Discover our top picks for the best resort towns and places to stay in the Algarve:
- Lagos – the perfect blend of beach, scenery, and a beautiful old town
- Portimão – a classic beach town, perfect for families
- Albufeira – the most action, great for couples and younger travelers
- Vilamoura – Quarteira – the closest to Faro and a good fit for everyone
- Tavira – a beautiful and distinctive town between the coast and the river
- Sagres – surfing at the “edge of the world”
Click here to find a place to stay in the Algarve…
The Algarve is not very large, and once you arrive, it’s common to explore most of its main destinations. So even if you choose to stay in just one place, that doesn’t mean you’ll miss the others. You can relax about the FOMO — most of these places are only about a 30-minute to 1-hour drive from one another.
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Map of the Best Areas to Stay in the Algarve – Southern Portugal
What Is the Season in the Algarve?
The Algarve season is, without a doubt, summer, with the first signs beginning in early May and the season winding down around October 1. Peak season runs from the last week of June through the first week of September. The wide range of travel options in the Algarve makes several different kinds of vacations possible.
First and foremost, the Algarve is a destination for a family summer vacation. It’s also especially popular with travelers outside the summer season, when much of the rest of Portugal turns gray and rainy while the Algarve stays fairly sunny. That’s a great time to stay in one of the smaller towns or even in villages up in the hills. Third, the Algarve is also a destination for parties, concerts, and nightlife for younger travelers — mainly in summer, though not only then, and especially in the town of Albufeira and its surroundings.
Outside the season, vacation prices in the Algarve drop sharply, but many attractions and shops also close down, much like on the Greek islands. Even so, the Algarve stays sunny and never gets too cold. If you’re into hiking, rural drives, and endless peace and quiet, the Algarve is absolutely worth visiting in fall and winter — and certainly in spring.
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Click here for a list of 12 excellent resorts on the Algarve coast…
Which Beach Towns Are Best for Staying in the Algarve?
1. Lagos
Lagos sits in the western part of the Algarve. Since the Age of Discovery, it has been an important Atlantic port. Alongside its thriving tourism scene, Lagos has kept a charming old town with cobbled streets, inviting squares, historic buildings, and plenty of character. In terms of accommodations, you’ll find hotels along the broad sandy beach on one side, and on the other, many more overlooking the spectacular scenery and the ocean from the cliffs of Ponta da Piedade.
Click here for more information about the beautiful resort town of Lagos…
Town style: Although it has developed, Lagos still feels tied to the old world. Once, and still today, a traditional fishing town, it has managed to preserve both its character and its authentic town center, even as hotels and tourism continue to grow.
Who it suits: Families will enjoy the Lagos area in summer, while couples can enjoy it year-round.
Nearby attractions: Boat trips to Benagil Cave, golf courses, and the secluded beaches framed by unique rock formations — Praia do Camilo, Praia Dona Ana, and Praia dos Estudantes with its photogenic bridge.
Tip – Head up to the cliffside viewpoint at Ponta da Piedade at sunset — there aren’t many sights in the world quite that calming. Afterward, settle into one of the town’s excellent local restaurants and try cataplana, the seafood-and-meat stew that’s a point of pride for Algarve locals.
Click here to find a place to stay in beautiful Lagos…
Click here for a list of 9 recommended hotels in Lagos…
2. Portimão
Portimão used to be the Algarve’s second-largest urban center after Faro. It’s known for its large beach and is also a great destination for shopping. A vacation in Portimão means beach time and water sports by day, followed by good restaurants and nights out in clubs, bars, or the casino. There are plenty of attractions around Portimão that you can reach by boat or by car, with lovely views along the way over the Algarve’s rugged coves and beaches.
Click here for more information about the resort town of Portimão…
Town style: Portimão has two parts. One is above the rocky beach and has the feel of a classic resort town, with a main street above the shore lined with hotels and entertainment spots. The other is the local city itself, a little farther north, where residents live — though it also offers places to stay that are especially worth considering outside the season.
Who it suits: Everyone. This is a resort town that works for all kinds of travelers.
Nearby attractions: Boat trips to Benagil Cave, the picturesque town of Alvor, the fishing village of Ferragudo, Slide & Splash water park, and the Monchique mountains.
Tip – Museu de Portimão, in town, is housed in a former sardine canning factory and offers a vivid look at the Algarve’s main industry before tourism arrived.
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Click here for a list of 8 recommended hotels in Portimão…
3. Albufeira
The nightlife capital of the Algarve grew from a small, charming fishing village into one of Portugal’s leading tourism hubs. From the old town, where you’ll also find the Archaeology Museum, a pedestrian tunnel leads straight down to the sandy beach. On summer days — and on many weekends throughout the year — it can seem as though no one goes to sleep in Albufeira. The city is packed with parties and live shows, drawing young travelers from across Portugal. Along the edges of town, beside the beautiful beaches, excellent hotels have sprung up over the past few decades, welcoming visitors from all over Europe.
