Where to stay in Algarve: Faro, Portimão or Lagos?

Are you looking into traveling to the Algarve Coast, but you can’t decide on where to stay? Then this blog post might be perfect for you!

We’ve been lucky enough to visit 3 cities on the Algarve Coast – Faro, Portimão and Lagos – and we were pleased to find that they all had something different to offer.

That’s why we’ve decided to make this Algarve city guide for you.

But in reality, whether you’re staying in Faro, Portimão, Lagos or in another city, you most likely won’t be disappointed with your choice. Because let’s face it… the Algarve Coast is one of the most beautiful destinations in all of Europe!

This blog post is merely our own personal experiences of Algarve’s big cities.

Now let’s get started on this blog post about where to stay in the Algarve, so that you can get packin’ for your next trip to Portugal’s beautiful coast in the South!

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Where to stay on the Algarve Coast in 2023?

Before we begin comparing Faro, Portimão and Lagos, we’d like to stress that these are our own opinions, and you might feel different about these cities once you get there.

We’re going to be completely honest in our review because it might actually help someone who wants a more personal take on where to stay in the Algarve.

Another thing to notice is that Glenn and I visited the Algarve Coast in November, which means that we weren’t part of the busy tourist season. So all cities might have a different feel to them if you visit during peak season.

Now enough blabbering… Let’s get started! Here is our review of Faro, Portimão and Lagos. Hopefully it’ll help you in your decision-making on where to stay during your trip to the Algarve Coast.

1. Faro – Tourist Hotspot

Faro is the capital of the Algarve and the second largest city in the region (measured by inhabitants). There is also an international airport in Faro, which means that it’s often the main gateway to the Algarve Coast for international tourists.

When we headed to the Algarve Coast, we first decided to stay in Faro because we didn’t know anything about the region… Faro seemed like a good starting point, and it really was.

We ended up spending 3 nights in Faro, and we honestly think that this was more than enough to see the main attractions.

During our time in Faro, we explored the old part of the city, went for a super great hike in Ria Formosa named Ludo Hiking Trail, and ate some really good food. We spent a total of €383/2 people for 3 days in Faro including accommodation, food, and activities.

Why stay in Faro

• Faro is super accessible because it has an airport, train station, and bus station.
• The city is located right by Ria Formosa National Park.
• You can go on the popular Island hopping tour in Ria Formosa.
• You can find flamingos and many other birds on Ludo hiking trail.
• There are some great beaches close to Faro.
• Faro is close to many popular golf resorts.
• The old town of Faro is very beautiful.
• Accommodation is pretty cheap.
• You can eat the best octopus in your life here!

Now that we’ve listed why you should stay in Faro during your trip to Algarve, we also want to be honest about a couple of things that we didn’t like about Faro:

Since Faro has an Airport, it also means that a lot of international tourists are flying in, which means that food and drink prices are a bit more expensive. Plus, it was harder to find local, Portuguese places to eat in Faro than in Portimão, for example. Also, there weren’t really that many things to do in Faro itself as the city seems more like a gateway to the rest of the Algarve Coast.

Where to stay in Faro

During our stay in Faro, we slept in a hostel named Baixa Terrace Hostel. We found the hostel okay, but we would probably stay somewhere else on our next visit. So, we’ve spent some time researching the best places to stay in Faro depending on your budget.

I set the travel date to a weekend in June. So, this is what you can expect to pay for your stay during the beginning of the busy summer season in Algarve. But take notice that the prices might have changed since my research. I used my favorite platform: Booking.com.

Here is where we would stay in Faro city center depending on our budget for visiting the Algarve:

Budget-friendly places to stay in Faro

• HOSTEL ALAMEDA EXCLUSIVE HOUSE (€30 per night for one bed in a dorm)
• Tilia Hostel (€32 per night for one bed in a dorm)

Mid-range budget places to stay in Faro

• Casa Algarbe (€92 per night for a double room)
• Sunlight House (€111 per night for a double room)
• Avenue 41 Guest House (€117 per night for a double room)

Luxurious places to stay in Faro

• Roots Hotel (€174 for an apartment with a terrace)
• AP Eva Senses (€203 for a double room with a balcony in a 4-star hotel with rooftop pool)
• 3HB Faro (€287 per night for a double room in a 5-star hotel with infinity pool)

2. Portimão – Local Touch

Portimão is also one of the largest cities on the Algarve Coast, but it has a very different feel to it than Faro. Unlike Faro, you won’t find many international tourists in Portimão. It definitely has a more local touch to it.

