The Best Hotels in Albufeira, Portugal (Boutique, Budget, Pools & More!)

I’ll just get to the good stuff right away. I stayed at the best hotel in Albufeira, Portugal (just look at that breakfast!) and you should stay there too if you like boutique hotels with champagne breakfast service, infinity pools and luxury poolside cabanas.  Which hotel was this? Vila Origens Adults Only Boutique Hotel.

I’m going to take you on a mini-tour of my favorite hotel in Albufeira and explain exactly why I think it’s the best place to stay in this city in the Algarve. However, since I know that an adults-only boutique hotel might not suit your needs, I’m going to highlight a selection of nearby hotels that I noticed when I was strolling around Albufeira… but only the ones that had amazing reviews from other travelers.

Whether you’re looking for a boutique hotel in Albufeira, a cheap hotel in Albufeira, or any other kind of accommodation in Albufeira, it’s essential to book months in advance.  I traveled to the Algarve in August, and by the time I booked my hotels in early March most accommodation was already sold out.

I can’t stress this enough – if you want to stay in a nice hotel in Albufeira (or anywhere else on the Algarve) you need to book months in advance.

The hotels, guesthouses, hostels and apartments on this list are all located in the center of Albufeira. My personal preference is always to stay in town, rather than be stuck in an isolated resort many kilometers from the fun. If you’re looking to stay inside a resort for the duration of your trip to Albufeira, you should probably talk to a local travel agent about booking an all-inclusive vacation. If you want to have an independent holiday with the freedom to explore, eat, drink and swim where you want, then keep reading!

The #1 Best Hotel in Albufeira: Vila Origins Boutique Hotel

As I said at the top of this article, Vila Origens Boutique Hotel has to be the best hotel in Albufeira (and possibly along the entire Algarve Coast!).  Located in the center of Albufeira, just three minutes away from the beach, it is a literal oasis of tranquility hidden away behind majestic gates that appear to have been transported to Portugal from Morocco.

When I arrived at the hotel I was immediately taken for a tour of the facilities, including the infinity pool, sun loungers and cabanas, poolside breakfast area and spa, before being shown my double room. Inside, I was greeted with a complimentary bottle of Portuguese vinho verde and an assortment of local sweets. The room was well-equipped with everything I could need, including powerful air-conditioning, a modern shower, modular shelving units to store my stuff and a seating area with a table and two chairs. 

A major highlight of any stay at Vila Origens is the breakfast, which you can see in the photo at the top of this article. As a vegetarian I skipped the smoked salmon and meats that were offered, but still indulged in many other dishes, including a trio of local cheeses (these changed from day to day), different jams and jellies, fresh bread, pastries, fresh fruit (again, it changed daily), yogurt, fresh orange juice, coffee made to order and champagne.  This indulgent breakfast was included in the room rate that I reserved on Booking.com (where the hotel is currently rated 9.7/10 at publication time).

While Vila Origens can be expensive, if you book in advance you can find great deals. Personally, I think it’s absolutely worth it to pay a little bit extra for this kind of luxury, and that’s why I can confidently say that it’s the best hotel in Albufeira.

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Other Great Hotels in Albufeira, Portugal

I understand that Vila Origens may not be everyone’s vibe.  With only 21 rooms, it’s more of place to rest and relax than to party with your friends.  If you’re looking for a larger property, I scoped out a few interesting options on the streets around Vila Origens.

Hotel Sol y Mar Albufeira

Hotel Sol y Mar is right across the street from Vila Origens. From the street side it didn’t look like anything special, but from the back side you realize that this large, adults-only hotel is right on the beach, and features direct access to the beachfront promenade (I checked the door!).  If you’re visiting in the shoulder season or the off-season you’ll appreciate the indoor pool here.  

Hotel California Albufeira

I spotted Hotel California Albufeira when I was getting a massage in the adjacent shopping plaza, and out of curiousity I looked it up and found that it also had great reviews. Billing itself as an “urban beach” this adults-only property has a beautiful rooftop pool with lots of sun loungers. It’s located in the heart of the restaurant and shopping area, but still only five minutes from the beach. 

