The 18 Best Boutique Hotels and Guesthouses in the Algarve

November 6, 2023

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

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
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.
Pensão Agricola beautiful outdoor terrace in rural Algarve.

Pensão Agrícola
– Tavira

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.

Swimming pool with deck chairs at the boutique hotel Companhia das Culturas in Castro Marim in the Algarve

Companhia das Culturas
– Castro Marim

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.

A Hospedaria, a boutique hotel in the Algarve.

A Hospedaria
– Tavira

A Hospedaria is a gorgeous rural hotel near Tavira and Cacela Velha, offering five 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.

3HB Faro hotel in the Algarve

3HB Faro
– Faro

3HB Faro is a five-star hotel located in the heart of the Algarve’s capital, Faro. The hotel's architecture, by Miguel Abreu, is inspired by the traditional culture of the Algarve, balancing classic and contemporary elements. This is also reflected in the rooms and suites, which have been designed and decorated by renowned interior designer Paulo Lobo. One of the highlights at 3HB is the generous rooftop terrace with an impressive infinity pool overlooking the city and Ria Formosa. There’s also a spa with a small heated indoor pool, sauna and steam room, plus a gym. The hotel features two restaurants, Hábito, located on the rooftop, and Forno Nero, at the street level.

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

São Paulo Boutique Hotel
– Tavira

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.

Conversas de Alpendre, boutique hotel in Eastern Algarve

Conversas de Alpendre
– Vila Nova de Cacela

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.

Grand House Hotel in the Algarve.

Grand House
– Vila Real de Santo António

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.

Amago Guesthouse in the Algarve

Âmago Guesthouse
– Santa Bárbara de Nexe

Nestled between the Algarvian hills of São Brás de Alportel and the sea, Âmago is a six-bedroom guesthouse with serene gardens and a refreshing saltwater pool. It’s a passion project brought to life by couple Liz and Alex Harvey, who traded city life in London for the slower-paced Algarve. They have transformed a characterful property into a modern guesthouse that genuinely captures the tranquil essence of the region. The guesthouse wants to help guests delve into the Algarve's essence. With curated local experiences, from dining recommendations to workshops, it's all about living the Algarve, not just visiting it.

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

Quinta da Lua
– Tavira

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.

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

Octant Praia Verde
– Praia Verde

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

Octant Vila Monte
– Moncarapacho

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.

Casa Céu - Boutique Guesthouse in Olhão, Algarve

Casa Céu
– Olhão

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.

The Modernist - Holiday Apartments in the Algarve

The Modernist
– Faro

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.

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. 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.
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
– Lagos

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.

Praia do Canal Nature Resort in Aljezur, a  five-star hotel in Aljezur in the Algarve

Praia do Canal Nature Resort
– Aljezur, Costa Vicentina

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.

– Aljezur, Costa Vicentina

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. Highlights include a wood-burning sauna for cooler weather relaxation, underfloor heating, an outdoor yoga deck, a cafe, communal lounge areas, and a vineyard - all set amidst ten hectares of gardens that fringe the coastal trails and beaches

Monte da Vilarinha in Costa da Vicentina. A rural house with rooms with outdoor area surrounded by greenery.

Monte da Vilarinha
– Carrapateira, Costa Vicentina

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.

Muxima is an eco-friendly guesthouse in Aljezur in the Algarve

– Aljezur, Costa Vicentina

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. Highlights include morning yoga classes, a natural swimming pool, a mostly organic vegetarian breakfast feast and endless adventures on the property climbing trees, swinging ropes or exploring the forest. There’s also a shared living room with a library and a fireplace, to be enjoyed with Portuguese, organic natural wines. There’s plenty of space to chill, run around, play and take a dip.


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

Memmo Baleeira
– Sagres

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.

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 interested in exploring Costa Vicentina, you might also be interested in our article 5 of the Best Hotels in Costa Vicentina + Insider Guide. It offers a selection of our favourite boutique hotels and rural hotels in Costa Vicentina, alongside some recommendations for beaches, restaurants and activities.

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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Joana and Sofia

Check out our handpicked hotels in the Algarve

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

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