The 18 Best Boutique Hotels and Guesthouses in the Algarve

LAST UPDATED:
April 20, 2024
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The 18 Best Boutique Hotels and Guesthouses in the Algarve


The Algarve has gorgeous golden sandy beaches with a beautiful turquoise sea, delicious fish, world-class golf and friendly locals.

Below is a mix of the Best Boutique Hotels and Guesthouses in the Algarve we have visited and love, plus those on our radar - divided by the following sub-regions:


For those of you who haven’t visited, the Algarve is Portugal’s most sought after destination – and there are many good reasons why. It’s a region with an unforgettable scent of almonds, oranges and figs.⁠

What many people don’t realise is that it’s actually a great place to visit off-season too, with 300 days of sunshine per year and an average temperature of 17°C in January (and no crowds). ⁠

We have handpicked for you our favourite places to stay in the Algarve ☀️⁠, divided into the Eastern Algarve and Western Algarve regions.

Boutique Hotels in Western Algarve

The Western Algarve is a great option for beach lovers with its cliff-edged beaches and tiny coves. The laid back towns of Lagos and Sagres are perfect for those who want a little bit of action. Costa Vicentina is all about its sleepy villages and spectacular wild beaches. A wonderful base for surfing, walking, cycling, canoeing, and birdwatching. Or maybe just chilling. Scroll down to discover some of the best boutique hotels in the Western Algarve.

Casa Mãe
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Casa Mãe

Casa Mãe is a gorgeous five-star boutique hotel in the coastal town of Lagos, in the western part of the Algarve. With various accommodation options spread across distinct spaces, Casa Mãe perfectly blends traditional Algarvian architecture and minimalist style. The hotel features a big organic orchard, farm-to-table restaurant, triangular pool, spa with a rooftop pool, outdoor cinema, juice bar, and a concept store dedicated to Portuguese design.

Casa Mãe is a gorgeous boutique hotel in the Algarve tucked away beside the ancient city walls of Lagos, near a long sandy beach.

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Praia do Canal Nature Resort
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Praia do Canal Nature Resort

Praia do Canal Nature Resort is a five-star spa hotel in Costa Vicentina. This eco-conscious retreat offers 56 serene rooms, ocean views, three restaurants, a bar, an infinity pool, a gym, and a spa. Choose from Deluxe Rooms, Junior Suites, or the more luxurious Grand Suite Rooftop with a plunge pool and the Family Suite with a private pool. Explore 220 hectares of nature, wellness treatments, or activities like hiking, surfing, and wildlife watching.

Praia do Canal Nature Resort is a boutique spa hotel situated amid a wild landscape within a 220-hectare nature reserve in Costa Vicentina.

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Amaria
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Amaria

Set in a former quinta (farm), Amaria is a boutique hotel situated in the pristine Costa Vicentina Natural Park, just a short drive from the town of Aljezur. Amaria offers 11 minimalist designed suites, all with their own private patio and garden views, alongside a spacious three-bedroom apartment. This is the kind of place you come to enjoy mornings filled with the sounds of the ocean and birdsong.

Set in a former quinta (farm), Amaria is a boutique hotel situated in the pristine Costa Vicentina Natural Park, near the town of Aljezur.

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Muxima
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Muxima

Muxima is an eco-friendly guesthouse perfectly nestled in a green valley near Aljezur. Here, owners’ Paula and Jelle want to share their great love for wild nature and good food with their guests. The houses are beautifully decorated with items collected from many travels and each room has its own, unique style, and are all surrounded by lush green gardens.

Muxima is an eco-friendly guesthouse nestled perfectly in a green valley near the village of Aljezur in the Algarve.

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Monte da Vilarinha
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Monte da Vilarinha

Monte da Vilarinha offers a peaceful stay in the Costa Vicentina Natural Park, with stunning valley views and proximity to wild beaches. Accommodations range from studios to three-bedroom houses, all with kitchen access and a swimming pool. Enjoy a locally-sourced breakfast by the poolside restaurant and outdoor adventures like surfing, canoeing, cycling and walking.

Monte da Vilarinha is a family-friendly rural guesthouse in Costa Vicentina with commanding views over the surrounding valley.

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Boutique Hotels in Eastern Algarve

Head to the eastern end of the Algarve to discover charming towns, picturesque fishing villages, and long sandy beaches. Scroll down to discover some of the best boutique hotels in the Eastern Algarve.

Pensão Agricola
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Pensão Agricola

Pensão Agrícola is a stunning six-bedroom boutique hotel in the Algarve, nestled between Tavira and Cacela Velha. Enjoy a delicious breakfast on the shady terrace or light meals by the heated plunge pool. Your senses will be delighted by the scents of almond, carob, fig, orange, and olive trees. A gorgeous dinner is also available upon request. Trust us – you'll be in for a treat.

