The best places to stay in Lagos, Portugal – Hotels for every budget

Lagos, The Algarve; a quaint, Portuguese town surrounded by some of the country’s best beaches. Located to the west of the Algarve region, this historic region has long been a summer hotspot for those that want some sun, good nightlife and plenty of things to do. We’ve personally been to Lagos, Portugal many times and consider it a home-from-home.

Are you thinking of visiting and staying in this colourful coastal town? In this guide, we’ll share the best places to stay in Lagos, Portugal. We’ll detail all the area options in and outside of town, hotel options for every budget, and plenty of travel tips. We’ve personally stayed in most of the hotels on our list and they all have excellent 4.5+ Tripadvisor reviews.

Plan your trip to Lagos Algarve with us and be sure to post a comment if you have a question.

The best areas to stay in Lagos, Algarve

Lagos Old Town

Lagos Old Town is the historic centre of the Lagos area. Unlike some of the other tourist towns along the Algarve coast, Lagos has a rich cultural identify, and whilst full of tourists in the summer months, it retains a local atmosphere and has a lot of character. The mix of tourists and locals is a breath of fresh air compared to the ‘tourist’ focused towns of the central Algarve.

Narrow, cobbled streets, vibrant squares, old churches and white-washed buildings all give Lagos Old Town its character. It boasts several museums, a fortress, castle fortifications and some unique street art. It also has an excellent selection of bars, shops and restaurants. Choosing to stay in Lagos Old Town, you have everything you need on your doorstep and can walk everywhere, from the beaches to the marina.

There aren’t any large resorts in town. Accommodation here is made up of small, boutique hotels, budget friendly apartments and guesthouses. It suits those that want to be within walking distance of the many sites, bars and restaurants, spending the majority of their time outside the hotel.

Top reasons to stay near Lagos Old Town

• The most central place to stay in Lagos, Algarve. Many attractions, bars, shops and restaurants are within walking distances. You’re also a short walk from some excellent beaches.
• The town centre is excellent for those that want an upbeat holiday atmosphere with lots going on. It’s the main nightlife area of Lagos.
• Hotels near the old town can be quite affordable.

Reasons you may not want to stay here

• Lagos Old Town lacks luxury resorts with lots of facilities. Most 4 and 5-star hotels with large swimming pools are located outside of town.
• It lacks a traditional beach holiday atmosphere – other areas are better for beach lovers.

The best Lagos town hotels

Dom Manuel Hotel (Moderately priced)

View on Booking.com  |  Tripadvisor rating 4.5/5

A charming, boutique hotel that’s perfect for couples. Rooms are quaint with a traditional Portuguese style. The gardens of the hotel are well maintained, showcasing a small swimming pool and cosy lounge areas.

Casa Mae (Moderately priced)

View Website  |  Tripadvisor rating 4.5/5

Casa Mae is one of the most exclusive, luxurious hotels in Lagos Old Town. Rated 5-star, it features bright and welcoming suites, a spacious patio area, a rooftop swimming pool and top-rated restaurant.

Villas D. Dinis (Budget friendly)

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Villas D. Dinis is a traditional Portuguese villa that has been transformed into a boutique hotel. It features bold, colourful décor, an intimate relaxation area with a swimming pool and several room types.

Sollagos Apartamentos Turisticos (Budget friendly)

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This welcoming, family-run apartment block is a great place to stay near Lagos Old Town for those that want a budget-friendly accommodation with a swimming pool. Apartments and studios have cooking facilities. Whilst rooms are basic, they offer a bright, Portuguese design and are well maintained.

Lagos Marina

Lagos Marina is one of the most picturesque places to stay in Lagos. Rows of high-end yachts and sailing boats glisten in the sun, and tourists line up to take a boat cruise to the nearby caves and beaches. The marina has undergone massive development over the years and is now home to several luxurious apartment blocks and hotels. It also has a good selection of bars, restaurants and a few shops.

Lagos Marina is a great area to stay in Lagos for those that want to be within walking distance of Lagos’ many bars, restaurants and the nightlife scene of the centre. You can walk to the Old Town and a handful of Lagos beaches in only 20 minutes.