Click here for more information about the lively resort town of Albufeira…
Town style: A classic resort city that has firmly established itself as the go-to nightlife destination for younger travelers visiting the Algarve.
Who it suits: This is the place for young travelers coming to the Algarve, though families and couples will also enjoy Albufeira — especially in the resorts and hotels along the beaches outside the town center and the Oura district.
Nearby attractions: Boat trips from Albufeira Marina, the huge Algarve Shopping mall, Zoomarine Algarve water park, and Queda do Vigário waterfall.
Tip – Go out on the Strip | Rua da Oura. Just east of central Albufeira, the nightlife district in Oura is known as the Strip, a bit like Las Vegas.
Click here to find a place to stay in lively Albufeira…
Click here for a list of 8 recommended hotels in Albufeira…
4. Vilamoura – Quarteira
Vilamoura has an excellent location as the first resort town west of Faro Airport, just a 20-minute drive away. It offers a wide range of hotels and accommodations, along with plenty of shopping and all kinds of sports and leisure facilities for the whole family. Vilamoura’s huge marina is one of the Algarve’s key tourist hubs, and it’s a great place to set off on boat excursions. Around it, you’ll find no shortage of restaurants, bars, shops, and of course hotels.
Town style: Vilamoura developed as a highly functional resort town with a bit of everything. Golf, tennis, and sailing are the leading sports here. You can come for a vacation built around intense water sports by day and entertainment at night — or simply for a laid-back break and some rest.
Who it suits: Everyone. Its biggest advantage is that it sits right in the middle of the Algarve and very close to Faro, making it ideal for travelers who want to explore the region extensively.
Nearby attractions: the main city of Faro, Aquashow water park, the salt mines in Loulé, Casino Vilamoura, the Church of São Lourenço in Almancil, and Designer Outlet Algarve in Almancil.
Tip – As mentioned, Vilamoura has lots of options for water sports. In season, though, it’s worth booking ahead — otherwise the most convenient time slots may already be full.
Click here to find a place to stay in wonderful Vilamoura…
Click here for a list of 12 recommended resorts in the Algarve…
Click here for the complete guide to Faro, the main city and gateway to the Algarve…
Click here for a list of recommended resorts in the Algarve…
Click here for a list of hotels we liked in Portimão…
Click here for a list of 9 recommended hotels in classic Vilamoura…
Click here for a list of excellent hotels in charming Lagos…
5. Tavira
Tavira is considered the most beautiful town in the Algarve. It isn’t located directly on the shoreline; like Faro, it sits slightly inland. Its beach lies on sandy barrier islands beyond the river estuary. In Tavira, there’s a central square beside a small and charming park, Jardim do Coreto, surrounded by cafés and restaurants. The town’s streets are lined with whitewashed houses, some decorated with colorful azulejo tiles. The main landmark is the ruined 13th-century castle on the hill, which offers the town’s finest views. Tavira stretches across both banks of the Gilão River, linked by a romantic medieval arched bridge that is mistakenly known as the Roman Bridge. Tavira is a great base for travelers who want to explore the eastern Algarve while staying reasonably close to the center of the region and to Faro.
Town style: Simply gorgeous. White houses, reddish roofs, azulejo tiles everywhere, and cobbled streets. Even if you’re not staying here, Tavira is well worth a visit as a day trip from other towns in the Algarve.
Who it suits: Mostly couples and travelers whose Algarve visit is more about sightseeing than beach time. That makes Tavira especially well suited for staying outside the summer season. Stay in the old town between Praça da República and the castle so everything is within walking distance.
Nearby attractions: Castro Marim Salt Pans | Castro Marim salinas, the anchor “graveyard” at Praia do Barril, the border town of Vila Real de Santo António, the market in Olhão, and boat trips in the Ria Formosa nature reserve.
Tip – Pay attention to the doors along Tavira’s old streets. No two are alike, and some still have hand-shaped knockers meant to ward off the evil eye — a reminder of the region’s Muslim past.
Click here to find a place to stay in distinctive Tavira…
6. Sagres
The small and remote town of Sagres (pronounced Sagresh) lies at the southwestern most tip of Portugal. Until the 16th century, this area was thought of as the “end of the world,” and that feeling still lingers today. Its remoteness, laid-back surf atmosphere, and simpler lodging options make a stay in Sagres feel different from the more popular resort areas in the central Algarve. The beaches are quieter, and the streets far less crowded than those along the southern coast. Sagres’s main draws are its beaches with tall, sheer cliffs and its historic landmarks with remarkable views: Cabo de São Vicente Lighthouse and Sagres Fortress.
Town style: A small town with wide open spaces between the houses, set on a headland above dramatic vertical cliffs.
Who it suits: Surfers, of course, and anyone who loves peace and nature. Sagres won’t be the right place to stay for everyone, but it’s absolutely worth visiting on a day trip from anywhere in the central Algarve.
