Where to Stay in Portugal – 8 AMAZING Place (by a Local!)
Portugal is an incredible country with so much to explore! From historic cities to beautiful beaches and vineyards, it’s a destination for every traveler. First things first—deciding where to stay is key.
As someone who lives here and has visited all of these spots, I can assure you every recommendation is worth it. Portugal has a special charm, and it’s perfect for your next trip!
My top choice is Lisbon (this is where I live hehe), it is the capital, it is packed with history, cultural events, and amazing food!
Read this post to learn about the best areas and cities, but also to find a nice place to stay for all budgets, from luxury hotels to cozy guesthouses and affordable hostels. Book early, especially for summer, as places fill up quickly!
Quick Picks for Your Stay
If you want to book now, here are the top hotels for staying in Portugal’s capital, Lisbon:
Here’s a map of the 8 best towns to stay in Portugal that I’ll be talking about in this post:
1. Lisbon – where to stay in Portugal for the first time
If it’s your first time in the country, there’s no better place to stay in Portugal than its vibrant capital city. Located on the edge of the Atlantic Ocean, Lisbon has a lot of urban art, countless museums, world-class nightlife, historic buildings, shopping options, and panoramic viewpoints.
Lisbon is the city I am lucky to call home! Among the things that I love about this city are the Miradouro Graça Viewpoint, the Alfama district (attend a Fado show and drink the Ginjinha liqueur there!), or the Bairro Alto to dance the night away.
While in Lisbon, I highly recommend going for a ride on Tram 28, a historic tram that takes a very scenic route and allows you to see many of the city’s attractions – this is one of the top things to do in Lisbon. If you are tired from climbing uphill roads all the time, take a tuk-tuk tour – a nice shortcut to see all the sights without breaking a sweat!
This is also THE place to try the delicious local cuisine. From the sweet pastry pastel de nata to the typical Bacalhau (codfish) prepared in a variety of ways, Portuguese food won’t disappoint. You can hit one of the many restaurants serving traditional cuisine, or you can get your food from the stalls of the Time Out Market.
And if you love walking, this is definitely the place for you. Lisbon is built on seven hills, so even if everything is relatively close, you will walk kilometers up and down! And if you’re by any chance done exploring the city, you can always go on a day trip – Belem or Cascais are great destination for a day trip from Lisbon, By the way, Cascais is a popular place to stay by itself since it is located on the beach.
Luxury hotel
Located just a few minutes from Lisbon’s main attractions, this 5-star hotel offers multiple pools and a great rooftop terrace from which you can enjoy panoramic views of Lisbon’s city center and the Tagus River. In this luxury property, you’ll also have access to facilities such as a shared lounge, a gourmet restaurant, and an on-site spa and wellness center.
Other accommodation options in Lisbon
Mid-Range
This fantastic hotel has everything you need: rooms with air conditioning, free Wi-Fi, and access to an in-house restaurant
Budget
This guest house provides affordable accommodation, access to shared bathrooms, a communal kitchen, and free Wi-Fi
Airbnb
Have a tranquil getaway in this stylish house with antique furniture, wooden furnishings, and parquet floors, plus a dining area
Things to do in Lisbon
- Visit the historic Belém Tower
- Enjoy the best city views from the Miradouro Graça Viewpoint
- Admire the architecture of Jerónimos Monastery
- Attend a traditional Fado show at Café Luso in the Alfama district
- Dance the night away in the many clubs of Bairro Alto
- Go for a ride on Tram 28 and enjoy the scenic route
- Take a private tuk-tuk tour of the city
- Try delicious Portuguese dishes at the Time Out Market
2. Porto – where to stay in Portugal for the best wine
Located on Portugal’s Northwest coast and a 3-hour drive North of Lisbon, the ancient city of Porto is perfect for a tranquil city break. Offering almost as many attractions as Lisbon but within walking distance of each other and a more laid-back vibe, Porto is also the best area to stay in Portugal for wine lovers.
Needless to say, this is where the delicious port wine (solid red sweet wine) was invented, so you cannot leave the city without trying it! Check out the Caves Cálem, where you can do tastings in their port wine cellars and learn about their ancestral traditions.
