10 budget-friendly Algarve hotels for a 'more bang for your buck' summer holiday

Popular doesn't always mean pricey! We've rounded up some of the best budget-friendly hotels in Algarve to enjoy the seaside without breaking the bank.

The Algarve is one of those inescapable destinations for a Summer holiday and it is not difficult to understand why—more than 300 days of sunshine a year, idyllic scenery, tranquillity, excellent gastronomy… And 200 km of coastline to explore!

But such a prime seaside destination is bound to have a vast array of accommodation options and it is not easy to find the hotels with the best value for money. So if you want to explore Portugal’s coastal gem and don’t want to spend your life savings, these are the best luxury resorts, serviced apartments and hotels for a budget-friendly stay in the Algarve region.

A beachfront resort in Albufeira


The Alfagar Village is a tourist village in Albufeira very popular with couples and families looking for budget hotels in the Algarve. Children are privileged guests here—not only do they get their own kids’ swimming pool and reptile and birds of prey demonstration, but they can also spend hours climbing and descending the water slides with endless joy and energy.

Grown-ups, on the other hand, can have fun on the football, tennis and golf fields, or relax in the pool area. In the evening, we recommend a visit to the on-site bar with live music, dancing and karaoke.


Direct beach access

Direct access to the Beach of Santa Eulália – 3 minutes on foot.

On-site dining

There’s a restaurant on-site for when you do not feel like cooking.

Alfagar Village

Top rated
Albufeira, 4.8 km to Albufeira Train Station
8.9 Excellent (3053 reviews)
Excellent Facilities 8.7 / 10
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An Albufeira serviced apartment minutes from Praia da Oura


The biggest strength of 3HB Golden Beach has to be its location. Besides having Oura Beach only a 2-minute walk away, you’ll also be close to the best nightlife area in Albufeira with its many restaurants, shops and bars.

Wake up to fantastic views of the sea, stroll down to the beach or cool off with a swim in the outdoor pool after a day of sunshine. In the evening, enjoy the nightlife of Albufeira, with music for all tastes until the wee hours of the morning.


Tasty treats

Be sure to sample the exotic cocktails and snacks served at the pool bar.

Keep the heart rate up!

There’s a well-equipped fitness room, perfect for keeping fit while on vacation!

3HB Golden Beach

Top rated
Albufeira, 4.6 km to Albufeira Train Station
8.6 Excellent (980 reviews)
Excellent Service 9.1 / 10
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One of the best hotels in the Algarve with half-board


How about a well-deserved rest with your family just a few steps from one of the best beaches in the Algarve? Revitalize your body and mind at Luzmar Villas, just 5 minutes from the beach and the centre of the village of Luz. Ask for a room with a sea view. The sun floods the rooms in the morning and, together with the sea, creates a breathtaking spectacle!


Fun activities nearby

Have fun on the equestrian and boat trips, visit the caves, watch dolphins and practice water sports in the vicinity.

Hotel Luzmar Villas

Top rated
Praia da Luz, 2.1 km to da Luz
8.8 Excellent (608 reviews)
Excellent Cleanliness 9 / 10
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Apartments in the Algarve ideal for family holidays or groups


Explore the historic fishing village of Ferragudo with a stay at Vitor’s Village, just a few minutes from the city of Portimão and the lively nightlife of Praia da Rocha. An ideal spot to recharge your batteries in total comfort, and at a very friendly price.

Spend your sunny days hopping between the three outdoor swimming pools catering to adults and children while being surrounded by palm trees. After a long day of relaxing, grab a seat at the on-site bar for fantastic views over the River Arade and the city of Portimão.


Beach accessibility

Free shuttle service to the nearest beaches;

Golf lovers, rejoice!

The Gramacho and Vale de Pinta courses are five minutes away by car.

Hotel Vitor's Village

Top rated
Ferragudo, 1.1 km to Grande
8.8 Excellent (2419 reviews)
Excellent Cleanliness 9 / 10
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Stay close to Praia do Alvor


Situated only 10-minutes from the beach and one kilometre from the village centre, the Pestana Alvor Park is a four-star hotel ideal for a quiet family holiday.

If the sea is at the top of your priority list know that Praia do Alvor has a Blue Flag and is considered one of the three best beaches in Europe. If you prefer to spend your evenings at the aparthotel, head to the games area where it will not be difficult to find an opponent for a game of bridge or chess.


Delicious dinner on-site

We recommend a visit to the aparthotel’s steakhouse, which offers the best steaks in the area.

