The best hotels in Algarve

What are the best hotels in the Algarve?

Picking the very best hotel in the Algarve is no small feat. This stretch of southern Portugal is packed with gorgeous five star resorts, laid-back beach hotels, stylish boutique stays and charming rural retreats, so there’s plenty of competition. Our overall favourite has to be Vila Joya, a seriously special boutique hotel in Albufeira where old-school glamour, impeccable service and an extraordinary clifftop setting all come together. Add a two-Michelin-starred restaurant, a tranquil spa and direct access to the beach, and it is hard to find a more complete luxury escape in this area. For a very different experience, Bela Vista Hotel & Spa in Portimão is our other top pick: an intimate five star seaside hotel with heaps of character, a brilliant restaurant, L’Occitane spa and colourful interiors that make it feel more like a glamorous private residence than a conventional resort.

The Algarve offers an extraordinary blend of natural beauty and cultural attractions. Set along its golden sands, pretty towns and tranquil olive groves, the best places to stay in the Algarve range from luxurious beach resorts to charming B&Bs, catering to a whole host of tastes and budgets. With a stunning coastline featuring dramatic cliffs and hidden sea caves, this region is a haven for sun-seekers, offering everything from vibrant tourist hotspots to whitewashed towns with winding lanes and heritage homes aplenty. For an in-depth look at the individual towns and districts, head to our where to stay in the Algarve guide.

Scroll down the page for our full selection of recommended hotels in the Algarve.

The Best Places to stay on the Algarve

For City Style 

• 3HB, designed by Paulo Lobo, is a masterpiece of teak and local limestone. Sleek, contemporary spaces are very indulgent, with nods to traditional Portuguese style and a minimalist feel. Dining options include excellent Portuguese and Italian fare, plus there is a superb rooftop pool and soothing spa. Faro's first five-star hotel.

For Seaside Luxury

• Bela Vista Hotel & Spa is a stunning 1934-built gem on Praia de Rocha in Portimão. Expect playful, indulgent interiors in fresh blue, red and yellow tones, with nautical stripes and hand painted tiles. The fine dining restaurant is fabulous, the spa sensational and the feel is reminiscent of a timeless beach club.
• Memmo Baleeira is a chic beachfront hotel with 144 guest rooms and suites overlooking the dramatic Atlantic coast near Sagres. Expect earthy tones and natural materials, plus floor-to-ceiling windows framing ocean views. The refreshing pool, restaurant and spa are lovely, and the beach is just steps away. A children's play area makes this a family-friendly choice.
• Martinhal Beach Resort & Hotel has a playful feel, with warm colours in 38 pretty guest rooms, suites and private villas. Ideal for lively family holidays, with water sports and adventurous activites aplenty. Facing a beautiful stretch of golden beach, and boasting five swimming pools.

For Romance

• Casa Mae, situated on a leafy lane in Lagos, has white-on-white interiors with wooden floors, big windows and lots of light. Expect an effortless fusion of classic and contemporary style, plus an exceptional eatery and great wine list. Chic and very romantic.
• Vila Joya will thrill foodies with its two Michelin-starred restaurant. Savour Chef Dieter Koschina's innovative, locally sourced cuisine after days of beach strolls, soothing spa treatments and poolside lounging. A spectacularly indulgent boutique hotel in Albufeira.
• Casa Modesta offers a contemporary take on the classic seaside guesthouse. Think pared-back, modern architecture using traditional materials. White-on-white guest rooms lead to private terraces with ocean views, and the hotel pool is wonderfully refreshing. Sample the cellar's wines after a sunlit stroll along the beach.
• Pousada Convento Tavira is a beautifully restored 16th Century convent on Tavira’s castle hill. With Renaissance cloisters, a courtyard pool and central garden, this is a very romantic spot. Pretty rooms feature bright colours and private balconies, whilst the restaurant serves fantastic regional fare. 
• Villa Rio has just eight elegant guest rooms, all with high ceilings, floral prints and cosy beds. The best have four posters and views of Portimão's old port. Gather for terrace breakfasts, cool off in the pool or stroll around the historic harbour with ease. A luxurious seaside guesthouse favourite.