I visited Porto several times, and other than its traditional wine, there are plenty of other attractions and activities. Get ready for beautiful and ancient buildings like the iconic Livraria Lello bookshop (needs ticket purchase now!) or the neoclassical Bolsa Palace.
But honestly, just strolling around the historic center itself is one of the best things you can do in Porto. I suggest you walk by the tranquil waters of the Douro River, reflecting the lights at night, and the historical district of Riberia with its winding streets and neoclassical buildings!
Another must-do in Porto is a river cruise! Many providers offer cruises on the Duoro River, but I particularly like this one – you’ll see the 6 impressive bridges, have some delicious drinks, and you can even request to go at sunset!
If you’re a wine lover, you should also consider one of the best wine tours in the Duoro Valley. The Duoro Valley is a little over an hour’s drive from Porto, so I suggest you rent a car, drive to the vineyards, and spend the day sampling delicious wine – just make sure there’s a designated driver!
While you’re in the region, you’ll have an opportunity to explore more of the North of Portugal – this is a very beautiful part of the country – it’s surrounded by mountains and offers plenty of hiking opportunities (also, the only place you can actually see snow in Portugal!). Plus, there are fewer tourist crowds, so you can explore at a more relaxing pace, and it’s more affordable than many other tourist spots across the country.
Luxury hotel
Located in Porto’s old town, only a 10-minute walk from the Douro riverside, this award-winning 5-star hotel has everything you need for a luxury holiday! Here, you can chill in the outdoor pool, keep yourself in shape at the fitness center, or enjoy panoramic views over the city from the rooftop terrace.
Other accommodation options in Porto
Mid-Range
This great hotel offers a restaurant, an outdoor swimming pool, a fitness center, and a bar
Budget
Check out this budget hotel in Porto, featuring spacious rooms with access to a terrace, free Wi-Fi, and free parking
Airbnb
Feel at home in this cozy studio, fully equipped with a living/eating area and a kitchen
Things to do in Porto
- Taste some wine and learn about wine-making traditions at the Caves Cálem
- Do some book shopping at the iconic Livraria Lello
- See the neoclassical Bolsa Palace
- Go on a boat cruise along the Duoro River
- Visit the Porto Cathedral
- Join a food-and-wine walking tour of the city
- Admire the exhibitions at the World of Discoveries museum
- Stroll along the Duoro River and roam around the historic Riberia district
- Drive out to the Duoro Valley and sample some delicious wines
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3. The Algarve Coast – where to stay for a beach vacation
The Algarve Coast is one of the best vacation spots in Portugal, recognizable for its epic scenery and sandy beaches! Situated less than a 3-hour drive South of Lisbon, this is the 2nd most popular place to visit in Portugal! No surprise there, Algarve is amazing and there are quite a lot of places to choose from in itself (read my post here to decide on where to go exactly).
But if you’re there for a longer period (say, a week or more), I recommend exploring a couple of places on the coast!
Here is a quick breakdown and a map to visualize the place below:
- Lagos – for families
- Faro – for history
- Albufeira – for nightlife
- Portimao – for local atmosphere
- Sagres – for surfing
So, here are the top spots to visit on the Algarve Coast:
Luxury hotel
As one of the best Portugal resorts, this property features 2 on-site restaurants, 2 swimming pools, a spa and wellness center offering a variety of services, and an outdoor fireplace. Other perks of staying here include room service and a 24-hour front desk.
Other accommodation options in Lagos
Mid-Range
This 4-star hotel offers great value for money, featuring a swimming pool, a garden, and a bar on site
Budget
Offering rooms with a balcony and a courtyard view, this guest house also provides free parking and Wi-Fi
Airbnb
This charming little house is located on a tranquil street near the best restaurants and has a large balcony
Things to do on the Algarve Coast
- Explore the region’s capital, Faro, and the Parque Natural da Ria Formosa
- Visit Albufeira and spend the day at Praia da Falésia
- Embark on a guided tour of the Benagil Caves and do some dolphin-watching
- Take a boat tour to Ponta de Piedade from Lagos
- Go for a swim at Praia do Camilo and explore Old Town Lagos
- Admire the Algar Seco rocks in Carvoeiro
- Walk around the town of Sagres and visit the Sagres Fortress
- See the dinosaur footprints on Salema Beach
4. Madeira – for a tranquil getaway in nature
Madeira is a beautiful island in the middle of the Atlantic Ocean, near the coast of Morocco. You will need to fly from mainland Portugal (2h flight from Lisbon), but the flights are usually very affordable.
