With its historic city centre riddled with ancient alleyways, lively bar and restaurant scene, as well as a decent beach, Faro is a stunner of an all-round authentically Portuguese city.
Faro has something for you for all travellers with tons of amazing hostels But… that can make it difficult to know which hostel is best for you. Well, that’s where I come in, I have been to Faro multiple times and loved every trip. I’ve done the hard work for you and created this guide on the best Hostels in Faro no matter your travel style or budget.
Whether you want to party, chill on the beach or looking for a spot to perch up and work online, I’ve got you covered.
Photo: @joemiddlehurst
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Quick Answer: The Best Hostels in Faro
- Best Overall Hostel in Faro – Casa d’Alagoa
- Best Hostel in Faro for Solo Travellers – Wax Hostel
- Best Cheap Hostel in Faro – Hostellicious
- Best Party Hostel in Faro – Tilia Hostel
- Best Hostel for Digital Nomads in Faro – Casa da Madalena Backpackers Algarve
The 5 Best Hostels in Faro
These are my personal favourites sprinkled with some of the top-rated hostels in Faro. I’ve broken them down into categories making it nice and easy to find the hostel suited to your style. With the help of this guide, you can spend less time worrying about where to stay in Faro and more time getting excited for your trip.
1. Casa d’Alagoa – Best Overall Hostel in Faro
- Dorm (mixed): From $25
- Private Room: From $100
- Address: Praca Alexandre Herculano 27, Faro, Portugal
This cool hostel in Faro is set in a crumbling old historic building – well, the front looks like that anyway. Inside it’s a different story. Casa d’Alagoa is all modern and communal, with a pretty much amazing social vibe going on: think sangria nights, BBQ nights and a whole heap of hospitality.
The custom-made beds were built for COMFORT rather than sticking as many bunks as you can in a room. The sort of place you want to come back to, there are literally so many reasons why this is easily the best overall hostel in Faro.
Why you’ll love this hostel:
- BBQ and Sangria nights
- Incredibly social atmosphere
- Bike rental
Previous guests keep mentioning in the reviews how incredibly social and welcoming the hostel staff is. They really turn a normal hostel into a proper home away from home.
Loads of travellers come back especially for the social nights, the incredible food and amazing hospitality. If this is your first time travelling as a solo traveller or just in general, Casa d’Alagoa is the perfect place for you.
If you want to explore the things to do in Faro a bit more, head to the reception and ask for the bike rental. Instead of relying on your own feet or public transport, get your hands on a bike and spend the day admiring the stunning landscape. Before you leave, grab a free city map, just so you won’t get lost. The staff will be able to direct you to the best paths and hotspots in Faro as well – local knowledge always goes a long way!
2. Wax Hostel – Best Hostel in Faro for Solo Travellers
- Dorm (mixed): From $35
- Address: Av. Nascente 11, Faro, Portugal
Alright backpackers, if you’re solo travelling in Portugal and looking for a beachfront hostel to rest those Birkenstocks, Wax Hostel is top tier. This Faro Hostel is serving up some tasty views sitting right on the beach, ideal for soaking up some sun away from the hustle and bustle of the city. You can get a cheap ferry and you’ll be in the heart of Faro with heaps of cafes, restaurants and bars.
Why you’ll love this hostel:
- Incredible beachfront location
- Chill, relaxed atmosphere.
- Amazing sunrise views.
Wax Hostel has a super chill, relaxed vibe, there’s an outdoor terrace overlooking the docs which is the crème de la crème for making new travel buddies and enjoying a cold beer or watching the Sunrise. This isn’t a party hostel so don’t stay here expecting crazy pub crawls and wild nights.
Wax Hostel is all about soakin’ up those stunning views, The rooms are snug and simple offering a comfy dorm bed with reading light and USB, no privacy curtain and the lockers are on the small side but overall a good place to crash.
3. Hostellicious – Best Cheap Hostel In Faro
- Dorm (mixed): From $25
- Private Room: From $51
- Address: Largo de São Pedro 14, Faro, Portugal
Hostellicious. It’s sort of a pun, I like creativity. I also like that this top hostel in Faro is well located near the nightlife of the city, but it’s still a place where you can get some sleep and the cost of a dorm bed isn’t going to break the bank, setting you back €25
Why you’ll love this hostel:
- Budget Friendly prices
- Group dinners hosted by the hostel
- Sangria/ Barbeque Nights
Hostellicious has a fun and welcoming vibe, not just offering a place to crash but the chance to meet and connect with like minded globe trotters. From their group dinners hosted to their Sangria and barbeque nights, there is always something going on at Hostellicious.
This Faro backpackers hostel also features comfy, modern beds, a well-equipped communal kitchen, a sun terrace, a common room and some snazzy private rooms if you need your own space. The location of this hostel is top tier, in the heart of Faro you’ve got bars, restaurants and cafes on your doorstep making it an ideal base to explore.
