Where to Stay in Faro: Best and Coolest Places to Stay in Faro

If you are looking for a mix of mesmerizing beaches, great food, and fantastic weather, then Faro is the place for you in southern Portugal.

And you know what the coolest thing about Faro is? It doesn't matter if you are looking for a relaxing vacation or a vibrant nightlife; when visiting Faro, you can have it all – topped with the most delicious seafood and fresh fish!

Let me show you my favorite areas, the best things you can do, and the best hotels in Faro in this ultimate guide on where to stay in Faro.

The Best Areas to Stay in Faro

Cidade Velha (Faro Old Town) – If you are coming to Faro for the history, architecture, and culture, Cidade Velha (Old Town in English) is where you should stay. The heart of Faro, this downtown Faro area is recognized for its cobblestone streets and historic buildings. Staying here means you're within walking distance of notable tourist attractions like the Faro Cathedral or the Arco da Vila, but it also means you are close enough to some of the best beaches in the area.

Ria Formosa Natural Park – This area is perfect for nature lovers and those seeking tranquility away from the city bustle. The Ria Formosa is a stunning natural lagoon that offers beautiful landscapes, unique wildlife, and outdoor activities such as bird watching, kayaking, and boat tours.

Praia de Faro (Faro Beach) – If you're looking for a beach holiday, Praia de Faro is the place to go. This long sandy beach offers a variety of watersports, beach bars, and seafood restaurants and is perfect for those who want a beachside stay with easy access to the city center.

Estoi – Estoi is where you go if you are looking for a peaceful retreat in the countryside that is still close to the beach. Offering a quieter, more relaxed pace of life and accommodations, Estoi is perfect if you have a soft spot for rural tourism.

Marina de Faro (Marina and Port area) – If you are coming to Faro for maritime activities or simply enjoy scenic waterfront views, then Faro's Marina is the place for you. Bustling with activity, it offers boat tours to the Ria Formosa and its unique islands and is lined with restaurants and bars. 

1. Where to Stay in Faro for First-Time Visitors: Cidade Velha

Cidade Velha (Old Town), or Downtown Faro, is the cultural and historical heartbeat of the city, ideal for those looking to immerse themselves in the Algarve's rich heritage and lively urban atmosphere.

Encircled by the city walls, this historic quarter is a tranquil escape from the more modern and ecstatic parts of the city.

Coming to Faro's Old Town is like stepping back in time. The cobblestone streets will take you to charming alleys and hidden plazas, opening up to the splendor of classic Portuguese architecture.

Here, you'll find traditional whitewashed houses adorned with decorative tilework, and you'll feel yourself immersed in the layers of history from Faro's Roman foundations to its Moorish influences and Christian reconquest. Many of the best Faro hotels are found here!

If you're a history buff, the Old Town is where to stay in Faro. But Downtown Faro is not only about architecture, culture, and history. The city centre area is bustling with cafes, restaurants, and bars, offering a lively atmosphere both day and night.

Take my advice and eat all the seafood and fish you can because you won't regret it! Being so close to the Ria Formosa means the products will be fresh and delicious. And remember to pair it with some green wine (Vinho Verde). You can thank me later.

Things to Do in Cidade Velha

• Visit the Faro Cathedral (Sé de Faro)

• Take a picture at the Arco da Vila – a medieval archway that takes you directly to the heart of downtown Farofaro

• Explore the charming downtown area on foot

• Sample Algarvian dishes and enjoy the region's seafood and wines

• Go for a walk in the Faro Marina

• Catch Stunning views of the Ria Formosa from the city walls

• Explore the local art and craft shops offering unique souvenirs

Best Area For:

• First-time visitors

• Historic culture lovers

• Foodies

• Visitors looking for peaceful strolls through picturesque streets

• Romantic getaways

Best Hotels to Stay in Cidade Velha/Downtown Faro

($$$) 3HB Faro

($$) Hotel Faro & Beach Club

($) Faro Guest Apartments

2. Where to Stay in Faro for Nature Lovers: Ria Formosa Natural Park

One of the most beautiful, if not the most, natural landmarks in the Algarve – or I might risk saying Portugal. The Natural Park is a mix of gorgeous landscapes, biodiversity, and cultural heritage.

In this 60 km long protected area, you'll find barrier islands, sandbanks, lagoons, and channels that change with the tides, creating a unique and unforgettable ecosystem.

And as we're talking about the islands of Ria Formosa, let me say this: stunning. There are several islands in the Ria – Ilha de Faro, Ilha da Barreta (also known as Ilha Deserta or desert island), Ilha da Culatra, Ilha da Armona, and Ilha do Farol – and the most challenging thing you'll do during your stay in Faro is choose with which one to start. These are the region's most pristine and least crowded beaches, where you'll find a serene escape for sunbathing, swimming, and relaxing.