Being the biggest island in the Madeira Archipelago, this lively island offers a lot of biodiversity, dramatic cliffs, forests, and a rocky coastline… If you want to connect with nature, this is one of the best Portugal vacation spots!
I visited Madeira a couple of years ago and I will definitely come back again and again! I stayed in Funchal and I was really happy with my choice – all the tours depart from there, so you can easily explore more of the island.
The best places to stay in Madeira are:
- Funchal – for exploring the entire island
- Calheta – for the best beaches
- Santa Cruz – for families
- Porto Moniz – for hiking
For more ideas on where to stay in Madeira, check out our detailed post!
There are countless things to do and tours in Madeira, but some of my favorites were hiking from Pico Arieiro to Pico Ruivo (see trail map) – the hike is a bit difficult, but the view is definitely worth it – and swimming with the dolphins!
I am not kidding when I say swimming with the wild dolphins was one of the main highlights of my LIFE!
There’s something magical about being in the water with these amazing creatures, and it’s so much more special than seeing them in a dolphinarium. Tours are led (this is the one I took) by experienced guides who ensure the experience is safe for both you and the dolphins. You’ll head out on a boat to the open ocean, and once the dolphins are spotted, you can gently enter the water with your snorkel gear (tied to the boat).
Thanks to the beautiful weather of the island, Madeira grows unique (and weird) fruits that you won’t find anywhere else in the world, like passion fruit with a tomato taste, banana passion fruit etc.
Don’t miss the chance to try them at the Mercado do Lavradores (map) in Funchal. I tried various weird fruits, and I actually liked them!
During my Madeira holiday, I didn’t have a car, but I still managed to explore the island, and I feel like it was the right thing to do. Renting a car, is a good idea I think, but keep in mind that the island roads have many twists and turns, so if you’re not an experienced driver it’s best to steer clear of driving!
Luxury hotel
Savoy Palace – Savoy Signature
This is one of the best hotels in Madeira if you’re looking for luxury. It is located in a wonderful spot in Funchal, where you’ll have incredible sea views! Staying here means having access to a restaurant and bar, a huge infinity pool, a fitness center, and evening entertainment every night.
Other accommodation options in Madeira
Budget
If you want to save money, check out this hotel in the north of Madeira, which provides delicious complimentary breakfast
Airbnb
This house with open sea views is perfect for a relaxing holiday, featuring 3 bedrooms and a private pool
Things to do in Madeira
- Try all the exotic and weird fruits at Mercado do Lavradores
- Go on a guided hike between the Pico do Arieiro and Pico Ruivo
- Explore the Laurisilva forest and the evergreen Rabaçal Valley on a tour
- Embark on a whale and dolphin-watching guided tour
- Explore the cobbled streets of the capital, Funchal, and visit Funchal Cathedral
- Roam around the Madeira Botanical Garden
5. Braga – best place to stay in Portugal with family
The historic city of Braga is situated in the North of Portugal, and a 3,5h drive North of Lisbon. Even though the city boasts many attractions and gets plenty of tourists, it has a very laid-back atmosphere, making it one of the best cities to stay in Portugal if you’re traveling with family.
Braga is the only place on this list I haven’t yet visited, but I’ve heard many good things about it, and it’s definitely very high on my to-visit list!
Braga abounds with historical attractions – you can see many examples of medieval and 18th-century baroque architecture. There are also some parks where you can go on relaxing walks with your family, plenty of excellent restaurants, and some kid-friendly activities, too!