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View on Osprey View on REI4. Tilia Hostel – Best Party Hostel in Faro
- Dorm (mixed): From $27
- Private Room: From $104
- Address: R. Serpa Pinto 29, Faro, Portugal
Okay so, if you’re after wild parties and staying out till sunrise you might want to check out the best hostels in Lagos, a party town in the Algarve. Whilst Faro may not be known for the craziest parties and there aren’t specific ‘party hostels’ Tilia Hostel knows how to create a social vibe and have some fun nights.
This Faro hostel has some tasty shared spaces from their rooftop terrace, ideal for grabbing a drink and watching the sunset, to their common room and shared kitchen. There is no shortage of opportunities to meet new travel buddies and round up some troops for a night on the beers in town.
Why you’ll love this hostel:
- Rooftop terrace ideal sunset spot
- Daily dinners
- Fun and social atmosphere.
The location of this Hostel in Faro is first class, you’re right in the heart of Faro with heaps to explore and everything you need within walking distance. The rooms are spacious, the beds are comfy and come with a privacy curtain, reading light and charging station, all the essentials. Plus, the prices are broke backpacker-friendly.
The friendly staff, formed by a team of passionate and laid-back travellers, will do everything they can to make sure that you have an amazing time in Faro. Overall, if you’re looking for the best party hostel in Faro, this is it, don’t expect mad nights, this is more of a social place to enjoy a few drinks and meet some cool people.
5. Casa da Madalena Backpackers Algarve – Best Hostel for Digital Nomads in Faro
- Dorm (mixed): From $45
- Address: Travessa da Madalena N°10, Faro, Portugal
Good WIFI, good workspaces and good coffee are magical words to us digital nomads and if you’re a digital nomad looking for the best hostel in Faro, Casa da Madalena is the one for you.
This hostel has nailed the fun, and family vibes creating a welcoming atmosphere for all travellers. They serve up homemade pancakes every morning around the big family-style table and not a bad way to start the day. They have an epic roof top terrace which is the ideal spot to chill in a hammock for get some work done in the sun.
Why you’ll love this hostel:
- Homemade pancakes each morning
- Welcoming atmosphere
- Beautiful rooftop terrace
The rooms have everything you need from a comfy bed, privacy curtain and personal locker. The staff are also genuinely warm and friendly, which really makes all the difference. Because of the central location, you can easily walk to some of the best seafood restaurants, bars, and cafes in town. Overall a great Faro hostel for travellers and digital nomads.
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Hide Yo’ Money!More Epic Faro Hostels
Still not found your ideal hostel for your backpacking Portugal trip? Keep scrollin’ there’s plenty more to choose from.
6. Sunlight House – Best Hostel with a Private Room in Faro
- Private Room: From $175
- Address: Rua Dr Francisco Lázaro Cortes 11, Faro, Portugal
Sunlight House has a sorta B&B slash hostel comb thing going on, which is a good thing if you’re after the best hostel with a private room in Faro. Yep, the rooms here are NICE – soft colours, wooden floors, minimal decor. Lots of attention to detail. It’s a pretty cool Faro hostel tbh.
The outdoor terrace, complete with sea views, is a very decent place to chill (this is also where they serve up the supremely tasty free breakfast). And as the cherry on top, the staff here have a lotta local knowledge to help you discover the city. A great option if you’re travelling as a couple.
7. Baixa Portugal Terrace
- Dorm (mixed): From $39
- Private Room: From $88
- Address: Rua de Portugal, nº36, Faro, Portugal
Set in the bustling downtown area of Faro, this Faro backpackers hostel has its own rooftop terrace and bar, which is great for a few sunset drinkies. The staff here are keen surfers and bikers, so if you are too you’ll be happy to know they got plenty of storage for all that.
This is a good place to base yourself for enjoying the bars and restaurants of downtown and makes for a recommended hostel in Faro for anyone wanting to explore the city. The staff are very laid-back, so don’t expect ’em to be overly attentive.
8. HI Hostel Faro
- Dorm (mixed): From $25
- Private Room: From $126
- Address: Rua da PSP, Edificio do IPJ, Faro, Portugal
This Faro branch of Hostelling International is a pretty big place with 60 beds and a loada different choices when it comes to rooms. It’s a decent option if you want to chill near the beach. Plus it’s cheap!
The staff at this place are friendly and welcoming and somehow they tend to attract guests who are pretty much the same, making for a good hostel for solo travellers. Luxurious this ain’t: it’s unfussy and definitely suited to those who’d rather be out and about.
9. Guest House Sao Filipe
- Private Room: From $106
- Address: Rua Infante D. Henrique,55-1, Faro, Portugal
A guesthouse hostel combo, this place is modern and colourful, which we guess makes for a cheery aesthetic at least. Though the atmosphere here isn’t what we’d call buzzing, it’s a nice enough place to stay. Especially if you like peace and quiet.
One of the most attractive things about this budget hostel in Faro is its room rates. Very affordable. Elsewhere in Guest House Sao Filipe you’ll find a sun terrace where you can bake in the sun or read a book in the shade. Calm place.