Top reasons to stay near Lagos Marina

• The marina area is beautifully picturesque and has a laid-back atmosphere. You have a relaxing environment for your holiday and are only a 10-minute walk from Lagos town centre.
• Well located for the long, sandy beach, Meia Praia.
• Lagos Marina has an excellent promenade of bars and restaurants. It’s ideal for long morning or sunset walks.

Reasons you may not want to stay here

• Accommodation options are limited in the Lagos Marina area.
• Hotels tend to be more expensive than other, less central areas of Lagos.

The best Lagos marina hotels

Lagos Avenida Hotel (Luxury)

View on Booking.com  |  Tripadvisor rating 4.5/5

Lagos Avenida is a stylish, boutique hotel with a nice view of Lagos Marina. Rooms are modern and chic, and it boasts a rooftop relaxation area with an infinity pool. It’s one of the most centrally located Lagos hotels on our list.

Hotel Marina Rio (Moderately priced)

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Right next door to Lagos Avenida is Hotel Marina Rio. As its name suggests, it overlooks the rows of boats in Lagos Marina and has balcony rooms with the same scenic view. It also has a rooftop swimming pool. For its location and quality, Hotel Marina Rio provides excellent value for money.

Marina Club Apartments II (Budget-friendly)

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If you’re looking for an affordable self-catering apartment complex in the heart of the Lagos Marina area, Marina Club Apartments II is perfect. It has direct access to the marina promenade and its many restaurants and bars. It features a large swimming pool area and spacious accommodation.

Meia Praia

Lagos has many beaches, but Meia Praia is considered one of the best for relaxation. It’s one of the area’s longest sandy beaches and is located a short walk from the marina. As the beach is so long, it feels a lot quieter than beaches on the other side of town. Aside from the beach, there isn’t a lot to see in the Meia Praia area. It’s an area of Lagos that’s home to some of the town’s most secluded and luxurious hotels.

Meia Praia is one of the best places to stay in Lagos for those that want the comfort and facilities of a beach resort. Hotels here are within a short walk of the sandy shores, and if you stay in the Iberostar Selection, you have the option of half board or all-inclusive dining. The area is secluded, peaceful and relaxing, but you’re only a short taxi or bus ride from Lagos town.

Top reasons to stay near Meia Praia

• This area has some of the best luxury hotels in Lagos. It’s a great area for those that want a half board or all-inclusive option.
• Easy access to one of Lagos’ best beaches, Meia Praia. It has far fewer crowds than other beaches.
• A secluded area just outside of town. You can reach Lagos marina and town by car in 5-mins.

Reasons you may not want to stay here

• There are very few restaurants, bars and shops in this area. You’re limited to eating in the hotel or travelling into town.
• The area mostly caters to large 4 and 5-star resorts. It lacks budget-friendly accommodation options.

The best Meia Praia hotels

Iberostar Selection Lagos (Luxury)

View on Booking.com  |  Tripadvisor rating 4.5/5

A top-rated resort from the popular Iberostar brand. This 5-star hotel has a modern, luxurious design, high quality furnishings and plenty of facilities. It’s a great option for those that want a half-board or all-inclusive hotel.

Palmares Beach House Hotel – Adults Only (Luxury)

View on Booking.com  |  Tripadvisor rating 5/5

Palmares Beach House is a tranquil escape for couples. Situated on a golf course and with beautiful views of the coastline, it’s ideal for those that want a relaxing holiday away from the busy centre. Hotel facilities and dining options are excellent, and it boasts some excellent reviews.

Vila Palmeira Beach Resort (Moderately priced)

View on Booking.com |  Tripadvisor rating 5/5

Vila Palmeira Beach Resort is a complex of well-appointed apartments in a quiet residential area. It’s perfect for those that want a reasonably priced self-catering holiday a short walk from the beach.

West Lagos beaches – Praia do Canavial, Praia do Camilo and Praia de Porto Mos

We’ve already mentioned one Lagos beach on our list, Meia Praia. Lagos’ other beaches, Praia do Canavial, Praia do Camilo and Praia de Porto Mos are scattered along the coastline, west of Lagos Town. Rugged, dramatic coastline, pristine golden sand beaches and crashing waves all set the scene for some of the Algarve’s most beautiful scenery. In fact, this area is noted for having some of the best beaches in Europe!

