Best Places to Stay Near Faro Portugal

If you are flying into the Algarve, you might be looking for the best places to stay near Faro to use as a base for your vacation.

There are a whole lot of great towns in Algarve which are not too far away from the region’s capital city and only airport. Finding the best place to stay near Faro depends a lot on your interests and what you want to get out of your Algarve itinerary

Lucky for you, I’ve spent a lot of time in the area and can help you decide. In this post, I’ll take you through the best resorts near Faro and what you can expect from each town including some hotel recommendations for every budget in each place.

Read on to find out where you should set your vacation.

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Best places to stay near Faro


places to stay near Faro

Albufeira is one of the most popular cities in Algarve and a favorite among party crowds and those looking for an active vacation. This is also where to stay in Algarve for young couples.

Albufeira is famed for the “party strip” where young people from all across the world gather at the energetic nightclubs until late at night. The whitewashed old town offers plenty of bars and restaurants to cure the hangover.

There are a lot of fun things to do in Albufeira, great shopping, Algarve wine tours, parasailing, jet skiing, or snorkeling. There are also a whole lot of fun boat trips from Albufeira and paddleboarding and kayaking in Albufeira are some of my favorite activities in Albufeira.

It is also easy to reach the most popular places in the Algarve on day trips from Albufeira, like the mesmerizing Benagil Cave. Even winter in Albufeira is wonderful and worth the trip.

Albufeira is one of the best places to stay near Faro whether you love to party, enjoy an active vacation, or prefer to lounge on the beach. Read my complete neighborhood guide for more insight on the best places to stay in Albufeira.


LUXURY: Monicca Collection Suites and Residencesexcellent family-friendly hotel located right on the beach, with 3 swimming pools, a spa and wellness center, and free parking.

MID-RANGE: Bertolina Guest Housea wonderful guest house with an outdoor pool overlooking the Old Town and the beach below.

BUDGET: Casa dos Arcos – Charm Guesthouse truly a charming guest house in an 18th-century palace with a cute courtyard. They offer both private rooms and dorms, all with private bathrooms.


places to stay near faro Portugal

If you are looking for a quiet place to stay in eastern Algarve, look no further than Tavira. Though it is getting more and more popular, the vibe is still relaxing and there are lots of things to do in Tavira and its surroundings.

In the old town, you find the castle remains and the Camera Obscura that are worth seeing. But Tavira is also close to the mesmerizing Ria Formosa Natural Park barrier island, Tavira Island.

You can take a boat straight from Tavira to Tavira Beach on the island, or head to Santa Luzia, a tiny fishing village nearby, and walk across a footbridge to the barrier island.

From there, you can walk or take a tiny tourist train the 1.3 kilometers to the other side of the island where you find the quirky Anchor Cemetery overlooking Barril Beach. While there are many reasons to visit Tavira, this is one of my favorites!

Besides there are heaps of day trips from Tavira you can take whether you prefer to explore the quiet east or central Algarve.

Getting from Faro to Tavira only takes half an hour, so you don’t have to travel too far to get there. You can also easily go on a day trip to Faro if you want to explore the capital of the Algarve.


LUXURY: Pousada Convento de Tavira – stay in a renovated 16th-century convent where you can enjoy an outdoor pool and garden. The hotel has a restaurant and bar, and offers free parking. Pets are also welcome.

MID-RANGE: OZADI Tavira Hotel – an excellent hotel with outdoor swimming pools, a garden, a restaurant, and free parking.

BUDGET: Porta Nova Guesthouse by R-Tex – a bright and friendly hotel at walking distance from Tavira’s historic center and attractions.


beach resort near faro - Olhao

One of the most underrated places to stay near Faro is Olhão, a lovely fishing port only a 20-minute drive from Faro. There are plenty of things to do in Olhão, like wander the narrow alleyways in the old part of town and look for street art.

But the best thing to do is by far explore the barrier islands of Ria Formosa Natural Park by boat. Daily boat tours in Olhão take you to the beautiful natural scenery of islands like Armona Island and Culatra Island.

Besides sweeping beaches and enchanting fisherman villages, you can go snorkeling in waters that are home to the largest seahorse population in the world.


LUXURY: Real Marina Hotel & Spa – located by the marina, this hotel has outdoor pools with a view as well as a spa department, a restaurant, and a bar. There is free parking on the property.

MID-RANGE: Casa Rosa Villa – a lovely hotel with a pool and a cozy courtyard. They have a restaurant and bar and offer free parking. This hotel also accepts dogs for an extra fee.

