The Algarve is Portugal’s southern coast, with golden cliffs, little coves and long beaches where you could easily spend an entire holiday swimming and eating fish for lunch. But staying near the bars in Albufeira, beside the river in Tavira or at a clifftop hotel in Carvoeiro gives you very different holidays.
I’d choose the town before falling in love with a particular hotel.
- Do you want to walk to the beach and restaurants, drive between coves or spend your holiday at a good resort?
That’s the main question to ask yourself before deciding where to stay on the Algarve coast.
Here are my recommendations for six good places to stay in the Algarve, with hotels for different budgets.
The Best Areas in the Algarve
- Lagos - best town for first-time visitors
- Albufeira - best town for beaches and nightlife
- Carvoeiro - best town for couples and a holiday by the cliffs
- Tavira - best town for quiet evenings and Portuguese town life
- Vilamoura - best area for a marina, golf and good hotels
- Faro - best town for a short trip without a car
Below, I’ll take you through the towns, their advantages and drawbacks, and the hotels I recommend across different price ranges.
1. Lagos - best town for first-time visitors 🌊
- 📍 Distance to the centre: Hotels in the Old Town are central. Porto de Mós and Meia Praia are separate beach areas outside the town centre.
- 🚕 Transport: The centre is easy to get around on foot, and the railway station is by the marina. A car or local transport is useful for visiting several beaches.
- ✈️ Journey from Faro Airport: Allow roughly 60 to 75 minutes by car, depending on traffic and your hotel.
- 💰 Price range: € to €€€. July and August are usually more expensive than spring and autumn.
- 👮 Safety: Stay away from cliff edges, follow signs and beach flags, and don’t put your towel directly beneath the cliffs.
Lagos is my top suggestion for your first Algarve holiday because it combines restaurants and evening walks with some of the coast’s loveliest beaches between the cliffs. You can stay in the Old Town, eat out without a car and spend your days by the water.
There’s more to do than at an isolated beach hotel, and the town suits couples and friends who’d like a good mix of outings and relaxation.
The main choice is between the centre, Meia Praia and the area south-west of town. Meia Praia is the long sandy beach on the other side of the marina, while Dona Ana and Camilo sit between the cliffs further south. Porto de Mós offers a different, more secluded setting for your hotel.
So there’s a difference between a hotel with a Lagos address and one where you can actually walk into town for dinner every evening.
I’d stay centrally for a trip without a car where you’d like to choose restaurants as you go. A hotel at Porto de Mós gives you more of a beach holiday, but you’ll need transport or a longer walk to reach the town centre.
The cliffs at Ponta da Piedade are an obvious choice for an outing. Boat trips depend on the weather, so don’t make the whole holiday hinge on taking one on a particular day.
Lagos is also worth considering if you’re still comparing places for a beach holiday in southern Europe. My guide to where to stay in Sardinia can help with that decision.
Here in the Algarve, I’d mainly choose Lagos for its combination of a proper town and several different beaches. With a pushchair or difficulty using steps, check access to the beach you expect to use most.
Places to Stay in Lagos
Boutique Hotel Vivenda Miranda - best hotel for a romantic holiday with sea views
Vivenda Miranda sits on the cliffs at Porto de Mós, overlooking the Atlantic and around a five-minute walk from the beach. The location is the reason to choose it: you’ll have a more secluded setting for a couples’ holiday, with a restaurant on site.
I’d stay here if the sea and the hotel itself will be a large part of the holiday, and arrange transport for evenings when you’d like dinner in central Lagos.
Roger describes the location on Booking.com: “On the cliff overlooking the sea.”
See photos and book Vivenda Miranda here.
Lagos Atlantic Hotel - a good hotel with a pool near Porto de Mós
Lagos Atlantic has an outdoor pool, garden and bar, around 500 metres from Porto de Mós Beach. It’s a good middle ground for switching between the beach and pool without paying for a large resort.
