Portugal is one of my favourite countries on the PLANET.  Without a doubt.

It’s got everything. From the food, wine and pastel de natas to some of the biggest waves in the world, majestic mountains and pristine beaches. Portugal is just one of those places that dazzles every traveller who sets foot in it.

The cities are vibrant; full of culture, music and art. The long stretches of coast are magical. From Lisbon to Faro, city to sea, there is something for everyone in this enchanting little country.

Some of my favourite parts about Portugal are the people and the culture. The Portuguese are some of the most welcoming and laid-back people I’ve ever met.

Deciding where to stay in Portugal can be a daunting but super important task. You’ll want to choose places that resonate with you and what you want to get out of your trip.

That’s why I’m here! I’m going to help you to navigate the areas of Portugal and discover which area is best for you and your travel desires. Whether you want to party the nights away in Lagos or get lost in the streets of Lisbon,  I’ve got you covered.

Ready to dive in? Let’s go.

Nic covering their eyes whilst standing next to the ornate hand painted blue and white tiles of Porto, Portugal
Let me take you on a journey through the BEST of Portugal
Image: Nic Hilditch-Short

The Broke Backpacker is supported by you. Clicking through our links may earn us a small affiliate commission, and that's what allows us to keep producing free content 🙂 Learn more.

Quick Answers: Where is the Best Place to Stay in Portugal?

  1. Lisbon – Overall Best Place to Stay in Portugal
  2. Faro – Best Place to Stay in Portugal For Families
  3. Sao Miguel Island in the Azores – Most Romantic Place to Stay in Portugal for Couples
  4. Guimaraes – Where to Stay in Portugal on a Budget
  5. Sintra – One of the Most Unique Places to Stay in Portugal
  6. Lagos – Where to Stay in Portugal for Partying
  7. Madeira – Best Place to Stay In Portugal for Adventure
  8. Porto – Coolest Place to Stay in Portugal

Map of Where to Stay in Portugal

Portugal Map
1.Lisbon 2. Faro 3. Sao Miguel Island in the Azores 4. Guimaraes 5. Sintra 6. Lagos 7. Madeira 8. Porto

Where is the Best Place to Stay in Portugal?

In this article, I’m going to take you through all the best places to stay when travelling to Portugal – from the artsy vibe of Porto to the beach town of Lagos. I’ll dive into all the details you need to know, including the best places to stay and things to do in each spot.

However, if you’re short on time and just want to know the BEST hotel, hostel and Airbnb in the country (yes, the whole damn country!).. these are my hand-select picks:

Bela Vista Hotel & Spa | Best Hotel in Portugal

Bela Vista Hotel & Spa Portugal

Nestled into the southern, coastal town of Portimão is the iconic Bela Vista Hotel and Spa. If you’ve ever dreamed of feeling like royalty… stay here! It is a splurge but the hotel itself and the service are impeccable. You’ll feel like you’re staying in a modern-day, beachy Bridgerton.

The Portuguese food, the incredible sea views and the decor will be worth every penny you spend here. So, if you’ve got the cash to splash… splash it at this luxury hotel, my friends.

Nice Way Sintra – Sintra | Best Hostel in Portugal

Nice Way Sintra Portugal

If you are wondering where to stay in Portugal, then check out the best hostels in Portugal. Why not stay in a palace? Don’t worry, this won’t break the bank. You get to live like a prince or princess… just in a dorm room. The Nice Way Sintra is actually inside a renovated palace right in the heart of Sintra itself.

WONDERFULPORTO TERRACE | Best Apartment in Portugal

WONDERFULPORTO TERRACE Portugal

Boasting some of the BEST views over the Douro River and Porto’s picturesque centre, you can’t beat this gorgeous apartment in Porto (one of the coolest places to stay in Portugal). The reviews for this place speak for themselves – not one person seems to be able to fault this incredible spot.

The apartment is not only gorgeous but it is equipped with everything you could need – from a stacked-out kitchen (with a Nespresso machine!!) to a mini-bar with FREE drinks. The apartment gets flooded with natural light and is brimming with historic character. This recently renovated, 19th-century building has an elegant and cosy charm.

Portugal’s Eight Best Places to Stay in

Portugal is one of the most unique places to visit in the world. Each city and town across the country offers a unique culture and charm. From devouring a Francesinha in Porto to hiking the Fishman’s trail in the south – the only problem can be deciding which towns and cities YOU want to visit.

So, fellow traveller, let me guide you. Here are the top eight places to visit while backpacking in Portugal.