BUDGET: Stork Hostel – centrally located at an excellent price. With a common kitchen and a rooftop terrace, this is great value for money.

APARTMENT: Green House – a lovely, central apartment with a rooftop pool and terrace. Sleeps up to 6 people.

Armação de Pêra

best resort near Faro

Armação de Pêra is a small resort town near Albufeira and not surprisingly a great option where to stay near Faro. Besides being home to mesmerizing beaches with rock formations jutting into the ocean, Armação de Pêra is also located in close proximity to several of the best things to do in the Algarve.

You can easily go to Silves to explore the best-preserved castle on the Algarve and go partying in Albufeira. Yet you are far enough from the hustle and bustle of the city.

I actually like Armação de Pêra because it is a little bit disconnected but at the same time close to everything and there is plenty of life there, especially in the summer.


LUXURY: Vila Vita Parc Resort & Spa – a fabulous hotel with multiple swimming pools and a relaxing spa department.

MID-RANGE: Holiday Inn Algarve – this seaside hotel has an outdoor pool, restaurant, and bar and great value for money.

BUDGET: Hotel de Charme Capela das Artes – located 3 kilometers from the center, the hotel has an outdoor pool and a bar and is a great budget option.


Best places to stay near Faro - Vilamoura

Vilamoura is the best place to stay near Faro Portugal for golf enthusiasts. There are plenty of golf courses nearby, including the Roman-themed Family Golf Park, yet there is no lack of other things to do in Vilamoura.

Enjoy a few rounds of GoKart at the Karting Almancil or enjoy thrilling water activities. You can also head out on one of the Vilamoura boat trips to explore the waters.

Vilamoura is also home to one of the most beautiful beaches in the Algarve, Praia da Falésia. With a magnificent red cliff towering behind it, it’s one of a kind and unique to the Algarve. Vilamoura is also home to some of the best beach resorts near Faro.


LUXURY: Tivoli Marina Vilamoura – a great luxury hotel with outdoor pools and a spa and wellness center, perfect for treating yourself during your vacation.

MID-RANGE: As Cascatas Golf Resort & Spa – perfectly located next to a golf course, the hotel has several outdoor pools and a delightful spa.

BUDGET: Hotel Parque das Laranjeiras – great budget option with two outdoor pools and a bar at under 4 kilometers from Vilamoura.


best place to stay near Faro - Loulé

Loulé is one of the most beautiful inland places to stay near Faro Portugal. There are plenty of things to do in Loulé from visiting the castle ruins and museum to going wine tasting.

But the highlight might just be the rock salt mine that lies under the town. You can go on a guided tour to explore this exciting place and learn more about the rock salt mining industry as you wander through hundreds of millions of old formations.

You can also visit the Islamic Baths and step into Our Lady of Conception church. As you can tell, there is plenty to do, yet it is only a short drive to Vilamoura’s beaches. This is also one of the more budget-friendly locations to stay near Faro.


BUDGET: Loule Jardim Hotel – a lovely hotel with a rooftop pool and bar in a quiet location in town.


Where to stay near Faro - Estoi
Estoi Palace

With a rich Roman heritage, Estoi is a charming town that is easy to reach from Faro. It is located right north of the city and there are a few nice things to do in Estoi.

If you are looking for a slower pace than the coastal towns, especially in the summer, Estoi is the perfect place for you. Narrow cobblestoned streets wind through the enchanting old town to vibrant squares.

But the highlight is the Palácio de Estoi with its traditional white and blue tiles and sweeping views. Other attractions worth seeing are the 15th-century Igreja Matriz de Estoi and the Roman ruins of Milreu, the remains of a Roman Villa.

As you can tell, Estoi is a charming little place and definitely where to stay near Faro to avoid the crowds.


LUXURY: Pousada Palacio de Estoi – a wonderful Pousada with outdoor swimming pools and a spa department. Small dogs are allowed for an extra charge.

MID-RANGE: Vila Milreu Guest House – a great hotel with an outdoor pool and garden area close to the town center.

BUDGET: Monte da Ribeira – a lovely budget option less than 3 kilometers from town set in wonderful landly surroundings with an outdoor pool and garden.

Reflections on the best resorts near Faro

Summing up these nice places to stay near Faro, I am sure you found a favorite or two that fits your travel style when visiting southern Portugal. Resorts near Faro are plentiful, so all you need to do is to book your stay and start packing.

Happy travels!