With charming towns and sandy beaches in abundance, planning a trip to the Algarve is a no-brainer. Discover the best hotels in the Algarve with this travel guide – from quaint beachside boutique resorts to opulent villas.

The Algarve is a destination that needs little introduction. Go back ten years or so and it was still fairly under the radar (beyond the bigger resort towns that is), but times have changed and it’s now a widely-known spot for beaches, hiking and luxury resorts.

Whitewashed towns meet the sparkling blue Atlantic Ocean waters and a seemingly infinite amount of sunshine provides the perfect setting for long days of relaxation or adventure along the Iberian shores.  

Alas, at some point, you’ll need to pull yourself off the sandy beaches or pristine golf courses and catch up on some rest. 

So where are the hidden gems, budget-friendly beach resorts and luxury 5-star hotels in the 

Algarve? Keep reading to find out…

Best Hotels in the Algarve: At a Glance 

Best Hotels in the Algarve – Top Picks Hotel 
Best Overall Hotel in the AlgarvePine Cliffs Hotel
Best Luxury Algarve Hotel Anantara Vilamoura Algarve Resort
Best Budget-Friendly Algarve Hotel Pure Formosa Concept Hotel
Best Beachside Algarve Hotel Vila Vita Parc Resort & Spa

Best Hotels in the Algarve

Vila Vita Parc Resort & Spa

£££ 

Porches

Vila Vita Parc Resort & Spa

What might just be the most beautiful hotel in the Algarve, Vila Vita Parc Resort & Spa embraces the region’s history by featuring Moorish architecture, expansive tropical gardens and a hidden beach under the gorgeous Algarve cliffs around the property.

Booking a room that faces the ocean is a must, and if possible, you’ll want to upgrade to a Premium Suite with Terrace to really bask in the view at one of the best Algarve hotels on the beach.

Which of the ten restaurants to choose for dinner? The two-Michelin star seafood masterpiece Ocean Restaurant always manages to wow visitors with inventive cuisine and unrivalled ocean views.

Anantara Vilamoura Algarve Resort

£££ 

Vilamoura

Anantara Vilamoura Algarve Resort

The Anantara Vilamoura Algarve Resort is a personal favouritre (so much so, I wrote a full review here). It’s, without a doubt, one of the most luxurious hotels in Algarve, Portugal.

Cosy poolside cabanas, a cork tree sculpture in the lobby and the excellent seafood lunch spot Ria (right by the adults-only pool) offer an air of I’m cool but don’t really know it.  And it totally works.

Without question, one of the best Algarve hotels to kick back and relax along the endless resort grounds, Anantara Vilamoura Algarve Resort is where you want to stay in the Algarve for chilled-out vibes and top-notch service without pretension. 

Monchique Resort

££ 

Monchique 

Monchique Resort

Monchique Resort offers an eco-minded luxury experience for travellers in need of a quiet retreat away from the Algarve’s bustling beaches and vibrant towns.

Make no mistake – this rural retreat is far from roughing it. Instead, the Sensorial Spa taps into the mountainous landscape and natural thermal springs to provide blissful indulgence steps away from your luxury suite in this Portugal hiking haven.

You can also enjoy cocktails with mountain views, locally sourced lunches and freshly made pizza. Sign me up.

The rooms have a contemporary luxury look, and you can choose a suite with a kitchenette and private balcony or terrace to enjoy the great outdoors from one of the best Algarve hotels you (probably) haven’t heard of.

Four Seasons Fairways

££  

Quinta do Lago

The Four Seasons Fairways Algarve Portugal

When I stayed at the Four Seasons Fairways, I fell in love with the unpretentious luxury property that’s easily amongst the best 4-star hotels Algarve offers.

The friendly staff are never too busy to lend a hand and make you feel at home amongst the villas and apartment-style suites that make up this wonderful luxury hotel in Algarve.

This iconic resort property has called Algarve home for decades, but the newly renovated rooms feel anything but outdated. Large, well-appointed and filled with the trademark natural light that the Algarve is famous for, you’ll be happy to call this hotel in Portugal your base for a few days.

You can only make reservations by phone now, so call ahead if you want to stay at the Four Seasons Fairways.

Longevity Health & Wellness Hotel

££

Alvor 

Longevity Health & Wellness Hotel

Looking for a relaxing weekend getaway in the Algarve? Longevity Health & Wellness Hotel is an adults-only Algarve hotel and spa with a relaxed atmosphere perfect for a couple’s break.

With an indoor and outdoor pool, you can admire the stylish architecture under the warm Algarve sunshine. Or opt to spend some time resetting in the hot tubs or sauna, it’s totally up to you.

But how about the rooms? You’ll be glad to hear that bedrooms are large, stylish and have floor-to-ceiling glass separating the bathroom and sleeping quarters. What more could you possibly want?

Vila Origens Boutique Hotel Albufeira

££ 

Albufeira 

Vila Origens Boutique Hotel Albufeira

Though it has only opened in recent years, Villa Origens Boutique Hotel Albufeira is a 21-room adults-only hotel in Algarve that seriously impresses. It has tapped into the Moorish history of the area by updating a building with walls dating back to the 12th Century. 

Your location couldn’t get any better, as one of the best boutique hotels Algarve offers is in the heart of Albufeira’s hilly urban city centre overlooking the gorgeous turquoise waters below.

Although steps from the beach, the outdoor swimming pool is the perfect place to begin your days swimming laps in the Algarve sunshine.

Rooms are modern and stylish but have reminders of the region’s history with exposed stone walls and Islamic decor nodding to the Moorish influence you’ll see all around the beautiful property grounds.