1. Lisbon – Overall Best Place to Stay in Portugal

Lisbon is wildly popular. It’s a global hub for digital nomads and it’s adored by all the solo travellers in Portugal – and with good reason. Whether it’s urban art, world-class nightlife, museums, architecture or culinary experiences you are looking for, Lisbon has you covered. There is as much history as there is modern fashion and shopping – you’re going to love Lisbon!

From amazing art and museum options, (check out the MAAT, the MUDE, and the LxFactory),  to the white sandy beaches just outside the city centre, Lisbon truly has it all. This positively picturesque city is a beautiful blend of the old and the new. Don’t forget to see Padrão de Descobrimentos and the Torre de Belém. Make sure to pick up some sweet, sugary Pasteis de Belém while in the area too.

The view over Lisbon, Portugal with the many orange terracotta rooftops
The prettiest city I ever did see.
Image: Nic Hilditch-Short

The beach district in Lisbon is the perfect city escape, called the Cascais. It can even feel like another city entirely! Expect plenty of relaxation and soaking up some sunshine in the Cascais, it’s one of the best Lisbon day trips.

But what really makes Lisbon so cool is the roaring nightlife that will keep you dancing until dawn. Also, there is an incredible amount of experimental cuisine going on in Lisbon and the food is damned good. So if you’re in the mood to try some bifanas (pork buns) or egg tarts (pastel de natas) you’re in luck in Lisbon!

Baixa and Rossio are perhaps the most tourist-friendly neighbourhoods in Lisbon. They form part of the downtown area and are close to many of the city’s top tourist sites and the Rossio train station.

If you’d rather have a more off-the-beaten-path experience, stay in Barrio Alto for more boho vibes in this hip, hilly neighbourhood. That district is packed with tattoo parlours, hostels, and fabulous bars. Just north of Bairro Alto, the neighbourhood of Principle Real is the trendy, social district that is filled with grand and gorgeous buildings!

9Hotel Mercy | Best Hotel in Lisbon

9Hotel Mercy Portugal

The 9Hotel Mercy is located in the hip Bairro Alto neighbourhood and their spacious rooms actually overlook Sao Jorge Castle. Talk about a room with a view. The vibes of this hotel are more opulent and luxurious.

And yes, there is a price tag to go with glitz and glam. But if you’re looking to take a walk on the ritzy side of life, the 9Hotel Mercy is the place to do it!

Living Lounge Hostel | Best Hostel in Lisbon

Living Lounge Hostel, Lisbon

Living Lounge Hostel is a boutique-style hostel that is bursting with colour and unique things. My personal favourite part of this Lisbon hostel is the FREE breakfast complete with pancakes galore! Who doesn’t crave the home comfort of pancakes when travelling?

There are also affordable three-course dinners and wine available at dinner time. This chic hostel sits in Lisbon’s Baixa district, just a 12-minute walk to the nightlife at Bairro Alto!

Central Flat with a View | Best Flat in Lisbon

Central Flat with a View Portugal

Staying in Lisbon? Good because it’s perhaps the best city to stay in Portugal. And you’re going to want to stay at an epic Lisbon Airbnb.  You’ll be situated in the heart of the Baixa and Rossio neighbourhood. You’ll also be just a quick walk to the historic Alfama district, to the waterfront, and to the exceptionally popular Praca do Comercio.

2 Bedroom Apartment in Principe Real | Best Apartment in Lisbon

2 Bedroom Apartment in Principe Real Portugal

This Airbnb is positively darling. It’s just a five-minute walk from Bairro Alto and drips with charm. It is a two-bedroom apartment with three beds, which makes staying with friends a breeze.

There is a fully equipped kitchen, speedy wifi, and all the amenities you could need. There’s also a tram and metro station nearby. You’ll love the huge bathroom, too!

Things To Do and See in Lisbon

trams crossing paths on a steep street in Lisbon, Portugal
Lisbon is the best city to explore on foot or by tram!
Photo: Nic Hilditch-Short
  1. Walk the infamous city tram.
  2. Visit the historic Castelo de São Jorge that towers over the city.
  3. Climb to the top of the Panteão Nacional.
  4. See the Belém Tower.
  5. Go shopping at Feira da Ladra markets (every Tuesday and Saturday).
  6. Check out the Museum of Art, Architecture and Technology.
  7. Walking the city is a must, join this Lisbon walking tour to learn as you stroll.
  8. Head over to Costa de Caparica to surf some waves!

