41 Best Hotels in The Algarve, Portugal

This striking mountain retreat enjoys breathtaking views of the coastline—it makes the perfect getaway for those searching for tranquility without being too far out in the sticks. On site, there's a fine dining restaurant serving up dishes inspired by the produce of the mountains, plus two bars, a gourmet food market, and a pizzeria. When you've had your fill of the food and scenery, relax in the spa, or enjoy one of the three lovely swimming pools. Organized walks, sports activities, and yoga are included with your stay.

This hotel has a simple but stylish interior cleverly laid out around three outdoor swimming pools complete with wooden decks and palm gardens. The spacious apartments have private terraces and kitchens with everything you need to prepare your own meals. If you are traveling by boat, this is the perfect place to base yourself—not only is the marina steps from the old town but there's also a beach nearby.

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). Beyond the golfing lure, there's a smart hotel that caters well to families, including a kids' club and a bus that shuttles you to and from the hotel's beach. The hotel has four restaurants, a bar, and a beach snack bar.

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. Self-catering apartments are available, too.

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 are in the main building or in a row of newer ones alongside the pool, and are tastefully decorated with warm, earthy colors. Plenty of natural and local materials are incorporated into the decor to give it a rustic-chic feel.

Directly across from the pier (and convenient when getting the summer ferry to the Ilha de Tavira), this three-story hotel sits above a lively Portuguese restaurant sharing the same name. Rooms are basic but functional, with lovely traditional tiles on the walls and floors. Some of the rooms have balconies that offer views of the river or the town's distinctive pyramid-shaped roofs. The hotel also lets entire properties.

This spacious, centrally located lodging is open to surfers of all abilities. The rates work out to be very reasonable, considering that the townhouse is modern, comfortable, and provides spectacular views of the nearby beaches from two large terraces. There's a range of accommodation, from simple private rooms and traditional pensãos to spacious apartments. The hotel organizes a range of fun activities for surfers and non-surfers alike.

On the eastern edge of the old town, this centrally located hotel has an unusual but charming layout strung across several levels with gardens, lounges, and patios. Guest rooms are large and elegantly appointed, with blue-and-white cushions reminiscent of traditional Portuguese tiles. A shuttle bus takes you to the beach, where the hotel has good water sports facilities.