Where to Stay in the Algarve (Full 2026 Guide)
When people visit Portugal, one of the top destinations on their bucket list is the beautiful coastline on the south coast of the mainland: The Algarve.
The Algarve has become a very popular spot to explore and travel to in Portugal, and for good reason!
With sandy cliffs, over 300 days of sunshine a year, and a ton of fun things to do – from wine tastings to dolphin & whale watching – this coastline should be on every traveller’s bucket list.
Whether you’re coming for a relaxed holiday or an adventurous couples trip, the Algarve is a great spot!
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5 awesome places to visit along the Algarve
After spending a full month in the Algarve, we’ve put together this post where we highlight 5 different towns that we love in the area: Lagos, Tavira, Carvoeiro, Sagres, and Portimão.
You can easily spend multiple weeks travelling between the towns, or you can pick one or two of the towns along the coast to spend some time in. We love the south coast and can highly recommend visiting all these towns on the list.
In this post, we’ll go over what’s so special about each town – why you should visit, what to do there, and the best places to stay!
Pro tip: To make the most of your Portugal trip, we also suggest spending a few days in Lisbon (find short term rentals in Lisbon here) before you make your way down to the Algarve. It’s such a beautiful city and a great way to introduce you to the best of what Portugal has to offer.
#1 Lagos (most popular)
We’ve spent a lot of time in Lagos and it’s a very lively town (it’s actually a city but it feels like a town) with loads to do, especially for couples, young travellers, and digital nomads.
The city itself is filled with cute cafes (Black and White Coffee Shop is our favourite), great pubs, and delicious restaurants.
Surrounding the city, you’ll also find some of the most beautiful beaches (Praia da Falésia, which is less than an hour away, was nominated the 3rd most beautiful beach in Europe in 2026 by TripAdvisor).
You truly have the perfect balance between city and beach vibe in Lagos, and that’s probably one of the reasons why it’s one of the best areas to stay in the Algarve!
If you’re looking for a place that’s more lively, where you’ll be surrounded by people and lots of energy, then Lagos is the place to go.
Also read: The Best Ways to Get From Lisbon to Lagos
Best things to do in Lagos, Portugal
We have another blog post about the 20 best things to do in Lagos that includes everything from the best beaches, which restaurants to visit, to our personal recommendations for the best kayak tour in Lagos.
It’s a very lively town, and there are always events and things happening in the city. So whatever you’re looking for here, you will likely find it.
You can start your morning with a stop at Black and White or The Studio Coffee Roasters and then make your way to Ponta Da Piedade, which is a stunning coastal walk that takes you along the coast from Lagos. You can also visit this beautiful coast by boat.
This is actually one of our top suggestions for you when you visit! There’s a bunch of different boat tours that depart from Lagos, so you can pick which one suits you (dolphin watching, cave tour, or even kayaking). No matter which tour sparks your interest, we highly suggest getting out on the water!
If you’re looking for something a bit more cultural, you can also go on one of the delicious food tours from Lagos. The food in this part of Portugal is delicious, and there’s no better way to enjoy some food and wine than on an awesome local tour!
Where to stay in Lagos
Below we’ve listed out some of the best places of accommodation in Lagos!
Casa Mae – Stunning white Portuguese home in the centre of Lagos Old Town. It also has an excellent restaurant on the property that is worth checking out!
Boutique Hotel Vivenda Miranda – This is a beautiful place for couples who want to stay right by the ocean. There’s a beautiful pool right on the property, and the ocean view rooms are the cherry on top!
Tivoli Lagos – Tivoli is one of the best-located hotels in Lagos, right in the heart of the old town. If you stay here, you’ll get breakfast included, access to all 3 pools, and a free shuttle to the beach in summer.
#2 Tavira (local and chill Portuguese vibe)
Some say Tavira is the most romantic and cute town along the Algarve, and in my opinion, I’d have to agree!
The cute cobbled streets and tiled houses make almost every street picturesque. If you’re looking to get somewhere away from all the crowds, this is the perfect place for a couple’s getaway.
Tavira is full of local cafes and restaurants, and you really can’t go wrong with any of them. Flavour Café is an absolute must if you’re a coffee lover looking for the best barista coffee in the area.
It’s a small town, so there’s not as much to do as there is in Lagos, for example, but it’s a great place to be if you’re looking to relax and just enjoy a simpler way of life.
