Top 10 Budget-Friendly Hotels in the Algarve Priced Under £200
The Algarve is famed for its stunning coastline and reliable sunshine, offering a diverse range of experiences. The western region features rugged terrains, ideal for surfers eager to tackle the powerful Atlantic waves. Central Algarve, known for its vibrant nightlife and family-friendly attractions, boasts numerous water parks and beautiful blue-flag beaches. In contrast, the eastern Algarve presents a peaceful landscape adorned with wildflowers and tranquil, mostly deserted beaches—perfect for a relaxing escape. The price estimates are based on autumn rates when the crowds thin out but the weather remains pleasant; expect higher costs during peak season.
1. Boutique Hotel Vivenda Miranda, Lagos, Western Algarve
SPA | POOL | Ideal for garden lovers
Overlooking the azure sea and Porto de Mos beach, this charming 27-room hotel, originally a 17th-century residence, is set on a cliff’s edge. The lush gardens, filled with vibrant bougainvillea and palm trees, house a swimming pool. Dining at Mirandus, the hotel’s restaurant, features a terrace with sea views and offers traditional dishes like clam Bulhao Pato, seasoned with garlic, lemon, and coriander.
2. 3HB Faro, Faro, Central Algarve
SPA | POOL | Best for urban explorers
As the capital of the Algarve, Faro boasts an evolving culinary scene and stunning historic churches. The 3HB hotel, the city’s first five-star venue, is situated in the picturesque old town and features a rooftop pool with sea views. The hotel offers 104 stylish rooms, some with hot tubs on private balconies, decorated in soothing shades of blue and green, complemented by natural wood and artisanal rugs.
3. Octant Praia Verde, Praia Verde, Eastern Algarve
SPA | POOL | Best for families
This family-oriented hotel features rooms and suites designed with children in mind, including separate lounges with kitchenettes and dining spaces. A range of children’s activities is available, such as treasure hunts, paintball, nature observation walks, and outdoor movie nights. The nearby beach is quickly accessible through fragrant pine woods, and the on-site restaurant, A Terra, offers rustic, farm-fresh dishes cooked in wood-fired ovens.
4. Magnolia Hotel, Quinta do Lago, Central Algarve
SPA | POOL | Great-value option
In the upscale Quinta do Lago, known for its well-kept gardens and pine landscapes, the Magnolia Hotel features a unique Miami-inspired ambiance, highlighted by neon signs and turquoise decor. This affordable hotel includes a heated swimming pool, Xbox gaming rooms, and volleyball courts. The hotel serves classic American motel vibes alongside outdoor movie screenings and casual dining options.
5. Memmo Baleeira, Sagres, Western Algarve
SPA | POOL | Perfect for surfers
Once a surfing lodge, Memmo Baleeira is now a modern hotel located above the charming port of Baleeira. The hotel offers a dedicated surf center right on the beach, enabling guests to learn to ride the waves. Rooms feature minimalist designs with views of the ocean, complemented by both indoor spa pools and outdoor options. The onsite restaurant specializes in Mediterranean cuisine, focusing on local ingredients.
6. Tivoli Carvoeiro, Carvoeiro, Central Algarve
SPA | POOL | A foodie’s haven
Renowned for its exceptional culinary offerings, this hotel is a favorite for those who appreciate fine dining. The Sky Bar Carvoeiro serves exquisite sushi paired with panoramic sea views, while the upscale One Restaurant celebrates local ingredients with innovative dishes. The hotel features airy interiors across 248 rooms, with options for rooms equipped with hot tubs on terraces.
7. Pousada Convento Tavira, Tavira, Eastern Algarve
SPA | POOL | For history enthusiasts
This magnificent 16th-century convent, showcasing baroque and Renaissance architecture, has been tastefully transformed into a 36-room pousada. Visitors can explore remnants of a Moorish village unveiled during renovations. The hotel offers a cozy bar with a selection of local wines, regional cuisine served in beautifully decorated rooms that feature access to gardens or terraces, alongside a tranquil pool.
8. Vila Valverde Design & Country Hotel, Praia da Luz, Western Algarve
SPA | POOL | Perfect for couples seeking quiet
Set in a historic manor on the outskirts of Praia da Luz, Vila Valverde boasts only 15 spacious rooms, complete with an exceptional spa and a scenic outdoor pool surrounded by gardens filled with lavender and citrus trees. The on-site restaurant showcases locally sourced dishes, such as pork cheeks with sweet potatoes and regional seafood delicacies. The beach is a leisurely 20-minute stroll away, offering a range of local bars and eateries.
9. Casa Amor, Olhao, Eastern Algarve
POOL | Ideal for design lovers
This stylish ten-room hotel in Olhao is a labor of love by French owners Jacques and Walter, who have carefully restored the 19th-century property into a serene getaway adorned with bougainvillea. Each bedroom features antique furnishings, with original stone staircases leading to a sun-soaked courtyard. A rooftop pool provides stunning views of the unique cubist architecture of the town, and a quaint café sells homemade treats and pastries.
10. Pestana Alvor South Beach, Alvor, Western Algarve
POOL | Perfect for beach enthusiasts
This vibrant hotel captivates visitors with its red and white striped design, located just steps from the beach. Guests can choose from three swimming pools or enjoy nearby Alvor beach, which is popular for kitesurfing. The hotel’s Sea Deck restaurant, set amongst the dunes, offers a menu filled with local seafood specialties such as clams and mussels. The contemporary 79-room layout features bright decor, with suites showcasing standalone bathtubs and whimsical mermaid artwork on the ceilings.
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