Portugal’s stunning southern coast – the best hotels in the Algarve greet you with golden beaches, charming towns, and rich Portuguese heritage.
Whether you seek the ultimate relaxation by the sea, a romantic escape for two, or an adventure-filled family vacation, these best Algarve hotels have it all.
From cliffside retreats with breathtaking vistas to boutique gems with Michelin-star restaurants, here are the best luxury hotels in the Algarve, Portugal.
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Planning your trip to the Algarve last minute? Here are the tours and hotels we recommend. Other posts you may find helpful include a 2 Day Lisbon Itinerary, the Best Boutique Hotels in Lisbon, and a Guide to Sintra Portugal.
- TOP EXPERIENCES & TOURS IN THE ALGARVE
- BEST HOTELS IN THE ALGARVE
- PRACTICAL INFORMATION FOR THE ALGARVE
- Get Travel Insurance for the Algarve with Safety Wing.
- Check Discover Cars for great car rental prices in the Algarve.
- Find the best flight deals to the Algarve on Skyscanner.
Where to Stay in the Algarve
Stretching across the bottom of Portugal, the Algarve offers diverse experiences from water excursions to historic sites and nature. Here is a quick look at the Algarve best places to stay, depending on the type of trip you’re planning.
Tavira
Tavira is perfect for couples seeking a romantic escape. The town exudes charm with its cobbled streets and historic architecture. The Algarve boutique hotels in Tavira offers a unique experience.
Faro
Faro, Algarve’s capital, is a great pick for travelers interested in history and culture or anyone who wants to stay close to the airport. You will find museums, historic sites, and a picturesque old town. Opt for a centrally located hotel for easy access to attractions!
Albufeira
Albufeira strikes a balance between family-friendly activities and a lively nightlife scene, and it’s one of the most popular Algarve destinations.
You will find plenty of beaches and water sports like paddleboarding and kayaking here. Seek out a family resort or a boutique hotel in Albufeira near the beach!
Portimão
Portimão offers a mix of beaches, shopping, and a vibrant riverside promenade. It’s known for its marina and vibrant old quarter. Below you’ll find an amazing Moorish mansion to stay in!
Sagres
Sagres is a haven for surfers and those looking to explore the rugged beauty the Algarve is so famous for. Seek out a resort of Algarve boutique hotel with ocean views to take full advantage of this town.
When choosing among the best places to stay in the Algarve, it is ideal to book in advance, especially during peak seasons. Each area in the Algarve can have a distinct feel, so choosing based on your vacation priorities will ensure a memorable stay!
Best Hotels in the Algarve, Portugal
Vila Vita Parc Resort & Spa (Exceptional Algarve Luxury Hotel on the Beach)
Vila Vita Parc Resort & Spa (9.5) in Porches is one of the most picturesque 5 star hotels on the Algarve Coast. It’s nestled on the Atlantic Coast, surrounded by lush gardens.
You’ll feel an air of classic elegance combined with a warm and welcoming atmosphere as soon as you enter.
The rooms and suites are full of Portuguese-inspired décor in bright spaces with hardwood flooring, minibars, lovely views, and spacious bathrooms.
A great bonus of booking this hotel in the Algarve is that it offers both rooms and one and two-bedroom apartments. They come equipped with kitchenettes and include either a patio or balcony.
You will find an array of amenities during your stay, a complete spa, and a variety of gourmet dining options – 10 in total plus 6 bars.
There are also tennis courts, mini golf, an outdoor pool, sunny terraces, yoga classes, and much more to experience.
What guests like most: true luxury, breakfast spread, 2 Michelin star restaurant • Consideration: apartment villas are located just outside of resort walls
Octant Praia Verde (Best Resort in Algarve for Families)
Among the best boutique hotels in the Algarve is Octant Praia Verde (9.2). Surrounded by pine in the village of Praia Verde, this intimate property boasts white-washed walls with rustic Portuguese charm.
The rooms/suites are cozy with wooden decor and subtle decor. All have balconies, while some also have sea views. There is also a spacious family suite with a pull-out sofa.
During your stay, take advantage of delicious Mediterranean cuisine at the onsite restaurant with a wood oven. Other amenities include an outdoor swimming pool, sun deck, fitness center, and private beach area.
Plus, those traveling with children will benefit from the hotel kids’ club.
