38 Best Hotels in The Algarve, Portugal

This intimate hotel was designed in 1918 by Graça Viterbo, one of Portugal's leading architects of the time, in grand maximalist style that includes cathedral windows and a soaring tower. The luxe feel continues inside with golden yellow fabrics, vivid blue tiles, and rich wood. Most of the guest rooms are in new buildings and have a colorful mix of seaside chic with Portuguese tradition. The hotel has an expansive L'Occitane spa, a gourmet restaurant, and a rooftop bar that's a popular gathering spot for sunset cocktails.

Inspired by the many springs welling up from the thickly wooded mountain above Monchique, this small roadside hotel has rooms facing the greenery. It's a great place to get away from it all, especially if you like walking.

Occupying a building dating from the 1940s, this family-run hotel on the outskirts of Olhão is both rustic and rural, stylish and cosmopolitan. The guest rooms have private terraces that overlook the nearby nature reserve. The design is simple and elemental, with natural materials like cork that call to mind the region's history.

Golf is clearly the focus here: the five challenging courses are some of the best in the area. Close to the casino, this attractive resort is also not far from the sprawling marina and a splendid beach. Besides golf, there's a comprehensive range of facilities like tennis courts and a relaxing spa. Rooms are attractively furnished and there's a garden in which to relax.

This luxury property has golf on its mind: guests get reduced green fees and preferential tee times at the prestigious San Lorenzo Golf Club. The hotel also has two restaurants and two bars, its own tennis courts, and is close to the renowned Vale do Lobo tennis center. Rooms are spacious and modern, and most have sea views.

This resort's low-rise architecture beautifully blends into the landscape, which includes sand dunes and pretty gardens shaded by pines trees. There are six pools (one of them indoors), a fitness center, and a sprawling spa where various treatments can be enjoyed in the open air. There are also six restaurants and bars. Located in a prime spot overlooking Albufeira's Falésia Beach, the Epic Sana may not have the postal code of its Golden Triangle counterparts, but it certainly has the high quality to match them.

With a cool, contemporary decor, this longtime favorite in the heart of Faro has a sunny rooftop pool and top-floor restaurant with lovely views. Rooms are modern and comfortably furnished; ask for one overlooking the harbor area. There's also a courtesy bus to the town beach on nearby Ilha de Faro.

Explore the beaches and vineyards of the Algarve from this country residence and 25-acre farm featuring a swimming pool, fruit orchards, olive groves, and flower gardens. Fazenda Nova has 15 clean-lined suites, all with Balinese-style beds topped with Egyptian cotton linens, and most with private outdoor spaces. The rustic-chic main building houses a "vinyl library" with many genres of music, and a small bar with guests gather.

After being neglected for decades, the oldest hotel in the eastern Algarve—dating from 1926, when Vila Real de Santo António was the center of the tinned-fish trade—has been transformed into a luxury hotel. The elegant building is full of grand period details like sweeping staircases, marble columns, and crystal chandeliers. Rooms are spacious, with artwork that calls to mind the city's proud past.

Grand in style, the cliff-top Santa Eulália occupies a privileged position just a short drive from the town center. It has large, modern rooms (ask for one facing the sea), and a host of facilities, including an impressive spa. The dining room of choice here is the Santa Eulália Restaurant, which overlooks the bay.

The sea vistas from this upscale hotel are spectacular, so be sure to book a room with a view. The Moorish-style public rooms are bright, the spacious guest rooms have private balconies, and the casino has a restaurant as well as floor shows.

Positioned around a generously sized swimming pool, this low-rise complex offers affordable studio and one-bedroom apartments with their own small kitchens and dining areas. An on-site restaurant offers dinners, while a snack bar serves quick bites throughout the day. Golfers will be in their element, as the hotel is flanked on all sides by high-quality courses.

This family-owned hilltop hotel's horseshoe configuration gives all the spacious guest quarters great sea views. Rooms and suites have terraces where you can enjoy the afternoon breezes. The pools are lovely, as is the nearby beach—just be prepared to walk back up the extremely steep hillside on the way back from your day in the sun.

Dating from the 1880s, this historic structure offers a pleasant stay in Faro's historic center. Rooms are bright and have some traditional touches like stone floors and French doors leading out to wrought-iron balconies. 

