Where to Stay in Faro: The Best Hotel Experience in the Algarve

Faro is often overlooked as just a gateway to the Algarve, but those who linger discover a city rich in Moorish history, vibrant lagoons, and forest park hotel sophisticated hospitality. Choosing the right stay in 2026 means balancing the charm of the walled Cidade Velha with the modern luxury of the Marina. Whether you are seeking a palace retreat or a chic urban rooftop, here is where to find the best hotel experience in Faro.

---

1. The Luxury Standard: 3HB Faro

For the ultimate upscale experience in the heart of the city, 3HB Faro remains the undisputed crown jewel. As the first 5-star hotel in central Faro, it masterfully blends a renovated historic building with sleek, contemporary architecture.

• The Highlight: The infinity pool on the rooftop offers a panoramic view of the Ria Formosa that is particularly breathtaking at sunset.
• Why Stay Here: It’s perfect for travelers who want metropolitan luxury without sacrificing walking access to the city’s best seafood spots and boutiques.

2. The Historic Romance: Pousada Palácio de Estoi

Located just ten minutes outside the city center in the village of Estoi, this Small Luxury Hotel of the World is a destination in itself. Housed in a stunning 19th-century Rococo palace, the hotel features lush Versailles-style gardens and original tea rooms adorned with frescoes.

• The Highlight: Waking up in a palace where the pink facade meets the deep blue of the Algarve sky.
• Why Stay Here: It is the premier choice for couples seeking a romantic, quiet escape with a touch of royal grandeur.

3. The Waterfront Classic: AP Eva Senses

If your dream vacation involves watching yachts drift in and out of the harbor, AP Eva Senses is the iconic choice. Situated directly on the Faro Marina, this hotel provides a more traditional resort feel within an urban setting.

• The Highlight: The “Senses” spa and the rooftop bar, which hosts some of the city’s most popular evening social events.
• Why Stay Here: Excellent for families and business travelers who value proximity to the ferry terminals (for beach trips) and the train station.

4. The Boutique Gem: Roots Hotel

For those who prefer a “home away from home” vibe without losing hotel perks, Roots Hotel offers high-design apartment-style living. It’s trendy, sustainable, and perfectly situated for exploring the hidden alleys of the city.

• The Highlight: Fully equipped kitchenettes and spacious layouts that are ideal for longer stays or remote work.

---

Choosing Your Neighborhood

• Marina de Faro: Best for first-timers and easy access to boat tours.
• Cidade Velha (Old Town): Best for history buffs wanting a quiet, cobblestoned atmosphere.
• Praia de Faro: Best for those who want to step directly onto the sand.

Would you like me to help you draft a 3-day itinerary for your stay in Faro?