You’ll be outside the Old Town, so I’d choose it for quiet surroundings at the hotel and trips into town whenever you fancy a wider choice of restaurants.
Nathaniel mentions the walk to the beach in his Booking.com review: “Within walking distance of the beach and some good restaurants.”
See photos and book Lagos Atlantic here.
LagosMar Story Hotel - best budget choice in the Old Town
LagosMar is a family-run hotel in the historic centre, with a rooftop terrace overlooking the town and coast. It’s a good suggestion if you’d rather stay in the middle of Lagos and spend your money on dinners and outings than on a large pool area. You’ll get a simpler hotel experience than at the beach hotels, but you can step straight into the town’s streets in the evening.
Boglarka mentions the rooftop terrace on Booking.com: “A rooftop terrace with beautiful views.”
See photos and book LagosMar here.
2. Albufeira - best town for beaches and nightlife 🍹
- 📍 Distance to the centre: The Old Town and The Strip are different parts of town. Hotels at Falésia are further east.
- 🚕 Transport: You can walk locally, but buses or taxis are useful between areas. Check the hills around your hotel.
- ✈️ Journey from Faro Airport: Allow around 35 to 50 minutes by car. Resorts furthest west can take longer to reach.
- 💰 Price range: € to €€€. The choice ranges from simple hotels to large resorts.
- 👮 Safety: Be aware of noise around the bar streets, look after your belongings and follow the flags on the beach.
Albufeira is where I’d start for a holiday that’s easy to fill with beaches, restaurants and things to do in the evening. There’s a large choice of hotels, from places close to the Old Town’s beaches to larger holiday hotels further east.
It suits you if you like having plenty of options and don’t mind that other people have had the same idea.
Get to know the difference between the Old Town and The Strip. The Old Town has squares, restaurants and a beach close together, but also bars and late nights. The Strip around Avenida Sá Carneiro is the more obvious choice when nightlife is a major part of your trip.
I’d avoid booking right beside the bars with small children, even if the hotel photos show a peaceful pool in the middle of the day.
For a family holiday, I’d also look towards Olhos de Água and Falésia, east of the centre. You can find more space around your hotel and prioritise the beach and pool, but you’ll need transport into the Old Town.
Booking sites include those hotels in the Albufeira area, and the distance can be considerable. EPIC SANA below, for example, is a resort at Falésia where you’re choosing the coast over a central location.
I’d choose the Old Town to walk out every evening and have the beach nearby without a hire car. If you’ll mostly eat at the hotel and spend your days by the pool, a resort further away can be better value.
- Albufeira is less suitable if your ideal holiday means quiet streets and few other tourists. I’d look towards Tavira or choose a smaller hotel setting around Carvoeiro instead.
Places to Stay in Albufeira
EPIC SANA Algarve Hotel - best resort for a holiday at Falésia Beach
EPIC SANA sits between Albufeira and Vilamoura, in green surroundings above Falésia Beach with access down to the sand. It’s my suggestion for spending a large part of the holiday at your hotel, with more space around you than in central Albufeira.
You’re choosing a coastal resort stay here, so plan transport to the Old Town instead of expecting a short walk to its restaurants.
Oded praises the staff’s help in his Booking.com review: “The staff were very welcoming and helpful.”
See photos and book EPIC SANA here.
Aqua Pedra Dos Bicos Design Beach Hotel - Adults Friendly - a good hotel for couples near Oura
Aqua Pedra Dos Bicos is near Oura, with an outdoor pool and access to a beach around 400 metres away. It suits couples who’d like a pool and beach while staying in a part of Albufeira with nightlife nearby. I’d look at a pool-facing room and compare categories to match the location and view to the holiday you have in mind.
Paul gives a specific room tip on Booking.com: “I recommend a room overlooking the pool.”
See photos and book Aqua Pedra Dos Bicos here.
