faro.

Which part of the Algarve has the best beaches?

Whether you're looking for adventure or relaxation, the Algarve offers the perfect coastal escape. Must-visit spots include Praia de Odeceixe in Odeceixe, Praia da Arrifana in Aljezur, and Praia de Vale Figueira in Carrapateira.

What is the most fun town in the Algarve?

Albufeira is the liveliest town in the Algarve, renowned for its vibrant nightlife, bustling bars and exciting water sports. As a top destination, it offers a perfect base to see the best attractions and activities in the Algarve.

What is the least touristy part of the Algarve?

Avoid the frustration of big crowds and long queues by visiting peaceful towns like Láte, Salema, Burgau, Tavira or Monchique.

Why Visit the Algarve?

Southern Portugal boasts whitewashed villages, limestone clifftops and golden beaches. This adventure playground offers a diversity of escapes, from character-packed Faro to wind-sculpted Sagres.

Before you jet-set off on your next getaway, save this guide on where to stay in the Algarve, Portugal.

Jessica Bergin https://www.jessbergin.com
Next

Southern Spain Road Trip