Portugal has plenty of amazing places to stay, whether you’re looking for a budget-friendly option, a boutique hotel, or a luxury experience. No matter your budget, you’ll find great accommodations across the country.
This guide will walk you through the best options in Portugal’s major cities and tourist hotspots, providing tips for hostels, boutique hotels, luxury stays, and unique lodgings.
Budget Accommodation in Portugal
Hostels
If you’re on a budget, hostels are your best bet. Portugal has plenty of clean, affordable hostels, especially in Lisboa (Lisbon) and Porto. In Lisbon, places like “Lisbon Destination Hostel” and “Home Lisbon Hostel” have excellent reviews. Expect cozy dorm rooms and lively common areas.
In Porto, “The Passenger Hostel” is a top choice. It’s located inside a historic train station, offers modern amenities, and is a great place to meet fellow travelers. Dorms start as low as €15 per night depending on the season.
Budget Hotels
If hostels aren’t your style but you still want to save money, budget hotels are another solid option. Chains like “Ibis” or “B&B Hotels” offer reliable and affordable stays. Rooms are basic, but clean and comfortable.
In cities like Faro or Coimbra, budget hotels are even cheaper. You can find great deals starting around €30-€50 per night.
Mid-Range Accommodation in Portugal
Boutique Hotels
Portugal has been getting more attention for its fantastic boutique hotels. If you want the sweet spot between comfort and affordability, this is the way to go.
In the Algarve region, “Casa Mãe” in Lagos is a popular pick. It blends modern luxury with traditional Portuguese design. Prices here are higher than hostels but well worth it for the extra privacy and unique experience.
Back in Lisbon, “The Independente” offers both private rooms and dorms in a charming, artsy setting. It’s located near Bairro Alto, so you can easily explore the city’s nightlife.
Apartments and Guesthouses
If you prefer more space or want to cook your own meals, consider renting an apartment or staying in a guesthouse. Airbnb has lots of options throughout the country.
In Porto, “MyStay Porto Bolhão” offers apartment-style rooms with kitchen facilities at affordable prices. This can be great if you’re staying for more than just a few days and like the idea of preparing your own food to save a little extra.
Luxury Accommodation in Portugal
5-Star Hotels
If you’re after the luxury experience, Portugal’s cities won’t disappoint. 5-star hotels here often cost less than in other European cities, and the quality is exceptional.
In Lisbon, “Four Seasons Hotel Ritz” is one of the most famous luxury hotels. Its rooftop gym, pool, and stunning views of the city make it a serious contender for anyone looking to splurge.
In Porto, “The Yeatman” is a landmark hotel known for its wine-themed rooms and Michelin-star restaurant. Luckily, Portugal is affordable even in the luxury sector, and you can experience this hotel without completely breaking the bank.
Luxury Resorts
If you’re traveling to the Algarve or the Azores and want to go all out, consider staying at one of their luxury resorts. “VILA VITA Parc” in Porches is a top-tier choice. This resort offers everything from a spa to private beaches and beautifully decorated rooms.
In the Azores, the “Terra Nostra Garden Hotel” offers an island escape. Nestled in a botanical garden, guests have access to thermal baths and beautiful surroundings. The Azores are quieter and ideal for relaxation or nature lovers.
Unique Accommodation in Portugal
Pousadas
For something truly unique, consider staying at a “pousada.” These are historic buildings like former monasteries, palaces, or castles that have been converted into hotels. They are managed by the state-run Pousadas de Portugal network.
A popular one is the “Pousada de Óbidos,” which is located within a medieval castle. Prices here can lean towards the luxury side but staying in a centuries-old building can be a memorable experience.
Eco-Friendly Stays
Eco-conscious travelers may prefer staying somewhere with a focus on sustainability. “Cocoon Eco Design Lodges” in Comporta offers stylish cabins surrounded by nature, built with environmental impact in mind. This is a great spot to disconnect and recharge.
Up in the north, “Casa Modesta” is another eco-friendly choice, offering organic meals and outdoor activities like hiking or birdwatching. It’s located in the wild Ria Formosa Natural Park, ideal for nature lovers.
Where to Stay in Portugal’s Major Cities
Lisbon
Lisbon is the capital and has accommodation options for all types of travelers. If you’re into nightlife, Bairro Alto is filled with hostels, mid-range hotels, and boutique spots. It’s central, and you’ll have easy access to bars and restaurants.
If you want something quieter, check out the Alfama district. You’ll find plenty of charming small hotels and guesthouses here, with those incredible views of the city’s famous tiled rooftops.
Porto
Porto is smaller than Lisbon but no less charming. You’ll find lots of great accommodation right near the Ribeira district. This area is central and has plenty of affordable options. It’s scenic too—most hotels here offer views of the Douro River.
If you’re after something a bit more luxurious, check out the Gaia district, just across the river. There are more upscale choices here, like “The Yeatman”, and it’s much quieter.
Algarve
The Algarve region is famous for its beaches, and many visitors come here for relaxation. Lagos and Albufeira are two of the most popular towns for tourists, each packed with options from hostels to luxury hotels.
If you’re traveling in summer and want to avoid the busiest spots, consider staying in Tavira, a quieter town not far from the tourist hubs. There are boutique hotels and guesthouses here, and places tend to book up slower than in Lagos or Albufeira.
Sintra
If you plan to visit Sintra, which is famous for its castles and lush scenery, you’ll want to stay near the historic center. This town is quite popular with day-trippers from Lisbon, but if you stay overnight, you’ll have the town practically to yourself in the early morning.
Accommodation options in Sintra range from budget-friendly guesthouses to luxurious boutique hotels. “Tivoli Palácio de Seteais” is one of the top-end choices here, offering a stay in an 18th-century palace with sweeping views of the surrounding landscape.
Accommodation Booking Tips for Portugal
Book Early During Peak Season
Portugal is becoming more popular every year, and it’s especially packed in the summer months (June through August). If you’re visiting tourist-heavy areas like the Algarve or Lisbon, book in advance to avoid high prices or sold-out options.
Consider Shoulder Seasons
If you’re looking to save a bit and avoid crowds, try visiting in the shoulder seasons—spring (March-May) or fall (September-October). The weather is still good, especially in the south, and hotel prices drop considerably.
Look Out for Deals
Many hotels offer special deals during the off-peak season or through booking platforms like Booking.com. Keep an eye out for promotions that could save you a lot of money on your stay.
Portugal offers something for every type of traveler, whether you’re into backpacking or looking to splurge on a luxury stay. With this guide, you’ll know exactly where to look, no matter where in Portugal you are heading.
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