Albufeira is one of the Algarve’s leading accommodation spots, drawing tourists from across the continent. The clientele here are relatively young, and many can’t afford the high prices tagged to the outlying all-inclusive resorts. The result is a divide between lavish resort communities and mid-range inns in the city centre.  

The most popular place to stay is near any of the city’s central beaches. Smaller hotels here may not provide all of the amenities of the resorts, but they offer outstanding views of the sea within convenient walking distance of the main attractions. Guests of the resorts are generally more concerned with service and don’t mind the short drive to the city centre.

Cerra Alagoa along Rua do Munícipio in the city centre has several accommodation options. The leading hotel here is the Villa Galé, a hotspot for guests from northern Europe. Each room offers a balcony with views over a nearby beach. The onsite English Pub is especially popular and regularly hosts patrons of other hotels. 

Several hotels are located along Rua Samora Barros Cerro de Piedade. This area is offset from the beach so prices are a bit lower but guests can still reach all the major sites including the waterfront in just a few minutes’ walk. The Estalagem do Cerro inn overlooks the bay from its hilltop location. Built in the 1960s, it boasts a vintage ambiance. 

Montechoro, less than two miles from the city centre, has several options. Prices here are lower here as hotels in this area are offset from the beach. Hotel Montechoro is the best option in this area and offers views of the countryside rather than the sea. 

Falésia Beach, five miles east of the old city, is home to the Sheraton Algarve Resort. This resort complex is completely self-sufficient and feels more like a separate village than part of Albufeira. Rooms are luxurious and priced accordingly, with exclusive suites that are only an option for the region’s wealthiest visitors. Guests can enjoy three swimming pools, nine restaurants and a nine-hole golf course.  

Santa Eulalia Beach is another important sandy stretch with a sprawling resort complex. Grande Real Santa Eulalia is less than three miles from the city centre though guests of this resort can easily forget that the outside world exists. Five restaurants, even more bars and vast sporting facilities keep guests entertained. The Grand Real offers childcare and a play centre, making this an excellent option for families with children. 

Other popular beach resorts include Clube Mediterraneo de Balaïa at Maria Luisa Beach and Hotel Vila Joya at Galé Beach. The latter is easily the most luxurious that Albufeira has to offer. Even its most modest rooms are lavish and expensive. It is situated 10 miles west of town and boasts gardens, provincial walking paths and unrivalled views over the sea.