By Darren Griffiths

Where to Stay in Albufeira, Portugal - The Best Areas

26th March 2023

Albufeira is a city on the beautiful coast of Algarve in Portugal. A former fishing village, Albufeira has risen from humble beginnings to become one of the most visited cities for tourists coming to Portugal. The reason why Albufeira has become such a big holiday destination for people from all over the world has to do with its attractive coastlines and gorgeous weather. It does appear that people love to experience beaches, sunshine, and good food during their holidays – who could have imagined?

When it comes to where to stay in Albufeira, you have many great options. From budget accommodation to five-star hotels, Albufeira has something for every wallet size. We’ll be looking at the top five areas to stay in at a range of different prices to suit every budget. 

Related Reading:
Check out all the best things to do in Albufeira
And also the 15 Best Things to do in Algarve – Boat Tours & More!

Old Town

As the name implies, the Old Town is pretty, well, old. Other areas of Albufeira have seen significant development, but the Old Town has managed to hold on to the traditions and cultures that first made the city of Albufeira so appealing to visitors. The Old Town is where to stay in Albufeira if you like to be surrounded by the town’s history. 

It retains the charm of the old world with cobbled streets, winding alleys, and traditional cafés. During summer, the Old Town comes alive with traditional bands playing live music in almost every bar and restaurant. Everywhere takes on a festive look and songs fill the air. 

The Old Town wouldn’t be the Old Town without its epicenter, the Jardim Público de Albufeira, which happens to be the main square. The Old Town also has many historical sites, like the Museum of Sacred Art and the Sant’Ana Church, so you’ll have somewhere to visit when you get tired of touring the beautiful city.

If you’re looking for where to stay in Albufeira, you should consider the Old Town.

Best Hotels in Albufeira Old Town 

Budget  –  Hotel Baltum


You’re not high on cash bit looking for where to stay in Albufeira? Well, Hotel Baltum is an excellent place for you. The hotel is surrounded by restaurants and bars, and they are all built on a very lively street. The hotel has a 24-hour reception and satellite TVs. Guests can also enjoy the peace of the beautifully furnished rooms. Some even come with balconies boasting lovely views. 

There is a shared living area for you to relax in if you want, and there is an air-conditioned indoor restaurant serving both regional and international cuisine. You can even have a continental breakfast for an extra fee. 


Mid Range  – Cerro Mar Garden

Not sure where to stay in Albufeira? You should check out the Cerro Mar Garden. About eight minutes away from Pescadores Beach, this casual hotel features an aquarium and waterpark. It comes with relaxed suites, tile floors, and furnishings. All the rooms have balconies and living areas with sofas and kitchens. 

The Cerro Mar Garden provides free WiFi and satellite TV.  Lodgers can enjoy beautiful views of the gardens and the ocean via floor to ceiling windows. Guests who want spa facilities can find them in an adjacent hotel, the Cerro Mar Atlântico. They can also use the fitness facilities and sports courts there.


Luxury  – Hotel Sol E Mar

The Hotel Sol e Mar is a luxury beachfront hotel located only three minutes away from the Municipal Archeological Museum. 

The hotel features two bars, a heated indoor pool, and two restaurants. The rooms all have fabulous sea views. Each room also has an en suite bathroom with a hairdryer. The Sunset Restaurant offers regional and international cuisine, so visitors can be sure of having their needs met. 


Albufeira Marina

This is a recently developed area that is quite close to the center of Albufeira itself. One of the things that makes the Marina stand out from other regions of Albufeira is the amazing paint job that most buildings have. All buildings in the area are painted in different candy colors, providing a stunning, distinctive effect.

If you’d like to quickly go on a boat trip along the coast from town, the Marina is where to stay in Albufeira. Although the area isn’t overly large, it has its own charm and can be a great place to have fun with family and friends. 

Best Hotels in Albufeira Marina

Budget  – Villa Cerro

Villa Cerro is right next to the Marina and has an outdoor pool free WiFi in all rooms. With a rooftop terrace and a lounge boasting a fireplace, Villa Cerro gives is a budget hotel with a difference. 

The rooms in Villa Cerro are well decorated and include a flat-screen TV with a satellite connection. All feature a bathtub or shower ensuite. What’s more, guests can arrange car and bike rentals to explore the Marina at the front desk. 

If you’re not loaded with all the cash in the world and are wondering where to stay in Albufeira, you should consider Villa Cerro.


Mid Range  – Hotel Do Cerro


The Hotel Do Cerro boasts panoramic views of the Albufeira Bay. It has indoor and outdoor pools, a spa, and even a fitness room. The rooms feature satellite TVs, and they all have terraces and balconies. Aside from that, guests can also enjoy the Turkish bath and sauna facilities of the hotel. You’ll enjoy a la carte style dining and even buffet-style eating.


Luxury  – Alfagar Cerro Malpique

The Alfagar Cerro Malpique has a panoramic view of Albufeira that is sure to wow guests. The hotel even has staff that can help arrange jeep safaris and cruises around the area at a fee. The hotel has an outdoor swimming pool and offers self-catering units. All apartments in the building boast balconies and terraces that allow guests to appreciate the beauty of Albufeira. 


