Golden limestone cliffs and a natural sea arch above turquoise Atlantic water on the Algarve coast

Cheap hotels & rooms in Algarve

The Algarve is Portugal’s sunny southern coast, famous for golden cliffs, sea caves such as Benagil, golf courses and resort towns from Lagos to Tavira. It is a classic package-holiday coast with plenty of apartments and hotels, so cheap rooms are easy to find outside July and August.

Finding cheap rooms in Algarve is easier when you know where to look. We compare live hotel rates across the top booking sites and point you to the neighborhoods where hotels are cheap but the location is still great.

Rooms come in more shapes than hotels — in Algarve you can also compare apartments with kitchens, vacation rentals for families, B&Bs and budget hostels in one search.

Where to find cheap rooms in Algarve

Lagos

A lively walled town near dramatic cliffs and beaches such as Ponta da Piedade — popular and good value.

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Albufeira

The Algarve’s busiest resort, with the most hotels and nightlife.

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Faro

The regional capital with the airport and an old town — handy and often cheaper.

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Tavira

A quieter, traditional town in the east with island beaches.

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Portimão & Praia da Rocha

A big beach resort with high-rise hotels and a wide range of prices.

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Map of cheap hotels in Algarve

Zoom and pan the map to compare hotel prices by neighborhood; rates come live from the booking sites.

Photos of Algarve

When to book a cheap hotel in Algarve

May, June and September are warm and good value. July and August are hottest and most expensive, while winter is mild and cheap, with many golfers.

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Frequently asked questions

Where can I find cheap hotels in the Algarve?

Faro and apartments in Albufeira and Portimão are often the cheapest, especially outside the summer holidays.

Which Algarve town is best?

Lagos suits beaches and a lively old town, Albufeira nightlife, and Tavira a quieter traditional stay.

Do I need a car in the Algarve?

Not essential — trains and buses link the main towns — but a car makes it easier to reach remote beaches.