If you have some time, I recommend taking a day trip to the nearby town of Guimaraes – the drive will take just 25 mins, and you can explore many more historical buildings! This is also a popular place to stay in Portugal, so you might consider splitting your time between Braga and Guimaraes.
Luxury hotel
A 5-star hotel offering upscale facilities like an indoor pool, a restaurant serving Portuguese cuisine, and a spa center with a hammam. Other amenities the hotel offers are room service, a 24-hour desk, concierge services, and private parking.
Other accommodation options in Braga
Mid-range
Situated in Braga’s historic center, this 3-star hotel provides a free buffet breakfast, room service, and air-conditioned rooms
Budget
This budget-friendly hostel provides access to a garden and a shared lounge, plus free private parking and free bike rentals
Airbnb
A studio that can accommodate up to 4 guests and features a modern bathroom and a full kitchen
Things to do in Braga
- Visit the historic Santa Maria de Braga Cathedral and Palácio do Raio
- Explore the Bom Jesus do Monte complex
- Go on a relaxing walk at Parque Da Ponte or Santa Barbara Garden
- Eat some delicious food at Praça – City Market
- Do some shopping at the Nova Arcada
- Take the kids to Monkey Park Braga
- Enjoy a traditional Portuguese meal at Taberna Belga
- Take a day trip to Guimaraes
6. Azores – best place to stay in Portugal for couples
Azores is another archipelago in the mid-Atlantic Ocean, and the main island is Sao Miguel. The island is a 2,5h flight away from Lisbon, and from there, you can go on to explore the other islands. The Azores are one of the greenest and most serene places you’ll ever see, making it one of the best places to go in Portugal for couples (or if you are into adventure, hikes and these kind of stuff!).
Compared to Madeira, the Azores are way more tranquil and less crowded – ideal for couples who want to enjoy some privacy and escape the real world!
The top islands for your stay in the Azores archipelago are:
- Sao Miguel – for outdoor activities
- Santa Maria – for the beach
- Terceira – for a cultural immersion
- Graciosa – for a family stay
Most of the activities you’ll do here are all connected to nature. You can follow off-the-beaten-path hikes, immerse yourself in natural hot springs, go scuba diving or whale watching… and you can even surf on some of the beaches!
I only checked out Sao Miguel so far, but I can’t wait to come back for more! If you too decide to stay here, I recommend renting a car so you can see as much of the island as possible. The drives are very scenic – the roads are lined with flowers and give a magical feel. Plus, driving is more convenient and allows you to explore at your own pace!
P.S. If you want a more detailed post on the best places to stay in Sao Miguel in the Azores, check out my detailed guide!
Luxury hotel
White Exclusive Suites & Villas
If you want to wake up with open ocean views and the sound of the waves, you will love these luxury suites and villas in Sao Miguel! The property offers an amazing rooftop terrace where you can enjoy the sun, chill in the infinity pool, or enjoy a cocktail while gazing at breathtaking sunsets.
Other accommodation in Sao Miguel Island, Azores
Mid-Range
This hotel is perfect for a tranquil stay, offering a nice pool and a delicious free breakfast
Budget
Check out this seaside guest house with a shared kitchen, a shared lounge, and a terrace
Airbnb
This modern guest house will offer you a luxury stay featuring an infinity pool and a fully equipped kitchen
Things to do in Sao Miguel Island, Azores
- Try surfing at the Santa Barbara Beach
- Go on a boat tour to see whales in the Azores!
- Relax in the thermal hot springs of the Azores in Furnas
- Take a tour of the pineapple plantation Plantação Ananases A Arruda
- Admire the magical view from Miradouro da Vista do Rei
- Spend a day swimming at Praia das Milicias
7. Sintra – where to stay in Portugal for history buffs
The old town of Sintra, located just a 30-min drive Northwest of Lisbon, is one of the most unique and eccentric cities in all of Europe. Nestled in lush greenery, Sintra hosts historical palaces that have won UNESCO World Heritage status, gorgeous architecture, and a bustling atmosphere, which makes it one of the best places in Portugal for history lovers!
