17 of the Best Boutique Hotels in the Algarve

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.

Praia do Canal Nature Retreat 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.

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.

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.

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 on a 50-hectare century-old estate, Casas da Quinta de Cima is a boutique hotel located in the unspoilt Eastern Algarve. It’s surrounded by fragrant orange trees and wildflower meadows, and it’s just a short walk from the lovely beach of Cacela Velha.

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.

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.

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.

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.

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.  Âmago is 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 captures the tranquil essence of the region. 

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.

Located just a short walk from the picturesque Tavira's Old Town, these two beautifully designed minimalist apartments are set within the beautifully renovated Convento das Bernardas building - a former monastery transformed by the acclaimed Portuguese architect Eduardo Souto de Moura

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.

Casa da Oliveira - Monte Branco is a whitewashed traditional home that has been meticulously restored by its owner, an interior architect. Located in rural Aljezur, in the western Algarve, the house accommodates up to ten guests, Casa da Oliveira offers three bedrooms, two bathrooms, a fully equipped kitchen, and a delightful terrace with garden views.

Bordoy 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. 

The Lemon Lodge, nestled between Monchique's hills and Costa Vicentina's wild beaches, is an off-grid farmstead in rural Algarve. Founded by eco-conscious friends, it offers unique, eco-friendly accommodations near Aljezur, with its stunning beaches, surf spots, and historic trails.