2. Faro – Best Place to Stay in Portugal for Families

Faro is the capital and one of the best places to stay in the Algarve. It’s a gorgeous, coastal city that promises you and your family true relaxation. Walking around the old town, with its iconic cobblestone streets, is a treat for the whole family.

Your family may also enjoy visiting the 13th-century Faro Cathedral and the Municipal Museum. This museum is actually housed in a 16th-century convent, surprise surprise! And the kids are sure to enjoy all the displays of medieval artefacts and prehistoric exhibits.

dani at the beach in faro portugal in november with jumper and a hat on at sunset
Beat the crowds. November in Faro was chilly but lush.
Photo: @danielle_wyatt

Although Faro is a capital city, don’t fear, it’s not a hustle and bustle situation here. In fact, it’s incredibly laid back and relaxing. Plus, it’s right on the water at the corner of the Atlantic Ocean and the Cadiz Gulf. 

While it is nice to stay a little inland, you might find life more relaxing in a house or villa in Faro near the beach. Try to stay as close to the beach as possible to maximize those family holiday vibes.

Hotel Faro and Beach Club | Best Hotel in Faro

Hotel Faro and Beach Club, Faro, Portugal

The Hotel Faro falls a bit more on the pricier side of places to stay in Portugal. However, it comes with all the bells and whistles to take the stress out of your family holiday!

The Faro Old Town is just a three-minute walk away, and you’ll be just a five-minute walk from the train station and bus station too. The hotel itself looks over the marina, so enjoy beautiful views of the water below. Also, the fresh buffet breakfast is quite the crowd-pleaser.

Guest House Sao Filipe | Best Guesthouse in Faro

Guest House Sao Filipe Portugal

Guest House Sao Filipe is a beautiful guest house located in the old town of Faro. The Cathedral of Faro is just a block away. You and your family will love the helpful, kind staff who are known for helping guests organize everything from boat tours to the best dinner options.

Also, the air conditioning, modern bathrooms, and other amenities are what make this guesthouse a great pick for you and your family.

Beach front, cute semi-detached house | Best Airbnb in Faro

Beach front, cute semi-detached house Faro Portugal

Not just near the beach… ON the beach. You can’t get much closer to the sea than this Airbnb. Drift off to sleep to the sound of the waves and wake up to a gorgeous view across the horizon. Located on one of the best sandy beaches along the Algarve, Praia de Faro, you’ll be five minutes from the airport and 10 minutes from Faro’s cultural hub.

Whether you’re up for a chill paddleboard or kayak along the calmer lagoon side or ride the waves on the surf ocean side. There is a LOAD of water sports to choose from while staying here.

Things To Do and See in Faro

Faro
Spend an afternoon exploring the old town.
  1. Check out the bone chapel at the Igreja do Carmo.
  2. Stroll through the quaint old town and find the entrances.
  3. Enjoy a walk around the marina and harbour.
  4. Hunt out the quirky street art.
  5. Pop into the Maritime Museum.
  6. Climb to the top of the Cathedral to soak in the views.
  7. Jump on an expedition along the coast from Faro, including Benagil Cave, Marinha Beach, Algar Seco & More

3. Sao Miguel Island in the Azores – Most Romantic Place to Stay in Portugal for Couples

If you’re heading to Sao Miguel Island, could you please take me with you?! It would definitely kill your romantic vibes, but I’ll happily be a third wheel to get to head back to this beautiful island.

You and your significant other are sure to fall in love with Sao Miguel Island in the Azores Archipelago. All of the islands in the Azores Archipelago are known for having beautiful weather, excellent hiking, and downright delicious food, but Sao Miguel is hands down my favourite.

a light blue lake surrounded by lush green mountains in sao miguel island, the azores, portugal
Told you.
Photo: @rizwaandharsey

Sao Miguel’s nickname is “The Green Island” or “Ilha Verde” as it has abundant gorgeous, green hills, mountains, and immensely verdant landscape. Sao Miguel is not just rich on land, it’s also known for its incredible marine life. If you’re into scuba diving, this is the place for it.

Sao Miguel is the biggest island in the Azores Archipelago. There are plenty of fun areas to stay in and incredible things to see here such as the twin crater lakes of Sete Cidades that lie to the northwest. What makes those crater lakes so amazing is that one is green and one is blue!

If you’d rather visit some hot springs and fumaroles, head to the east to Furanas. Or, you can always stay in the capital of the island, Ponta Delgado, for a more urban and convenient travel experience.

