The 15 Best Boutique Hotels in the Algarve

June 25, 2021

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

The 15 Best Boutique Hotels 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 between the Best Boutique Hotels and B&Bs in the Algarve we already know and love, and those that are 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 Western Algarve, Costa Vicentina and Eastern Algarve regions.

Boutique Hotels in
Western Algarve

The Western Algarve is a great option for beach lovers with it’s 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.
Joana standing at the balcony of the main house of Casa Mãe hotel, overlooking the swimming pool next to Lago's old city wall in the Algarve.

Casa Mãe

Casa Mãe is a gorgeous boutique hotel in the Algarve tucked away beside the ancient city walls of Lagos, near a long sandy beach. It features 30 rooms spread across three different buildings: five elegant suites in the beautifully restored 19th-century estate house (aka Mother House), 22 rooms in the Jogo de Bola building, where cosy minimalism perfectly blends with traditional Algarvian architecture, and three rustic cabanas for an outdoorsy experience by the fig-scented garden.

Aerial view of Memmo Baleeira hotel in Sagres, showing the sea and pool area with sun loungers on a coastal edge

Memmo Baleeira

A four-star boutique hotel in the Western Algarve town of Sagres, offering 144 rooms and family-friendly one or two bedroom suites with kitchenettes. Facilities include a restaurant, a bar, a swimming pool with magnificent ocean views, a heated indoor pool, a spa, and a gym. Meanwhile, the children can enjoy themselves at the kid’s club, going biking or taking surf classes at the hotel’s own surf centre.

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Boutique Hotels in
Costa Vicentina

Costa Vicentina is all about its sleepy villages and spectacular wild beaches. a wonderful base for surfing, walking, cycling, surfing, canoeing, and birdwatching. or maybe just chilling.
Monte da Vilarinha in Costa da Vicentina. A rural house with rooms with outdoor area surrounded by greenery.

Monte da Vilarinha

Located in the south of the Costa Vicentina Natural Park, Monte Da Vilarinha enjoys commanding views over the surrounding valley and it’s within reach of the rugged coastline and its beautiful wild beaches. This peaceful boutique stay offers a range of accommodation types from a studio through to three-bedroom houses, all with a kitchen and access to the property’s swimming pool. A locally-sourced breakfast is served daily by the poolside restaurant, and there are daily yoga classes. The ideal option for families and those seeking outdoor adventures such as surfing, canoeing, cycling and walking.

White washed traditional houses in Costa Vicentina's Aldeia da Pedralva in the Algarve.

Aldeia da Pedralva

Located in the countryside near beautiful wild beaches, Aldeia da Pedralva was built from the ruins of an abandoned traditional Portuguese village. The resort offers 50 fully equipped one to three-bedroom cottages, a seasonal swimming pool, and plenty of outdoor activities such as surfing, biking and bird watching. Expect to spot grazing sheep, donkeys and chickens roaming freely in the surroundings.

Boutique Hotels in
Eastern Algarve

Head to the eastern end of the Algarve to discover charming towns, picturesque fishing villages, and long sandy beaches. here are the best boutique hotels in Tavira, Ria Formosa, Fuseta, Cacela Velha and Castro Marim.
Swimming pool with deck chairs at the boutique hotel Companhia das Culturas in Castro Marim in the Algarve

Companhia das Culturas

Companhia das Culturas is a quirky eco boutique hotel with beautiful vintage decor in Castro Marim, in the southeast Algarve. Surrounded by 40 acres of pine, cork, carob and olive trees, plus a biological garden, Companhia das Culturas is a boutique hotel in the Algarve offering a truly relaxing experience. The owners, Eglantina and Francisco, are proud of the produce of the region and their hotel is a reflection of that. It’s evolved through seven family generations and it took 10 years (it opened in 2008) to create what is today “Companhia das Culturas”.

Pensão Agricola beautiful outdoor terrace in rural Algarve.