The west Lagos beach area is perfect for those that want a traditional beach holiday with lots of hotel facilities. Hotels here generally have larger swimming pools than accommodation options in town and you have some great beaches and coastal walks on your doorstep. Depending on the hotel you choose, you may be able to walk into town. Otherwise, you can reach Lagos Old Town in 10-minutes or less by car.

Top reasons to stay near the west Lagos beaches

• The perfect location for beach lovers. Hotels along the west Lagos coast are located near some of the Algarve’s most amazing beaches.
• Hotels here can be good value for money. It has hotel options for all budgets and your budget will stretch further.
• A great location for those that like quieter, residential areas, nature and scenic walks.

Reasons you may not want to stay here

• You’ll need to hire a car or use taxis to reach Lagos town centre.
• Aside from the beaches and beautiful coastline, there aren’t many attractions, bars and restaurants in this area.

The best hotels near Lagos’ west beaches

Cascade Wellness Resort (Luxury)

View on Booking.com  |  Tripadvisor rating 4.5/5

Cascade Wellness Resort is one of Lagos’ most luxurious hotels. Situated right on the edge of a cliffside, it provides stunning scenery and coastal walks. It also features multiple bars and restaurants, a spa, two large swimming pools and plenty of leisure facilities. Cascade has both hotel room and self-catering apartment options.

Belmar Spa & Beach Resort (Moderately priced)

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Belmar Spa & Beach Resort overlooks the beautiful Porto Mos Beach. Its secluded location gives you excellent value for money and the hotel is equipped with some excellent swimming and leisure facilities. Choose from hotel room or self-catering apartment accommodation.

Canavial I & II Apartments (Budget friendly)

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Basic, budget friendly apartments in a quiet residential neighbourhood. They’re within walking distance of an excellent beach and provide everything you need to a budget beach holiday.

Suburbs of Lagos

The last place to stay in Lagos recommendation on our list is an honourable mention for one of our favourite Lagos hotels. Many of Lagos’ hotels and apartments are in and around the main town or scattered around the beaches. However, you’ll find some excellent hotels on the outskirts of town, too. Fazenda Viegas and Boa Visa Golf Resort & Spa and two of Lagos’ top-rated resorts. Both accommodation options are roughly a 10-minute drive from town, located in residential areas of the town. Therefore, we recommend hiring a car if staying here.

Both hotels have the benefit of being in quiet, peaceful areas, away from the hustle and bustle of the Lagos tourist centre. They’re ideal for longer stays, and the Boavista Golf Resort in particular suits those on a self-catering holiday. It’s excellent value for money compared to more central hotels and you have access to a popular golf course.

Top reasons to stay in the Lagos suburbs

• Hotels outside of town provide excellent value for money. You’ll get a larger space and more facilities for your budget.
• A quiet, more local experience away from the busy tourist centre. The Boavista Resort in particular is perfect for longer stays.

Reasons you may not want to stay here

• You’ll need to hire a car or use taxis when staying in this area.
• Restaurant options are very limited. You’ll need to eat in your hotel, self-cater or drive into town for dining.

The best places to stay in the Lagos suburbs

Boavista Golf Resort & Spa – Bela Colina Village (Moderately priced)

View on Booking.com  |  Tripadvisor rating 4.5/5

Part of the exclusive Boavista Golf Resort residential neighbourhood, the Boa Visa Bela Colina Village is a series of two-floor townhouses. Houses have multiple bedrooms, a well-equipped kitchen and a huge living space, making them perfect for families, groups, or couples that like having a lot of space. The resort also benefits from two swimming pools, a spa and leisure centre, and a golf course.

Fazenda Viegas (Moderately priced)

View on Booking.com  |  Tripadvisor rating 4.5/5

Fazenda Viegas isn’t a hotel. It’s a private villa compound with several rooms, a tennis court and a private swimming pool. It’s a great place to stay in Lagos for large families, or groups of couples sharing accommodation.

Thanks for reading our guide on where to stay in Lagos, Portugal. We hope we inspired you with some excellent area, hotel and apartment options and you can now book a place that catches your eye. Prices vary massively depending on the season you visit. Therefore, we recommend booking well in advance, especially if travelling during the busier summer months of June to September.

If you have any questions about any of the hotels we’ve featured, or Lagos in general, be sure to post a comment below.