SENSI Azores Nature and SPA | Best Hotel in Sao Miguel

SENSI Azores Nature and SPA Portugal

This boutique luxury hotel is for lovers looking to get away to a quiet spot away from the crowds. It is the epitome of romance. Tucked away on the island, SENSI Azores is perched up by the sea with INCREDIBLE views. The location has you feeling like you’re the only one on the island.

The beds are ridiculously comfy, the outdoor and indoor swimming pools are pure luxury and the breakfast is out of this world. You have to try Joseph & Tony’s cocktails from the bar – these guys curate a legendary experience. Plus, their on-site spa is just the cherry on top.

Commercial Azores Boutique Guesthouse | Best Guesthouse in Sao Miguel

Commercial Azores Boutique Guesthouse Portugal

Skip getting squashed into a hostel dorm room, you’re after a romantic getaway after all! Plus, even if you get a private room at a hostel, the noise and uber-social environment can be bothersome.

The Comercial Azores Boutique Guesthouse in Ponta Delgada sits just over 1,000 feet from the Atlantic Ocean and the harbour. The sweet and simple style of this guesthouse makes me swoon! Plus, there’s even a snack bar on site to enjoy Portuguese snacks and light meals.

Quinta do Vinhático | Best Airbnb in Sao Miguel

Quinta do Vinhático Portugal

Are you ready to snuggle up in this mega-romantic Airbnb, Quinta do Vinhático, in Sao Miguel? Situated just five minutes from the centre of Ponta Delgada by car, you will be able to bask in your own personal garden oasis.

You’ll be immersed in a garden that offers views of both the sea and the mountains. When staying in Portugal, and specifically, in one of the best areas to stay in Portugal, you’re going to fall even more in love with this Sao Miguel Airbnb!

Things To Do and See in Sao Miguel Island

a guy facing a waterfall with large rocks surrounding it in sao miguel island, the azores, portugal
Chasing waterfalls.
Photo: @rizwaandharsey
  1. Visit the beautiful Sete Cidades Lake, one of Portugal’s seven natural wonders.
  2. Head up to Boca do Inferno Viewpoint to soak in the views.
  3. Take a mandatory photo on the Road of Hydrangeas.
  4. Visit the quaint Sete Cidades Village.
  5. Go to Mosteiros Beach for sunset.
  6. Bath in the natural hot springs at Ponta da Ferraria.
  7. Join the iconic Caldeiroes Canyoning Experience for a dose of adventure.
Is This the Best Backpack EVER???
Aether Backpack

We’ve tested countless backpacks over the years, but there’s one that has always been the best and remains the best buy for adventurers: the broke backpacker-approved Osprey Aether and Ariel series.

Want more deetz on why these packs are so damn perfect? Then read our comprehensive review for the inside scoop!

View on Osprey View on REI

4. Guimaraes – Where to Stay in Portugal on a Budget

The original capital of Portugal, Guimaraes is one of the least tourist-centric cities in the country. It is filled with ancient architecture and lots of good food but is quite inexpensive. If staying in Porto sounds too pricey, one could easily opt for Guimaraes and then take the train to the former. 

This can be a great place to stay if you want to pay less, but still stay close to the action. The best part is you won’t be in the middle of the hustle and bustle and crowds! You’ll be travelling off the beaten path of the usual tourist tracks.

Guimaraes - Where to stay in Portugal on a budget
Some serious medieval stuff.

Plus, since it was the original capital, there are plenty of historical gems there! From the Guimaraes 11th-century castle to the Palace of the Dukes of Braganza— beautiful buildings abound! Moreover, there is the Citania de Briteiros to explore, the site of ancient hill settlements that also offers beautiful views of Guimaraes below.

As Guimaraes isn’t as touristy as other places, this is definitely the best city in Portugal to stay for those of you travelling on a budget! Whether you opt to stay a little outside the city centre and have a quieter experience or choose to stay right in the heart of it all— you can’t go wrong in Guimaraes!

Hotel Mestre de Avis | Best Hotel in Guimaraes

Hotel Mestre de Avis Portugal

This historic and beautiful hotel still has a very affordable price tag. You’ll love staying in the historic centre of Guimaraes and being just a few minutes walk from all the beautiful tourist spots.

My favourite aspect of this hotel is that while they do serve breakfast daily in the dining area, the reception can also pack a breakfast or lunch to go! How nice is that? This hotel sure is known for having very friendly and kind staff.

Hostel Prime Guimaraes LDA | Best Hostel in Guimaraes

Hostel Prime Guimaraes LDA Portugal

Nestled right in the heart of Guimaraes, this hostel is close to all the main tourist spots like the City Market and the Plataforma das Artes. Of course, you’ll also be close to the bus terminal and all the best shopping! The hostel itself is in an old 17th-century home that has been lovingly renovated.