Best things to do in Tavira, Portugal
Tavira is located on the eastern side of the Algarve and is great if you’re looking for a place where you can mix relaxation with day trips around the area.
Santa Luzia is an awesome beach area just 10 minutes away, where you can easily spend a full day. Make sure to stop by Praia do Barril while you’re there!
Tavira is a great walking town with the Gilão River running through, and it’s also close to some amazing beaches (like Praia da Ilha de Tavira and Praia da Terra Estreita).
There are also lots of fun outdoor activities like sea kayaking and boat tours. This tour from Tavira combines all the best things to do in the area: Hiking the 7 Valleys (a 1.5-hour walk above the beach), a visit to the Benagil Cave, and Snorkelling. We highly recommend checking it out!
As we mentioned before, though, Tavira is an incredibly cute and charming town, so if you simply just want to relax at your hotel and enjoy the best cafes and restaurants in town, you can easily do that too!
Where to stay in Tavira
Hotel Rural Quinta do Marco – This is a beautiful hotel located in the countryside of Tavira that offers a relaxing getaway in a quiet part of the Algarve. It’s rated as one of the best hotels in the area, and it’s perfect for a relaxing holiday!
Colégio Charm House – This is an 18th-century palace that has been transformed into a beautiful boutique hotel in Tavira. It is a super charming, one-of-a-kind hotel with a beautiful outdoor pool, right in the heart of Tavira.
#3 Carvoeiro (beautiful coastline)
Carvoeiro is one of the best beach and resort towns in the Algarve, so if that’s what you’re looking for, this is the place for you.
There are some amazing resorts to stay in Carvoeiro, and you’re basically a stone’s throw away from some of the prettiest beaches in the Algarve.
This is where you want to bring a good book or Kindle, and get ready to relax in one of the most beautiful parts of Portugal. If you really want to enjoy the sun and relax on the beaches, then Carvoeiro is the place to spend some time in the Algarve.
Best things to do in Carvoeiro, Portugal
Carvoeiro is a great place to visit if you’re looking for beautiful beaches, nice resorts, and lots of time to relax in the sun.
Praia de Carvoeiro is the most popular beach nearby (and is likely going to be the busiest one), and Praia do Vale de Centeanes is (in our opinion) the most beautiful one! When visiting some of these beaches, make sure to check the tide times, as not all beaches are accessible during high tide.
If you want to mix it up with something a bit more active, you can also mix in a boat tour to the beautiful Benagil Cave (a must do!!), a sea kayaking trip, or even a hike around the coast.
From the town, you can go either east or west and find hiking trails that go along the coast. They are well-marked and relatively flat – and they offer some absolutely incredible views looking out at the sea!
There are also some great cafes in town, like Earth Shop & Cafe and Café Fino. So if you’re not relaxing at the resort, then make sure to roam the streets of this cute town and check out the local shops and stores.
Where to stay in Carvoeiro
Quinta Azul Bed & Breakfast – This is the exact vibe we were talking about. Azul Bed & Breakfast is perfect for a long weekend or a few days if you want to enjoy some peace and quiet! Sipping on coffee, reading a book, and enjoying the beautiful Algarvian coast.
Caneiros Luxury Suites – The view alone from the Caneiros Luxury Suites is something out of this world. It’s the crème de la crème when it comes to resorts in the area, and it’s the perfect place to stay if you’re looking for a little getaway to the Algarve where “everything” is taken care of for you!
#4 Sagres (surf town)
This is the most western point of the Algarve and by far the most barren part of the whole coast. From the crazy cliffs to the powerful seas, everything about Sagres screams surfing – in the best possible way!
We’ve joined a few surf camps over the years (including this one in Ericeira further north), and if there’s one thing we love about surf towns, it’s how chill they are. Everyone who comes to Sagres is just here to have a good time, enjoy the waves, and catch some beautiful sunsets on the west coast!
If you’re looking for a laid-back, chill vibe, Sagres is the place to go. Absolutely worth a visit when travelling through the Algarve – even if you don’t end up staying here!
Best things to do in Sagres, Portugal
Sagres is essentially a surfing town, and the main reason to come is if you’re looking for a chilled-out surfing vibe in the Algarve. There are a ton of places to surf in the Algarve, but this is “the surf destination” – and it is actually acknowledged as one of the best surf towns in Europe.