Accommodations here range from luxury resorts to cozy guesthouses. If your stay in Faro is all about nature and relaxation, then this Natural Park is the perfect place to stay (and never want to leave).

Also, if you are looking for a different kind of stay, you can even rent a boat in the middle of the Ria and spend your days there!

Note about Ilha de Faro: If you are looking for an escape from the real world in a relaxed beachside setting, then Ilha de Faro is where you should go!

Accessible from the mainland by a bridge or by boat, Ilha de Faro offers a one-of-a-kind beach experience with its laid-back atmosphere, beachfront cafes, and water sports. Less touristy than Praia de Faro, Ilha de Faro provides a variety of holiday rentals.

Things to Do in Ria Formosa Natural Park

• Bird watching – especially during the spring and autumn migratory periods

• Take a boat tour to explore Ria Formosa

• Spend a beach day at one (or all) of the stunning barrier islands

• Try kayaking or stand-up paddleboarding

• Enjoy the scenic views on one of the walking or cycling trails around the lagoon

• Visit the natural sea salt pans

Best Area For:

• Nature lovers

• Bird watchers

• Those who want to spend relaxing days at the beach

• Honeymooners

Best Hotels to Stay in Ria Formosa Natural Park

($$$) Conrad Algarve

($$) AP Cabanas Beach & Nature

($) Pure Formosa Concept Hotel

3. Where to Stay in Faro for Families and Beach Lovers: Praia de Faro

Praia de Faro, or Faro Beach, is an expansive sandy shoreline that separates the calm waters of the Ria Formosa lagoon from the Atlantic Ocean. Accessible through a narrow bridge that crosses the Natural Park, Praia de Faro has a unique blend of natural landscapes, leisure activities, and cultural experiences. 

If you're looking for a family holiday, then the lagoon side of this barrier island is the ideal spot to take your children. Its gentle slopes and protected waters make it the perfect safe place for swimming, sports, and other water activities such as surfing.

In Praia de Faro, you'll find a lot of surf schools, and given the calmer nature of the lagoon waters, this might be a good opportunity for you to try a new water sport.

 While at Praia de Faro, make sure to enjoy the local cuisine, especially the seafood. Finding a restaurant will be easy as the area is lined with many restaurants, many of which offer an outside seating area with stunning views to the sear or the lagoon.

 If you are going during the summertime, make sure you make reservations ahead, as the best restaurants get full pretty quickly. Another advice I can give you is to always travel with a mosquito repellant, particularly if you'll be dining al fresco near the lagoon.

Things to Do in Praia de Faro

• Spend a day relaxing and sunbathing at the beach

• Take a surf, kite surf, or paddleboarding lesson

• Watch the sunset from one of the restaurant's outdoor seating areas while enjoying fresh seafood and a cold beer

• Stroll along the expansive beach area line

• Go on a dolphin-watching boat tour

Best Area For:

• Families

• Beach lovers

• Groups of friends

• Couples

• Water sports enthusiasts

Best Hotels to Stay near Praia de Faro

($$$) 3HB Faro

($$) Golden Beach Guest House & Rooftop Bar

($) Pine House 

4. Where to Stay in Faro for Couples Who Want to Relax: Estoi

You'll find Estoi nestled in the serene Algarve countryside. A short drive away from Faro's city center, this village is less frequented by tourists and, for that reason, a quieter and more peaceful escape.

Estoi is undoubtedly the perfect Faro stay for you if you need some tranquility. The proximity to Faro makes Estoi a quiet base for exploring Faro city or even the wider Algarve region.

Just 20 minutes away from the city and 30 minutes away from the most stunning beaches of the Algarve region, this tranquil alternative, surrounded by rolling hills, olive groves, and orange orchards, invites you to unwind in its natural surroundings.

Offering the best of Algarve's countryside, Estoi is ideal for leisurely walks, cycling, and picnics. I've had the pleasure of spending one blissful week at Estoi the past summer, and I can only tell you that it was a memorable and enriching experience I want to repeat soon.