What guests like most: scenery, great facilities, welcoming staff • Consideration: not a lot within walking distance
Pine Cliffs Luxury Resort (Luxury Hotel in Algarve on Red Cliffs of Albufeira)
Set minutes from the beach, Pine Cliffs Luxury Resort (8.5) is one of the best 5-star boutique hotels in Albufeira. It’s located atop dramatic red cliffs, boating dreamy views of the Atlantic Ocean.
Plus, Albufeira is one of the most beautiful towns of the Algarve, only a half hour from the Faro International Airport.
There are 217 rooms and suites on the property, with 5 different styles to choose from. Each features Mediterranean-inspired décor with a balcony or patio – many with ocean or resort views.
The resort’s amenities amplify your stay, including an extensive golf course, a luxurious spa, and a range of exquisite dining options.
Considering its spectacular location and top-notch facilities, Pine Cliffs promises an unforgettable Algarve experience for any visitor on a luxury trip!
What guests like most: red cliffs, big resort, lots of restaurants • Consideration: busy hotel with lots of guests
Hospedaria (Rural Algarve Accommodation for an Intimate Stay)
If you’re looking for an intimate experience, Hospedaria (9.6) is an amazing rural accommodation in the Algarve set in a restored tavern.
It’s full of rustic charm, with whitewashed walls and traditional Portuguese tiles surrounded by natural scenery.
The 5 suites are cozy and inviting, reflecting the character of the surrounding old town. You will want to spend all your time soaking up the beauty of this place! Plus, they all include a private, sun-kissed patio.
Explore the cobbled streets of Tavira, which straddles the Gilão River. Otherwise enjoy the guesthouses’ garden, year-round outdoor swimming pool, and onsite bar.
If you’re seeking relaxation and natural beauty in a unique space, Hospedaria is one of the best hotels in the Algarve – and it’s great for couples!
What guests like most: very aesthetic, nice breakfast, peaceful • Consideration: further from main Algarve tourism
Conrad Algarve (Sleek 5-star Hotel in the Algarve Near Faro)
If you’re seeking modern luxury near Faro, Conrad Algarve (9.3) is set against the backdrop of the Algarve’s natural beauty with a contemporary vibe and plenty of things to do.
The rooms and suites have an elegant design, featuring clean lines, plush furnishings, minibars, and Nespresso machines.
Many include private balconies that offer sweeping panoramic views of the surrounding golf courses, swimming pool, and/or nature.
You’ll find an array of amenities, including an exclusive spa, several gourmet restaurants, 3 golf courses, and an inviting pool area. Conrad Algarve provides a truly world-class experience!
What guests like most: excellent service, pool zone, 5-star everything • Consideration: less traditional Portuguese touches
3HB Faro (Best of Central Luxury Hotels in Algarve – Faro)
If you want to be in a central area, this 5-star Algarve hotel, 3HB Faro (9.5), is set in the middle of Algarve’s capital, minutes from sites like the Faro Cathedral and Old Town.
Feel pampered in your room/suite, featuring modern design elements and rustic flair. Each includes a minibar, coffee maker, and private balcony overlooking Faro.
You can upgrade to a spacious room with a private terrace jacuzzi or a large suite that sleeps three guests.
The hotel’s rooftop terrace bar/restaurant is a standout feature, providing stunning views of the cityscape and the Ria Formosa Nature Reserve. There’s also a modern pizzeria, gym, and a spa with an indoor pool.
What guests like most: great location, amazing breakfast, modern • Consideration: bit further from coastline
Bela Vista Hotel & Spa (Historic Luxury Algarve Hotel on the Coast)
Bela Vista Hotel & Spa – Relais & Chateaux (8.9) is a historic gem overlooking Praia da Rocha Beach in Portimão. Housed in a 19th-century Moorish mansion, this boutique hotel in the Algarve offers a captivating, timeless elegance with all the amenities you’d expect from a 5-star hotel in Portugal.
The rooms and suites are exquisitely furnished, sticking with the historic feel the hotel does so well. Many offer amazing ocean views from private balconies.
Enjoy dining at a Michelin-star restaurant during your stay. There is also a lovely outdoor pool area, a bar with an old-world feel, and a therapeutic spa. Bela Vista Hotel & Spa offers a truly unique Algarve experience!
