The Best Affordable Hotels in The Algarve, Portugal

Budget isn't any less brilliant in these wallet-friendly properties.
a coastal scene in the algarve

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The Algarve is popular for a reason.

While it has a reputation as a luxury getaway bursting with seaside resorts, the Portuguese hotspot is a true jack of all trades. Nature lovers, history buffs, prime-time partiers, and pina colada-laden beach bums all fit in perfectly here.

But its popularity means hotels in The Algarve, Portugal break from Portugal’s typically budget-friendly leanings, leaving tourists sacrificing quality to save a few pennies or dropping far more than necessary for a slice of indulgence.

To help find the middle ground, we’ve compiled some of the best hotels in The Algarve, Portugal.

The best affordable hotels in Algarve, Portugal

Velamar Boutique Hotel

Location: Albufeira, Portugal
Price: $80
Vibe: Stripped down back to basics luxury
The rundown: Velamar Boutique Hotel knows how to do simple things well. Clean, stylish rooms, a brilliant pool area, an excellent beach, and superb service. It might not have the bells and whistles of a high-end property, but you won’t do better than this for that unbelievable price point.

It’s only a five-minute walk to the beach, too. Smiles all around. For such a low price, this is one of the best value hotels in Algarve, Portugal.

Clube Maria Luisa

Location: Albufeira, Portugal
Price: $102+
Vibe: Beachside delight
The rundown: Clube Maria Luisa is a simple hotel. Secluded, quiet, and just steps from the sand, it’s one of the most perfect hotels in the Algarve, Portugal to hang by the water for a few days. Prices start at just $89, and rooms feature kitchenettes—another way to save money.

There’s a great pool and a comfortable communal area to work or hang out in, and the staff is happy to help organize excursions for your group. 

Loule Jardim Hotel

Location: Loule, Portugal
Price: $94+
Vibe: Rooftop party central
The rundown: The Loule Jardim Hotel’s style punches well above its approachable price point. That sentiment is never more evident than in its classy rooftop, where you’ll find a saltwater swimming pool and bar.

It’s best in summer, but in case you feel like a winter getaway, the pool has indoor convertibility, and the downstairs living room comes equipped with a fireplace. Rooms are super stylish, utilizing smart decisions over expenditure. It’s one of the coolest hotels in the Algarve, Portugal.

Alfagar Cerro Malpique

Location: Albufeira, Portugal
Price: $85+
Vibe: Self-catering with a sea view
The rundown: Another self-catering option for those on a super tight budget, the Alfagar Cerro Malpique boasts expansive guestrooms with balconies overlooking the city or sea and a stellar pool sharing similar views.

Of course, the beach and all the delights of Albufeira are within striking distance. You’ve got to eat out at least a few times, after all. It’s one of the best hotels in the Algarve, Portugal for hitting the town.


Location: Olhau, Portugal
Price: $75+
Vibe: Historic hideaway
The rundown: This quaint little property has only eight rooms, fitting nicely into the boutique micro-hotel market. The best thing about hotels like this? Personalized service. And GuestMar is no exception to that rule.

Set in a 19th-century building, it’s one of the coolest historic hotels in the Algarve, Portugal. It’s been renovated to perfection, gifting guests a bright and airy place to relax on their trip—the wood finishes are a nice touch, too. It’s set back a little further than some of the other properties, but what it lacks in coastal convenience, it makes up for in character.

Dom Jose Beach Hotel

Location: Quarteira, Portugal
Price: $100+
Vibe: Beachfront brilliance
The rundown: Recently renovated and staring straight out to the Atlantic Ocean, Dom Jose Beach Hotel is the place for the perpetual beach bum. On rougher days, it’s not a stretch to roll from your bed to the beach. If you can’t make it that far, the beachfront pool is the perfect alternative.

Modern and clean rooms round out a perfect experience, while the spa and restaurant add delightful cherries on top. It’s one of the best affordable hotels in Algarve, Portugal.

Dom Manuel Hotel

Location: Lagos, Portugal
Price: $115+
Vibe: Value-strewn vacation spot
The rundown: The simplistic romance of Dom Manuel is enough to draw anyone in—especially at that price. While it’s definitely a hotel, the decor, and layout promote the feeling of an expansive villa, making it one of the more intimate hotels in the Algarve, Portugal.

It’s also in a prime spot for exploring the exciting city of Lagos. That means top-tier food, bars, beaches, nightlife…the list goes on.

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