Things to Do in Estoi

• Visit the Palácio de Estoi (Estoi Palace) and gardens

• Explore the Milreu Roman ruins with their well-preserved villa complex dating back to the 1st century

• Have a picnic in the countryside

• Browse the monthly village market for regional food products and handmade crafts

• Visit the local restaurants to try the traditional Algarvian gastronomy, including seafood, Iberian pork, locally produced olive oils and wines

Best Area For:

• Couples

• Relaxation

• Culture lovers

• History enthusiast 

Best Hotels to Stay in Estoi

($$$) Pousada Palacio de Estoi

($$) Quinta do Mocho Turismo Rural

($) Casa de Estoi

5. Where to Stay in Faro for Nightlife: Marina de Faro (Marina and Port Area)

The Marina the Faro is a bustling area where the city's energy blends with the sea's tranquility. Right in the heart of the town, this area serves not only as the starting point to explore the Ria Formosa wonders (by boat, of course) but also as a major area for dining, leisure, and nighttime entertainment in the city of Faro.

Its proximity to both the scenic beach fronts and the historical and cultural attractions make Marina de Faro a must-visit destination or a great choice as the place to stay in Faro.

From here, you can either hop on a boat to spend a day discovering the secluded beaches of the Faro area, or you can enjoy the bustling nightlife that can be felt around the bars and restaurants that line the Marina de Faro.

Many of the most luxurious and popular hotels in Faro can be found around the Marina, complete with an outdoor swimming pool for the hot summers or spa and wellness center facilities for the winter months. Another thing you'll find in most of the faro hotels in the marina area is a rooftop terrace – the perfect spot to unwind, sip on a cocktail, and simply relax.

Things to Do in Marina de Faro

• Explore the beauty of the Ria Formosa by boat

• Enjoy the lively atmosphere of the marina with an al fresco dinner

• Take a short walk to the Cidade Velha (old town)

• Shop around the marina shops, boutiques, and markets, featuring everything from traditional Portuguese crafts to contemporary fashion

• Spend a day practicing surfing, kitesurf, stand-up paddleboarding, or sailing

Best Area For:

• Adventure seekers

• Water sports enthusiasts

• Groups of friends

• Nightlife lovers

• First-time visitors

Best Hotels to Stay in Marina de Faro

($$$) AP Eva Senses

($$) Roots Hotel

($) Aqua Ria Boutique Hotel

Where to Stay in Faro – Frequently Asked Questions

📍 What's the best part of Faro to stay in?

First-time visitors looking for a central location from which they can soak both the historical culture and the stunning beach fronts will find their perfect fit in Cidade Velha (downtown area) or Marina de Faro. Families looking for a relaxing beach vacation with calm waters and great restaurants with options for all tastes and wallets should definitely go to the Praia de Faro. Couples or people who prefer calm and relaxing holidays have Estoi and the Natural Park as their best options. With their tranquility and beauty, this will be a tough choice.

⭐ Is it worth staying in Faro?

Totally! Faro is the center of the Algarve, close to the international airport and a quick ride away from all the major Alrgave cities. It has everything anyone can be looking for:

• The natural beauty (Ria Formosa)

• The nightlife (Marina de Faro)

• The history and culture (Cidade Velha, Old Town)

• The infinite and safe beach walks (Praia de Faro)

• The countryside allure (Estoi)

A vacation in Faro can be a mix of culture, nature, and sunbathing. You definitely won't get bored during your stay in Faro.

❓ Is it better to stay in Faro or Tavira?

This is a question of what you are looking for in your visit. Both cities offer unique and unforgettable experiences, great food, and stunning beach options, so, in the end, it will be more about what you want to do during your stay than what these amazing places offer.

For a more urban and cultural experience, choose Faro. Visiting Faro offers the convenience of an urban center, quite close to the Faro International Airport and the Natural Park. In Faro, you blend cultural attractions and history (Faro Old Town) with a touch of bustling city life and a considerable variety of dining and nightlife options (Marina de Faro).

For charm and a relaxed pace, choose Tavira. More traditional and charming, Tavira also has its fair share of historical sites (from Roman bridges to castle ruins) and its own island (Ilha de Tavira), accessible by boat; this is the highlight of this area. Quieter than Faro, Tavira is a good option if you are looking for a more laid-back holiday.

📅 How many days in Faro is enough?

Typically, 2 to 3 days is enough for most people to explore the city's main attractions without feeling rushed. On the other hand, Faro is also a wonderful place if you are looking for an excellent area to spend a relaxed week near the beach, eating great food.

Where to Stay in Faro – Final Words

I know I might be a little biased because Faro I live just 2.5 hrs away (lucky me), but believe me when I say that Faro is a paradise on earth. Beyond its rich culture, Faro is the entrance to the stunning Ria Formosa Natural Park and offers quick access to some of the country's most beautiful beaches and islands.

From wandering the Cidade Velha's cobblestone streets to enjoying the serene natural surroundings and local flavors, Faro will surely offer you a unique and memorable Portuguese escape – check out other wonderful Portuguese cities here. I hope my guide has helped you where to stay in Faro on your next trip!