Kid-friendly stay

There’s a swimming pool for children, kindergarten and babysitting service

Make time to really relax

Explore your zen side at the spa with hot tub, sauna and Turkish bath

Pestana Alvor Park

Top rated
Alvor, 4.1 km to Aeródromo Municipal de Portimao
8.9 Excellent (664 reviews)
Excellent Cleanliness 9.1 / 10
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A luxury stay in Carvoeiro


Situated just minutes from the best beaches and golf courses in Europe, Vale D’Oliveiras Quinta Resort And Spa is a five-star resort, perfect for family holidays in nature. To keep fit while on vacation, you can take a hike (or, perhaps, a bit of jogging) through lush greenery.

Do not miss out on yoga, aerobics and pilates classes at the health club. After you burn calories, try the deep-sea massage at the spa or relax with a swim in the pools.


Fun for the kids

Children will love the indoor and outdoor pools, as well as the Kids Club which has activity programs with games and movies.

Interested in a bit of golf?

The golf courses of Gramacho and Vale da Pinta are 500 meters away.

Vale d'Oliveiras Quinta Resort & Spa

Top rated
Carvoeiro, 3.2 km to Carvoeiro
9.2 Excellent (2008 reviews)
Excellent Cleanliness 9.2 / 10
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A stylish apartment complex in a prime area of ​​Vilamoura


Surrounded by some of Vilamoura’s most renowned golf courses and just five minutes from the Marina and the centre of Vilamoura, The Residences At Victoria Algarve is perfect for those who wish to combine the comforts of home with the services of a five-star hotel—without compromising on budget.

All apartments have a private terrace where you can enjoy panoramic views and inspiring sunsets. Whether you are a beginner or a lover of the sport, you can practice your swing at one of the three excellent golf courses within walking distance.


Splish Splash!

Three outdoor pools, one exclusively for children.

Access to the top spots

Free transport to the beaches and the Marina, to enjoy the sun and the nightlife of Vilamoura.

Hotel The Residences At Victoria Algarve

Top rated
Vilamoura, 4.3 km to Colombo
9.4 Excellent (1357 reviews)
Excellent Cleanliness 9.2 / 10
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Family hotel in Lagos near Porto de Mós beach


Less than 10 minutes from Porto de Mós Beach and 1.5-kilometres from the centre of Lagos, Solar de Mós is a small three-star hotel characterised by a welcoming atmosphere. The motto? Make yourself at home!

Start the day with a generous breakfast, take a relaxing walk or visit the historic centre of Lagos. In the evening, unwind in the pool or with a massage. Be sure to sample the delicacies of the hotel’s traditional restaurant—the stand-out dishes are the prawns with garlic and boiled lamb.


Perfect for those who love the water

There’s an outdoor swimming pool with solarium, surrounded by a palm garden.

Comfort and style

Rustic style rooms with private balcony.

Practice your putting

Boavista and Palmares golf courses are less than 6 km away.

Hotel Solar de Mós

Top rated
Lagos, 1.5 km to Avenida dos Descobrimentos
8.7 Excellent (435 reviews)
Excellent Cleanliness 9.3 / 10
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An oasis in Lagoa


If you like both being near the hustle and bustle and the quiet, the Lagoa Hotel is an ideal aparthotel for your Algarve holiday. Despite the central location, it is quite isolated and equipped with super-comfortable beds, allowing you to enjoy restful nights of sleep during your stay.

For moments of pure relaxation, unwind in the pool in the company of a cocktail prepared with fresh fruit. For a more economical holiday, you can cook in your own kitchenette.


Activities aplenty!

You have the opportunity to practice golf and cycling, visit several vineyards and take boat trips.

For a day at the beach

The famous Praia da Marinha is just a 15-minute drive away.

Lagoa Hotel

Top rated
8.8 Excellent (175 reviews)
Excellent Cleanliness 8.8 / 10
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A beach apartment in Albufeira ideal for couples


If your summer holidays are synonymous with beach and fun until dawn, the Aparthotel Paladim is the right choice for you. You will be perfectly located to all the top spots in the city—the historic area of the city, Avenida Sá Carneiros Albufeira, Aveiros Beach and just over 1-kilometre away is the lively Fisherman’s Beach.

In the evening, you are only 15 minutes away (on foot) from discovering the best the Algarve nightlife has to offer with countless bars, restaurants, pubs and nightclubs to choose from.


On-site fun

The bar has entertainment, live music and karaoke every night.

Kid-friendly hotel

The aparthotel has two children’s pools and free cots.

Aparthotel Paladim

Albufeira, 4.2 km to Albufeira Train Station
8.1 Very good (1442 reviews)
Excellent Location 8.6 / 10
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This story first featured in trivago Magazine PT