Looking for the best places to stay in Faro Portugal but not quite sure where to start?
Look no further!
I’ve spent a lot of time in this enchanting city and explored the different neighborhoods from the bustling downtown and the cobbled streets of the Old Town to the more relaxing Montenegro neighborhood.
In this post, I’ll share all the best areas to stay in Faro for every type of traveler so that you can start planning your vacation.
Whether you want a quiet neighborhood to stay with your family or you want to be in the middle of the best nightlife, you will find it in Faro.
The variety of what Faro has to offer makes it one of the best places to stay in the Algarve for couples, families, and solo travelers alike. Read on to find out where to stay in Faro Portugal for your next vacation.
Disclosure: This post may contain affiliate links. That means that if you make a purchase through one of those links, I will get a small commission at no extra cost to you.
I’m Linn Haglund, the face behind Amused by Algarve! I’ve been traveling extensively in the Algarve and Portugal for more than 10 years. Every time I spend time there I fall more and more in love with the region and I’m here to help you navigate the Algarve like a pro (and hopefully fall in love with it too)!
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IN A HURRY?
HERE ARE MY TOP PICKS FOR WHERE TO STAY IN FARO PORTUGAL
LUXURY: 3HB Faro -fabulous hotel with 2 pools and restaurants, bar, and a spa and wellness center.
MID-RANGE: Le Jardin Secret de Faro Guesthouse – beautifully decorated guesthouse in the heart of Faro.
BUDGET: Sunlight House – private rooms with options of shared or private bathrooms with a shared kitchen for making your own meals.
APARTMENT: A Casa D’Amelie – beautiful apartments in the heart of Faro Old Town, some of them with a terrace or balcony.
HOSTEL: Hostel Casa d’Alagoa – situated right outside the old city walls there are plenty of restaurants and bars nearby. Lovely, young atmosphere.
Table of Contents
Old Town(Cidade Velha) – Best for First Timers
Best place to stay in Faro for:
- proximity to the top attractions
- budget accommodation
The old town is easily one of the best areas to stay in Faro, Portugal. You’ll be in the heart of the most charming part of Faro and close to attractions like Faro Cathedra where you get the best views of the city and Ria Formosa Natural Park!
You also find the Carmo Church with the infamous Bone Chapel within a short walk. Besides, I love walking around looking for street art and hidden corners.
The Old Town is also where you’ll see all the storks nesting in the old clock towers and house roofs making it a very picturesque part of the city.
There are plenty of restaurants and bars in the neighborhood and you can also get to the beach easily by bus to work your tan.
Here are some of the best places to stay in Faro Old Town for different budgets.
BEST PLACES TO STAY IN FARO – OLD TOWN:
LUXURY: 3HB Faro – fabulous hotel with 2 pools and restaurants, bar, and a spa and wellness center.
MID-RANGE: Le Jardin Secret de Faro Guesthouse – beautifully decorated guesthouse in the heart of Faro.
BUDGET: Sunlight House – private rooms with options of shared or private bathrooms with a shared kitchen for making your own meals.
APARTMENT: A Casa D’Amelie – beautiful apartments in the heart of Faro Old Town, some of them with a terrace or balcony.
HOSTEL: Hostel Casa d’Alagoa – situated right outside the old city walls there are plenty of restaurants and bars nearby. Lovely, young atmosphere.
Faro Marina – Best for water activities
Best place to stay in Faro for:
- exclusive yachts
- going on boat tours
- water activities
- summer concerts
- upscale accommodation and dining
When looking for where to stay in Faro, the Marina is a great option to stay close to the sea and overlooking Ria Formosa.
Faro Marina is just a few steps from the Old Town, but has a relaxed yet vibrant and modern vibe overlooking the docked luxury yatches.
Several Faro boat trips go daily from Marina allowing you to see the beautiful coastline and caves. One of the best reasons to stay there is to jump on a boat tour to the barrier islands of Ria Formosa Natural Park.
The Marina offers a few ice cream shops, waterside cafes, and restaurants. You may also want to pay a little visit to Faro’s Maritime Museum.
BEST HOTELS IN FARO – MARINA AREA:
LUXURY: Hotel Faro & Beach Club – a great hotel with a spa, rooftop restaurant and pool with views.
MID-RANGE: Aqua Ria Boutique Hotel – a nice hotel with a restaurant and bar on site. Some rooms have a view of Ria Formosa Natural Park.
BUDGET: Casa da Valentina AL77856 – a lovely bed and breakfast at a good price. Some rooms have private bathrooms, and others have shared. Note that linen and towels come at an extra charge.
Ria Formosa Natural Park/Faro Beach – Best for nature lovers
Best place to stay in Faro for:
- Beach dwellers
- Nature lovers
- Bird watchers
The Ria Formosa Natural Park is the best place to stay in Faro if you’re a traveler with a love for nature. I absolutely love this area and the sunsets don’t get any better!