Pensão Agrícola is a stunning six-bedroom boutique hotel in a genuine Algarve countryside setting.

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Companhia das Culturas
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Companhia das Culturas

Companhia das Culturas is a quirky eco boutique hotel in Castro Marim, the Eastern Algarve. Surrounded by 40 acres of pine, cork, carob and olive trees, plus a biological garden, Companhia das Culturas offers nine uniquely decorated rooms, plus four apartments with kitchenettes, two swimming pools, a gorgeous hammam and plenty of spaces to hang out.

Companhia das Culturas is a quirky eco boutique hotel with beautiful vintage decor in Castro Marim, in the Eastern Algarve.

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A Hospedaria
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A Hospedaria

A Hospedaria is a rural boutique hotel nestled between Tavira and Cacela Velha in the Eastern Algarve. It offers five gorgeous suites with private patios, 2.7km from Cabanas beach. The breakfast is excellent, and dinner is available upon request. Enjoy the outdoor terrace with a small yet refreshing pool. This property is the sister hotel of the wonderful Pensão Agrícola, just a few meters away. Fill your lungs with the wonderful aromas that the south of Portugal has to offer—you're surrounded by the scent of almond, carob, fig, orange, and olive trees. It’s a wonderful place to get away from it all and relax.

A Hospedaria is a rural five-suite boutique hotel in the Eastern Algarve, housed in a former tavern and post office dating back to 1917.

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São Paulo Boutique Hotel
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São Paulo Boutique Hotel

São Paulo Boutique Hotel is a beautifully decorated 18th-century Algarvian house turned into a boutique hotel with five uniquely decorated rooms. It features a shared living room, dining room, and inner courtyard with a small saltwater pool. The hotel is adorned with fine works of art by renowned artists and is located in Jardim da Alagoa, one of Tavira's most lovely squares.

São Paulo Boutique Hotel is a boutique hotel inspired by the charm of the Algarve's architecture, located in the heart of Tavira.

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Conversas de Alpendre
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Conversas de Alpendre

Conversas de Alpendre is a charming 12 room family-run boutique farmhouse nestled within the picturesque Ria Formosa Natural Park in the Eastern Algarve. The farmhouse is surrounded by a lush orchard and offers a heated saltwater swimming pool, which is open year-round.

Conversas de Alpendre is a family-run boutique farmhouse, set in a special rural setting within the Ria Formosa Natural Park in the Eastern Algarve.

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Grand House
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Grand House

Grand House is a five-star hotel in Vila Real de Santo António, Algarve's easternmost corner. The hotel has 28 uniquely decorated rooms and suites featuring a blend of Art Nouveau, Baroque, and Colonial styles with contemporary furnishings. The Grand Beach Club, located at the mouth of the Guadiana river, offers an infinity pool, sunbeds, a restaurant, and a bar with views of the sandbanks and boats on the river. 

Grand House is a five-star boutique hotel set in a fully-renovated building dating back to 1926, situated in the Algarve’s easternmost corner.

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Casa Céu
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Casa Céu

The charming Casa Céu is a four-bedroom guesthouse located in Olhão, a quirky fishing town near Faro. This beautifully decorated house features high ceilings, white walls, and plenty of natural light. The stunning rooftop terrace, where breakfast is served, boasts incredible sunset views and wooden board games for guests to enjoy. Other highlights include the goat paintings by local artist Meinke Flesseman and the guesthouse's central location in the heart of Olhão. Plus, Faro's airport is just a 15-minute drive away.

Casa Céu is a four-bedroom guesthouse located in Olhão, a quirky and authentic fishing town near Faro.

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The Modernist
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The Modernist

The Modernist offers six minimalist apartment-style suites in the centre of Faro. Set in a genuine 1970s modernist building, each suite has been restored with full respect for the original mid-century modern design. There's a shared garden patio, a rooftop where you can enjoy panoramic views of the Ria Formosa Natural Park, and an outdoor shower. Discover Faro's architectural gems with the self-walking tour created for guests.

The Modernist comprises six minimalist apartment-like suites with a wonderful 1970s vibe, set in a genuine modernist building in the heart of Faro.

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So there you go, those are what we consider to be some of the Best Boutique Hotels and Guesthouses in the Algarve right now. We hope you like them as much as we do.

If you are exploring other areas you might also want to check out our articles The Best Hotels in the Algarve and The Best Hotels in Portugal.

Here's hoping you create new memories here in Portugal. Tag us on Instagram (we would love it if you do!) and let us know how it goes. 🤗

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Obrigada,
xx
Joana and Sofia

© Photos by JO&SO and by each of the mentioned places.

Please note that sometimes we use affiliate links and receive a small referral commission from sales, at no additional cost to you. Everything we recommend in our website is handpicked by ourselves and 100% because we like it. By booking through JO&SO you are supporting what we are doing, helping us to keep running the website.

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