What guests like most: beautiful location, Michelin-starred dinner, unforgettable • Consideration: splurge
W Algarve (Stunning Algarve Accommodation With Original Architectural Design)
The W Algarve (9) in Albufeira is a design-focused, best hotel in Algarve with an expansive premise and unique attention to detail.
You’ll find that the hotel boasts a sleek, minimalist aesthetic complemented by bold, artistic elements.
The rooms and suites are like a masterclass in modern design, with clean lines, vibrant accents, and private balconies or terraces that provide dazzling views of the Atlantic Ocean.
The hotel’s amenities are equally impressive, including multiple pools, a high-end spa, and a few restaurants and trendy bars.
While the hotel is quite romantic, it’s also ideal for families as several 2-bedroom residences sleep up to 5 guests as well as a playground and ping-pong zone.
What guests like most: uniquely modern, excellent staff, views • Consideration: not a lot of variety with dining options
Vila Joya (Best of Hotels in Algarve for Couples)
Positioned along the stunning Algarve coastline near Albufeira, Vila Joya (9.7) exemplifies luxury with a touch of romance.
This boutique hotel in the Algarve combines Moorish architecture with modern design with a tucked-away, paradise feel to it.
Incorporating rustic decor and beachfront terraces/balconies, the rooms are top-notch. Some also have soaking tubs and jacuzzis for a truly romantic stay for couples.
Vila Joya is actually home to the first restaurant in Portugal to be awarded two Michelin stars, so take advantage of a gastronomic experience during your stay!
Some other amenities include two swimming pools, two other restaurants, a poolside bar, spa facilities, and golf.
What guests like most: nice environment, gourmet food, beach • Consideration: outside of Albufeira
Martinhal Sagres Beach Family Resort Hotel (Best Resort in Algarve for Families)
For the best family resort in the Algarve, Martinhal Sagres Beach Family Resort Hotel (9) offers both family-friendly comfort and upscale sophistication. Plus, situated right on the edge of the Algarve, it boasts a prime beachfront location.
The rooms and suites are spacious and nicely decorated and many come with 2 bedrooms, sleeping up to 4 or 5 guests. Book a villa and enjoy a full kitchen and private garden.
The resort’s amenities cater to all ages, including kids’ clubs, a game room, water sports, and a relaxing spa for adults. There are also multiple swimming pools, evening entertainment, and numerous bars/restaurants.
Martinhal does a great job of creating a family-friendly atmosphere while maintaining a sense of luxury.
What guests like most: nice environment, gourmet food, beach • Consideration: outside of Albufeira
Grand House – Relais & Chateaux (Small Boutique Hotel in the Algarve’s Vila Real de Santo António)
Grand House – Relais & Chateaux (8.9) is a beautifully restored 1926 townhouse that radiates old-world charm and makes for one of the best hotels in the Algarve. Plus, it’s one of the few hotels that overlooks the marina of Vila Real de Santo António.
The 30 rooms/suites have a Mediterranean feel, featuring a palette of soft, neutral tones. Many have private balconies or large windows with views of the Guadiana River or Marina.
Just a few minutes away, guests have access to the Grand Beach Club with an infinity pool and restaurant. There’s also a bar, spa facilities, bike rentals, buffet breakfast, and more to enjoy.
What guests like most: beautiful property, cute town, intimate • Consideration: smaller scale hotel
Octant Vila Monte (Country Chic Algarve Boutique Hotel)
Octant Vila Monte (9.3)is a tranquil oasis nestled in the Algarve’s lush countryside. This best Algarve hotel captures the essence of rural Portugal, surrounded by lush gardens and orchards with a true farmhouse feel.
With a rustic-chic aesthetic, the rooms here are divine! Each accommodation offers a private terrace or garden space for guests to unwind
The hotel’s amenities include a picturesque, open-air farm-to-table restaurant and a swimming pool. You’ll also find a cozy outdoor fire pit, yoga classes, and a kids’ club.
This entire Algarve hotel offers a cool and authentic southern Portuguese experience, perfect for those seeking a tranquil escape from nature.
What guests like most: little details, amazing staff, location • Consideration: not on the coast
Final Thoughts on Best Hotels in the Algarve
Indulge in the sheer beauty of it all when you book a stay at one of these best Algarve hotels, from its lush countryside to its red cliffs and white-washed towns.
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