Hotel Sol e Mar Albufeira - Adults Only - best adults-only beach hotel in the Old Town
Sol e Mar is on the beach in the Old Town, so you can combine swimming, restaurants and evening walks without driving back and forth. It’s an adults-only hotel, making it particularly relevant for couples or friends wanting a central beach location.
Here, I’d prioritise the location over resort facilities and read recent reviews of the evening entertainment if very quiet evenings matter to you.
furbo53 praises the area in a Booking.com review: “The location in the Old Town was excellent.”
See photos and book Sol e Mar here.
3. Carvoeiro - best town for couples and a holiday by the cliffs 🏖️
- 📍 Distance to the centre: The small town centre is around Praia do Carvoeiro. Several resorts are up the hills to the east.
- 🚕 Transport: You can walk around the centre, but there are hills. A hire car is useful for other coves and hotels outside town.
- ✈️ Journey from Faro Airport: Allow roughly 45 to 60 minutes by car when planning your journey.
- 💰 Price range: €€ to €€€. Apartments and holiday homes can be good value for groups.
- 👮 Safety: Use the designated cliff paths, stay away from the edges and respect barriers.
Carvoeiro is my suggestion if you picture a smaller holiday town with white houses around a beach between the cliffs. The centre is easy to get to know, and you can have dinner close to the water without staying in a major nightlife area.
It’s a lovely setting for a couples’ holiday and also suits families wanting a quieter base than the streets around The Strip in Albufeira.
The central beach is small compared with Meia Praia near Lagos and the long stretches further east. That makes for an intimate setting, but also less space on the busiest summer days.
I’d choose a hotel with a pool in high season, so the size of the beach doesn’t determine your whole day. A hire car makes the holiday easier if you’d like several swimming spots to choose from, particularly when staying outside the centre.
Hills are part of Carvoeiro, and you need to factor them into your hotel choice. Even a short distance can mean a hot, steep walk home from dinner. Look at the actual route to the beach instead of just the distance as the crow flies.
With a pushchair or limited mobility, I’d start around the square and check both hotel access and the route to restaurants.
Hotels higher up along the coast can give you sea views and more space around the pool. Tivoli sits above Vale Covo, while Pestana Palm Gardens has holiday homes that better suit a family wanting to cook some meals. Carvoeiro Plaza is the more central choice.
I’d account for those differences when comparing prices. A cheaper hotel that needs a taxi every evening can soon cost more than a more convenient address.
Places to Stay in Carvoeiro
Tivoli Carvoeiro - best luxury hotel overlooking the cliffs
Tivoli Carvoeiro sits above Vale Covo, where the sea and cliffs create a different hotel experience from staying by the town square. The five-star hotel is particularly worth considering for a holiday where you’ll spend time at the property and are happy to pay for its surroundings.
I’d choose a category with the view you want, remembering that a position above a cove doesn’t mean direct access to a large, easily accessible sandy beach.
Kristopher praises the comfort on Booking.com: “Very comfortable beds.”
See photos and book Tivoli Carvoeiro here.
Pestana Palm Gardens - best choice for families wanting their own kitchen
Pestana Palm Gardens has furnished townhouses, an outdoor pool and a restaurant on a plateau by the coast. It’s a good choice for eating some meals at your accommodation and having a holiday home as your base, with shared facilities as well.
One guest describes a kitchen and washing machine in their accommodation. Check the specific type when booking to get the layout and equipment your family needs.
Wentling praises the layout on Booking.com: “A good layout for a family.”
See photos and book Pestana Palm Gardens here.
Hotel Carvoeiro Plaza - best hotel for a central stay without a car
Carvoeiro Plaza is in the town centre, around 25 metres from the beach, with an outdoor pool, terrace and bar. The short walk to both the water and restaurants is its main advantage, particularly if you’d like to leave the car parked or manage without one.
You’re closer to town life than at the cliff hotels. I’d choose it for an easy daily routine and read about the room’s position if you’re sensitive to noise from the square.
Cindy writes about breakfast and the staff on Booking.com: “Lovely breakfast and friendly, helpful staff.”