Olhos de Água

If a low-key holiday in Albufeira is what you’re looking for, you should consider staying at the Olthos dé Água. This area is quite similar to the Old Town in ambiance and scenery but is even more low-key. It is, without a doubt, one of the best areas to stay in Albufeira. Olhos de Água is the perfect area for families to relax and enjoy all the sunshine and beauty of Albufeira without the noise and excitement of the city center. 

Best Hotels in Olhos de Água, Albufeira

Budget – Balaia Gold Village

Balaia Golf Village has six outdoor pools, a nine-hole golf course, and two restaurants. All the apartments come with a dining area, a fully equipped kitchen, and a seating area. All guests at Balaia Golf Village have access to a balcony and a terrace. You can even rent a bicycle when you want to explore the city. 


Mid Range  – Alfagar Village

The Alfagar Village is on a clifftop and has incredible views. You can look out from the balconies of your room in the resort and see the vast expanse of the Atlantic Ocean. The resort also offers unencumbered access to the Santa Eulália Beach, and every apartment boasts a dining area and kitchenette facilities. There is also a beautiful outdoor pool for guests. 


Luxury – Epic Sana Algarve

Epic Sana Algarve Hotel is one of the top luxury hotels in the Olthos dé Água area and has direct access to the beach. The rooms are large, tastefully furnished, and feature white marble bathrooms. All rooms come with balconies that open to the oceanfront, and guests can enjoy free WiFi access throughout the resort. There are also other luxury amenities, like a gourmet restaurant, spa, a multi-sports court, and a fitness center. Is the Epic Sana Algarve the best place to stay in Albufeira? We say you can’t go wrong if this is your choice!


Areias de São João 

If you’re looking for amazing nightlife, Areias de São João – popularly called ‘the Strip’ – is where to stay in Albufeira for night owls. It is probably the most lively place in Albufeira and has the highest concentration of nightclubs, bars, and restaurants in the entire city. If you’re in Albufeira to experience the nightlife, then Areias de São João is the place you need to be. It is the best area to stay in Albufeira for those who enjoy a party.

Ask many tourists where to stay in Albufeira,  and they’ll recommend Areias de Säo Joã.

Best Hotels in Areias de São João, Albufeira 

Budget – Club Ouratlantico

Club Ouratlantico has two swimming pools, a sauna, a tennis court, and is within walking distance of the center of Albufeira. 

The club has different kinds of rooms ranging from two-bedroom apartments to studio apartments. Each apartment comes with a kitchenette, a hairdryer, and a flat-screen TV. Guests can enjoy a buffet breakfast every morning for an additional fee. 

Looking for where to stay in Albufeira? You should absolutely check out Club Ouratlantico. 


Mid-Range – Albufeira

Albufeira Mar has an outdoor swimming pool, a restaurant, a fitness center, and free WiFi. The views are simply stunning. Each apartment boasts one bedroom, a bathroom, and a flat-screen TV that has cable channels. Rooms also feature balconies with breathtaking garden views and a standard kitchen. The hotel also features a sauna and a hot tub. All the staff are multilingual, so guests can expect the very best service.


Luxury – Vivenda Luz

If you love living in villas and detest the whole mechanical hotel atmosphere, the Vivenda Luz is the place for you. This detached villa boasting a garden is located on the outskirts of Areias de São João, a mere 300 meters from the city center. The villa comes with a kitchen, a flat-screen TV, an outdoor pool, and a hot tub. 



This is an area that just sits on the end of the “the Strip.” The fact that Oura is close to the Strip means that it is not far from all the nightlife action, without being too busy. It is one of the best places to stay in Albufeira for people who would like to enjoy the great nightlife without being in the thick of things. If you’re looking for moderately priced hotels and resorts, Oura is where to stay in Albufeira for you. It is one of the most popular areas for tourists in Albufeira. 

Best Hotels in Oura, Albufeira

Budget – Luna Hotel

The Luna Hotel da Oura is a pretty large hotel located only a few meters away from the Oura and Alemães Beaches. The hotel has outdoor and indoor pools and offers free WiFi. Each room is air-conditioned, has quality furniture, and private bathrooms with a bath, hairdryer, and a makeup mirror. There’s a well-equipped kitchenette where guests can prepare their meals, or they could dine at the hotel’s restaurant. 


Mid Range  – Aqua Pedra Dos Bicos

Aqua Pedra Dos Bicos Design Beach Hotel has everything to make your stay in Albufeira amazing. It has free WiFi, air conditioning, and a beautiful modern outlook. All units have cable TV and a private bathroom with a hairdryer. A shuttle service can be arranged by staff at the hotel, and parking is free. 

CLICK HERE FOR AVAILABILITY — Aqua Pedra Dos Bicos Design Beach Hotel 

Luxury  – Alisios

Alisios is the name of the majestic hotel that rises above the Algarve cliffs. It has a panoramic deck and a beautiful indoor pool that features heated seawater. The rooms at Alisios are very airy and bright. Guests are offered drinks and cocktails all day and can even enjoy fantastic live bands on certain nights of the week. 


Not sure if Albufeira is for you? Then check out more best towns and places to stay in the Algarve!

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To help plan your Algarve vacation, here’s a look at where to stay in Albufeira, Portugal with accommodation options in each area to suit all budgets.

To help plan your Algarve vacation, here’s a look at where to stay in Albufeira, Portugal with accommodation options in each area to suit all budgets.