This hostel is the best place to base yourself in Guimaraes to save some dough, and to get the most out of the city!

Casa Mimosa with Jacuzzi | Best Holiday Rental in Guimaraes

Casa Mimosa with Jacuzzi Portugal

Can you believe that you can get a two-bedroom house with a hot tub for under $150 a night? That’s right, up to five guests can comfortably stay in this two-bedroom—with three separate beds— home! So if you’re splitting it between five friends, it’s just $30 a night.

You’ll be in a quiet space, with free parking, and a bus stop is super close by. It’s not too far from the city centre either, situated in a residential neighbourhood with a cafe, restaurant, and small market right on the same street.

Things To Do and See in Guimaraes

Guimaraes and Braga
The cradle of Portugal.
  1. Marvel at the historic Palace of the Dukes of Braganza.
  2. Check out the Guimarães Castle and spend a day out relaxing & picnicking on the green spaces.
  3. Visit the Church of São Miguel do Castelo.
  4. Stroll through the city centre and snap some pics of the quaint streets.
  5. Hang out in one of the prettiest squares in Guimaraes, Praça de São Tiago
The Future of the SIM Card is HERE!

A new country, a new contract, a new piece of plastic – booooring. Instead, buy an eSIM!

Jetpac eSIMs work just like an app: you download it, pick your plan, and BOOM! You’re connected the minute you land. It’s that easy.

Read about how e-Sims work or click below to see one of the top eSIM providers on the market and ditch the plastic.

Grab an eSIM!

5. Sintra – One of the Most Unique Places to Stay in Portugal

Fashioned after fairy tales, this incredible city rests above an ancient forest and is one of the most bizarre and intriguing sites in Europe.

I’ll do my best to describe it but to fully take in the eccentricities of this city, you’re going to have to come to visit it yourself. Checking out some photos wouldn’t hurt, though! Old Sintra is a UNESCO World Heritage Site and a true Portuguese gem.

Pena Palace in Sintra, Portugal
Pinch me. This is a fairytale.
Image: Nic Hilditch-Short

Sintra lies in the foothills of the Sintra Mountains a 40-minute drive away from Lisbon. Plentiful palaces and pastel-coloured villas make Sintra positively picturesque.

You simply can’t miss visiting the Pena National Palace, it’s perched on a hilltop and is bright yellow and pink. Gawking at this incredibly unique architectural gem is a must-do in Sintra. It’s one of the most beautiful places in Portugal.

When looking for lodging in Portugal’s Sintra, definitely stay as close to the city centre as you can. You want to be in the heart of it all not miss a second of whimsy and fun!

Or, you could consider staying inside one of Portugal’s best National Parks, Sintra-Cascais Natural Park for a city-escape unique experience— you’ll be surrounded by orchards, vineyards, and lush greenery!

Penha Longa Resort | Best Hotel in Sintra

Penha Longa Resort Sintra Portugal

I’ve got two words for ya, PURE LUXURY. Seriously… this five-star resort has a 27-hole championship golf course, a state-of-the-art spa centre, a swimming pool and – the cherry on top – two of their on-site restaurants have Michelin stars! Like c’mon, does it get better than that?

Surrounded by nature, the landscape surrounding the resort is gorgeous and can be seen from the balcony of most rooms. Of course, they also have a gym on-site so you can keep fit while you travel and serve up a BANGIN’ breakfast every morning of your stay.

Nice Way Sintra | Best Hostel in Sintra

Nice Way Sintra Portugal

Nice Way Sintra is actually inside a renovated ancient palace. That’s right, why stay in a boring old building when you can stay in a palace? You’ll be in the heart of Sintra, overlooking the Moorish Castle and the Quinta da Regaleira, just a quick five-minute walk to the National Palace.

This hostel has both dorm rooms and private rooms, and each room is packed with personality. There is also a fully equipped kitchen that guests have access to.

Sintra GuestHouse VC17 | Best Guesthouse in Sintra

Sintra GuestHouse VC17 Portugal

This Sintra Airbnb is a three-bedroom and one-bathroom home. There are a total of four beds, which makes sleeping six easy as cake! The decor is gorgeous, with lots of antique furniture and thoughtful touches.

You’ll be staying in a lovely stone building that was actually built right at the tail end of the 19th century! Plus, you’ll be close to the historic centre of the city.

