Are you planning a road trip to the Algarve and looking for an easy-going place to stay? Here, we share with you the best hotels (and nuggets) we found and tested during our stay, with one non-negotiable criterion in the region: the swimming pool.
How do you choose where to sleep in the Algarve (without spending hours)?
- Lagos: perfect as a western base (cliffs, caves, incredible beaches).
- Alvor: beach spot + nature, less concreted seafront.
- Olhão: excellent for the Ria Formosa and the islands (local atmosphere).
- Armação de Pêra: convenient to Benagil + great beaches.
🚗 Distances are short in the Algarve, so if you want to opt for 2 accommodations so you don’t change spots every night, we recommend the villages of Alvor and Olhao, which are perfectly located for radiating.
💡 Why do we insist on the pool?
Even in midsummer, the ocean remains cool (often around 18°C). After a day at the beach, being able to swim in more temperate water… it changes everything.
It’s also a good idea to opt for a hotel with parking, as there isn’t always free parking close to fishing villages like Lagos and Armação de Pêra.
Read our article on our 10-day itinerary + 7-day versions in the Algarve.
Lagos: 2 sure values (well placed)
Lagos is a small, authentic fishing village and the starting point for a visit to the rock formations of Ponta de Piedade .
Recommended number of nights: 2
1) Top City Hostel & Suites: the “low budget + pool” option
An excellent plan if you want to do everything on foot (center / port / beaches) without blowing your budget.
✅ Why we recommend it
- Very good value for money
- Rooftop pool (a big plus in Lagos)
- Convenient location (historical center within walking distance)
Ideal for: tight budgets, short stays, wanting to be in the heart of Lagos.
Info and booking for a double room or a dormitory bed at Top City Hostel & Suites – Rated 8.8/10 on Booking
2) Carvi Beach Hotel: mid-range view + comfort
The simple and effective option if you want to sleep above Praia Dona Ana and enjoy the nearby spots.
✅ The big highlights
- Rooftop pool with sea view
- Parking (rare and precious in the area)
- Top access to beaches and Ponta da Piedade
- Double + family rooms
Ideal for: couples, families, car travelers who want a good balance.
Alvor: the “feet in the water” spot (real beach break)
Alvor was one of the most pleasant surprises of our stay. We didn’t really expect to find such a large stretch of fine sand (not too concrete) in this part of the Algarve.
Recommended number of nights: 2
Pestana Alvor South Beach: comfort + 3 pools + direct beach access: superior range
It’s a bit of a splurge for us, but within a reasonable budget, as accommodation is pretty cheap in the Algarve.
✅ Why we loved it:
- Direct access to Alvor beach
- 3 swimming pools (yes, we tested them all with our daughter)
- Modern, bright, pleasant
- Super location: close to Alvor + sea view
Booking information for the hotel Pestana Alvor South Beach – Rated 8.5/10 on Booking
Olhão: our base on the Ria Formosa (quiet & convenient)
Hotel Cidade de Olhão: pool + breakfast + good location – mid-range
Olhao is our favorite village of the trip, an authentic village at the gateway to the Ria Formosa Natural Park.
Recommended number of nights: 3
✅ We liked:
- Swimming pool (a real break after the islands)
- Breakfast included
- Conveniently located for port/ferry/excursions
🌿 Ideal for: Ria Formosa, islands (Armona / Culatra / Farol), more local atmosphere than elsewhere.
Information and booking for Hotel Cidade de Olhão from €80 per night – rated 8.7/10 on Booking
Armação de Pêra: “Practical + Benagil” plan
Algar Papa Rooms: nugget with pool + parking + sea view
An excellent base if you want to get as close as possible to the Benagil gotte.
Recommended number of nights: 2
✅ Why we loved it:
- Swimming pool
- On-site parking (important: few free spaces in the village)
- Sea view + beach access
- Excellent value for money
See prices for Algar Papa Rooms from €60 per night – rated 9.5 / 10 on Booking
Our 10-day Algarve itinerary, short version
Day 1: arrival Faro airport → Lagos: hotel Top City Hostel & Suites (Lagos)
Day 2: Ponta da Piedade (walking + boat): hotel Top City Hostel & Suites (Lagos)
Day 3: Lagos + beaches : Our hotel Pestana Alvor South Beach (Alvor)
Day 4: Alvor (beaches + Três Irmãos + footbridges) : Our hotel Pestana Alvor South Beach (Alvor)
Day 5: Armação de Pêra (beaches + Lagoa dos Salgados): Hotel Algar Papa Rooms (Armaçao de Pera)
Day 6: Benagil + 7 Hanging Valleys hike: Hotel Algar Papa Rooms (Armaçao de Pera)
Day 7: Albufeira and red cliffs beach: Hotel Cidade de Olhão
Day 8: Ria Formosa (cruise): Hotel Cidade de Olhão
Day 9: Ria Formosa (island by ferry): Hotel Cidade de Olhão
Day 10: Olhão (center + markets) → Faro airport
Our 7-day Algarve itinerary – short version
Day 1: Arrival Faro airport → Lagos Hotel: Top City Hostel & Suites
Day 2: Lagos + beaches: Hotel Top City Hostel & Suites
Day 3: Ponta da Piedade (walking + boat) : hotel Top City Hostel & Suites
Day 4: Benagil + 7 Hanging Valleys hike : Hotel Cidade de Olhão
Day 5: Ria Formosa (cruise) : Hotel Cidade de Olhão
Day 6: Ria Formosa (island by ferry) : Hotel Cidade de Olhão
Day 7: Olhão (center + markets) → Faro airport
Our hotels in Algarve on our map
Feel free to leave us a note below to let us know if you are planning this trip, ask any questions or share on social networks(our Instagram) we will answer you with great pleasure!
Before you leave, find all our articles to help you organize your trip:
- 🗺️ Itinerary for your Algarve road trip?
- 🚗 Car rental in Faro in the Algarve: our tips and advice
- Our best restaurants in the Algarve
- Visit the villages of Lagos, Alvor, Albufeira and Olhao
- 🌊 Visit the must-see Benagil cave
- ⛵ How to visit the cliffs of Ponta da Piedade? by boat and on foot
- 🦩 What to do in Portugal’s Ria Formosa natural park and islands?