10. Faro Beach Life Hostel
- Dorm (mixed): From $20
- Private Room: From $45
- Address: 7 Avenida Poente, Praia de Faro, 8005-520 Faro, Portugal
As you might be able to guess from the name of this budget hostel in Faro, this one’s on the beach. That makes it great for catching rays, splashing around, surfing and generally just walking along the sand. Oh and don’t forget the sunsets.
Some rooms have views of the beautiful Rio Formosa lagoon, which is always nice. The family atmosphere at this Faro backpackers hostel gives it a low-key, unfussy vibe. Basically, it’s a top hostel, Especially if you want to stay near one of the best beaches in Portugal.
11. Hostel do Largo
You’ll find Hostel do Largo in central Faro, close to the market and all the other delights this town has to offer. It’s pretty stylish actually, and may well be one of the coolest hostels in Faro. Rejoice, for the dorm beds here are NOT bunk beds.
Clean and quiet (I mean, sometimes the staff aren’t always there), it’s not exactly a party hostel but you can easily explore the town from this place. The rooms are also large, which makes a change from cramped dorms. Plus there’s a rooftop terrace to chill on. Nice.
12. Well’Come! to Algarve
This Faro hostel is a place that’s run with love and enthusiasm. Set in downtown Faro, this place is pretty close to the marina and all of its bars, cafes and restaurants, so there’s plenty to explore for backpackers with itchy feet.
The bus and train stations are also quite nearby, meaning you can get out and about to explore the local area as well as just the streets surrounding the hostel. It’s small and cosy, a pretty solid option for a few nights. Ain’t poppin’ but it’s close to places that are.
13. Hostel 33
Run by a Portuguese family, and set inside a renovated old building, this top hostel in Faro features big, spacious rooms and an outdoor terrace bathed in sunlight. As you might expect, it’s a very social place – even the staff like to have a chat (over a glass of Portuguese wine or two).
The best hostel for solo travelers in Faro is also located in a pretty central spot, meaning you can get around easily by yourself – it’s also near public transport, which helps, and the beach is nearby, too.
14. New Charme Guest House
In the New Charme Guest House (though it’s a hostel really) you’ll find comfy beds and helpful staff who’ll equip you with maps and plenty of local knowledge. Set in a historic building, the rooms here are also refreshingly spacious.
This youth hostel in Faro is near the central station, so you don’t have to lug your backpack halfway across town sticking out like a sore thumb. That’s a plus for us. Though it’s a great stop off on the way to the Faro airport, there’s more to it than that. They arrange all sorts of activities for ya here – kayaking, scooter hire, tours – you name it.
Getting Insured BEFORE Visiting Faro
Unfortunately, things can go wrong when you least expect it. This is why good travel insurance is essential before you head on your trip to Faro.
ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.
They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.
SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!
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FAQ about Hostels in Faro
Here are some questions backpackers ask about hostels in Faro.
What to Pack for your Faro Hostel
Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.
Ear Plugs
Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.
Hanging Laundry Bag
Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.
Sea To Summit Micro Towel
Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.
Monopoly Deal
Forget about Poker! Monopoly Deal is the single best travel card game that we have ever played. Works with 2-5 players and guarantees happy days.
Grayl Geopress Water Bottle
Always travel with a water bottle! They save you money and reduce your plastic footprint on our planet. The Grayl Geopress acts as a purifier AND temperature regulator. Boom!
Check out my definitive Hostel Packing list for even more top hostel packing tips!
How much does a hostel cost in Faro?
Depending on whether you’re browsing for a bed in a shared dorm or a private room with an ensuite bathroom, costs can vary drastically. A bed in a shared dorm will cost between $20 – $22, while a private room could set you back as much as $52 – $61.
What are the best hostels in Faro for couples?
Cozy up on the terrace and admire a sundowner every evening with your partner at the best hostel for couples in Faro, Wax Hostel.
What are the best hostels in Lagos near the Faro Airport?
Check out these hostels near the beach and just a 7-minute drive from the airport:
Wax Hostel
Faro Beach Life Hostel
Final Thoughts on Faro’s Hostels
Get ready, because Faro is a fun place wtih so much to offer every kind of traveller.
By now I hope my epic guide to the best hostels in Faro has helped you choose the perfect hostel for your adventure! If you’re still unsure then my top pick is Casa d’Alagoa.
There are some great hostels in Faro, each offering a home-away-from-home, a chance to meet like-minded travellers and an affordable price for the night. Whichever hostel you choose, I’m sure you’ll have a wicked time in one of my personal favourite countries in the world.
Now it’s over to you my friend, get out there explore and make some incredible memories.
Photo: @joemiddlehurst
- Check out our extensive guide to backpacking in Portugal for a wealth of info!
- Check out the best places to stay in Faro before you arrive.
- Prepare for your trip with our backpacking packing list.
- Get ready for your next destination with our ultimate Azores backpacking guide.
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