Where to Stay in Faro (Algarve) - The Best Areas

23rd January 2023

Faro is located in the Algarve, the southernmost region of Portugal famous for its beautiful beaches and exquisite cuisine. The historical city has distinctive and contrasting areas to explore, with the coastline to the south and the rolling hills and valleys to the north. 

With a mild climate attracting migratory wildlife and warming the turquoise Mediterranean sea, this town is filled with a variety of tourist attractions to suit anyone, whether you wish to relax on the beach or take in some ancient Portuguese heritage.

With a wealth of natural beauty, historical influence, and luxury holiday resorts, it’s no surprise that top quality accommodation is very easy to find, so your stay in Faro matches the splendor surrounding you.

This article will help you find where to stay in Faro (best neighborhoods) and the best place to stay in Faro (best hotels) for your kind of getaway.

Related reading:
Considering other Algarve towns? Here’s our choice of the best towns to stay in the Algarve
Check out all the best things to do in the Algarve


Due to the location of Faro as a prominent fort on the Mediterranean coastline, it has always been rich, both economically and culturally. The old town boasts some quintessential medieval cobbled streets and authentic buildings, with a plethora of ancient religious sites, making it the best area to stay in Faro.

The Carmo Church and Faro Cathedral are both perfect examples of ornate, gothic architecture. The Capela dos Ossos is a bone church, a very rare form of architecture featuring the decorative bones and skulls of hundreds of pilgrims; at only 2 Euros per person for entry, it is definitely worth a visit.

There are also plenty of museums and art galleries in the old town, all of which are compacted together in quaint streets, which are easy to navigate on foot.

The Best Hotels in Old Town Faro

Best Budget Hotel in Old Town: Senhor Gigi

Senhor Gigi is a beautiful guest house just 300 yards away from the old town of Faro. Simple and contemporary, but with some authentic period features, it is a perfect budget stay for an affordable visit to this splendid city.

Click here for availability – Senhor Gigi

Best Mid-Range Hotel in Old Town: Aqua Ria Boutique Hotel

Situated on the main shopping street of Faro, Aqua Ria Boutique Hotel offers comfortable accommodation right at the beating heart of Faro. With one of Faro’s excellent restaurants beneath it and excellent access to trains and buses, this is a convenient and trendy spot. It’s a favorite amongst couples and one of the best places to stay in Faro.

Click here for availability – Aqua Ria Boutique Hotel

Best Luxury Hotel in Old Town: A Casa d’Amelie

These beautiful apartments at A Casa d’Amelie are an option if you’re considering a self-catered property when deciding where to stay in Faro. Delicately furnished, these apartments are a ten-minute walk from Faro Cathedral and also feature a bicycle hire service to make getting around the city that bit easier.

Click here for availability – A Casa d’Amelie


The beaches in Faro are some of the most beautiful on the coast of Portugal. The port at Faro runs ferry services to the islands in the estuary, including the Ihla Deserta sand bar, which is like a deserted island and one of the quietest beaches in Portugal.

There is also the opportunity to go to Barreta Island and take part in a tour of the famous Benagil Caves, as well as tours of all the small islands in the estuary. Somewhere near Faro Marina is definitely the best area to stay in Faro if you enjoy being near the sea.

The Best Hotels in Faro Marina

Best Budget Hotel in Faro Marina: Sunlight House

Sunlight House is a delightful B&B boasting a terrace. It’s just a two-minute walk from the old town and a short walk to the marina. The property is only 6.7 miles from Faro Beach and has a range of top-quality local seafood restaurants on the doorstep.

Click here for availability – Sunlight House

Best Mid-Range Hotel in Faro Marina: Faro Boutique Hotel

Faro Boutique Hotel is just 500 yards from Faro Marina and has a terrace which offers outstanding views over the ancient city. With quirky decoration and just a ten-minute drive to the airport, this hotel is one of the best places to stay in Faro for travel and enjoying the local attractions.

Click here for availability – Faro Boutique Hotel

Best Luxury Hotel in Faro Marina: Faro Central Holiday Apartments

Faro Central Holiday Apartments are easily accessible to all the main attractions of Faro, such as local theaters, museums, and of course, the Marina. Each unit comes with a balcony; bicycle and car hire are readily available, and local activities include snorkeling and cycling. It is five miles away from Faro airport.

Click here for availability – Faro Central Holiday


These tranquil gardens are the largest landscaped gardens in Faro, complete with fountains, rare flowers, and a mini-zoo. If you enjoy activities and are wondering where to stay in Faro, this is for you. Visitors can enjoy a game of mini-golf, as well as view an ex-slaughterhouse, which, despite its previous function, is an excellent example of neo-Islamic architecture.