Pensão Agrícola

Pensão Agrícola is a stunning six-bedroom rural boutique hotel in the Algarve that we instantly fell deeply, truly in love with. This little-known spot nestles between the historic town of Tavira and Cacela Velha, a picturesque clifftop fishing village. On the shady terrace, guests can enjoy a delicious, generous breakfast, or take other light meals by the plunge pool which is heated in the winter. 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. Trust us – you’ll be in for a treat.

Aerial view of Farmhouse of the Palms, a boutique guesthouse in the Algarve

Farmhouse of the Palms

Farmhouse of the Palms is a lovingly restored boutique B&B nestled in the lesser-known foothills of rural Algarve. This 200-year old farmhouse has been lovingly restored by husband and wife Frank and Veronique, who wanted a change from their busy city lives and fell in love with the region during the process. The spacious and serene suites are all unique, minimal yet warm, with a traditional Mediterranean feel with its white walls, terracotta floors, local stone and bespoke wooden furniture.

Suite at A Hospedaria boutique hotel in the Algarve

A Hospedaria

A Hospedaria is a gorgeous rural hotel near Tavira and Cacela Velha comprising five suites with private patios, 2.7km from Cabanas beach. It’s the new sister hotel of the awesome Pensão Agrícola, which is located just a few metres away.

Swimming pool at Conversas de Alpendre, boutique hotel in Eastern Algarve

Conversas de Alpendre

This rural boutique hotel is set within the Ria Formosa Natural Park in the Eastern Algarve. Conversas de Alpendre offers a variety of stylish suites in a beautifully converted farmhouse, alongside a self-contained apartment which includes an awesome tree house.
Breakfast is organic and sourced from local farms, and it’s served on the terrace surrounded by fruit and olive trees for a truly back to nature experience.

Inside one of the rustic suites at Fazenda Nova, a boutique hotel in Tavira

Fazenda Nova

A charming 15-suite boutique hotel amid scenic olive groves near the picturesque coastal town of Tavira, in Eastern Algarve. Many of the rooms benefit from a private garden or terrace with views across the pretty hills. The swimming pool is gorgeous and the onsite restaurant serves dishes using ingredients from the estate. Borrow one of the hotel’s bikes and cycle off to the beach or into town. But if you don’t fancy moving much, Fazenda Nova might as well be the place for you.

Swimming pool surrounded by pine trees at Praia Verde Boutique Hotel in the Algarve.

Praia Verde Boutique Hotel

A boutique hotel located in the Eastern Algarve surrounded by a lush pine forest, overlooking the sea. The 40 bright and airy suites all come with a separate living room complete with sofa bed (perfect for children), and a kitchenette. There’s a mix of cultural and gastronomic activities for the whole family to enjoy.

Swimming pool and garden at Vila Monte Farm House, a boutique hotel in Eastern Algarve

Vila Monte Farm House

A tranquil retreat with a garden and two swimming pools, set among an orange grove in the sunny Algarve, a 10-minute drive away from the beautiful Fuseta beach. There’s also a wide range of activities for both adults and children, including visiting a nearby farm and meeting the resident animals.

Room with white wooden floors and ceiling at São Paulo Boutique Hotel in Tavira in the Algarve

São Paulo Boutique Hotel

This beautifully decorated boutique hotel is located in the heart of charming Tavira, on the eastern side of the Algarve. The rooms are gorgeous and there’s a cute terrace with a small pool.

Open window overlooking the Algarve countryside at Quinta da Lua, a boutique hotel near Tavira in the Algarve

Quinta da Lua

Quinta da Lua is a small and peaceful boutique hotel with a charming garden and an eco saltwater pool. The hotel is located in rural Algarve, near charming Tavira.

Medium River Room at Grand House hotel, with classic elegant decor, and the windows wide open overlooking the marina in Vila Real de Santo Antonio in the Algarve.

Grand House

Grand House is a five-star boutique hotel set in a fully-renovated building dating back to 1926. It’s located in the historical town of Vila Real de Santo António in the Algarve.

So there you go, those are what we consider the best boutique hotels and B&Bs in the Algarve right now. We hope you like them as much as we do.

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

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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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