Cheap but good hotels & B&B’s in the Algarve

Affordable amazing hotels & apartments in the Algarve

To find a selection of cheap but also good quality hotels and apartments I scoured the Algarve for hidden gems. The main criteria were:

A room rate of around €70.00 per night in high season (July and August) at the time of writing ;
A private bedroom (so no hostels) and private bathroom;
A review score of at least 8.5 out of 10 on Booking.com;
At least 50 reviews from visitors;

The result is the following list of excellent budget hotels and apartments in the Algarve:

1. Casa Da Estela – Best cheap hotels Algarve

Casa Da Estela is a cute guesthouse located in the beautiful rural west of the Algarve, a few minutes drive from the west coast. Carrapateira is a wonderfully relaxed area in the Algarve where you don’t notice the hustle and bustle of the big cities.

If you want to cook for yourself, there is a shared kitchen available for you to use during your stay. The friendly owners will do everything to make you feel at home and with their Portuguese hospitality.

From the balcony of the Double Room you can enjoy the sunset while enjoying a drink.

2. Monte dos Avós – Best cheap hotels Algarve

Just outside the historic town Loule, about a 35-minute drive from Faro Airport, you will find the charming apartments of Monte dos Avós in the rural interior of the Algarve . This budget accommodation has an excellent reputation and even comes with a delicious daily breakfast.

Enjoy the rural surroundings and jump in the pool on a warm summer Algarve day. The interior of the buildings is authentic Portuguese, making a stay feel like a true escape from modern Netherlands.

3. Casa da Anita – Best cheap hotels Algarve

In the most southwestern part of not only Portugal, but all of Europe, you will find the small but nice apartments of Casa da Anita . Sagres is a wonderfully relaxing village that has four excellent beaches that are ideal for sun worshippers and surfers. The friendly owner may not speak much English, but her hospitality is clear even without words.

Both apartments have their own bathroom and are colorfully decorated. The beach and the ‘centre’ of this small village with a number of restaurants are just a few minutes walk away. Check out my tips for Sagres here.

4. Casa Luar – Best cheap hotels Algarve

In the most northwestern tip of the Algarve lies the village of Odeceixe. Here you will find Casa Luar , a guesthouse with some excellent budget options for adventurers looking to explore the west coast of the Algarve. Despite being a lower price point, you will still get a nice breakfast included with your stay!

From the apartment you can walk to the beach in about 20 minutes.

5. 20 da Vila – Best cheap hotels Algarve

In the middle of the Algarve region lies the 20 da Vila guesthouse in the village of Bartolomeu de Messines. Although time has stood still in this place, the rooms of this accommodation are beautifully modernly furnished. In the backyard is a cozy shared terrace with an outdoor kitchen where you can prepare meals if you feel like cooking yourself.

Near this village there is a large dam that you can visit, but if you prefer salt water the ocean is just a half hour drive away.

6. Abrigo das Nortadas – Best cheap hotels Algarve

A few minutes drive from the west coast, just outside the sleepy village of Vila do Bispo, lies this lovely guesthouse that is run with great care and attention. In the immediate vicinity you can take beautiful walks along the cliffs and through the dunes while on the beach you will encounter surfers and sunbathers.

The rooms look neat and tidy and the owners will make breakfast for you upon request, but you must let them know in advance.

Unique accommodations

Above are some excellent budget options for your stay in the Algarve and no matter which one you choose, you will have a fantastic time. But if you are looking for a different type of accommodation, there are more options! In addition to hotels, B&Bs and resorts, the Algarve also has some really nice glamping sites and other types of special accommodation such as teepees, houseboats or converted school buses!

⛺ Check out my selection of the most unique accommodations in the Algarve here.

More of our local tips for your Portugal adventure

⭐ Check out our favourite sights in the Algarve on this page
⛵ Check out this overview of all activities you can do in the Algarve
🚗 This is the best car rental company in the Algarve
📌 Discover the top towns and cities to visit in the Algarve here
🏖 These are our favourite beaches in the Algarve
🛎 Get inspired with our local tips for accommodations in the Algarve