8 stylish places to stay in the eastern Algarve, Portugal

Few countries do stylish, affordable places to stay better than Portugal. I’ve found myself spoilt for choice whenever I’ve travelled there, and my recent 10-day Portuguese road trip with a friend was no exception. We came across plenty of gems when researching and planning our itinerary, so I thought I’d share my top picks with you – starting with eight beautiful boutique hotels, B&Bs and holiday rentals in the eastern Algarve, where we began our journey.

Stretching from Faro to the Spanish border, the eastern Algarve encompasses wild countryside, pristine beaches, Moorish castles, postcard-pretty port towns such as Olhão and Tavira, and the protected lagoons and sandbanks of the Ria Formosa Natural Park. It’s much quieter and less touristy than the western half of the region, and there are some beautiful accommodation options for fans of minimalist design like me. Here are my favourites…

Casa Ceu

Set among Olhão’s tangle of cobbled streets, this small-scale boutique hotel is run by Lara and Dario, who relocated from Switzerland to Portugal in search of a calmer life. They’ve poured love and care into every corner of their restored townhouse, and the result is a beautiful blend of airy minimalism and rustic charm. The four double bedrooms have tiled floors, wooden shutters and rattan lampshades alongside crisp white walls and neutral linens, and there’s a rooftop terrace for lazy breakfasts, snacks and sunset drinks from the honesty bar. Lara and Dario can arrange everything from boat tours to bike hire to olive-oil tastings, and it’s adults-only so very quiet. Best of all, it’s brilliant value, with rates ranging from €125 to €195 per night depending on the room and the season.

Find out more about Casa Ceu and book here.

Pure Formosa Concept Hotel

Another great-value option in Olhão – and the one we chose, due to the availability of twin rooms and a parking garage – is Pure Formosa Concept Hotel. Opened in 2021, it sits in a purpose-built building on the edge of the old town and somehow manages to be all things to all people. Other guests during our stay included families, couples and groups of friends of all ages, and rates come in well under €150 per night for most of the year. The interiors combine contemporary minimalism with dashes of texture in the form of wicker furniture, woven wall hangings and collections of Portuguese plates, and the 67 rooms (some with balconies or space for an extra bed or baby cot) are simple, stylish and comfortable. Downstairs is a breakfast room and an inviting courtyard with sofas and plants, but the biggest draw is the roof terrace, where there’s a pool, a cocktail bar, curtained daybeds and sweeping views over the Ria Formosa park.

Book a stay at Pure Formosa Concept Hotel here [AD – affiliate link].

Casa Modesta

A short drive outside Olhão is Casa Modesta – a design-led guesthouse that’s been on my radar for a while now. Once home to the grandparents of the current owners, architect Vânia Brito Fernandes and her brother Carlos, it’s been transformed into a clean-lined modernist hideaway that offsets pristine white walls with tactile brick, cork and terracotta. There’s a long guest wing with nine minimalist bedrooms (all doubles) topped by private sea-view patios, plus an outdoor swimming pool, a barrel-vaulted lounge and a spa room for treatments and massages. Breakfast mixes local delicacies with infusions from the on-site garden, and there’s a kitchen centred around the original hearth where dinners and cooking workshops can be arranged. Rates start at €130 per night.

Make a booking at Casa Modesta here [AD – affiliate link].

Casa Brava

This eco-friendly B&B came highly recommended by several friends but was sadly fully booked during our trip. Located a short drive inland, near the historic market town of Loulé, it occupies an old stone farmhouse that’s been lovingly restored by owners Marc and Julie. It’s surrounded by cork, carob and olive groves, and the focus is slow living in close proximity to nature. Priced from €109 per night, the three guest suites sit in the former pigsty, donkey stable and cellar, and are furnished with a gently quirky mix of upcycled pieces and flea-market finds. All have private terraces and living areas, and two have kitchenettes plus scope for an extra bed or baby cot; you can also book two suites together. Breakfast is a vegan spread made with home-grown goodies from the vegetable garden, and you can relax on a lounger by the natural swimming pool, take to a hammock strung between the trees or sprawl out on a cushioned daybed on the rooftop.

