Faro doesn’t have a large hotel market - it’s a working city of 65,000 rather than a resort - but what it does have is well-placed and reasonably priced. Staying in or near the old town puts you within walking distance of the best of Faro. Every year, several million travellers fly through Faro International Airport and immediately pick up a hire car for the beach resorts further west. The ones who linger - even for a single night - find a walled medieval old town, a flamingo estuary, a bone chapel, and a marina with good fish restaurants at prices well below Lisbon or Porto.
Old Town and Marina Area
The Cidade Velha sits within Roman and Moorish walls that were rebuilt after the 1755 earthquake. It contains the cathedral (Sé Catedral), the Roman arch (Arco da Vila), and the municipal museum in a former convent. The marina runs along its southern edge. It’s the most atmospheric part of Faro and completely walkable.
Hotel Faro & Beach Club (Praça D. Francisco Gomes 2) - 4-star hotel with a rooftop pool and panoramic views over the Ria Formosa lagoon, positioned right on the marina. Faro’s best-placed upscale option. Rooms run approximately €100–200 depending on season. The rooftop bar is open to non-guests and is the best place in town for a sundowner with a view. Request a room with a lagoon-facing position.
Casa d’Alagoa / Casa de Cima Boutique Guesthouse - a restored building inside the old town walls with a handful of rooms, a small courtyard, and more character than anything else in Faro. Excellent for solo travellers and couples. Rates approximately €80–140. Books quickly in summer; reserve two to three months ahead for July and August.
Pousada Palácio de Estoi - technically 11km outside Faro near Estoi village, but worth including for its setting in a converted 18th-century baroque palace. From approximately €170–270 per night.
Pensão São Filipe - compact, well-kept guesthouse within the walls with basic but comfortable rooms. From approximately €45–75 per night.
Residencial Same - a clean, unpretentious guesthouse near the train station, popular with travellers in transit between Lisbon and the western Algarve. From approximately €50–85 per night as of 2026.
Both the Hotel Faro and old-town guesthouses are walkable to the marina boat-tour kiosks, the bone chapel, and the train station for day trips to Tavira, Olhão, and the eastern Algarve.
New Town (Baixa / Rua de Santo António)
The pedestrianised shopping street of Rua de Santo António runs north from the old town walls through the modern commercial centre. This area has the highest density of restaurants, bars, and accommodation options at every price point.
Hotel Sol Algarve - reliable mid-range option near the pedestrianised shopping streets, clean and functional without particular character but at a fair price. From approximately €60–100 per night as of 2026.
Hotel Téâtro - converted cinema building on Rua de Santo António, stylish design interiors, rooftop terrace. From approximately €100–160 per night.
Hotel Eva - long-established four-star on Avenida da República overlooking the harbour. Functional, well-positioned, and reliably priced. From approximately €90–150 per night.
Residencial Madalena / Residencial Dandy (Rua Filipe Alistão 62) - straightforward guesthouses in central Faro. Basic rooms, good location. Rates approximately €45–85. The kind of place that has been there for decades and works quietly.
Hostel Faro - well-reviewed hostel on Rua da Madalena near the station. Dorm beds from approximately €18–35 per night; private rooms available.
Near the Airport
Faro Airport has limited accommodation immediately around it - most of what exists caters to flight crews. If your flight is very early or very late, the town centre is still a better choice given the short transfer time.
Radisson Blu Hotel, Faro (Rua Vasco da Gama) - near the airport and the main retail district, about 2km from the old town. Pool, a practical plus in summer. Rates €90–150. The better choice if you have a very early departure or late arrival.
Holiday Inn Algarve - the closest full-service hotel to the airport, about 1.5km away on the EN125 road. Pool, restaurant, reliable chain-standard. From approximately €80–140 per night.
The airport area also has a cluster of chain hotels (Ibis, Holiday Inn) that serve transit passengers - functional, none are interesting.
Budget
Pousada de Juventude de Faro (HI-affiliated hostel) - about 1km from the old town. Dorms from approximately €20; private rooms available. Clean and managed to a consistent standard.
Residencial Dandy - see new town section above; the best budget option in central Faro.
Getting to Faro
From Faro Airport: Taxi or Uber approximately €10–15 to the town centre (10–15 minutes). Bus routes 14/16 run to the bus station for approximately €2.40 (around 20–30 minutes). Car hire desks are at arrivals.
From Lisbon by train: Alfa Pendular trains from Lisbon Oriente take approximately 2 hours 45 minutes. Tickets from approximately €25–45 depending on class and advance booking as of 2026.
From Lagos or the western Algarve: Regular regional trains from Lagos to Faro take approximately 1 hour 10 minutes. Cost approximately €5–8 as of 2026.
From Porto: Via Lisbon. Total journey approximately 5 hours. Intercidades services connect the three cities.
For transfers from Faro Airport directly to your hotel, pre-booked airport transfers offer fixed pricing. Travel insurance is particularly useful if you’re flying into Faro for a multi-city trip - cancellation coverage gives flexibility if connections change. For Ria Formosa boat tours and old town walking tours from Faro, GetYourGuide has options including guided kayak trips through the lagoon.
Praia de Faro (Faro Island)
Praia de Faro is on Ilha de Faro, the barrier island 7km southwest of the city - 15 minutes by ferry from the town pier, or 15 minutes by taxi using the connecting road. The beach is long, flat, and backed by a small village of beach houses. Accommodation here is limited but worth considering if your primary interest is beach rather than city.
- Residential apartments - several small apartment buildings near the beach offer nightly and weekly rentals. From approximately €70–130 per night for a one-bedroom as of 2026.
- Camping Faro - a well-equipped campsite near the beach with static caravans, bungalows, and tent pitches. From approximately €25 per night for a pitch.
Note: the village has limited restaurant options - most meals will require the ferry or taxi back to the city.
Day Trips from Faro
Faro’s rail and bus connections make it an excellent base for the eastern Algarve:
- Tavira - 30 minutes east by train. One of the Algarve’s most beautiful towns, with a Roman bridge and barrier island beaches.
- Olhão - 10 minutes east by train. Main ferry hub for the Ria Formosa islands; excellent working-port seafood.
- Loulé - 15 minutes north by train. The Algarve’s most important interior market town.
- Silves - 45 minutes west by train. Medieval Moorish capital with a red sandstone castle.
- Lagos - 1 hour 40 minutes west by train. Western Algarve’s most attractive coastal town.
When Not to Use Faro as Your Base
If your main interests are the western Algarve - Lagos, Ponta da Piedade, Sagres, or the surf beaches around Aljezur - staying in Faro adds 1–1.5 hours of driving or bus travel each way. For a western-focused trip, base yourself in Lagos and make day trips east if needed.
Faro makes most sense as a base when you’re:
- Visiting the Ria Formosa, Tavira, or Olhão
- Arriving and departing via the airport with limited time elsewhere
- Specifically interested in the eastern Algarve’s quieter towns and beaches
For the package-resort Algarve experience, neither Faro nor the eastern towns are really the right fit - Albufeira and Vilamoura are built for that.
Which Area Is Right for You?
| Your priority | Best area |
|---|---|
| Atmosphere and history | Old Town (Cidade Velha) |
| Restaurants and convenience | Rua de Santo António / new town |
| Budget accommodation | Baixa / new town hostels |
| Early morning flight | Radisson Blu or Holiday Inn (short taxi) |
| Peace and rural setting | Pousada de Estoi |
Faro works particularly well as an opening or closing night on an Algarve itinerary - our 10-day Algarve itinerary covers the eastern and central coast. For eating options, see food in Faro and the Faro city guide.