7 Best Hotels in The Algarve, Portugal

An intriguing cubist 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.

Inspired by the many springs welling up from the thickly wooded mountain above Monchique, this small lodge has rooms facing the greenery, and some with terraces that afford beautiful mountain views. It's a great place to get away from it all, especially if you like walking. There's a sweet swimming pool in the garden, too.

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.

This pretty boutique hotel is set in the center of Sagres' village, overlooking a beautiful white-sand beach. There's a garden filled with tropical plants that sets a peaceful vibe, which is mirrored in the cool tones of the bedrooms. There are plenty of spots to lounge around in, including in hammocks, and plenty of space to sunbathe beneath trees.

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. 

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.