July 3, 2025

The Algarve's Best Towns & Boutique Hotels

HAP Editor-in-Chief Brandon Berkson here: I just got back from southern Portugal’s dreamy, sun-drenched Algarve region. It’s a place where pearl-white edifices cluster atop sea-fringing precipices, unmarked paths wind their way through curvaceous cliffs to quiet coves perfect for a summer swim, and Portuguese culture pulsates at different levels of authenticity depending on your exact location. Read on for my favorite towns and boutique hotels from my most recent trip—you should definitely steal this itinerary.

The Best Towns in The Algarve

Beach image of Albufeira, Algarve, Portugal

Albufeira

Capture a photo of the beach from up above at Elevador do Peneco, then descend via the elevator to Praia do Peneco. Right next door, end your day with a stroll through the cobbled streets of Albufeira’s quaint, whitewashed old town.

Carvoeiro

Once a bona fide fishing village, Carvoeiro today offers polished charm. Discover Praia do Paraíso, a hidden cove beneath dramatic cliffs, then trot to Algar Seco’s stunning tide pools and rock formations. The boardwalk’s clifftop views are simply breathtaking.

Praia da Luz

A quieter alternative, Praia da Luz’s promenade invites slow evening walks with Rocha Negra as a backdrop. For oceanfront dining and lively vibes, Zazu Beach Club is the perfect spot. Don’t miss Licks Gelato’s indulgent sundaes—think Oreos, caramel squares, and hot fudge.

Salema

An upscale hidden gem introduced by a Portuguese friend, Salema is an untouched fishing village with a pristine beach and daily fresh catches. For dinner, Água Na Boca serves impeccable, locally sourced seafood showcasing the region’s bounty.

Sagres

Explore the historic Sagres Fortress and enjoy cliffside hikes, then soak in panoramic ocean views from Cabo de São Vicente Lighthouse.

Tavira

Stroll Tavira’s charming streets, cross the iconic Roman Bridge over the Gilão River, and climb Tavira Castle for stunning views of terracotta rooftops.

The Best Boutique Hotels in The Algarve

Âmago (Santa Bárbara de Nexe)

This charming six-room rustic quinta, inland from Faro, boasts vaulted ceilings, handcrafted furnishings, a saltwater pool.

Colegio Charm House (Tavira)

Step into history at this 18th-century former boys' school in Tavira, featuring antique-filled rooms, a pool deck, and a rooftop terrace with panoramic town views perfect for "surprise" Portuguese dinners.

Viceroy at Ombria Algarve (Loulé)

Indulge in sheer luxury at this sprawling resort set in the rolling hills of inland Algarve, which includes guestrooms and residences surrounded by citrus groves, an 18-hole golf course, multiple restaurants, a serene spa, and bespoke wellness programs.

Memmo Baleeira (Sagres)

Embrace the surf-chic vibe at this Design Hotel overlooking Sagres Bay. It blends sleek coastal design with an enticing infinity pool, a sea-view restaurant, and surf-friendly vibes.

Vila Joya (Albufeira)

Experience Portuguese luxury at this exquisite two-Michelin-starred restaurant and hotel near Albufeira, equipped with a Moorish-style villa perched directly above Praia da Galé. Expect 13 rooms and suites plus a candle-lit spa.

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Brandon Berkson

Founder & Editor-in-Chief

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