Nearby attractions: It’s far from everything — that’s part of the charm — but still: Sagres Fortress, Tonel Beach, and the lighthouse at São Vicente. A little farther north, but very worthwhile, is the Southwest Alentejo and Vicentine Coast Natural Park | Parque Natural do Sudoeste Alentejano e Costa Vicentina.
Tip – Even if you don’t surf, book a lesson and you’ll get to experience one of the most classic activities on Portugal’s coast.
Click here to find a place to stay in Sagres, at the westernmost edge of the Algarve…
What Else Is Good to Know About a Vacation in the Algarve?
A vacation in the Algarve is almost always an active one, with plenty of moving from place to place. In other words, most accommodations here are not the kind of resorts where you stay put for days, doing little more than dipping into the pool or the sea. Instead, the region is mainly about hotels and vacation apartments. The Algarve is full of attractions such as huge water parks, shopping centers and outlets, water sports, marinas and boat trips, hiking trails, and more.
It also has quite a few beautiful towns and villages, along with unspoiled nature, especially in the western part of the region. That’s why many people coming for a summer vacation in the Algarve rent a car and spend each day — or every few days — exploring a different place and hopping between the many attractions.
For our top deals on car rentals in Portugal, click here…
Faro Airport is impressively efficient and has a huge car rental center. Flights to Faro operate from many places in northern Europe, and in summer service increases. Even if you’re already in Portugal, it may be worth considering a domestic flight to Faro and renting a car at the airport (the drive from Lisbon to the Algarve takes about two and a half hours). There are many flights from Lisbon and also from Porto, and prices are often reasonable, especially if you book ahead.
Click here to search for a place to stay in Faro near the airport…
The Algarve – Essential Travel Tips
The Algarve is Portugal’s deep south. It is also known as Faro District, after its main city and gateway. The Algarve has about 150 kilometers of indented Atlantic coastline. Between beaches framed by spectacular rock formations, you’ll also find broad stretches of golden sand beside hotel complexes and vacation apartments. Most of these sit next to traditional fishing villages that have developed over recent decades into modern resort towns for visitors. The main resort areas are along the Algarve’s long southern coast. On the western side of the region, facing the wild Atlantic winds, people tend to come more for touring and surfing than to base themselves for a stay.
It’s important to know that most beaches in the Algarve are not level with the towns — you usually need to walk down stairs or boardwalks to reach them. Not a problem, but useful to know. Also, as with the Atlantic anywhere, there are tides. Here in the Algarve they are much less dramatic than in northern and central Portugal, but it’s still worth being aware of tide times and days. Hotel staff and locals can usually help with that.
The Algarve also includes an inland area up in the hills to the north. There you’ll find several of the most beautiful villages in Portugal, looking out over the sea from above. People usually stay in the upper Algarve and in the villages when visiting the region by rental car outside the summer season.
The weather in the Algarve stays sunny for most of the year – while much of Portugal turns gloomy and gray in fall and winter, the Algarve, especially the coast, is one of the sunniest areas in all of Europe. True, winter is too cold for swimming in the ocean, but it’s a wonderful time for walking the long coastal paths above the beaches and cliffs — and even better for exploring the Algarve’s rural interior, which turns green during the season.
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Types of Accommodation in the Algarve
Hotels
Most places to stay in the Algarve are hotels. Most are privately owned as well and not part of major chains. Much like in Greece and Italy, the beach towns here have kept a local character. In season, everything runs at full speed, while outside the season people are mostly preparing for the next one.
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Resorts
The Algarve is not a classic resort destination, and as mentioned, most accommodations here are hotels and vacation apartments. Still, there are a number of resorts where you can happily stay for days without leaving the property. Most of them are in Albufeira and Vilamoura.
Click here to find the resort in the Algarve that suits you best…
Click here for a list of 12 recommended resorts in the Algarve…
Vacation Apartments
Families will usually prefer apartments, since they’re larger and come equipped with a kitchen, washing machine, and more. Booking a reasonably sized apartment can also mean making one reservation instead of booking two hotel rooms, as sometimes happens. The Algarve has plenty of vacation apartment options. Most are not right on the beach, but that’s usually not a problem, since people almost always rent a car here and use it to move between beaches and different water parks.
Aparthotels
People come to the Algarve for many kinds of vacations, but above all for family summer trips. Long before the internet and Airbnb changed travel, many hotels here were already designed for extended stays by families or small groups. Because that format worked so well, the tradition continues, and today the Algarve has quite a few aparthotels with clear advantages over standard vacation rentals, such as breakfast options, better maintenance, a pool, and the atmosphere of staying alongside other families.
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Pousada
Pousadas are hotels housed in historic buildings in Portugal. In neighboring Spain they’re called Parador, and here in Portugal the concept is much the same. These are usually luxury hotels, though most are not overly expensive. In almost every region of Portugal you’ll find one or more. Here in the Algarve there aren’t many, but there are a few, including:
the Pousada in the colorful palace in Estoi near Faro,
the Pousada with the spectacular view in Sagres
the Pousada in the former convent building in Tavira.