We only spent 2 nights in Portimão during our stay on the Algarve Coast, so we didn’t really get to know the city that well. But it’s a great city to stay in if you want to visit the Benagil Cave, Carvoeiro and other small towns, or the incredible Seven Hanging Valleys Hike. Portimão is only a short bus ride away!

During our 2-night stay in Portimão, we ate some incredible (and cheap!) Portuguese food at a local Taverna named Largo, we explored the beautiful Praia da Rocha, and we took the bus to Carvoeiro and went hiking on one of the best trails in Europe – the Seven Hanging Valleys. We spent a total of €241/2 people for 2 days in Portimão including everything from accommodation, food, bus transportation etc.

Why Stay in Portimão

• Portimão has a more local feel to it.
• It’s easier to find cheap and good Portuguese food.
• Praia da Rocha is an amazing beach!
• You can go surfing in the area.
• It’s close to great places like Carvoeiro, Benagil Cave and the Seven Hanging Valleys Trail.

Now that we’ve listed why you should stay in Portimão during your trip to Algarve, we also want to be honest about a couple of things that we didn’t like about Portimão:

While Portimão is close to many great places on the Algarve Coast, there isn’t that much to do in the city itself. We also think that it’s more quiet in a way… So if you’re looking to meet other travelers, then we wouldn’t recommend you to stay here.

Where to stay in Portimão

During our stay in Portimão, we slept in a hotel named Next Inn, and we will probably stay here again for our next visit. However, we’ve still spent some time researching the best places to stay in Portimão depending on your budget – just so you have something to choose from!

We set the travel date to a weekend in June. So, this is what you can expect to pay for your stay during the busy summer season in Algarve. But take notice that the prices might have changed since our research on Booking.com.

Here is where we would stay in Portimão city center depending on our budget for visiting the Algarve:

Budget-friendly places to stay in Portimão

• Aloha Hostel (€24 per night for one bed in a dorm)
• Next Inn (€60 per night for a double room)
• Hotel Made Inn (€60 per night for a double room)

Mid-range budget places to stay in Portimão

• Villa Rio Guest House Suites (€125 per night for a suite including breakfast)
• Hotel Alcaide (€127 per night for a double room with free parking available)

Luxurious places to stay in Portimão

• Jupiter Marina Hotel – Couples & Spa (€159 per night for a double room in a 4-star hotel)
• Algarve Casino Hotel (€175 per night for a 5-star hotel close to the beach)
• Bela Vista Hotel & Spa – Relais & Chateaux (€520 per night for a 5-star hotel close to the beach)

3. Lagos – Backpacker’s Paradise

Lagos is one of the most popular places to stay in the Algarve – and with good reason!

The city is smaller than Portimão and Faro, yet it seems like there is so much more to do here. Apart from markets, museums, and exploring the old part of Lagos, you can also visit some incredible beaches, hike past the rock formations towards Ponta da Piedade, go kayaking, and much more! There is also some great coffeeshops, cheap restaurants, and a thriving nightlife in Lagos.

Lagos is bustling with life and it’s become a great backpacking and digital nomad destination in Portugal. So this is where you want to go if you’re looking to meet other travelers.

We spent 5 nights in the city – 1 night in a hostel and 4 nights in a rental apartment. During our trip to Lagos, we spent a lot of time in the coffee shops working (on this site) …and in the bars drinking.

BUT we also managed to hike to Ponta da Piedade, go on a kayak tour, and relax on the beach (even in the middle of November!). We spent a total of €626/2 people for 5 days in Lagos including everything from accommodation, food and drinks, tours etc.

Why stay in Lagos

• Lagos is a great backpacker destination.
• The city center is beautiful and full of shops and cafés.
• A short stroll from the city center will take you to incredible beaches.
• You can hike to Ponta da Piedade and experience all the cliff formations.
• There are both Portuguese and international restaurants.
• You have the opportunity to find very cheap places to eat.
• Lagos has a great nightlife.
• It’s easy to meet other travelers.
• There are several coffee bars which you can work in.
• Lagos is full of beautiful graffiti artworks and has a modern, hip vibe to it.
• There are many water activities to do such as going on a kayaking tour. Editor note: Once I hope to tell you the funny story of how Glenn managed to fall in the water on a kayaking tour in Lagos.

