Where to stay in Portugal in 2025: hotels, apartments, guesthouses or villas?

Planning a trip to Portugal and not sure whether to book a hotel, an apartment, a guesthouse or a villa? This guide explains the pros and cons of each type of accommodation, so you can choose the best place to stay for your budget, travel style and itinerary.

Portugal offers an enormous variety of places to stay. In the same street, you might find a traditional guesthouse run by a local family, a modern serviced apartment, a boutique hotel in a historic building and a vacation home with a rooftop terrace. Instead of asking “What is the best option?”, it is usually better to ask “What is the best option for this trip, in this city, with this budget?”

Hotels in Portugal: when they make the most sense

Hotels are still the most straightforward choice for many travelers. In Portugal, you will find everything from simple two-star city hotels to five-star luxury properties with spas, rooftop pools and fine dining.

Advantages of hotels

• Simplicity: easy check-in, clear pricing, daily cleaning and front-desk support.
• Services: breakfast, room service, on-site restaurants, bar, gym or spa.
• Central locations: many hotels are close to train stations, metro stops and main sights.
• Good for short stays: perfect if you stay only one or two nights in the same city.

Disadvantages of hotels

• Less space than an apartment or villa, especially for families.
• Less local feeling — sometimes you could be “anywhere” in the world.
• Extra costs for parking, breakfast or late check-out in some cases.

Best for: short city breaks, business trips, first-time visitors who want comfort and support, couples who prefer services over self-catering.

Apartments and serviced flats: living like a local

Serviced apartments and short-term rentals are very popular in Lisbon, Porto, the Algarve and coastal towns. They are ideal if you want more space, a kitchen, or a place that feels closer to everyday Portuguese life.

Advantages of apartments

• More space: separate bedroom, living room, sometimes a balcony or terrace.
• Kitchen: you can cook, prepare breakfast or eat in after a long day.
• Better value for groups: families or friends can share one large flat.
• Long-stay friendly: perfect for digital nomads or trips of a week or more.

Disadvantages of apartments

• Fewer services: no daily cleaning in some properties, no 24/7 reception.
• Check-in can be less flexible: you may need to coordinate keys or codes.
• You may not have someone on-site to solve small issues immediately.

Best for: remote workers, families, travelers staying more than three or four nights, anyone who prefers space and independence to hotel-style service.

Guesthouses and bed-and-breakfasts: local, warm and personal

Guesthouses (often called “Guesthouse”, “Alojamento Local” or “Casa de hóspedes”) are one of the most charming options in Portugal. They are usually smaller than hotels, with fewer rooms and a more personal atmosphere.

Advantages of guesthouses

• Local connection: you often meet the owners and get insider recommendations.
• Character: historic buildings, traditional tiles, personal decor.
• Breakfast: many include homemade breakfast with regional products.
• Good value: often cheaper than boutique hotels in similar locations.

Disadvantages of guesthouses

• Less privacy than a full apartment if you share common areas.
• Limited services: no 24/7 reception, smaller staff, sometimes no elevator.
• Sound can travel more in older buildings.

Best for: couples, solo travelers, slow travelers who want to connect with local hosts, and anyone who values atmosphere and human contact.

Villas and holiday homes: space, privacy and outdoor living

In regions like the Algarve, Silver Coast and countryside areas, villas and detached houses are very popular. They are ideal for families, groups and long summer holidays, especially if you want a pool, private garden or barbecue area.

Advantages of villas

• Maximum space: multiple bedrooms, living rooms, outdoor areas.
• Privacy: no shared walls or corridors, ideal for groups.
• Outdoor lifestyle: terraces, pools, gardens, barbecue, space for kids.
• Good value per person: when shared by several people, the cost per guest can be lower than multiple hotel rooms.

Disadvantages of villas

• Usually located outside city centers — often need a car.
• No hotel services: you manage your own cleaning, cooking and organization.
• More responsibility: security, pool safety, and house rules are yours to manage.

Best for: families, groups of friends, long stays, travelers who want space and privacy in the countryside or by the coast.

How to choose based on your destination

Your ideal type of accommodation also depends on where you are going in Portugal.

Lisbon and Porto

In big cities, hotels, guesthouses and serviced apartments are the most practical:

• Choose a hotel or guesthouse if you want to be close to sights, restaurants and public transport.
• Choose an apartment if you plan to stay at least four or five nights or work remotely.

Algarve and coastal towns

On the coast, many travelers prefer villas and holiday homes, especially near Lagos, Tavira or Albufeira. However, small guesthouses and eco-hotels can be perfect if you are traveling as a couple and want comfort without managing a whole house.

Interior and rural regions

In Alentejo, Douro Valley or inland villages, rural guesthouses, farm stays and wine hotels are often the best options. They combine accommodation, local food and experiences such as wine tasting, horseback riding or hiking.

How budget changes your accommodation choice

Lower budget

• Look for guesthouses, basic hotels or small apartments slightly outside the most touristic streets.
• Travel outside peak season (July–August) to reduce prices.
• Accept simpler decor in exchange for a good location.

Mid-range budget

• Consider boutique hotels in smaller neighborhoods.
• Choose serviced apartments with good reviews on cleanliness and comfort.
• Combine a city hotel with a few nights in a rural guesthouse or coastal stay.

Higher budget

• Explore design hotels, wine resorts and luxury villas.
• Look for stays that include experiences: spa access, tastings, tours.
• Prioritize places that turn accommodation into part of the destination itself.

Practical tips before you book

• Check exact location: in Portugal, being 2 km away from the center can mean a steep hill or limited public transport.
• Look at recent reviews: focus on cleanliness, noise, Wi-Fi and hot water.
• Confirm parking: essential if you are driving, especially in old town centers.
• Ask about stairs: many historic buildings have no elevator.
• Check cancellation policy: flexible options are helpful if your plans might change.

There is no single “best” type of accommodation in Portugal — only the option that best matches your trip. For quick city breaks, hotels and guesthouses are ideal. For slow travel, remote work or family holidays, apartments and villas can make you feel at home. For countryside and wine regions, rural guesthouses and nature retreats offer experiences you will not find anywhere else.

If you plan your accommodation with the same care as your itinerary, where you stay will become one of the highlights of your time in Portugal.