For a Wellness Break

• Longevity Health and Wellness Hotel, tucked to the west of Portimão, is amongst Portugal's most advanced clinics. Refresh and revitalise yourself with aesthetic and holistic treatments at this cool, contemporary hotel. Interiors feature calming white and slate-grey, there are two excellent restaurants and the spa is world-class.

For a Rural Hideaway

• Vila Valverde sits on a hillside near Lagos, surrounded by groves of olive and orange trees. The striking white building boasts impressive contemporary interiors, with light-filled rooms, four poster beds and double-height ceilings in shared spaces. Cool off in the swimming pool and savour regional specialities in the restaurant. Wonderful.
• Quinta da Colina sits amongst six hectares of olive, carob and orange trees. A traditional Algarve manor house with a B&B as well as a private cottage, house and apartment, it's a delight for couples, friends or families looking to soak up the magic of the classic Algarve.
• Companhia das Culturas is a collection of converted farm buildings with white-painted walls, antique furnishings and French doors opening onto verdant gardens. The four apartments are ideal for families, and guests share access to the saltwater pool, plus 40 hectares of grounds. Understated, authentic and very charming. 
• Monte do Alamo is ideal for anyone in search of a low-key break. A simple guesthouse on a farm close to Tavira, this hideaway offers cooking classes, organic garden tours and a peaceful atmosphere. 

For Surfers

• Muxima is a delightful eco retreat within striking distance of some of the best surfing beaches in the Algarve. There are just seven suites, all with generous proportions, a global theme and lovely terraces. You’re right on the edge of the nature reserve, and while you can’t see the beach from the terraces it’s a beautiful walk. Surfing and body boarding lessons are available at Aljezur beach.

For Families

•  Praia Verde Boutique Hotel is a chic, contemporary offering with whitewashed rooms and suites, a fresh, buzzy open-air restaurant and a large swimming pool. Small kitchenettes make this a great choice for families, as does the plethora of activities. Wonderful for all ages. 
• Casa Flor De Sal is a collection of seven beachfront holiday houses in the Ria Formosa Natural Park. Blue and white interiors are charming, with high ceilings, traditional tiles and pretty kitchens. One for families or groups of friends dreaming of an active holiday in a beautiful setting.
• Anantara Vilamoura Resort is a luxury spa hotel set alongside a golf course. Guest rooms are crisp and contemporary, with pale wood and white linens. Pampering spa facilities, two swimming pools, tennis courts and a great restaurant complete the picture. A family favourite.

For Great Value

• Quinta do Mel, set amidst rolling green pastures between Olhos d'Agua and Albufeira, is a charming restored farmhouse. Colourful rooms are simple and traditional, there's a swimming pool, farm shop, tea room and bicycles for hire. An adults only retreat for couples or laid-back groups of friends.
• Casa Rosa Villa, once a private mansion, dates back to the 1950s. Now a welcoming guest house, the villa boats nine ensuite rooms with rain showers, plus a living/dining room, courtyard with plunge pool and spacious terraces for unwinding. Book the whole place for a big trip with friends.

For an Apartment or Holiday Villa

Travel information

• Fly to Faro International Airport and travel by bus or taxi to your destination from there. The coastal trains, running between Faro and Lagos, are scenic but not swift. Alternatively, most hotels will be happy to arrange an airport pick up in advance.
• The Algarve is ideal for a road trip! Contact our online partner Rentalcars if you would like to hire a car.
• Visit during the summer months, with temperatures averaging around 25-30°C between June and early September. You'll find fewer crowds and great hotel deals outside the school holidays, or in spring and autumn, when the weather is also slightly cooler.

Still not sure?

• Explore our list of all the best places to stay in Faro.
• Alternatively, expand your search to see our pick of the best places to stay in Portugal.
• Or, contact one of our friendly Gurus for personalised advice.