Occupying a converted tuna market, the Vila Galé Albacora is a charming hotel that sits at the confluence of two rivers. In fact, in the summer months boats depart from here to take you to the beach. It's traditional in architectural style, modern in decor, and not far from Tavira.

One of Albufeira's most comfortable lodgings is a 10-minute walk from the main square. Smart, well-equipped rooms have private balconies; ask for one with a sea view, or you may end up facing the busy main road. A courtesy bus runs you to nearby beaches. Reserve well in advance for summer stays here, as package-tour operators tend to book whole blocks of rooms.

This small bed and breakfast in the heart of Faro has eight modest-sized but charming rooms. Each overlooks a leafy courtyard and herb garden which, as its name suggests, is home to a fragrant lemon tree. 

Set on a small square in the center of the old town, this lovely hotel has a cozy home-away-from-home feel. Inside, it has a communal living room complete with a fireplace, perfect for winter; for summer it has interior patios and a pretty swimming pool.

An iconic spot in Quinta do Lago, the Magnolia Hotel has a playful vibe that pays homage to the iconic motels of Miami Beach. The public spaces set out to have a youthful atmosphere, with a lively pool bar lined with chattering guests. It's worth the splurge to upgrade to one of the seven retro-chic cottages.

This pretty boutique hotel is set in the center of Sagres' village. There's a garden filled with tropical plants that sets a peaceful vibe, which is mirrored in the cool tones of the bedrooms. 

A range of accommodation is on offer here, from two-bedroom houses and villas to ordinary hotel doubles. Direct access to a lovely beach is one of the main perks at this family-friendly resort, with playgrounds and pools exclusively for kids. Adults aren't neglected, either, with the tranquil Finisterra Spa and its range of treatments. The property itself—set within a natural park on the edge of the beautiful Martinhal Beach—has lots of outdoor opportunities.

This striking mountain retreat enjoys breathtaking views of the coastline and has become popular with national and international tourists who are looking for privacy and tranquility without being too far from civilization. On site, there's a contemporary restaurant serving traditional dishes, two bars and a gourmet food market. When you've had your fill of the scenery, relax in the well-equipped spa, or enjoy one of the three lovely swimming pools. Organized walks, sports activities and yoga are included with your stay.

With three challenging courses on the property, it's no surprise that the Penina attracts large numbers of golfers (especially because guests get discounted green fees). A bus shuttles you to and from the hotel's beach. The hotel has four restaurants and two bars.

Whether you have a room with a sea or a garden view, this cliff-top property looks good from all angles. All of the inviting rooms have balconies, many overlooking the gorgeous beach. Although it is an easy walk to the pleasant sands below, there's an elevator that can take you down, saving your tired legs after a day at the beach. For year-round indulgence, the hotel also has its own spa as well as an on-site restaurant, Almofariz, serving Algarvian specialties.

About 1 km (½ mile) west of town, the Viking stands on a promontory directly above a lovely beach. Its manicured grounds are studded with palm trees and include several massive swimming pools (one just for children) and a lawn with lounge chairs where you can enjoy the view. All rooms include balconies, though only some look out to sea.

Perfect for families, this sprawling resort offers activities ranging from golf to tennis to water sports, along with direct access to a lovely cliff-backed beach. Some of the guest rooms are decorated with traditional azulejo Portuguese tiles, while others are sleek and modern. Decompress at the upscale Serenity Spa, or spend time at the internationally-renowned Annabel Croft Tennis Academy.

About 8 km (5 miles) from São Brás, Pousada Palácio de Estoi provides a comfortable base for exploring the region. The guesthouse—originally a 19th-century palace—offers a sense of luxury and history as well as a plethora of activities, such as guided tours, nature walks, and boat trips. Despite its palatial exterior, inside the decor is sleek and contemporary.

Occupying a two-story country house across the bay from Fortaleza de Sagres, Pousada Sagres has homey guest rooms, most with balconies and full or partial views of the sea and the craggy cliffs. Moorish embellishments, such as minarets and arches, are built throughout. Public areas are plush—particularly the terrace bar, which is a perfect place to watch sunsets. 

Set within verdant gardens dotted with sculptures, this holiday village west of Praia da Luz offers a calm, peaceful ambience. Rooms in the main building or in a row of newer ones alongside the pool and are tastefully decorated, including some with spicy colors. Plenty of natural and local materials are incorporated into the decor to give it a rustic-chic feel.