Even if a lot of people visit it just as a day trip from Lisbon, I believe it is definitely worth staying here if you really want to experience its unique vibe and see all its ancient attractions without being in a hurry. Also, there are some truly stunning hotels here, so it’s definitely worth spending at least one night in Sintra!
The top attractions in Sintra are the Pena Palace and the Quinta da Regaleira! Both of these are super popular attractions, so getting tickets can be a bit tricky (we have detailed guides on the best way to get Pena Palace tickets, as well as Quinta da Regaleira tickets!). When going to Quinta I HIGHLY recommend getting a guided tour if you can – there is SO much hidden info that you would never learn otherwise.
Also, the green hills surrounding Sintra are ideal if you want to spend some time in nature. There are many hiking trails and even opportunities for rock climbing, so if you need a break from seeing all the historical landmarks, be sure to spend a day exploring the lush nature around Sintra.
NOTE: The weather here is a bit colder than in Lisbon due to the surrounding nature, so if you’re visiting in summer, you can explore in much more pleasant temperatures than in Lisbon.
Last but not least, here you’ll be just a short drive from some incredible beaches for surfing, like Praia do Guincho and Cabo da Roca, the Westernmost point in all of Europe. You probably know it for its famous lighthouse, where you can enjoy a breathtaking panorama!
Luxury hotel
If luxury is what you’re looking for, there’s no better place than this hotel in Sintra. Divided across 2 huge buildings, this elegant property is a former 19th-century manor house located in Sintra city center and surrounded by a large garden, with views right over the Moorish Castle.
Other accommodation options in Sintra
Budget
Check out these villas set in 19th-century buildings, nestled in landscaped gardens, featuring native plants and an outdoor pool
Airbnb
This cozy apartment is comfortable and relaxing, with a living room, and bedroom, and a kitchen
Things to do in Sintra
- Visit the Pena Palace and the Quinta da Regaleira
- Spend a few hours at the National Palace of Sintra
- Explore the Sintra-Cascais Natural Park
- Go surfing at Praia do Guincho
- Go up to The Moorish Castle and admire the panoramic views
- Enjoy the breathtaking panorama in Cabo da Roca and visit the lighthouse
8. Coimbra – where to stay in Portugal for nightlife
The picturesque city of Coimbra located a 2-hour drive North of Lisbon, is actually the former Portuguese capital, with rich history, culture, and beautiful buildings. If you’re thinking where is the best place to stay in Portugal for a rich nightlife, Coimbra will definitely not disappoint!
Hosting one of the oldest universities in Europe, Coimbra attracts A LOT of students and young people, which makes it very lively at any time of the day, but especially at night. Everyone knows that students know how to party, and since this entire city revolves around the university, there are countless bars where you can have fun and meet many people!
Even if you’re not into nightlife, you should still visit Coimbra – I’m not, and I still had a great time. You explore the historic landmarks around the city and visit some of the University buildings – this actually was a lot of fun!
J.K. Rowling was inspired by the University of Coimbra for the Hogwarts uniforms! Students there still wear long black robes, just like the ones at Hogwarts.
Plus, if you happen to be in Coimbra during spring, don’t miss its crazy festivals, like Queima das Fitas in May, when senior students celebrate the end of academic life with colorful parades and sponsor the whole city to get drunk! Yep! This is just one of the cool things you can do in Coimbra – check out the rest in this post!
Luxury hotel
If you want to splurge a little, check out this historical palace hotel featuring botanical gardens, 2 swimming pools, and a library. Here, you will sleep in elegant rooms, eat in one of the 2 restaurants on-site, or relax at its Bamboo Garden Spa, where you can get luxury treatments.
PRO TIP: Even if you’re not staying here, you can still visit for breakfast and walk around the hotel grounds. I did this while staying in Coimbra, and I had a lovely time. Plus, breakfast was delicious and worth the higher price tag!
