2 Best Hotels in Lagos, The Algarve

Tucked into the historic Old Town, this spot is a smaller-size hotel option with just five rooms—making it a more personal, boutique stay made even more sweet by the lovely host-owners Isabel and Marek. Right on Praça do Infante and just steps away from Praia da Batata, it offers sweeping ocean views as well as of the lively square—even better from the rooftop. Rooms are simple but pleasant, with cool, calming colors used throughout. A kitchen is available to use for breakfast.

On the eastern edge of the old town, this centrally located hotel has an unusual but charming layout strung across several levels with gardens, lounges, and patios. Guest rooms are large and elegantly appointed, with blue-and-white cushions reminiscent of traditional Portuguese tiles. A shuttle bus takes you to the beach, where the hotel has good water sports facilities.