A guide to the best hotels where to stay in South Portugal
When I think of South Portugal, I picture sun-soaked cliffs, whitewashed towns, and waves echoing through hidden coves.
My time when I travel Algarve feels like a dreamy escape where I can fully be part of the nature and culture of that magical place.
Whether you’re chasing luxury or just looking for a quiet corner by the sea, this region has the best accommodations.
I put together this guide based on my own wanderings—ideal if you’re wondering where to stay in South Portugal and want to make the most of your trip.
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Psssst…!!?? You can’t get enough of Algarve? Have a look at my other posts:
Overview: My favorite hotels in South Portugal
1. Albufeira: The Life of the Party (and the Beach)
Albufeira has this contagious energy. It’s where the coast meets a buzzing atmosphere—perfect for anyone who loves beach life and busy evenings.
The old town is a colorful maze of restaurants and bars, and the golden beaches stretch for miles.
One of my top picks here is Pine Cliffs Resort—set dramatically on the cliffs, it’s a stunning place to relax in style.
For something more low-key and design-forward, Hotel California is stylish, adult-only, and just steps from the action.
On a budget? Albufeira Beach Apartment offers simple comfort near the shoreline, making it easy to enjoy the city without splurging.
If you’re looking for the best accommodation in Albufeira, you’ve got great choices at every price point.
Budget
Hostel DP Albufeira
Vila Recife Hotel
Suites & Beds DP Albufeira
Casa dos Arcos – Charm Guesthouse
Mid-range
Cerro da Marina Hotel
Luna Solaqua
The Patio Suite Hotel
Alfagar Cerro Malpique
Luxury
EPIC SANA Algarve Hotel
Grande Real Santa Eulalia Resort & Hotel Spa
Vila Joya
W Algarve
2. Vilamoura: Where Class Meets Coastline
Vilamoura feels polished and peaceful, with its sailboat-dotted marina, golf courses, and elegant vibe.
It’s where you can sip wine by the water one minute and find yourself on a quiet beach the next.
The Anantara Vilamoura Algarve Resort sets the bar high—it’s sleek, serene, and perfectly tailored for a high-end escape.
I also love The Lake Resort, which has a more natural aesthetic and tranquil grounds that make you feel worlds away from daily life.
If you’re traveling with a more modest budget, Dom Pedro Vilamoura offers solid comfort right near the marina.
When people ask me where to stay in Vilamoura, I say: if you want luxury without the noise, this is your spot.
Budget
Hotel Apartamento do Golfe
Hotel Praia Sol
Prado do Golf
Solgarve
Mid-range
Luna Olympus
Dom Pedro Portobelo
Hotel Apartamento do Golfe
Parque Mourabel
Luxury
Anantara Vilamoura Algarve Resort
Tivoli Marina Vilamoura
Crowne Plaza Vilamoura
Domes Lake Algarve
3. Lagos: Soulful and Scenic
Lagos might just be my favorite town in the Algarve. There’s something special about the way history and charm merge with dramatic ocean views.
You can stroll the old city walls, then watch the sunset from a cliffside trail—all in the same afternoon.
Belmar Spa & Beach Resort is a great place to relax after a day of exploring. It’s located close to Praia dos Três Irmãos and has spacious suites with a vacation-home feel.
Cascade Wellness Resort is another standout—perfect for wellness, privacy, and beautiful design.
Casa Mãe Lagos is truly unique, stylish, locally rooted, and full of personality and a top place where to stay in Lagos.
Lagos is a wonderful option if you’re trying to decide where to stay in South Portugal with both beauty and soul.
Budget
Casa Augusta
Sunny House
Lagos Charming Villas
Blue Door Lagos
Mid-range
Carvi Beach Hotel
Dom Pedro Lagos
Hotel Mar Azul
Solar de Mos Hotel
Luxury
Cascade Wellness Resort
Palmares Beach House Hotel
Lagos Avenida Hotel
Belmar Spa & Beach Resort
4. Faro: Quiet Culture and Natural Wonder
Faro often gets overlooked, but it’s such an underrated treasure.
It’s a calm, authentic city where history peeks around every corner, and the nearby Ria Formosa wetlands are a dream if you love nature and birdwatching.
Just outside Faro, I found Pousada Palacio de Estoi, a former palace transformed into a peaceful escape, complete with gardens and historic charm.
In the city center, Hotel Faro & Beach Club is modern and lively, with a rooftop pool and great views over the marina.
Want something affordable but well-located? Cerro Da Marina Hotel is a sweet, no-fuss option in the heart of town.
If you’re wondering where to stay in Faro, it’s ideal for those who love laid-back vibes, fewer crowds, and a little cultural depth.
Budget
Hotel Alnacir
Hotel Made Inn Faro
Residencial Condado
Guest House São Filipe
Mid-range
Hotel Sol Algarve
Stay Hotel Faro Centro
Aqua Ria Boutique Hotel
Faro Boutique Hotel
Luxury
3HB Faro
AP Eva Senses
Opus One Luxury Guesthouse & Wine
Pousada Palácio de Estoi
My bottom line of where to stay
South Portugal has a personality for every kind of traveler with its vibrant Albufeira beaches and Faro’s peaceful charm.
Whether you want a luxe resort or a cheap place to stay in the Algarve, you’ll find an option that feels just right.
Personally, I think it’s one of the most beautiful places in Portugal—maybe even in Europe.
If you’re planning to visit the southern coast, this region is one of the most beautiful cities in Portugal to explore (yes, some of the towns feel like little cities!).
I hope this guide helped you find the best places where to stay in South Portugal—and maybe even inspired a new dream trip.
FAQ about hotels in Southern Portugal
Where to stay in south Portugal for first timers?
Some of the places where to stay in South Portugal for first timers are Algarve Race Resort, EPIC SANA Algarve Hotel or Anantara Vilamoura Algarve Resort.
Where to stay in south Portugal for couples?
Some places where to stay in south portugal for couples are Vila Maria Hotel – Adults Only, Hotel Dom Manuel I or NAU Salema Beach Village.
Where to stay in south Portugal for beaches?
Some of the places where to stay in south Portugal for beaches are Cascade Wellness Resort, Grand Muthu Oura View Beach Club, or Carvi Beach Hotel.
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Hola! I’m Paulina, a seasoned travelette who crossed the Atlantic Ocean by Boat HitchHiking. On my blog, find expert insights for an extraordinary holiday through outdoor and sustainable travel like hiking, cycling, and sailing. Let’s embark on unforgettable journeys together!
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