The Best Hotels Near the Jardim Da Alameda Joao de Deus

Best Budget Hotel near Jardim Da Alameda Joao de Deus: Alameda Garden

Almeda Garden features a selection of beautifully furnished and well-equipped studio flats, which all have flat-screen televisions and balconies; some even have sea views. Faro airport is just 2.5 miles away, and it’s eight minutes away from the city center, so this is one of the best places to stay in Faro.

Click here for availability – Alameda Garden

Best Mid-Range Hotel near Jardim Da Alameda Joao de Deus: Alameda Exclusive House

Almeda Exclusive House is a contemporary guesthouse featuring well-furnished and equipped rooms with a shared lounge. There is a terrace overlooking the city, you can hire cars and bicycles, and there’s a paid shuttle to and from the airport – something important to consider when deciding where to stay in Faro.

Click here for availability – Alameda Exclusive House

Best Luxury Hotel near Jardim Da Alameda Joao de Deus: 

This three-bedroom apartment is very close to Faro city center, with just a short walk to attractions such as Faro Cathedral and Lethes Theatre, some of the best places to visit in Faro. Local activities include hiking and fishing at the nearby coastline. The apartment is thoroughly furnished and boasts balconies with views over the city.

Click here for availability – Three Bedroom Apartment


When deciding where to stay in Faro, culture is very important. From the outside, this 17th-century theater looks like it’s seen better days. But once you enter, you’ll see that it has lost none of its period charms.

Having gone from a Jesuit college to an army barracks until finally it became a theatre in 1845, this building is rich, with a diverse and fascinating history. Now run by the Algarve Theater Company, the theater hosts some of the best performances of drama, music, and dance on offer in Portugal and is conveniently situated in the center of the city. To find out what shows are on offer, have a look at: https://www.facebook.com/TeatroLethes/

The Best Hotels Near Faro’s Lethes Theater

Best Budget Hotel near Faro’s Lethes Theater: Happy House

Just 200 yards from the Lethes Theater, Happy House is an affordable and extremely well-situated guest house, with simple yet well-equipped rooms and a shared kitchen and terrace. There is a restaurant downstairs, bike hire and airport shuttle are available, and the city center is within walking distance, which is very convenient when considering where to stay in Faro.

Click here for availability – Happy House

Best Mid-Range Hotel near Faro’s Lethes Theater: Main Street Apartments

The clue is in the name: Main Street Apartments is right in the center of Faro, with stunning views over the city from the terrace in each unit. With air-conditioning and WiFi, all attractions of Faro are close by. These apartments are perfect for getting away and having your own space, with the option for a fridge, oven, and stovetop available.

Click here for availability – Main Street Apartments

Best Luxury Hotel near Faro’s Lethes Theater: Downtown Pool House

If you’re after luxury when looking for where to stay in Faro, look no further than the Downtown Pool House, a three-bedroom holiday home complete with a pool and patio for stunning views. In a central location, this property is one of the best places to stay in Faro, with easy access to the Marina and Faro Old Town.

Click here for availability – Downtown Pool House


This natural lagoon is one of the most beautiful coastal areas on the Algarve, boasting an array of sandbars and islands ready to explore, as well as some of the most pristine beaches near Faro. It is a haven for birdlife and aquatic wildlife. If you’re a nature-lover or angler looking for where to stay in Faro, boat trips can be arranged from the Marina in Faro.

These waters have one of the world’s highest concentrations of seahorses, so snorkeling is a favorite activity here, as well as the pure joy of relaxing on the sand and soaking up some rays.  As this is a protected area, there aren’t many hotels within walking distance, but there are plenty just a short drive away, making this one of the best areas to stay in Faro.

The Best Hotels in Rio Formosa National Park

Best Budget Hotel in Rio Formosa National Park: Hotel 3K

With each room featuring a balcony and access to a shared swimming pool, this hotel is perfect for relaxing in your own space. However, it also has excellent access to the airport, which is just 700 yards away, as well as the train station, which is only three miles away. You can walk to Faro Beach, and there is a range of bars nearby for a relaxed drink in the evening.

Click here for availability – Hotel 3k

Best Mid-Range Hotel in Rio Formosa National Park: Hotel Monaco

Hotel Monaco offers a perfect balance of glamour and convenience, with Faro Airport just a seven-minute drive away. There’s an outdoor swimming pool and fitness room, as well as massages and face treatments. There are shuttle services to the airport, beach, and Faro city center, and the beauty of Ria Formosa is just a short drive away.

Click here for availability – Hotel Monaco

Best Luxury Hotel in Rio Formosa National Park: Ria Formosa House

With the beach just 2.7 miles away, free WiFi and parking, and a small outdoor pool, this apartment is the perfect place for a private getaway. Saltmarshes, equestrian centers, and beaches are just a short walk away, and there are a variety of activities to keep you entertained. There’s also easy access to Faro city center and the beautiful coastline, which is one of the best places to visit in Faro.

Click here for availability – Ria Formosa House

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