While Ilha de Faro technically isn’t an island, but a sandbank outcropping from the saltwater lagoons and marches. Therefore, it still functions as if it were a barrier island to the sensitive vegetation.
Besides the beach, you can walk the Ludo Trail among others to explore the beautiful natural park and it’s inhabitants, like packs of flamingos.
This is also a protected area so there aren’t many hotels in it, yet Ilha de Faro remains one of the best places to stay in Faro.
Make sure you check out my top picks for Ria Formosa boat tours, because it’s well worth it!
Faro Beach is among the best places to stay in Faro during the summer as you can lounge at the beach without traveling. It’s also close to Faro Airport.
You can take the bus from the beach to Faro Old Town in about 20 minutes to see all the top attractions in Faro.
Here are some of the best places you can stay in Ilha de Faro.
WHERE TO STAY IN FARO – NEAR BEACH AND NATURE:
APARTMENT-HOTEL: – Apartamentos Barracuda – fabulous pet-friendly apartments on Ilha de Faro.
MID-RANGE: Golden Beach Guest House & Rooftop Bar – a lovely guest house by the beach with a restaurant and outside space and one of the best Faro hotels near the beach.
BEACH HOUSE: Faro Beach House – a whole beach house sleeping up to 6 people. It is fully equipped and only a few steps from the beach.
Montenegro – Best for Families
Best place to stay in Faro for:
- Walks in the park
- Peace and quiet
- Green spaces
Montenegro is one of the best places to stay in Faro, Portugal for travelers going as a family. It’s a suburban area of Faro, Portugal so it’s quieter, and filled with parks and green spaces which is perfect for families with kids.
The beach is also located close to Montenegro, so you can take a bike ride there. You can go on a jeep and boat tour with wine tasting, birdwatching, or even hiking with your family.
BEST PLACES TO STAY IN FARO PORTUGAL – MONTENEGRO:
APARTMENT: Luxury Pool Apartment – a great 3-bedroom self-catered apartment with a pool and free parking. Perfect for families.
MID-RANGE: Hospedaria Frangaria – a great hotel with a restaurant on-site and free parking.
BUDGET: Hotel ibis Faro Algarve – hotel with an outdoor pool and a greenspace where you can bring your pet.
Downtown Faro – Best for Nightlife and Shopping
Best area to stay in Faro for:
- Nightlife
- Shopping
- Foodies
Looking for the best place to stay in Faro, Portugal for nightlife and shopping? Then downtown Faro is the place for you.
Downtown hosts the majority of Faro’s bars, shops, pastry stores, cafes, banks, and restaurants. Needless to say, this is where it all happens. As Faro is such a walkable city, you’ll still be just a few minutes walk from the city’s main attractions.
Some of the major hotspots in downtown Faro are RoofTop Eva, Havana Club, Epicur, and Game Over. Downtown Faro is one of the best places to stay in Faro, Portugal for foodies, night owls, and shopaholics alike.
WHERE TO STAY IN FARO – DOWNTOWN:
MID-RANGE: Casa Apollo Guesthouse – an exceptional bed & breakfast in Downtown Faro with a small outside green space with a pool.
BUDGET: Roots Hotel – great value for money with a small kitchenette in every room.
HOSTEL: Hostellicious – great and clean hostel right where it all happens.
Places to stay near Faro Airport
Just passing by Faro and need a place to stay near the airport? Do not worry, here are the best places to stay near Faro Airport.
WHERE TO STAY NEAR FARO AIRPORT:
CLOSEST TO AIRPORT: Hotel 3K Faro Aeroporto – has a bar and an outdoor pool if you have the time to go for a swim before your flight.
BEST FOR FAMILIES: Coloured Studio – a fun studio apartment that sleeps 6 people. The colorful decor will amuse the kids for sure. 5 minutes drive from the airport.
BEST FOR BUDGET: Faro Sun Life Hostel – not the best-rated hostel in Faro, but mainly because of what you might expect – dirty showers, small bathrooms, and noise from other guests. Nonetheless, this is the closest hostel to the airport at only a kilometer away, so a great budget option for a short night’s stay before traveling if you’re not too picky. On another note, the common area is good and the staff has always been helpful.
Reflections on where to stay in Faro
There is no doubt there are some amazing places to stay in Faro Portugal and I’m sure you find one that suits your needs.
Summing up, if it’s your first time in the city, the best place to stay in Faro is the Old Town as you’ll be in the heart of the historical sites and the cobblestoned charm that is Faro.
However, you can easily stay in Downtown Faro which is a short walk from the old town if you want to stay near shopping and bars, and if you are looking for more of a relaxing vacation, try either by the beach or the Montenegro neighborhood.
And finally, I love the Marina area as it is a lovely place with great sunsets and easy to reach all the fun boat tours in Faro.
Not sure if Faro is the right place for you to stay? Check out this post to find out if it’s right for you. You can also read my post about where to stay near Faro.
Happy travels!