The best accommodations are in the pousadas, the state-run grand hotels of Portugal. We just returned 10 days ago from the Algarve, and our big splurge was to be in the Pousada at Sagres, the SW tip of Europe. To our surprise, we paid only 61 euros for a lovely room with balcony, ocean view and buffet breakfast. The pousadas offer a 35% discount at certain times for travelers over 60. Many of the pousadas are in historic buildings, castles or monasteries, beautifully restored with antiques and fine art. Visit their website at http://www.pousadas.pt/14programas/ouro.html.<BR><BR>Have fun!<BR>Brooke

we are also in the midst of planning our trip to Spain and Portugal. we will be spending 4 nights in the Algarve. we have booked a junior suite for 70e per night at the Romantik Villa in Salema - found it noted by someone on another message board. it looks absolutely wonderful on line (romantikvilla.com). only four rooms all with patios and ocean views. also - we are considering flying to Faro from Lisbon rather than driving or taking the bus. the flight is less than and hour and approximately 100e on TAP airlines.

good luck!