Things To Do and See in Sintra

  1. Visit the famous, Moorish Castle/ Castelo dos Mouros.
  2. Check out the National Palace of Sintra.
  3. Get lost in the gardens of Quinta da Regaleira.
  4. Marvel at the exquisite Monserrate Palace.
  5. Don’t forget to eat queijada or travesseiro (local pastries).
  6. Walk up to the iconic Pena Palace (you can drive but it’ll probably take you about the same time as getting stuck in the mad traffic to get up there, plus the parking is shit)
  7. Head to Cascais to relax by the sea.
  8. Or, join a tour around Sintra that takes you to all of the best of the above.
Save $$$ • Save the Planet • Save Your Stomach!
backpacker drinking using grayl geopress filter bottle

Drink water from ANYWHERE. The Grayl Geopress is the worlds leading filtered water bottle protecting you from all manner of waterborne nasties.

Single-use plastic bottles are a MASSIVE threat to marine life. Be a part of the solution and travel with a filter water bottle. Save money and the environment!

We’ve tested the Geopress rigorously from the icy heights of Pakistan to the tropical jungles of Bali, and can confirm: it’s the best water bottle you’ll ever buy!

View on REI Read the Review

6. Lagos – Where to Stay in Portugal for Partying

Located on the Southwestern tip of Portugal, Lagos is situated perfectly for kayaking, scuba diving, hiking, surfing, and most other outdoor activities you might want to do. It is only a twenty-minute drive to the closest point of the Southwest Alentejo and Vicentine Coast Natural Park, one of the largest parks in Portugal.

a girl smiling in front of scenic cliffs and the ocean of lagos,portugal
Nightlife AND adventure. Lagos has it all.
Photo: @amandaadraper

As the best city in Portugal to stay for adventure, you’ll want to see the scenic rock formations at the Ponta da Piedade, and hike down the steep steps to the tiny—and completely magical—Praia do Camilo’s sandy beach which is one of the most spectacular beaches in Portugal.

Hotel Mar Azul | Best Hotel in Lagos

Hotel Mar Azul Lagos

Ah, the Hotel Mar Azul! This beautiful hotel puts you just a three-minute walk to the ocean. You’ll be just minutes away from the calm waters at Meia Praia Beach— a great kite surfing spot! Plentiful cafes and restaurants surround this hotel, so you won’t be struggling to find delicious meal options. It’s one of the best places to stay in Lagos.

Olive Hostel Lagos | Best Hostel in Lagos

Olive Hostel Lagos Portugal

Olive Hostel is a social hostel that still has homey, chilled-out vibes.  You’ll be right in the heart of the old city centre, close to all the bars, restaurants, and tourist sites. What’s even better is that you’ll be just a 10-minute walk to the beach!

You’ll feel right at home at Olive Hostel— it’s so cosy, chill, and comfortable. Olive Hostel is the perfect spot to base yourself for your Lagos adventure.

JJ’s Yard | Best Party Hostel in Lagos

JJ’s Yard, Lagos Portugal

This place is a second home to me as I spent nearly two months volunteering here. But it is THE best party hostel in Lagos. The hostel has a super social vibe and runs a nightly pub crawl (with pre-drinks at the hostel, so you can save on those euros… they get it)

The owner is JJ and makes every guest feel welcomed into the family as soon as they arrive. You can’t miss staying here if you’re heading to Lagos to party.

Casa Hortelã | Best Airbnb in Lagos

Casa Hortelã Portugal

Whoever designed this place understood the assignment. The vibe of this charming little apartment is on-point, with wooden floors, plants everywhere and gorgeous decor. It feels like home as soon as you walk in the door.

Located close to the old town, you’ll be well situated for the action of the town – including bars, restaurants, shops, museums, churches and so much more. You’re also steps from the waterfront to take a stroll along the front and down to the beaches.

Things To Do and See in Lagos

a panoramic view of batata beach in lagos, portugal
The ideal spot to recover from a heavy ol’ night.
Photo: @amandaadraper
  1. Join a pub crawl! These are organised by party hostels such as JJ’s Yard.
  2. Marvel at the incredible coastal rock formations of Ponta Da Piedade.
  3. Join a guided kayak tour and explore the coast.
  4. Rent a SUP (stand-up paddleboard) and venture along the coast. Take a snorkel with you!
  5. Stop in to see the Lagos Fortress, also known as the Forte da Ponta da Bandeira.
  6. Relax and swim at the most popular beaches, Praia Da Batata & Praia Do Pinhao.
  7. Visit the Igreja de Santo António church.
  8. Hike the Hike Seven Hanging Valleys Trail, one of the best trails in Portugal.

