8 Best Hotels in The Algarve, Portugal

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 sweet hotel—one of few options in Silves—enjoys a prime hillside perch in Silves, offering views of the Arade River and castle. Its Arab-influenced design adds charm, and the setting is ideal for hikers on the Via Algarviana. Rooms are fine and the gardens lovely, but dining and service options feel limited. Great for a short, scenic stay—but don’t expect full-service luxury.

Positioned around a generously sized swimming pool, this low-rise complex offers more affordable studio and one-bedroom apartments. The accommodation is basic but charming, with azulejo tiles decorating bedrooms. The on-site restaurant, bar and snack bar are low-key and no-frills, but provide a bit of interaction in the otherwise self-serving digs. Golfers will be in their element, as the hotel is flanked on all sides by high-quality courses.

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. 

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.

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.

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.