The 18 Best Boutique Hotels and Guesthouses in the Algarve

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.
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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 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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.