7. Madeira – Best Place to Stay in Portugal for Adventure

Ahh, Madeira… an adventurer’s paradise. This special island is technically in Portugal but is in fact on an island located off the coast of Africa. Home to a unique landscape, Madeira is rugged, subtropical and just all-around sexy to any adventurer.

It welcomes nature lovers with open arms into its embrace brimming with delicious wine, mountain villages, hiking trails, rolling waves, and an EPIC underwater world begging to be explored. The hiking trails in Madeira are world-famous… you won’t want to miss them.

san louerco hike madeira
Photo: Chris Lininger

Although it’s a bit of a mission to get to from Portugal, it’s so worth it. Madeira is connected to the world by the one and only Cristiano Ronaldo International Airport… yep, this is Ronaldo’s home island and, as you can see, they are pretty proud of it.

The island is fairly big and has many different areas to stay. The north is greener, mistier and sees more rain than the south, whereas the south is more urbanised and beachy. Funchal is the best area to stay in Madeira for getting around the place with no car (it’s the capital of the island).

Aqua Natura Bay | Best Hotel in Madeira

Aqua Natura Bay Portugal

If you’re heading to Madeira, you’ll probably be spending a lot of time in the mountains or on the beaches and the BEST thing after a day of action is returning to a nice room. And mate, to say that Aqua Natura Bay have nice rooms is the understatement of the century. The rooms are beautiful, and modern and have incredible views across the sea.

Not to mention the indoor and outdoor swimming pool, a Turkish bath, a sauna, a hot tub, a gym AND an on-site diving centre. Enter at your own risk… you may never want to leave.

Jaca Hostel Porto da Cruz | Best Hostel in Madeira

Jaca Hostel Porto da Cruz Portugal

This is one of the coolest hostels in Madeira (or just EVER). I love the chilled-out, artsy vibe – it attracts an awesome crowd. Other than pizza night Fridays… the hostel is a quiet, relaxed place to hang out before and after hitting the surf or the mountains.

The hostel is located in Porto da Cruz, you’ll be ideally placed a one-minute walk from the beach!! How good is that? These guys offer dorm rooms, twin rooms and double rooms – so whether you like a bit of privacy or sleeping in a room full of fellow travellers, they have you covered.

Tipi in Ponta do Sol | Best Airbnb in Madeira

Tipi in Ponta do Sol Portugal

If you’re going to Madeira to hang out in the mountains, why not go one further and stay in the mountains… in a Tipi?

Guys, this is no average stay, the magic can be felt as soon as you arrive. Surrounded by insane views across the sea, a lush garden, a kitchen and a bathroom. Although you’ll be staying in the mountains here, don’t worry, you won’t be roughing it. This is glamping at its finest.

Things To Do and See in Madeira

Clouds hugging the rugged coastline at sunset along the VEREDA DO LARANO hike
Not bad Madeira, not bad.
Photo: Chris Lininger
  1. Hike 25 Fontes Trail, the most popular on the island.
  2. Visit the beautiful Santana Traditional Houses.
  3. Take on the Pico to Pico Hike, another iconic Madeira trail.
  4. Head to the Vereda dos Balcões for some incredible views.
  5. Join a sunrise hike from Pico do Arieiro to Pico Ruivo
  6. Check out the Monte Palace, one of the world’s best botanical gardens.
  7. Visit the black sand beach at Seixal.
  8. Go snorkeling at Garajau Nature Reserve.
  9. Check out a few of Madeira’s best beaches, Praia da Calheta, Machico and Ponta do Sol.

8. Porto – Coolest Place to Stay in Portugal

It’s no secret that Porto is the best city to stay in Portugal to enjoy great wine! Porto, on Portugal’s Northwest coast, is where port wine was invented but there are plenty of other varieties available.  There are lots of beautiful buildings and historic spots from the iconic Livraria Lello bookshop, to the neoclassical Bolsa Palace.

Looking over the bridge and river of Porto, Portugal
Porto is the most beautiful city I’ve ever seen. Period.
Image: Nic Hilditch-Short

But if it’s wine that you’re really after, then make sure you spend the most time on the wine trail! You should head over to Calem Cellar and tour their beautiful port wine cellars and learn about their ancestral traditions.

Try to stay in the medieval Ribeira district, also known as the Riverside district. The winding cobblestone streets are filled with treasures— chic cafes and old merchants’ houses! City life here is pretty cool.