See photos and book Carvoeiro Plaza here.
4. Tavira - best town for quiet evenings and Portuguese town life ☀️
- 📍 Distance to the centre: The centre lies on both sides of the River Gilão. Beaches are out on the coast and islands.
- 🚕 Transport: The centre is good for walking. Trains connect Tavira with other towns, and a boat ride is part of the trip to Ilha de Tavira.
- ✈️ Journey from Faro Airport: Allow around 30 to 45 minutes by car, depending on traffic.
- 💰 Price range: € to €€€. Central boutique hotels can cost more than hotels on the roads into town.
- 👮 Safety: Check the last ferry on beach trips, and follow local beach flags and signs.
Tavira is the town I’d choose for more slow evenings beside a river than late nights in bars. The white houses, bridge over the Gilão and streets leading up towards the castle give it a clear centre where it’s pleasant to wander without a packed itinerary.
An afternoon here can easily be a coffee, a short walk and deciding where to have dinner.
The main difference is the beach: staying in central Tavira doesn’t put you directly on it. Getting to Ilha de Tavira involves a boat, with departures including Quatro Águas, and that becomes part of your day’s plan.
I think it can be a lovely way to get to the beach. But a family wanting several trips back to the room each day will often be happier in Carvoeiro or at a beachfront hotel.
You do get a town that’s enjoyable on days without swimming, too. You can visit the churches and castle, walk beside the river and choose restaurants in the centre. It’s a good base for the eastern Algarve, but I wouldn’t plan daily trips from here to all the beaches around Lagos.
To see both ends of the coast, splitting your holiday between two bases is more comfortable than spending your time on long return journeys.
Tavira particularly suits couples and adults combining beach trips with a stay in a smaller town. If food, streets and town life are what draw you to Portugal, my guide to where to stay in Porto can give you ideas for another trip.
Here in the Algarve, I’d choose a central Tavira hotel so those quiet evenings don’t need a car or taxi.
Places to Stay in Tavira
Pousada Convento de Tavira - best hotel for a stay in historic surroundings
Pousada Convento de Tavira is arranged around the courtyard of a former Augustinian convent dating from the 16th century. That gives the stay more character than a standard holiday hotel and suits Tavira’s streets, churches and quiet evenings.
I’d choose it for a couples’ holiday where the building and its position in town are part of the experience, rather than seeking a large resort by the beach.
Elizabeth praises the breakfast in her Booking.com review: “The breakfast was really good.”
See photos and book Pousada Convento here.
Vila Galé Tavira - a good hotel with a pool for a stay in town
Vila Galé Tavira is centrally located, with rooms with balconies, an outdoor pool and a spa. You can spend the morning in town and swim back at the hotel without making every dip a trip to the coast. It’s a practical choice for couples and families wanting more facilities than a small town hotel while still being able to walk out for dinner.
Ana praises the rooms on Booking.com: “Spacious and clean rooms.”
See photos and book Vila Galé Tavira here.
Hotel Don Rodrigues - a good budget choice for a holiday with a car
Don Rodrigues is on the approach to Tavira near the N125, with an outdoor pool and views of the countryside around town. It’s worth considering with a car if easy access to outings in the eastern Algarve matters more than staying among the little streets.
I’d factor the location into any savings and check the route to the centre if you also plan to walk home after dinner.
Sandra describes a late arrival on Booking.com: “They gave us a friendly welcome when we arrived late.”
See photos and book Don Rodrigues here.
5. Vilamoura - the best area for the marina, golf and good hotels ⛵
- 📍 Distance to the centre: The marina serves as the centre. Golf hotels further inland can be several kilometres away.
- 🚕 Transport: You can walk around the marina and to the nearby beaches. A car or taxi is useful for golf courses and inland hotels.
- ✈️ Journey from Faro Airport: Allow roughly 25 to 35 minutes by car.
