3 Best Hotels in Cascais and Boca do Inferno, Sintra, the Estoril Coast, and the Setúbal Peninsula

On a rocky outcrop above the crashing waves, this gorgeous hotel was once the summer residence of the dukes of Loulé. Although expanded and modernized, its character has been retained, particularly in the handsome corridors and cozy terrace bar. Guest rooms combine an old-world elegance (carefully chosen vintage prints) with comfort (incredible beds). There's a small pool surrounded by loungers, and direct access to a small beach below. The acclaimed Albatroz restaurant serves superb fish dishes. A terrace restaurant-bar with gorgeous bay views serves more informal meals.

Housed in a beautifully restored 17th-century fort, the Pousada Cidadela Cascais is a real treat for lovers of art, architecture, literature, and history. The whitewashed building sits within its own artsy "neighborhood"—the Pestana Cidadela Art District—which comprises galleries, studios, reading rooms, bookstores, restaurants, and open-air art installations. The hotel itself is a work of art, with individually styled rooms showcasing colorful contemporary pieces against a cool neutral backdrop. The whole complex feels crisp, clean, and contemporary.

Perfectly integrated into the landscape, this luxurious hotel is built in steps up the side of the hill above the sea. Each floor has different designer furnishings and a different color scheme in which reds, oranges, and yellows predominate. View sailboats on the bay from one of the many panoramic windows or from your own balcony. There's an outdoor infinity pool, as well as an indoor "water lounge" with several pools, a sauna circuit, bio-thermic showers, and other treats.