Where to stay in Faro depends entirely on your priorities. If you want to be steps from the marina, train station, and restaurants, stay in the Baixa (downtown). For atmosphere and history, the Cidade Velha (Old Town) has boutique guesthouses inside 16th-century walls. If you’re here purely for the beach, Praia de Faro puts sand at your doorstep but means a bus ride into town for everything else. This guide covers where to stay in Faro across all three main areas with specific hotel recommendations at every budget level. See our Faro weather for more details.
Where to Stay in Faro: Baixa (Downtown)
The Baixa is the most practical base in Faro. You’re within a 5-minute walk of the marina, the bus station, the train station, and the Cidade Velha. This area has the widest selection of hotels at all price points and stays lively into the evening with restaurants, bars, and gelaterias.
Suggested Hotels in Baixa
Hotel Faro and Beach Club
This 4-star hotel sits at the edge of the marina with a rooftop pool, terrace bar, and panoramic views over the Ria Formosa. Rooms are modern with floor-to-ceiling windows, and the rooftop restaurant serves Portuguese-Mediterranean fusion. Best for couples and travellers who want a resort feel in the city centre. Check rates and availability. See our best time to visit for more details.
AP Eva Senses
A large 4-star hotel dominating the marina frontage with a rooftop pool, fitness centre, and spacious rooms with marina views. The buffet breakfast is extensive, and the central location means you can roll out of bed and be on a ferry to Ilha Deserta in under 10 minutes. Best for first-time visitors who value a central location and reliable amenities. Check rates and availability
Best Western Hotel Dom Bernardo
A solid 3-star option on a quiet street 5 minutes’ walk from the marina. Rooms are simple but clean and well-maintained, with air conditioning and free WiFi. Good value for a branded hotel in the city centre. Best for budget-conscious travellers who still want hotel amenities and a central location. Check rates and availability. See our things to do in Faro for more details.
Where to Stay in Faro: Cidade Velha (Old Town)
Staying inside the walled old town is the most atmospheric option. The cobbled lanes, cathedral bells, and orange trees create a setting that feels further from the airport crowds than it actually is (it’s a 15-minute taxi). The trade-off: no parking, limited nightlife, and fewer hotel options.
Suggested Hotels in Cidade Velha
Pousada Palacio de Estoi
Located about 10 km from Faro in the village of Estoi, this 18th-century palace turned luxury pousada has baroque gardens, an outdoor pool, and rooms with period furnishings. It’s a Pestana Group property with a fine-dining restaurant on site. Best for a romantic splurge or a special-occasion stay, though you’ll need a car or taxi to reach Faro (EUR 15-20 by taxi). Check rates and availability. See our events and festivals for more details.
Casa d’Alagoa
This historic building facing the Alagoa Garden offers both private rooms and dorm beds in a central location just outside the old town walls. The property has a communal kitchen, terrace, and garden, with a friendly backpacker atmosphere. Best for solo travellers and budget-conscious visitors who want a social environment. Check rates and availability. See our Faro neighborhoods for more details.
Lemon Tree Stay
A small boutique guesthouse in a restored townhouse a few steps from the Arco da Vila. Rooms have high ceilings, wooden floors, and simple but stylish decor. The rooftop terrace overlooks the old town rooftops. Best for couples on a moderate budget who want character and location. Check rates and availability
Where to Stay in Faro: Praia de Faro
If the beach is your main reason for visiting, staying on the Ilha de Faro barrier island puts you steps from the sand. The accommodation is mostly apartment rentals and a couple of small guesthouses rather than chain hotels. Restaurants are limited, and you’ll need the bus or a taxi to reach central Faro.
Suggested Hotels in Praia de Faro
Ria View Guesthouse
A family-run guesthouse on the lagoon side of the island with a terrace directly over the water. Rooms are simple but have private bathrooms and air conditioning. The owners can arrange boat trips and bike rentals. Best for travellers who want a quiet lagoon-side stay with personal hosting. Check rates and availability. See our Faro travel guide for more details.
Faro Beach Life
A small surf house offering private rooms and dorm beds about 100 metres from the beach. Surf lessons and board rental are available on site, and the rooftop terrace has lagoon views. Best for surfers and budget beach travellers. Check rates and availability. See our complete Faro guide for more details.
Apartamentos Praia de Faro
Self-catering apartments 50 metres from the beach with full kitchens, living areas, and balconies. A good option for families or groups who want the flexibility of cooking and more space than a hotel room. Book well ahead for July and August. Best for families and groups staying a week or longer. Check rates and availability