The Best Guesthouses in Albufeira

Portugal has countless alojameto local, which is a term that loosely translates to “local accommodation” or “local housing”. These can include B&Bs, guesthouses and other small, independent properties.  Personally, I like supporting small, family-run businesses when I’m traveling, so these local guesthouses are properties I thought deserved to be highlighted.

Peneco Albufeira Guesthouse

I noticed Peneco Guesthouse when I was walking in the pedestrian area of central Albufeira, near all the restaurants and shops. You can see from the photo that it’s set back from the main street by about one block, and the entrance is on a quiet side street.  From here it’s a flat five-minute walk to the beach. Peneco Guesthouse has a shared kitchen and a rooftop terrace, so you can save money by preparing some light meals and enjoying them al fresco.

Guesthouse Dianamar Albufeira

Albufeira’s beach is lined by cliffs, and Dianamar Guesthouse is located at the top of those cliffs.  Don’t worry though – this guesthouse is only one minute from a free elevator that connects the beach to the town above, at the more quiet end of the beach.  There are a couple of local restaurants nearby (I loved the vegan restaurant on the same street!) or you can walk to the touristy area in just under ten minutes.

The Best Hostels in Albufeira

Some of the best hotels in Albufeira aren’t actually hotels at all – they are hostels!  Staying in a hostel in Albufeira will help keep your accommodation costs down, so you’ll have more money to spend on excursions like this off-road quad tour or this tuk-tuk tour to the Bengil Caves.

Musical Hostel Albufeira

I could see Musical Hostel from the rooftop terrace at Vila Origens, so one afternoon I walked over to check it out. Musical Hostel is right in the middle of the Albufeira nightlife scene, and features a range of different dorm rooms with modern furnishings. You can meet other travelers on the hostel’s rooftop terrace (complete with Jacuzzi!).

Sun Lovers Hostel Albufeira

You get major Greek island vibes at Sun Lovers Hostel in Albufeira. Featuring a mix of dorms and private rooms, this hostel has a beautiful rooftop terrace and a shared kitchen to help you keep dining out costs down. It’s a few blocks away from the main nightlife scene (so it should be quieter at night) and about ten minutes on foot from the beach. 

The Best Apartment Rentals in Albufeira

I spent a bit of time just walking around Albufeira looking for the best apartment rentals and the best vacation rentals in this Algarve town. Often, apartment rentals in Albufeira aren’t marked on the outside, so it’s hard to know if there is one (or more) homes for rent behind a pretty facade. The biggest clue is the ubiquitous “AL” sign, which indicates an alojamento local. With that in mind, here are a few highly-rated apartment rentals in Albufeira that you might want to look into when you’re planning your trip.

Rossio Mar Apartments Albufeira

These vacation rentals in Albufeira were easy to spot, as they were near the Dianamar Guesthouse (and the vegan restaurant I visited several times during my stay). Again, I like the location on a quiet street near the elevator to the beach, and Rossio Mar Apartments get really good reviews for their clean, comfortable rooms. I think it’s worth it to splurge on a room that has a sea-view balcony, as there’s nothing better than savoring coffee in the morning (or wine in the evening) with a view like that.

Clube do Monaco

One of my favorite things about Vila Origens was the beautiful pool, and that is something that you might miss out on at a vacation rental. Fortunately, the apartment rentals at Clube do Monaco include access to a beautiful rooptop terrace with a refreshing swimming pool. Prefer to swim in the sea? It’s less than minutes away by foot, through the Old Town.

Apartamentos Julieta

If you don’t mind a short uphill walk from the center, Apartaments Julieta offers homey one-bedroom and two-bedroom apartments with kitchenettes at very competitive prices. Rooms here have air conditioning, or you can cool off in the pool on the rooftop terrace.

Check out all of my Portugal travel guides for tips on traveling the country from south to north (and back again!).

If you’re not sure where to stay on the Algarve, my comparison of Lagos, Albufeira and Faro should help!

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