Now that we’ve listed why you should stay in Lagos during your trip to Algarve, we again want to be honest about a couple of things that we didn’t like about Lagos:

You can expect a bit more hassle from tour operators in this city. For example, it’s not possible to rent a kayak alone in this area of Algarve, however, you can go paddle boarding alone for some reason…? This means you have to buy a kayak tour. Also, there are no cheap supermarkets in the city center, so you have to walk out of the center to find a Pingo Doce or Lidl.

Where to stay in Lagos

During our stay in Lagos, we slept in two different places. We spent 1 night in a hostel named The Island Hostel (great place to meet people, but a bit dirty…) and 4 nights in an apartment.

But next time, we’ll try to go somewhere else. So we’ve also spent some time researching the best places to stay in Lagos depending on your budget.

We set the travel date to a weekend in June. So this is what you can expect to pay for your stay during the busy summer season in Algarve. But take notice, the prices might have changed since our research. As always, we used Booking.com to look for accommodation.

Here is where we would stay in Lagos city center depending on our budget for visiting the Algarve:

Budget-friendly places to stay in Lagos

• Orange3 Hostel (€26 per night for a bed in a dorm)
• Boutique Taghostel (€32 per night for a bed in a dorm)
• Olive Hostel Lagos (€37 per night for a bed in a dorm)

Mid-range budget places to stay in Lagos

• Safari Beach Guest House (€85 per night for a double room)
• Indigo Guest House (€100 per night for a double room)

Luxurious places to stay in Lagos

• Hotel Marina Rio (€152 per night for a room in a 4-star hotel)
• Lagos Avenida Hotel (€279 per night for a double room in a 4-star hotel)
• Cascade Wellness Resort (€353 per night for a double room in a 5-star hotel)

Our favorite place to stay in the Algarve

If we were lucky enough to return tomorrow, then where would we stay on the Algarve Coast? Faro, Portimão or Lagos?

Definitely LAGOS! If you hadn’t noticed…

We ended up spending 5 full days in Lagos, and we had such a great time! We actually had the opportunity to meet other backpackers in out-of-season November, which meant we could go out and have a few drinks with other people rather than just with each other (long-term travel couples will get this).

There were just so many things to do in Lagos, and we understand why it’s one of the most popular places to stay in Algarve.

Also, Lagos isn’t just for backpackers. You can easily enjoy a long stay in this Algarve city with children or as a couple. There is something for every kind of traveler in Lagos!

Other places to stay on the Algarve Coast

Where else can you stay in the Algarve? Maybe Faro, Portimão, and Lagos isn’t your cup of tea – or you’ve already been there and want to discover a new place.

Another one of the most popular cities to stay in the Algarve is Albufeira. And we can’t wait to visit some day!

So make sure to check out hotels in Albufeira, Tavira or Olhão if you’re interested in visiting more cities of the beautiful Algarve Coast.

How to get between cities in Algarve

It’s honestly super easy to travel between the Algarve cities without a car.

There is one train line and several bus lines that go past most of the coastal cities. Search for “Terminal Rodoviàrio” if you are looking for the main bus station in any city. The bus is cheaper than the train, but only by a couple of euros.

Make sure to have small change with you, or no bigger bill than €10 if you’re taking the bus. You pay onboard and the driver doesn’t always have that much change at hand.

You can buy train tickets online or at the train station just before departure.

If you need to get around within the cities of Algarve, then you can always grab a taxi – or an Uber if you prefer that.

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We hope you enjoyed this blog post about where to stay on the Algarve Coast. If you have any questions about Faro, Portimão, or Lagos, then make sure to leave a comment below.

Thank you so much for reading! And enjoy the beautiful Algarve Coast.

Want to read more about Portugal? Then check out these blog posts:

• Ludo Hiking Trail in Faro
• Seven Hanging Valleys Trail
• What is Portugal known for?
• How to spend a weekend in Lisbon?