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.
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 said to be one of the best areas to stay in Faro, Portugal, and for good reason. It is the perfect fusion between medieval and modern.
If you enjoy old churches and love medieval architecture, the Old Town is home to the Carmo Church and Faro Cathedral making it one of the best places to stay in Faro, Portugal.
Also among its many wonderful attractions is the ruined convent of São Francisco, which was originally built in 1657 but restored in 2002 on a slope outside the city center. It is safe to say the convent still holds some of its old glory.
Still, on a religious note, the Nossa Senhora do Rosário church, the oldest colonial church in the world, is one sight no one visiting Faro can afford to miss.
This beautiful old town plastered with small streets is filled with an abundance of hotels, hostels, and restaurants.
Apart from visiting churches, old ruins, restaurants and whatnots in Old Town, you can easily get to the beach by bus.
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 pivate 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
If you love being near the sea and looking for where to stay in Faro, then the Marina is certainly the place for you. Faro Marina makes it easy to reach some of the most beautiful beaches in Portugal including the Ihla Deserta sand bar, which is like a deserted island.
Faro Marina is also recommended for people visiting Faro for the first time.
Several Faro boat trips in the Marina allow you to see the beautiful coastline and caves. The Marina is filled with ice cream shops, waterside cafes, and restaurants.
Other fun things to do in Faro Marina include admiring the impressive display of yachts and taking a boat tour to the barrier islands of Ria Formosa Natural Park.
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 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.
HOSTEL: Algarve Hostel – a nice hostel with lockers by the beds and a great communal area and kitchen. Only 3 minutes walk from the train station.
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.
This beautiful park will enthrall you with its pristine beaches, sandbars, barrier islands (like Ilha de Faro, Ilha da Fuseta, Praia da Terra Estreita), lagoons, canals, and marshes.
Make sure you check out my top picks for Ria Formosa boat tours.
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.
This is basically not an actual island, but a sandbank outcropping from the saltwater lagoons and marshes of Ria Formosa Natural Park. This gives it great proximity to the hiking routes on the marshes.
Ilha de Faro is where you find Faro Beach and a lot of lovely beach bars and restaurants. It is especially among the best places to stay in Faro during the summer as you can lounge at the beach without traveling.
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 at 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
This is one of the best places to stay in Faro, Portugal for travelers going as a family. Montenegro is a suburban area of Faro, Portugal so it’s quieter, and filled with parks and green spaces which is perfect for kids.
It’s also the perfect destination for hikers and outdoor lovers as there are lush parks and outdoor spaces where the kids can run and you can breathe in a good chunk of fresh air and enjoy the peace and quiet.
Although this doesn’t mean you won’t have loads of activities to do. 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 as a lover of nightlife? Then downtown Faro is certainly the place for you. This is the most famous destination for tourists and with good reason.
Downtown hosts the majority of Faro’s bars, shops, pastry stores, cafes, banks, and restaurants. Needless to say, this is where it all happens.
Some of the major hotspots in downtown Faro are RoofTop Eva, Havana Club, Epicur, and Game Over. Downtown Faro is certainly one of the best places to stay in Faro, Portugal.
WHERE TO STAY IN FARO – DOWNTOWN:
LUXURY: Casa Apollo Guesthouse – an exceptional bed & breakfast in Downtown Faro with a small outside green space with a pool.
MID-RANGE: Luxury Guest House_Opus One – a great place to stay with an outdoor 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. 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. Summed 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!
