20 Affordable Hotels in Portugal (2025)

For a great value holiday offering character, comfort, and fantastic views, Portugal is the perfect pick. You'll find a treasure trove of affordable yet delightful accommodations here, from historic guesthouses and charming small hotels to stylish city escapes. Whether you fancy a stay in a rural hamlet with panoramic vistas or a cosy B&B in the heart of Lisbon or Porto, Portugal offers a variety of options that won't break the bank. Read on and start planning your budget-friendly break . . .

For a rural retreat

• Situated on the hills above the city of Setúbal, Ha Mar Ao Luar is a picturesque retreat with five elegant self-catering rooms. With an outdoor pool, a pretty garden, plus sandy beaches and coastal walks nearby, it offers a peaceful escape. Surrounded by stunning scenery, there's plenty to do here without breaking the bank.
• Another well-priced hilltop gem is the Pousada de Viana do Castelo. This 19th-century hotel boasts amazing panoramic views over the Atlantic coast. There's a restaurant, spa, and outdoor pool, plus all the rooms have balconies to make the most of the stunning vistas.

• A Serenada Enoturismo sits in the heart of a beautiful winery surrounded by wonderful scenery in the Alentejo region. This intimate hideaway, just 15 minutes from the beach, offers six charming rooms. Borrow one of the property's bikes to explore the countryside or explore the Serra de Grândola on a guided horse ride.

For a romantic escape

• Set on Portimão's seafront, Villa Rio is pretty as a picture and a perfect couples' hideaway. The charming rooms offer plush, four-poster beds and views over the port. Enjoy breakfast on the terrace before a dip in the pool in the inner courtyard. Perfectly located for accessing the best of the Algarve's beaches, it makes for a relaxed stay at reasonable rates.
• Hotel Moon & Sun is a boutique bolt-hole in the heart of Braga, overlooking the landmark São Francisco Church. The cosy suites, on-site restaurant, and romantic wine bar make this hotel a great choice for a couples' getaway. Boasting a central location, it offers great value for city style. 

• Pousada Convento de Vila Vicosa has everything you need for a characterful stay in historic Vila Viçosa. This former convent features romantic four-poster beds, original 16th-century details, an outdoor pool, and a charming courtyard — and all with a very appealing price tag. 
• Nestled in one of the oldest houses in a charming fishing village, Ericeira Soul Guesthouse is a good choice for a relaxing couples' getaway. With smart guestrooms, a great location, and a stylish pool terrace, it offers laid-back romance at wallet-friendly prices.

• Sitting within the ancient city walls of Évora, Albergaria do Calvario's cosy rooms, excellent service, and charming location make this hotel a hit with couples looking for a budget-friendly break. Nestled on a quiet street, it's a great, relaxing hideaway spot.
• Another romantic pick with an appealing price tag is Pousada Vila Real do Santo Antonio. Located in the heart of Vila Real de Santo António, this modern hotel features rooftop plunge pools and a stylish restaurant. A perfect base for exploring the Algarve.
• A majestic 19th-century iron gate leads to Challet Fonte Nova, a gorgeous townhouse in Alcobaça. Traditional, elegant interiors ooze romance with high ceilings, artwork, and sparkling chandeliers. The reasonably-priced rooms have lovely private balconies looking onto the garden. 

For a coastal base

• Looking for a good value coastal spot? White Guest House in the pretty fishing town of Peniche fits the bill. It offers four fresh and unfussy rooms, plus a lovely breakfast. Surf, paddleboard, or windsurf at one of the great beaches nearby like Porto De Areia Sul, Cova De Alfarroba, and Gamboa.
• Mercearia d'Alegria B&B is another wallet-friendly base in Peniche from which to explore Portugal's lovely coastline with sheltered coves and beaches with epic surfing waves nearby. Breakfasts are served in the bright kitchen area or outside on the terrace, plus free bikes are available for guests to go exploring.
• Set on the banks of the River Ave, Villa C Boutique Hotel is located just a short distance from the coast in Azurara. There's a charming restaurant and an indoor pool, and you can spend your days on the nearby beach before coming back to unwind in the spa. You get a lot for your money here.

For a family getaway

• Casa dos Lóios is a boutique hotel housed in a beautiful, renovated 16th-century residence in Porto's historic centre. Despite its grand appearance, room rates are surprisingly reasonable and the deluxe family suites with three double beds and two bathrooms offer great value as well as style.

For a city stay

• For a stylish well-priced city option in a fantastic location, Teatro B&B is hard to beat. Located in central Lisbon, between the district of Bairro Alto and Chiado, it boasts contemporary Parisian-style decor with dramatic artwork adorning the walls. Super chic!
• Set in the historic centre of Guimarães, Emaj Boutique Hotel may be set in a former bank but its reasonable rates won't break yours! Rooms are bold and bright, plus there's an excellent breakfast. It's also well-positioned; many of the town's main attractions are within walking distance.
• Lisbon Story Guesthouse offers budget accommodation in the centre of Lisbon next to São Domingos Square. With boutique-style interiors and a chic terrace, it has lots of city style, plus guests can hire bikes to discover the area on two wheels.

• Just steps from the S. Sebastião Aqueduct in Coimbra sits Casa de Sao Bento. This charming renovated townhouse is group-friendly with family rooms and a shared lounge. There's no restaurant, but the hotel has a cosy coffee shop and wine bar, and there are plenty of dining options nearby. A good value base for exploring.
• If a modern hotel is more your thing, Hotel Convento do Salvador should suit. This Lisbon delight offers modern art, a slick bar, and great city and sea views. Nestled in the historic neighbourhood of Alfama, it's within striking distance of all the main sights — ideal for a reasonably-priced city break.

• Located in the heart of historic Porto, Charm Palace Porto is big on style yet low on price. Intricate tiles lining the hallway set the scene for opulent interiors. Expect luxurious beds, free-standing bathtubs, and lovely original features. Gorgeous.

Still not sure? 

• Browse through our full list of accommodations in Portugal.
• Refine your search to include our recommendations for the Best Value Hotels in the Algarve or the Best Hotels in the Douro Valley.
• Alternatively, you could contact one of our friendly Gurus for personalised advice.