Ribeira do Porto Hotel | Best Hotel in Porto

Ribeira do Porto Hotel Portugal

The Ribeira do Porto Hotel is simply divine. It’s a luxury hotel that dwells in the upscale Ribeira District that overlooks the Douro River. On the second floor of the hotel, there is A Tasca Bar that serves a complimentary breakfast buffet each day.

While this hotel is a bit more of a splurge, it promises a memorable stay in a beautiful central location. Most rooms even overlook the river and the iconic D. Luis Bridge!

Porto Spot Hostel | Best Hostel in Porto

Porto Spot Hostel Portugal

The Porto Spot Hostel is simply fabulous. Enjoy complimentary breakfast each morning and hop on the hostel pub crawls in the evening. The hostel also provides guests with FREE walking tours of the city, so you’ll love getting a local view of the city. It’s located in the city centre – which is one of our favourite neighbourhoods to stay in Porto – and is close to many of the city’s top spots.

WONDERFULPORTO TERRACE | Best Apartment in Porto

WONDERFULPORTO TERRACE Portugal

The reviews for this place speak for themselves – not one person can fault this special spot. Boasting some of the BEST views over the Douro River and Porto’s picturesque centre.

The apartment gets flooded with natural light and is brimming with historic character. This recently renovated, 19th-century building has an elegant and cosy charm. The apartment is not only gorgeous but it is equipped with everything you could need – from a stacked-out kitchen (with a Nespresso machine!!) to a mini-bar with FREE drinks.

Things To Do and See in Porto

A francesinha sandwich in Porto, Portugal
Said, Francesinha is not for the faint-hearted.
Image: Nic Hilditch-Short
  1. Explore the museum and surrounding gardens at Fundação de Serralves.
  2. Taste the local produce at Mercado do Bolhão.
  3. Buy a book from the world-famous bookshop, Livraria Lello.
  4. Take Luis I Bridge in the views from the top of the Clérigos Tower.
  5. Enjoy the sunset from Luis I Bridge.
  6. Marvel at Ribeira’s district view of Porto’s centre from across the water.
  7. Enjoy a wine tasting at the Port Wine Cellars (you can’t go to Porto without trying some Port).
  8. Or, do one better and join a tour to visit Douro Valley for a wine tasting!
Travel with peace of mind. Travel WITH a security belt.
Active Roots Security Belt

Stash your cash safely with this money belt. It will keep your valuables safely concealed, no matter where you go.

It looks exactly like a normal belt except for a SECRET interior pocket perfectly designed to hide a wad of cash, a passport photocopy or anything else you may wish to hide. Never get caught with your pants down again! (Unless you want to…)

Hide Yo’ Money!

FAQs About Finding a Place to Stay in Portugal

Here’s what people usually ask us about the areas of Portugal and where to stay.

What To Pack For Portugal

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.

Product
Description
Don’t Let Snorers Keep You Awake!
Don’t Let Snorers Keep You Awake!

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.

Keep your laundry organized and stink free
Keep your laundry organized and stink free

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.

Stay Dry With a Micro Towel
Stay Dry With a Micro Towel

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.

Make Some New Buddies…
Make Some New Buddies…

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.

Reduce Plastic – Bring a Water Bottle!
Reduce Plastic – Bring a Water Bottle!

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 Hotel Packing list for even more top packing tips!

Don’t Forget Travel Insurance for Portugal

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 Portugal.

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!

Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.

Final Thoughts on Where To Stay in Portugal

Packed with wonderful places to stay in Portugal, you’re sure to have an incredible trip. Whether you want to do a hike on Sao Miguel or sip some delectable port wine in Porto, you’re sure to love where you go. I hope that you found what you were looking for here on my handy dandy Portugal & Azores guide.

If you’re still unsure, I’d recommend checking out my fav hostel in Portugal: Bela Vista Hotel & Spa. Nestled into the gorgeous Algarve, you can’t go wrong staying here.

If you’re heading to Portugal on a tighter budget, I feel ya. In this case, I’d recommend Nice Way Sintra – Sintra. It’s a SUPER unique stay, you’ll feel like royalty at a fraction of the cost.

Wherever you end up, Portugal has so much to offer. I hope you love it as much as I do <3

A pastel de Nata in Portugal
Portugal and pastel de natas await!
Image: Nic Hilditch-Short
Looking for more info on travelling to Portugal?

Buy Us a Coffee!

A couple of you lovely readers suggested we set up a tip jar for direct support as an alternative to booking through our links. So we created one!

You can now buy The Broke Backpacker a coffee. If you like and use our content to plan your trips, it’s a much appreciated way to show appreciation 🙂

the broke backpacker team at the water temple in bali
Thank you <3