11 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.

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 perfect 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.

Facing the Atlantic on Praia de Faro, this slick hotel offers unfussy accommodation with direct access to the beach and the protected landscapes of the Ria Formosa Natural Park. Built in a bold modernist style by Gomes da Costa, it features charming retro touches like marble staircases and a classic inglenook fireplace. Faro city is just a 10-minute drive away.

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. The fitness center is fantastic; sprawling, sleek—and busy.

This is the little sister of the more well-known, but temporarily closed, Dom Pedro Vilamoura, and has a similar focus on golf; the five challenging nearby courses are some of the best in the area. Close to Vilamoura's enormous casino, this attractive resort is right by the marina and beach. Besides golf, there's a comprehensive range of facilities like tennis courts and a relaxing spa. Rooms are furnished beautifully, combining modernity and classic style—and there's a lovely garden to relax in.

After being neglected for decades, this grand dame—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 returned to its former glory. The elegant building is full of period details like sweeping staircases, marble columns, and crystal chandeliers. The rooms don't quite match up in style—but are spacious, with artwork that recalls the city's heydey.

Occupying a converted tuna market (detailed in a small in-house museum, for those interested), 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 nearby white-sand beach on Tavira Island. It's traditional in architectural style, modern in decor, and not far from Tavira. Rooms are understated by practical and cozy-feeling.

One of Albufeira's most popular 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. Reserve well in advance for summer stays here, as package-tour operators tend to book whole blocks of rooms.

An iconic spot in Quinta do Lago, the Magnolia Hotel has a playful vibe that pays homage to the classic 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.

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.