The 18 Best Boutique Hotels and Guesthouses in the Algarve

Pensão Agrícola is a stunning six-bedroom boutique hotel in the Algarve, nestled between Tavira and Cacela Velha. Enjoy a delicious breakfast on the shady terrace or light meals by the heated plunge pool. Your senses will be delighted by the scents of almond, carob, fig, orange, and olive trees. A gorgeous dinner is also available upon request. Trust us – you'll be in for a treat.

A Hospedaria is a rural boutique hotel nestled between Tavira and Cacela Velha in the Eastern Algarve. It offers five gorgeous suites with private patios, 2.7km from Cabanas beach. The breakfast is excellent, and dinner is available upon request. Enjoy the outdoor terrace with a small yet refreshing pool. This property is the sister hotel of the wonderful Pensão Agrícola, just a few meters away. Fill your lungs with the wonderful aromas that the south of Portugal has to offer—you're surrounded by the scent of almond, carob, fig, orange, and olive trees. It’s a wonderful place to get away from it all and relax.

Set on a 50-hectare century-old estate, Casas da Quinta de Cima is a boutique hotel located in the unspoilt Eastern Algarve. It’s surrounded by fragrant orange trees and wildflower meadows, and it’s just a short walk from the lovely beach of Cacela Velha.

Conversas de Alpendre is a charming 12 room family-run boutique farmhouse nestled within the picturesque Ria Formosa Natural Park in the Eastern Algarve. The farmhouse is surrounded by a lush orchard and offers a heated saltwater swimming pool, which is open year-round.

Companhia das Culturas is a quirky eco boutique hotel in Castro Marim, the Eastern Algarve. Surrounded by 40 acres of pine, cork, carob and olive trees, plus a biological garden, Companhia das Culturas offers nine uniquely decorated rooms, plus four apartments with kitchenettes, two swimming pools, a gorgeous hammam and plenty of spaces to hang out.

Located just a short walk from the picturesque Tavira's Old Town, these two beautifully designed minimalist apartments are set within the beautifully renovated Convento das Bernardas building - a former monastery transformed by the acclaimed Portuguese architect Eduardo Souto de Moura

Grand House is a five-star hotel in Vila Real de Santo António, Algarve's easternmost corner. The hotel has 28 uniquely decorated rooms and suites featuring a blend of Art Nouveau, Baroque, and Colonial styles with contemporary furnishings. The Grand Beach Club, located at the mouth of the Guadiana river, offers an infinity pool, sunbeds, a restaurant, and a bar with views of the sandbanks and boats on the river. 

São Paulo Boutique Hotel is a beautifully decorated 18th-century Algarvian house turned into a boutique hotel with five uniquely decorated rooms. It features a shared living room, dining room, and inner courtyard with a small saltwater pool. The hotel is adorned with fine works of art by renowned artists and is located in Jardim da Alagoa, one of Tavira's most lovely squares.

The Modernist offers six minimalist apartment-style suites in the centre of Faro. Set in a genuine 1970s modernist building, each suite has been restored with full respect for the original mid-century modern design. There's a shared garden patio, a rooftop where you can enjoy panoramic views of the Ria Formosa Natural Park, and an outdoor shower. Discover Faro's architectural gems with the self-walking tour created for guests.

The charming Casa Céu is a four-bedroom guesthouse located in Olhão, a quirky fishing town near Faro. This beautifully decorated house features high ceilings, white walls, and plenty of natural light. The stunning rooftop terrace, where breakfast is served, boasts incredible sunset views and wooden board games for guests to enjoy. Other highlights include the goat paintings by local artist Meinke Flesseman and the guesthouse's central location in the heart of Olhão. Plus, Faro's airport is just a 15-minute drive away.