See more of Casa Brava and book a stay here.

Flattered Apartments

Sitting side by side in a 16th-century convent that was converted into housing by renowned Portuguese architect Eduardo Souto de Moura, these two apartments make wonderful homes-from-home in beautiful Tavira. Inside, each has two bedrooms (one double, one twin), two bathrooms, and an open-plan living area with easy chairs, a sofabed, a dining table and a kitchen. Outside there are vine-shaded terraces with HAY furniture and views over the town’s salt flats and marshes. The design throughout is pared-back yet cosy, and guests also get access to two communal swimming pools – one in the old cloister, the other facing the water. Rates range from €170-260 per night, and there’s the option to order a breakfast hamper delivered to your door each morning.

Book a stay at Flattered Apartments here [AD – affiliate link].

Hospedaria

This little hotel sits in a former post office and grocery store, in a peaceful rural setting a few km from Tavira. Behind the original red doors and shop sign is a calm, light-filled haven created by Lisbon-based architecture firm Atelier RUA, who have skilfully blended exposed ceiling rafters and stripped wooden doors with modern picture windows and swathes of polished concrete. The various communal areas and five guests suites (€220-340 per night) are decorated with a mix of contemporary and vintage pieces, and there are intriguing details such as old medical charts, milk churns and salvaged handcarts. Outside is a small courtyard pool, as well as shaded terraces for alfresco breakfasts, lazy lunches and sundown drinks from the restored on-site tavern.

See more and make a booking at Hospedaria here [AD – affiliate link].

Companhia das Culturas

In the easternmost part of the Algarve, near the ancient whitewashed town of Castro Marim, lies this gorgeous agriturismo. Owned by writer Francisco Palma-Dias and anthropologist Eglantina Monteiro, it sits on 40 hectares of orchards, cork forests and olive groves that Francisco’s family has worked for seven generations. Dotted around the farm’s old barns are six bedrooms and four apartments sleeping two-six (from €120 per night), all with rustic-minimalist decor, gnarled beams and quirky features such as an olive press as a washstand. Meals are feasts of local, sustainable produce, including eggs from the resident hens and vegetables grown in the kitchen garden, and there’s an outdoor pool flanked by a jumble of hidden patios. But the star attraction is perhaps the hammam, set under a soaring dome with a menu of scrubs and massages using essential oils made on site.

Book a stay at Companhia das Culturas here [AD – affiliate link].

The Addresses

This collection of minimalist holiday rentals is the brainchild of two friends, wine connoisseur Bert and art director Ludovic, who wanted to create private havens where guests can experience good design, local traditions and total relaxation. There are four different properties dotted around the eastern Algarve: modernist Casa Um, set on a former sheep farm near Tavira and sleeping up to eight people; Casa Dois, a converted fish warehouse in Olhão with space for four; Casa Três, a former merchant’s house sleeping up to six, located in Vila Real de Santo António near the Spanish border; and Casa Quatro, a rambling abode for eight in the peaceful inland town of São Brás de Alportel. All were renovated by Atelier RUA and Belgian design practice Studio Stories, and have stunning interiors, beautiful patios and their own outdoor pools. Rates start at €1,200 per house per week, and there’s a concierge service to arrange shopping, meals and local activities.

See more of the houses and make a booking here.

I’ve also put together a round-up of stylish places to stay in the next destination on our road trip, the Alentejo region. And you can browse my top accommodation picks in Porto and Lisbon.

Please note this post contains affiliate links (all clearly marked), which means I will receive a small commission on any resulting bookings. You won’t pay any more by clicking on these links than you would by visiting the websites directly, and it helps to support the free content I create here.

Pure Formosa Concept Hotel images one, two, three, seven and 10 by Abi Dare; all other photography courtesy of the respective hotels and rentals. The top image shows Casa Três (part of The Addresses).