You can also visit some iconic landmarks like the Sagres Fortress (see the image above). Saudadé Cafe and Picnic Sagres are some good cafes to check out while you’re in town.
At the end of the day, it’s a very chilled-out surfing town, and if that’s what you’re looking for, then Sagres is definitely the place to spend some time! We’re sure you’ll absolutely love the landscape, the people, and, of course, the awesome surf.
Where to stay in Sagres
Memmo Baleeira – This beautiful hotel overlooks the Atlantic with awesome sea-view balconies. Memmo is a stunning hotel with a pool, spa, and restaurant. An awesome hotel if you want to treat yourself to a nice stay in Sagres.
Martinhal Beach Resort & Hotel – If you’re looking for a family-friendly luxury hotel in the Algarve, this is it. Martinhal is great for couples or families who want to enjoy the relaxed vibe you find out west. It’s a beautiful resort with a pool, sunbeds, ocean views, and a very relaxed atmosphere.
#5 Portimão
Portimão is a beautiful town in the Algarve that has significantly grown over the years – starting from a small fishermen’s town to the second largest city in the Algarve (there’s some controversy around whether or not this is actually the biggest city in the Algarve).
It’s quite a lively and busy town, with lots of expats living here. Here, you’ll be able to find some amazing beaches, cafes (Brunch in Rio in Ferragudo is a good option), and restaurants in the area.
Personally, I’d make sure to stop in Portimão for at least a few nights during your travels around the Algarve. It’s a beautiful town and there’s lots to see and do in the area!
Best things to do in Portimão, Portugal
The town center in Portimão is stunning, and that’s where you’ll find all the cute shops and cafes. Coffeine&Brunch is just one of many cafes in the area that are worth stopping by!
You also have the beautiful Praia de Rocha very close by, which is one of the most iconic beaches in the area. From there, you can go on a kayak tour to explore the Benagil Caves.
If you don’t want to visit the caves by kayak, you can also go on one of the boat tours that depart from Portimão. This tour also includes dolphin watching!
Portimão is one of the main cities for boat tours in the Algarve, so definitely take advantage of it while you’re here. It’s absolutely worth doing!
Where to stay in Portimão?
Jupiter Marina – This hotel is perfect if you’re looking for somewhere to relax with your partner. The views overlooking the marina are amazing, and it’s a wonderful place to relax and enjoy the amenities.
Bela Vista Hotel & Spa – If you’re looking to completely indulge, then stay at one of the most beautiful boutique hotels in the Algarve. Hotel Bela Vista is right on the cliffs of Praia de Rocha, and it is hands down one of the most beautiful hotels in the area!
You may also like…
- The 5 Best Surf Spots in the Algarve
- Famous Benagil Cave Tour From Lagos (Review)
- 3 Ways to Visit the Benagil Caves by Kayak
- Exploring Ponta Da Piedade by Boat (Lagos, Portugal)
- 8 Beautiful Beaches in Lagos You Need to Visit
Recap of where to stay in the Algarve
The Algarve is one of our favourite regions in Portugal because of the awesome coastline, amazing beaches, consistent good weather, and because of all the fun outdoor activities you can do in the area.
Whether you’re into hiking and water activities or you just want to relax at a hotel or resort with a good book, you can’t go wrong with a trip to the Algarve!
All 5 of these spots in the Algarve each have something unique to offer. From the vibrant city of Lagos to some of the quieter resort towns, you can find a good mix of everything here – and that’s why we love it.
Over the years, we’ve completely fallen in love with Portugal and even got married there (in Madeira!).
If you have questions about the Algarve, how to get around, where to stay, or what to do, feel free to reach out. We’re more than happy to assist with your travel planning.
You can reach out to us on Instagram @redwhiteadventure or leave a comment on this post, and we’ll get back to you. Have an amazing time exploring this beautiful country and the Algarve coast!
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Perfect timing—I’ve been planning an Algarve trip and this guide just made choosing where to stay so much easier!
Hey Freddie,
That’s awesome! Let us know how the trip goes.
-Dom
Really enjoyed reading this guide! The way you explained the different areas of the Algarve makes it so much easier to choose where to stay, especially for first-timers. Super helpful and well written.
Hey Emily,
Thanks for the feedback! Glad it helped book your trip to the Algarve!
-Dom