Pine Cliffs Hotel

£££ 

Albufeira

Pine Cliffs Hotel

Looking for one of the top luxury hotels Algarve offers? Pine Cliffs Hotel recently celebrated its 30th anniversary and knows a thing or two about providing an intimate experience to hotel guests – despite the 200+ rooms on the sprawling cliffside property.

This is easily atop my list of favourite Algarve luxury hotels thanks to 6 outdoor pools, a gorgeous contemporary lobby bar, a golf course on the property and an impressive array of dining options ranging from seafood to steak houses.

Rooms are immaculate and feature authentic Algarve decor highlighted by excellent touches, like the hand-painted tiles on the wall behind your impossibly comfy double bed.

Fancy staying at one of the best hotels in the Algarve? Run, don’t walk to Pine Cliffs Hotel.

EPIC SANA Algarve Hotel

££ 

Albufeira 

EPIC SANA Algarve Hotel

Next up is the aptly-named EPIC SANA Algarve Hotel. Here you’ll wake up in your canopy bed surrounded by light hardwood and soft shades of green, white and grey.

With indoor and outdoor pools, five restaurants (don’t miss Al Quimia) and access to nearly any outdoor activity imaginable, I don’t blame you if you’ve already packed your bags.

The best bit? Prices are seriously reasonable – though the hotel does get booked up in advance, so you’ll need to be quick to snag the best deals.

Tivoli Alvor Algarve Resort

£££ 

Alvor

Tivoli Alvor Algarve Resort

Creating a luxury all-inclusive resort that balances every convenience with personalised service and high design is no simple feat. Tivoli Alvor Algarve Resort makes it look easy with the recently opened 470-room resort.

Fancy some fun in the sun on your Algarve holiday? Try your hand at mini golf, tennis or 

practising your backstroke in one of six swimming pools.

When it comes to dining options, the restaurants are stylish and bold, with geometric chandeliers adorning high-rising ceilings and wide-open floor plans. Cuisine ranges from Mediterranean to a classic steakhouse where you can choose your favourite cut before the chefs expertly prepare it.

Rooms are breezy and relaxed, with MCM furniture, hardwood floors and built-in millwork stretching the length of the wall behind your bed.

3HB Faro

£££ 

Faro 

3HB Faro

When the ultra-arty pair Miguel Abreu and Paulo Lobo collaborated to create 3HB Faro, it should have been obvious that one of the finest Portugal hotels was about to be born.

The indoor pool and sauna, fabulous Restaurante Hábito and central location make this an easy decision when looking for Algarve Portugal Hotels in Faro.

And the rooms? They’re swanky, complete with the high-level of design you would expect from a place helmed by two creatives.

You’re on holiday… In the Algarve. Treat yourself to a suite with a step-up jacuzzi on a private outdoor balcony, and thank me later.

Lagos Atlantic Hotel

££ 

Lagos 

Lagos Atlantic Hotel

For those after a laidback escape, Lagos Atlantic Hotel is an excellent boutique resort with 26 rooms that embody the beachy town’s light-hearted vibe. 

From the soft colour palette with creamy accents of beige and white to the views of the unparalleled deep blue Lagos waters in the distance, you can’t do a better job fitting into the local culture and scenery. 

Pure Formosa Concept Hotel

£ 

Olhão 

Pure Formosa Concept Hotel

Pure Formosa Concept Hotel might be the cheapest hotel in this guide, but that doesn’t mean it lacks in luxury. Not at all. In fact, it’s one of the newest hotels in the Algarve, and it’s quickly making a lasting impact with vacation-goers near and far.

Modern artwork, furniture and design shine through each contemporary room. But the most impressive space in this boutique Algarve hotel is the rooftop offering panoramic views, dozens of poolside loungers and a bar to admire the scenery with a cocktail. 

Because a martini on a rooftop bar makes everything 10x better, no matter when you go, right?

Jupiter Marina Hotel

£

Portimão 

Jupiter Marina Hotel

If it’s adult-only hotels in the Algarve you’re after, check out Jupiter Marina Hotel in Portimão. 

The romantic resort has a rooftop infinity pool, stylish restaurant and bar and the excellent Soul Spa for when you want to kick back and relax (isn’t that what the Algarve is all about?) 

The rooms in the former canning factory have a light and airy design that feels like a luxury seaside cottage meets contemporary urban apartment. It’s no wonder that it’s one of the Algarve’s best hotels for couples.

Hotel Rural Brícia Du Mar

£

Ferragudo 

Hotel Rural Brícia Du Mar

Luxury hotels in the Algarve are as plentiful as sunshine, sandy shores and limestone cliffs. But there are also some incredible budget-friendly resorts, like the Hotel Rural Brícia Du Mar.

Located in the incredible Ferragudo, this 4-star Algarve hotel is the perfect landing spot between snorkelling, hiking or simply catching up on a good book in your lounger.

Rooms are surprisingly stylish for the price and boast private outdoor space where you can begin and end your days breathing in the fresh (if a bit salty) Portuguese air.

Best Hotels in the Algarve: Frequently Asked Questions

What is the Best Area to Stay in the Algarve?

There are so many places to stay, but if you ask me, ancient villages, excellent shopping and some of the best beaches in Portugal make Lagos the best area to stay in the Algarve.

Practical Tips to Consider Before Booking Your Algarve Hotel

  • Book your hotel in the off-season for optimal room rates, as it’s one of Europe’s best winter sun destinations. The Algarve is a surprisingly affordable Portugal holiday destination, so you might even be able to stretch your budget to an upgraded ocean-view suite.
  • You can get around the region fairly easily, but I recommend you hire a car to get from the airport to your hotel to see amazing locations like Benagil Cave.

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