Last Updated on May 5, 2024 by Katrina

Photo credit: Pousada Palacio de Estoi

The Algarve state in southern Portugal—including its main city Faro—often gets compared to California, thanks to its sunny beaches, wineries, and Michelin-star restaurants, as well as a flair for mid-century modern architecture. The town of Faro is also rich with history—medieval buildings, cobblestone streets and easy access to Faro Island, just across the Ria Formosa. These are the best hotels in Faro, each of which makes an excellent home base for exploring the Algarve.

3HB Faro (R. Vasco da Gama 33; 351-289-240-000) Faro

Condé Nast Traveler writes that this 104-room boutique hotel with two acclaimed restaurants “is a first for Faro—a glamorous place to stay in the Algarve‘s capital. The rooftop terrace and horizon-edge pool look out over the city’s pretty terracotta-tiled roofs and white-washed buildings to the Ria Formosa lagoon beyond.” A Google user writes that “our standard room was so special I can’t begin to imagine what superior rooms are like. We had a large and very private balcony with a lemon tree in full fruit, and floor to ceiling glass doors. Breakfast is varied and delicious. The little pastéis de natas were wonderful, the fruit so fresh, the coffee dark and bitter.” >> Book this hotel for less

AP Eva Senses (Av. da República 1; 351-289-001-000) Faro

Enjoy views of the marina and the Ria Formosa Natural Park at this 134-room hotel with an outdoor pool. “Excellent location, near the center of Faro, very near restaurants and the old town,” writes a Tripadvisor user. “Also very near the train station. My room was spotless, very comfortable bed and a great balcony.” Indeed, online reviewers love the views and give service high marks. As a Google reviewer says, “Having a pianist play while you sip your morning brew and gaze out at a stork’s nest on the ancient clock tower, next to the lush wetland reserve … what’s not to love?” >> Book this hotel for less

Hotel Faro & Beach Club (Praça Dom Francisco Gomes 2; 351-289-830-830) Faro

Staying this 90-room hotel includes free transport to Faro’s beach—as well as a hotel-affiliated club and steakhouse on the beach—but you’re also just a few minutes’ walk from both the marina and the Cathedral. A Google reviewer calls the hotel “beautifully appointed” with a “location that is, without a doubt, the best in Faro. The rooftop bar and dining room give panoramic views of the city and the bay. Watching the sun go down over the ocean was a highlight.” A Tripadvisor user notes that “if you request a room with a balcony, of which there are only a few, don’t expect a view—only roof tops.” >> Book this hotel for less

Best Western Hotel Dom Bernardo (Rua General Teofilo Da Trindade 20 Rnet Number 750; 351-289-889-800) Faro

This branch of the global chain, located in the city center, is “not fancy or a luxury hotel, but a good and quiet location for a short break at Faro or surrounding area,” writes a Google reviewer. “Pretty much walking distance to anywhere in the city center. Bus stops close by. Breakfast served daily in form of buffet.” A Trip Advisor user likes that “our 5th floor room was bright, spacious and spotless with a view of sea. Also there’s a delicious pastry shop 100 meters away.” >> Book this hotel for less

Pousada Palácio de Estoi, Small Luxury Hotels (R. de São Jose; 351-289-372-510) Estoi

You’re about five miles from the city center at this 63-room hotel in the community of Estoi, but you’ll also be calling an 18th-century palace home. “Modern building with lots of artwork, attached to an old beautiful palace,” writes a Tripadvisor user. “Rooms are gorgeous, each one facing orange groves. We ate at restaurants in Estoi within walking distance while there, and once in Faro.” The hotel also has an outdoor pool and an onsite spa, and is walking distance from Roman ruins. “Beautiful building, garden, and patio,” writes a Google reviewer. “The included breakfast was fantastic and plentiful. It was about a 15-minute drive or Uber into Faro to see the sights. Lots of free parking at the hotel.” >> Book this hotel for less