- 💰 Price range: €€ to €€€. Hotels and restaurants around the marina are often at the more expensive end.
- 👮 Safety: Keep an eye on your belongings in busy areas, keep children close by the quayside and follow the beach flags.
Vilamoura is my suggestion for a stay by a marina with plenty of restaurants and a good choice of larger hotels. Holidays here tend to revolve around the beach, pool, golf and dinner overlooking the boats.
It’s a more purpose-built resort town than Tavira or Lagos. I’d choose it when comfort and easy access to hotel facilities matter more than little historic streets.
The marina is the obvious reference point when you’re looking at the map. Stay nearby and you can walk between restaurants and visit the surrounding beaches without using a car every time.
The Vilamoura name also covers hotels further inland near the golf courses. They can have plenty of space and lovely pool areas, but staying there is a different experience from strolling down to the harbour whenever you fancy a coffee or a drink.
I’d prioritise a location by the marina for a first visit without a car. If golf is a big part of your plans, check how close the hotel is to the courses you’ll be playing.
Include transport to restaurants and the beach in your budget too. A good rate at a golf hotel can be less appealing if the rest of the family wants to spend all day by the sea.
Vilamoura suits couples and families who want a comfortable base with plenty of practical options nearby. It wouldn’t be my first choice for the cheapest possible holiday in the Algarve.
I’d compare rooms around the marina with Vilamoura Garden a little further inland, then decide how much those short walks are worth. For a week with several meals out, the location could justify the extra cost.
Places to Stay in Vilamoura
Tivoli Marina Vilamoura - the best luxury hotel between the marina and the beach
Tivoli Marina has the marina on one side and the Atlantic on the other, along with a large outdoor pool and a spa. The location makes it easy to combine the hotel’s facilities with harbour restaurants and trips to the beach.
I’d choose it for a comfortable holiday with short walks between everything, then pick a room according to which side I’d prefer to look out over.
Kari describes the location on Booking.com: “Right by the water.”
See photos and book Tivoli Marina here.
Vila Galé Marina - a good hotel with a pool close to the harbour
Vila Galé Marina has rooms with balconies and both indoor and outdoor pools, giving you more options than a simple beach hotel. The central location is handy for going out to dinner and having your room close by afterwards.
I’d compare it with Tivoli for your dates and choose it if there’s a worthwhile saving without moving far from the marina.
Heather mentions the view in her Booking.com review: “The view over the marina was beautiful.”
See photos and book Vila Galé Marina here.
Vilamoura Garden Hotel - a good choice for a quieter stay away from the marina
Vilamoura Garden has a pool, garden, gym and terrace, but it’s further inland than the hotels along the harbour. You can spend time at the hotel, then walk or take a taxi down to the marina when you want to go out.
I’d choose it if it’s cheaper than staying by the water and accept the longer journey as part of the stay. One guest describes a walk of around 20 minutes through a park.
A guest named Irish describes the atmosphere on Booking.com: “Lovely, quiet hotel.”
See photos and book Vilamoura Garden here.
6. Faro - the best city for a short break without a car 🚆
- 📍 Distance to the centre: Choose the centre around the marina, station or Old Town. The airport and Praia de Faro are separate locations.
- 🚕 Transport: The centre is easy to get around on foot, and trains and buses are useful for other towns. Reaching the beach involves a journey out of the city.
- ✈️ Journey from Faro Airport: Around 10 to 20 minutes by car to the centre, depending on traffic.
- 💰 Price range: € to €€€. There are simple city hotels as well as five-star options.
- 👮 Safety: Watch your luggage at stations and on buses, and check your return transport when visiting the beach or islands.
It’s easy to think of Faro as just the airport, but the city is a good choice for a few days in the Algarve if you want to eat out, walk around the Old Town and take trips without hiring a car. The marina, central streets and historic centre are close enough together to make the most of a short stay.
I’d particularly consider Faro for a late arrival, an early departure or a long weekend.
