The 15 Best Boutique Hotels in The Algarve (2025)

The Algarve is a tourist honeytrap, synonymous with sunny beaches, sheltered coves, watersports and underwater caves - a haven for surfers and sunbathers alike. But there's more. Scratch beneath the surface and you'll discover picturesque historic towns with winding, cobblestone streets and breathtaking architecture, hillside villages fringed with orange trees and olive groves and natural parks where you can escape the crowds. Accommodation-wise the region has massive variations too, from huge all-singing-all-dancing resorts to budget-friendly apartments and guesthouses. In this collection, we've selected the best boutique hotels in the Algarve, where we think there's something to suit every taste and budget, without scrimping on the style.

For a boutique villa

• Almoada is a gorgeous 19th-century farmhouse turned exclusive use boutique villa which can accommodate up to eight adults (it's over-12s only here). As well as beautiful, quirky interiors you'll find a fully-equipped kitchen, outdoor plancha, saltwater pool, and sun terrace. Plus there's a concierge to ensure that your every whim is catered for whether that be a private chef or simply recommendations for the best days out.

For families

• Praia Verde Boutique Hotel offers cheerfully bright contemporary décor in its fantastic range of rooms and suites. It will appeal to both families and couples with its chic finish, huge pool, and excellent on-site restaurant, plus a wide range of activities on offer from birdwatching to riding.

Cool and contemporary

• With an almost Spartan zeal for architectural purity, from the outside Casa Modesta resembles the steps to a temple precinct. The rooms are whitewashed and contemporary, all needless frills stripped away; they promise light and intimacy for couples on a break.
• Situated on the historic streets of Lagos, above a garden of orange trees stands the Casa Mae, offering traditional, contemporary rooms full of light and chic splashes of colour and spacious bathrooms. Not far from the beach and some excellent local sights, plus it boasts an excellent, upmarket restaurant.

• Eleven Boutique House and Garden is an adult-only guesthouse, just 20 minutes from Faro airport. The seven rooms feature bold and modern art, plus there's a charming scented courtyard. The ideal base for a romantic getaway.

• Vila Monte Farm House offers heavenly, chic, hugely comfortable, light-filled rooms set amidst orange groves and gardens. It’s a pampering, relaxing affair, with endless opportunities: tennis courts, swimming pools, a cinema, and two restaurants. A retreat that’ll make you want to stay forever, one of the best boutique hotels in the Algarve!

For a luxury stay

• Grand House Algarve obviously deserves every one of its 5 stars. A stately, colonial-style boutique by the beaches of the River Guadiana, offering pretty, pampering suites aglow in an aristocratic aesthetic with their French balconies and antique furnishings. The beach restaurant is particularly divine. A fabulous stay!
• The Conversas de Alpendre is all about relaxation. A rustic-chic guesthouse getaway boasting the sort of beautiful views you previously assumed belonged to postcards. It’s a secluded and intimate affair: the airy, spacious rooms promise a zen-like state of calm, and the on-site bar, in-room massages, private hot tubs, and saltwater pool will not disappoint.
• The most expensive property on the list, and for good reason: Vila Joya is fit for royalty. An old Moorish house conversion, it stands on a palm-fringed hillside sloping down towards the sea. The light-filled, contemporary rooms are magical – adorned with antiques and fresh flowers, and the bathroom walls are lined with ancient hand-painted tiles. To top it all off, there’s a world-famous 2-star Michelin restaurant. Worth every penny!

For rustic-chic 

• A haven of serenity, Pensao Agricola is a rustic-chic farmhouse turned boutique B&B surrounded by orchards of fruit trees and fields of wildflowers. A secluded paradise perfect for couples on a getaway, the rooms are light and airy, with whitewashed walls and beautiful antiques and curious. Unique, cute and intimate, it’s an amazing find.
• Approached by a lane lined with olive trees stands Vila Valverde, a whitewashed boutique resembling a Roman villa. The spacious and minimalist rooms are flooded with sunshine, rustic-chic in style, with exposed stone walls and pastel-coloured furnishings, and all boast private terraces with gorgeous views. With a spa and indoor pool, you’ll be pampered silly.

Nature's getaway

• A whitewashed, renovated farmhouse perched amidst 36 hectares of orange trees, staring out to the deep blue sea, Quinta dos Perfumes is one of the best boutique hotels close to the beach. The B&B has rooms that are light and airy, with a plush, contemporary feel, with private terraces overlooking the sea or gardens. A great bonus is the saltwater pool, and you're walking distance to restaurants.
• Redefining the meaning of value-chic, Companhia das Culturas is a 40-hectare working farm only a stone’s throw from the seaside. Offering Turkish baths, saltwater pools, yoga, Qi-gong and Tai-chi, you’re spoiled for choice. The rooms are rustic-chic, think exposed stone walls and antique furnishings with plush linens and cool marble flooring. Great value.
• Immerse yourself in the Algarve countryside, exploring olive groves and hiking trails right from your doorstep at Casas da Quinta de Cima. The nine rooms are full of character, plus there's a large outdoor pool. Breakfast and meals follow a “farm-to-table” concept and can be served in the dining room or in the garden.

• Set amid nature offering tranquillity and lush landscapes, Amago guesthouse is the perfect place to switch off and relax. Bougainvillaea frames the rustic poolside and hibiscus lines private entrances to each of the six rooms. Plus there are wonderful walking trails that wrap around the nearby São Brás de Alportel mountains. 

Still not sure?

• Do you want something more off the beaten track? Try this.
• Looking for a seaside holiday? This could help.
• Searching for a family-orientated holiday? Give this a go!
• Or you could contact one of our Gurus for advice.