Where to Stay in Lagos, Portugal: Best Areas and 8 Hotels

Golden cliffs, turquoise coves and an old town full of cobbled lanes: Lagos is the whole Algarve in miniature. If you can only pick one base in the region, we’d choose Lagos without a second thought.

We hiked the clifftops past the rock arches of the Ponta da Piedade, which might just be the finest stretch of coast in Portugal. And after a day outdoors, you’re only a few minutes from dinner at one of the little restaurants in the old town.

So where should you stay? Right in the centre, close to the beach, or out on a quinta in the hills? In this guide we cover the best areas and our favourite hotels, so you can decide where to stay in Lagos.

In This Blog:

Where to Stay in Lagos at a Glance

Where Is Lagos in the Algarve?

Is Lagos Worth Visiting?

Where to Stay in Lagos: The Best Areas

#1 The Old Town: Cobbled Lanes and Everything Within Walking Distance

#2 Praia de Dona Ana and Porto de Mós: Sleep by the Cliffs

#3 The Countryside Around Lagos: Peace, Space and Views

Where to Stay in Lagos at a Glance

Short on time? Here’s the quick version. Further down you’ll find more about each area and our favourite hotels.

Best for atmosphere and restaurants: the old town (our picks: Casa Margô and VI MAR Guest House)
Best for the beach: Praia de Dona Ana and Porto de Mós (our favourite: Lagos Atlantic Hotel)
Best for peace and space: the countryside around Lagos (our pick: Quinta da Alquimia)

Where Is Lagos in the Algarve?

Lagos sits in the western Algarve, about an hour’s drive from Faro Airport, where most international flights land. The A22 motorway has been toll-free since 2025, and there’s a direct train as well. Still, we’d recommend a rental car. Sagres is just 40 minutes away, and the fishing village of Ferragudo and the Seven Hanging Valleys Trail are a short drive too.

The old town itself is largely car-free. There are car parks a few minutes’ walk from the centre, but free spaces are getting harder to find. A hotel with its own parking saves you a lot of hassle.

→ Discover the 4 best hikes near Lagos
→ Discover the 10 best beaches in the Algarve

Ponta da Piedade near Lagos in the Algarve

Is Lagos Worth Visiting?

Absolutely. Lagos is one of the oldest towns in the Algarve, and the great voyages of discovery once set sail from its harbour. You can still see that history in the old town, a maze of cobbled lanes, whitewashed churches and little squares. Look up, too: since 2011 the town has invited international artists to paint its walls.

Beyond the old walls, beach life takes over. East of the harbour, Meia Praia is a wide sandy beach that runs all the way to Alvor. South of town you’ll find the golden cliffs, coves and rock arches the Algarve is famous for. They look best from the water, on a kayak tour to the Ponta da Piedade.

→ Discover the 10 best things to do in Lagos

Where to Stay in Lagos: The Best Areas

Roughly speaking, you’ve got three areas to choose from: the old town, the beaches south of the centre and the countryside in the hills. Which one suits you depends on what you’re after: restaurants around the corner, the beach on your doorstep or plenty of peace and quiet.

#1 The Old Town: Cobbled Lanes and Everything Within Walking Distance

We’d go for the old town ourselves. Step out of your hotel and you’re straight into the whitewashed houses, churches and street art, with the best restaurants and breakfast spots a few steps away. The marina and Meia Praia are within walking distance too.

The downside? In summer it stays busy until late, and you can barely get into the centre by car. So pick a hotel with its own parking, or be ready to wheel your suitcase for a bit.

#1 Casa Margô is an aparthotel 200 metres from the centre, with an outdoor pool, free bikes and apartments with a full kitchen, oven and dishwasher included. Handy if you’re travelling with kids and don’t fancy eating out every night. Casa Margô has no parking of its own, so you’ll leave the car in one of the car parks a few minutes’ walk away.

Travelling without kids? VI MAR Guest House is a small guesthouse in the same part of town, with free parking and a balcony or terrace in some of the rooms. It only takes adults, so it’s one for a child-free trip.

#2 Casa Luma is a small B&B a few minutes’ walk from the centre and less than a kilometre from Meia Praia. The owners welcome you personally, the rooms are clean-lined and light, and parking is free here as well.

#3 Indigo Guest House is right in the centre, with modern rooms in soft, light colours. There’s a shared kitchen, so you can cook for yourself too. Guests rave about the hospitality and the location.

#2 Praia de Dona Ana and Porto de Mós: Sleep by the Cliffs

Rather be on the sand within minutes? South of the old town lie Praia de Dona Ana and Porto de Mós, tucked between towering golden rocks. Dona Ana is one of the prettiest beaches in Lagos, and the Ponta da Piedade is only a short walk away.

It’s quieter here than in the centre, but you’re further from the restaurants. From Dona Ana it’s about a twenty-minute walk into the old town. From Porto de Mós, you’ll want the car.

#4 Lagos Atlantic Hotel is 500 metres from Porto de Mós beach, with an outdoor pool in the garden, family rooms and free parking. Guests especially love the spacious rooms, the generous breakfast buffet and the friendly staff.

#5 Dom Manuel I is an adults-only hotel 500 metres from Praia de Dona Ana, with a pool in a leafy garden, a sauna and rooms with a balcony and traditional Portuguese tiles. The breakfast gets glowing reviews.

#6 Carvi Beach Hotel sits right on Praia de Dona Ana. The highlight is the rooftop terrace, with a pool, a bar and a restaurant above the sea. From many of the rooms you look straight out over the ocean.

#7 Clube Porto de Mós is an apartment resort on the hillside just above Porto de Mós beach. The apartments come with a kitchenette and a balcony or terrace, and there’s a pool with sea views. A smart choice if you want the sand on your doorstep and the freedom to cook your own dinner.

#3 The Countryside Around Lagos: Peace, Space and Views

Looking for peace and quiet? A little inland, quintas and country houses sit among the hills and orchards. In the evening all you’ll hear are the crickets, and by day you’re only about fifteen minutes from the beaches and town. You’ll really need a car out here, though.

#8 Quinta da Alquimia sits among the hills near Sargaçal, about seven kilometres outside Lagos. You stay in an apartment with your own kitchen and terrace, and there’s an outdoor pool in the garden.

Written by Maartje

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