The main limitation is that Faro’s city centre isn’t on a swimming beach. You’ll need to head to Praia de Faro or take a trip towards the islands in the Ria Formosa to spend your days by the sea.
Those outings can be part of the appeal, but it’s not the most practical arrangement if you want to go straight from breakfast to a sunlounger and back to your room for lunch every day.
Faro works well as part of a trip that includes other parts of Portugal. To add a few city days before or after your beach holiday, read my guide to where to stay in Lisbon. I’d spend a few nights in each destination instead of trying to fit everything into day trips.
In Faro, staying near the train or bus station is useful for trips around the region, but check the connection to the particular place you want to visit.
I’ve taken the train from Faro to Lisbon myself, and it works really well.
I’d choose a central hotel instead of automatically booking one near the airport. A short taxi journey can give you a much nicer final evening with dinner by the marina.
For an early flight, arrange transport in advance and check when breakfast starts. I’ve chosen the hotels below for a stay that includes restaurants and walks around town, with more to it than just a bed between flights.
Places to Stay in Faro
3HB Faro - the best luxury hotel for a city weekend
3HB Faro is a five-star city hotel with two restaurants, a bar and family rooms. You can enjoy the comfort of the hotel and spend time there, with Faro on your doorstep for walks and dinners out.
I’d choose it for a short break where you want to spend a little extra on somewhere special to stay, instead of treating the city as a convenient stop on the way to the coast.
Luis-Ignacio praises several parts of the stay on Booking.com: “Fantastic location, rooms and spa.”
See photos and book 3HB Faro here.
Occidental Faro - the best hotel for marina views
Occidental Faro is centrally located with views towards the marina, Old Town and Ria Formosa, around five minutes’ walk from the train and bus stations. The roof terrace is a good reason to choose it for breakfast in lovely surroundings or a break after walking around town.
I’d consider it for a stay without a car, when having transport and restaurants a short walk away makes the days easier.
Mette mentions the terrace in her Booking.com review: “Very lovely roof terrace.”
See photos and book Occidental Faro here.
Hotel Made inn Faro - the best budget option near the station
Made inn Faro is a simple, central hotel with air conditioning that’s worth considering if you’d prefer to spend your money out in the city. Its location near the station is handy for a trip by public transport, and one guest also mentions a nearby bus to the airport.
I’d choose it for a few nights or at the start of a tour of Portugal, when a good bed and a convenient location matter more than lots of facilities.
Loretta describes the comfort and cleanliness on Booking.com: “Clean and very comfortable.”
See photos and book Made inn Faro here.
Where should you not stay in the Algarve?
I’d avoid a hotel far inland if you’re travelling without a car and picture yourself going to the beach and restaurants every day. A lovely pool photo doesn’t tell you whether you’ll need a taxi whenever you go out.
This also applies to large resorts advertised under a town’s name even though they’re some distance from its centre.
I wouldn’t choose an address in the middle of Albufeira’s nightlife to save a little money when travelling with small children or wanting early nights. Faro and Tavira are also poor matches for a hotel right on the sand, although both make good bases for other types of holiday.
Along the cliffs, check the steps and hills before booking if you’re bringing a pushchair or need easy access.
For a first visit, I’d start with Lagos for its town life and several different beaches. Carvoeiro is a good choice for a smaller resort town, while Albufeira makes it easy to combine the beach with evenings out.
Tavira suits a quieter town stay with trips to the coast, Vilamoura works well for the marina and hotels with more facilities, and Faro suits a short break with easy transport.
With a week or more and a wish to see different parts of the Algarve, I’d consider two bases, such as Lagos and Tavira. That gives you more time on the beaches and less time in the car.
Then choose your hotel around how you’d like to spend each day. A short walk to dinner can be worth more than an extra pool, while space and your own kitchen can make a family holiday much easier.
For an early morning flight, I’d also consider spending the last night in Faro, so departure day starts with a shorter journey to the airport.
Have a lovely trip to the Algarve.
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