12 Of the Best Hotels in Albufeira’s Old Town

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Published: April 2019 & Last Updated: June 2021

Experience a slice of authentic Portuguese culture when you stay in Albufeira’s Old Town. Its shady plazas, whitewashed houses with decorative tiling and winding cobbled streets make an idyllic backdrop to your stay. During peak season, its streets come alive with street performers, live music and buzzy bars. Whatever season you visit though, you’ll be able to enjoy the Old Town’s traditional atmosphere, shop in its boutiques or laze on its golden-sand beaches.

Casa dos Arcos – Boutique Hostel & Suites

Casa dos Arcos garden

Casa dos Arcos – Boutique Hostel & Suites lets you stay in the heart of the Old Town in one of its historic buildings. Housed in an 18th-century palace, the hotel is a sophisticated mix of old-world charm and modern conveniences. Dine al fresco in its bougainvillea-filled garden area or simply enjoy the historic atmosphere of its elaborately-decorated public areas like the lounge and shared kitchen.

Vila Algarvia Boutique & Suites

Vila Algarvia Boutique & Suites bedroom

Positioned just a 5-minute walk from Albufeira’s Old Town Square, Vila Algarvia Boutique & Suites puts you close to the action. With antique-style furniture and traditional Portuguese tiling, the hotel is brimming with vintage charm. You can enjoy a comfortable night’s sleep thanks to the hotel’s air-conditioned rooms. There are sea views from its sun-trap terrace and a wellness area if you’re after some pampering.

Vila São Vicente Boutique (Adults Only)

Vila Sao Vicente boutique lobby

Sunbathe with a sea view on Vila São Vicente Boutique’s sunny terrace. Sitting on a hill above the sandy shores of Fisherman’s Beach, this adults-only hotel boasts a prime position. Once a 19th-century palace, the coastal hotel has been transformed into a contemporary getaway with mod cons such as air conditioning, satellite TV and modern interiors. Spend your days lounging around the pool or head to the Old Town’s main square which is a 5-minute walk away.

Hotel California Urban Beach – Adults Only

Hotel California Urban Beach bar

Hotel California Urban Beach is a sleek Old Town stay set on the hills above Praia dos Pescadores Beach. With a contemporary-luxe vibe, you can expect to find airy whitewashed rooms, modern Scandic-style furniture and atmospheric lighting throughout. The adults-only hotel provides a relaxing atmosphere where you can chill out on the rooftop pool by day and enjoy cocktails in the on-site bar by night.

Garden Hill Relax & Old Town by OCvillas

Garden Hill Relax Bedroom

If you’re after a sophisticated self-catering stay, you’ll love Garden Hill Relax & Old Town by OCvillas. Set on the hills above Albufeira’s historic centre, the apartments are stylishly decorated with spacious, contemporary interiors and pool-view balconies. Cook meals in your very own fully-equipped kitchen, or head to the Old Town’s restaurants which are less than a 5-minute walk away. There’s a bar on-site too, and a swimming pool for you to relax by.

Apartamentos Tucha

Apartamentos Tucha Living Room

For those who prefer to cook their own meals on holiday, Apartamentos Tucha is the ideal choice. Positioned in the centre of the Old Town, the whitewashed apartments feature pleasingly spacious, contemporary rooms and fully-equipped kitchens. They have dining areas and comfortable lounges with satellite TVs. If you want a night away from the sofa though, you’ll find local restaurants and eateries within a stone’s throw from here.

Hotel Baltum

Hotel Baltum rooftop

Set on a lively street with restaurants and bars, Hotel Baltum is perfect for those who want to be close to the action. This stylish stay has a roof terrace bar with views out to the ocean. There’s a hot tub here too, as well as sun loungers to help you top up your tan. Expect to find modern rooms with air conditioning and indoor restaurants serving Portuguese dishes and international cuisine.

Hotel Sol e Mar

Hotel Sol e Mar bedroom

Striking the perfect balance between beach and culture, Hotel Sol e Mar sits at the edge of the Old Town on its golden sands. Wake up each morning to views of the ocean from your very own private balcony. At night, the hotel comes to life with live entertainment and a buzzy atmosphere in its beachfront cocktail bar. There’s an indoor pool and two restaurants offering both à la carte local dishes and international cuisine.

Son of a Beach Hostel

Son of a Beach Hostel terrace

Son of a Beach Hostel is the ideal choice for those after budget-friendly accommodation that doesn’t compromise on style. Housed in one of the whitewashed historic buildings typical to this area, the hostel has been tastefully decorated with modern furnishings, art-adorned walls and colourful tiling. You’ll find both shared dorm rooms and private double bedrooms with ensuite bathrooms. There’s a real friendly atmosphere here where you can meet other guests in shared common spaces like the terrace, or book onto a hostel-organised tour.

Colina do Mar

colina do mar birdseye view

Combine sightseeing with relaxation when you stay at Colina do Mar. The hotel, which is just a few minutes’ walk to the Old Town’s centre square, has a rooftop swimming pool. A complete sun trap, you can sunbathe up here for hours and enjoy the views out to sea. As well as comfortable air-conditioned rooms, the hotel has a bar and a games room with billiards. When you fancy a little sea breeze, walk just a few minutes to Praia do Peneco beach.

Albufeira Beach Hotel

albufeira beach hotel bedroom

Conveniently located on one of the main streets leading to the Old Town’s main square, Albufeira Beach Hotel is an ideal base for exploring the area. Enjoy a continental breakfast every morning in the hotel’s bright and airy breakfast room. The bedrooms boast a modern decor and come with air conditioning so you can be sure to get a comfortable night’s sleep even in the height of summer. For lunch and dinner, you can head out to some of the Old Town’s restaurants which are practically on your doorstep.

Al-Buhera Palace

Al-Buhera Palace bedroom

Indulge in a seafront stay at Al-Buhera Palace. The hotel is eclectically designed with themed rooms, from wood-panelled rustic decors to opulent Italianate interiors. Many of the rooms also come with sea-facing balconies which perch just about the sands of Praia do Peneco beach. There’s a shared kitchen—great if you’re budgeting—and an ocean-view terrace with sun loungers.

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