Other accommodation options in Coimbra
Mid-Range
Check out this hotel near the University of Coimbra, with spacious family rooms, free WiFi, and a delicious breakfast
Budget
If you’re on a budget, check out these apartments with private bathrooms, free Wi-Fi, and access to a shared kitchen
Airbnb
This 1-bedroom guest house is set in a historic building and has a fully-equipped kitchen and a small dining area
Things to do in Coimbra
- Have a free walking tour of Coimbra city
- Stop by the Old Cathedral of Saint Mary of Coimbra and Praça da República
- Visit the University of Coimbra on a guided tour
- Walk around the University Botanical Gardens
- Go for a relaxing walk at Parque da Cidade Manuel Braga
- Attend a live fado show that features wine tasting!
- Have a nice dinner at Passaporte Coimbra
- Enjoy the live music with a drink at Quebra Bar
| 🇵🇹 Top city in Portugal: | Lisbon |
| 👪 Best place for families: | Braga |
| 🍷 Best city for wine lovers: | Porto |
| 🌅 Most unique place: | Madeira |
| 💰 Avg hotel price: | €150 |
FAQs about where to stay in Portugal
📍 Where is the best place to go in Portugal for the first time?
The best place to stay in Portugal during your first visit is the capital, Lisbon. Here, you can visit historical attractions, try delicious traditional food, join the bustling nightlife scene, and stay in incredible hotels like the Epic Sana Marquês Hotel and Urbano FLH Hotels.
👨👩👦👦 Where to stay in Portugal with family?
One of the best cities to visit in Portugal with family is Braga, with its laid-back atmosphere, green spaces, and cool activities. The best hotels for your stay here are Maison Albar – Amoure and Hotel Dona Sofia.
💑 Where to stay in Portugal for a honeymoon or romantic couple stay?
The best place to stay in Portugal for couples is Sao Miguel Island, part of the Azores archipelago, offering untouched nature, outdoor activities, marine life, and incredible hotels, such as the White Exclusive Suites & Villas and Casa do Contador.
🏖️ Where to stay in Portugal for beaches?
The best place to stay in Portugal for beaches is the Algarve Coast, where you can swim and sunbathe on amazing beaches like Praia da Falésia, Praia do Camilo and Salema Beach. The best hotels here are 3HB Faro and Lagos Atlantic Hotel.
💆 Which region in Portugal is best for a relaxing getaway?
The ultimate spot for a relaxing getaway in Portugal is Madeira, with its gorgeous landscapes, pineapple plantations, unique fruits, and nice beaches. Some of the top accommodations here include the Savoy Palace and Travellers Pearl by Storytellers.
🚶 What is the most walkable city in Portugal?
The most walkable city in Portugal is Porto, featuring small cobbled streets and many parks where you can stop to rest. Here, you can also sample delicious wine and stay in incredible hotels, such as the Torel Avantgarde and Catalonia Porto.
💰 What is the most affordable part of Portugal?
The Northern part of Portugal is generally more affordable than the rest of the country, but you can find affordable accommodation in Portugal in all of the major cities.
📅 What are the best months to visit Portugal?
The best time to visit Portugal is spring, between May and June, or fall, between September and November. This means that you’ll escape the summer heat and, ideally, some of the tourist crowds.
⌛ How many days is ideal for Portugal?
The length of your trip will depend on where you want to stay and what you want to visit, but as a general rule of thumb, 7 to 10 days is the ideal amount of time for a Portugal trip.
Final words
So, have you decided where to stay in Portugal? I hope this guide was helpful and gave you a better idea of the best areas to stay in Portugal and which one would be a good match for you.
But if you are still undecided, check out my 2 favorite hotels in Lisbon, the capital of Portugal and one of the best places where to stay in the country:
- Epic Sana Marquês Hotel – this 5-star hotel offers multiple pools and a great rooftop terrace from where you can enjoy panoramic views of Lisbon’s city center
- Urbano FLH Hotels Lisboa – this great hotel offers everything you need, including rooms with air conditioning, free Wi-Fi, and access to an in-house restaurant!
If you like these hotels as much as I do, book something right now or at least some months in advance so you’re sure you’ll find availability and also get some good deals!
If you have any questions about Portugal and places to stay, or where to visit in Portugal, please drop them in the comments below – I will answer you in the blink of an eye!
Have a fantastic holiday in Portugal,
Yulia
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