The 5 Best Areas Where to Stay in Lagos, Portugal (with Hotels & Prices)

Lagos 1

Lagos Algarve is one of the most beautiful cities in the Algarve Region of Portugal known for its relaxing beaches, epic cliffs, impressive historical buildings, and colorful nightlife. It is not easy to find all of these in one summer holiday destination. So, get ready to fall in love with Lagos!

You might have some questions on your mind while trying to figure out which area is more suitable for your taste, but don’t worry, I will help you to find an answer for where to stay in Lagos, Portugal! I’ve broken the city down into the top 5 neighborhoods and will give you my recommendations for the best hotels to stay in each one for all budgets. 

Whether you want to stay in a beach resort or a boutique place with a local vibe, I will help you to find your dream home away from home. Once you have picked your place, make sure to make a booking in advance as these hotels are selling faster than you think! It will also help you to get better deals and most of the time, you can cancel for free if you really need to!

If you are ready, let’s go on a magical journey to Lagos, Algarve!

If you are in a hurry

Here are the best places to stay in Lagos, Portugal with hotels from luxury to budget. They all have great reviews and great locations! 

luxury hotel
0 1 Iberostar Selection Lagos

Iberostar Selection Lagos

Best luxury hotel

mid-range hotel
0 3 Dom Pedro Lagos mid range

Dom Pedro Lagos

Best value for money

budget hotel
0 4 Olive Hostel Lagos budget

Olive Hostel Lagos

Best affordable accommodation in the center

0 2 Historic centre Stylish Apartment

Central Stylish Apartment

An Airbnb with amazing reviews

Psst! The city of Lagos is part of the beautiful Algarve Coast and I have a whole article on accommodation in each part of the cost, check it out too!

This map will help you visualize where to stay in Lagos, it shows the best 5 areas I will be talking about in this travel guide:

map of Lagos Best neighborhoods
LagoS Old Town
for first-timers
Lagos Marina
for water sports
Batata Beach
best of both worlds
Meia Praia
for families
Dona Ana Beach
for beaches

1. Lagos Old Town – where to stay in Lagos, Portugal for the first time

1 Lagos Old Town

Lagos Old town (by the way, there is also Lagos in Nigeria, do not confuse the two!) is the historical center of the city and you will be amazed by this picturesque town from the first second. If you are a fan of Portuguese tiles, charming cobblestone streets, medieval buildings, and cool street art, then you will love Lagos Old Town!

This is a very vibrant place with lots of shops, cafes, restaurants, and bars. It also has a convenient location to access the beaches on foot. Whether you are a history lover or beach bum, Lagos Old Town has everything to make every kind of traveler happy, that’s why it’s my pick for first-time visitors. 

Here you will be able to find a great selection of hotels for all budgets but since this area is very popular, do not forget to make your booking in advance so you don’t miss your favorite hotel. Speaking of charming Portuguese towns, I highly recommend you check out the best places to stay in Lisbon while you’re in the country!

Now, let’s check out the best places to stay in Lagos Old Town:

Luxury hotel
1 1 Residence Lagos In the city center

This luxurious hotel is located at the heart of Lagos Town. Residence Lagos offers a nice rooftop terrace where you can enjoy Portuguese wine while watching the sunset, spacious rooms, free parking, and a great breakfast. The best beaches and restaurants in town are just a short walk from the hotel making Residence Lagos one of the best places to stay in Lagos to explore the city.

Other accommodation options in Lagos Old Town

1 2 Inn Seventies With the pool

This centrally located hotel offers an outdoor swimming pool, a sun terrace, and spacious rooms

1 3 Olive Hostel Lagos

The Olive Hostel is within walking distance to the beaches, has a bar and terrace where you can take yoga lessons

1 4 Central Stylish Apartment

This Airbnb has a great location in the city center and offers fully equipped rooms with free wifi

Things to do in Lagos Old Town

2. Lagos Marina – the best place to stay for water sports

2 Where to stay with the family Lagos Marina

Lagos Marina is just a 10-minute walk from the Lagos Old Town and is a glamorous place to stay for water sports lovers. You can go on sailing tours, watch dolphins, head to the beaches for swimming, kayaking, and surfing, or just simply enjoy a nice sunset walk on the marina.

Lagos Marina has a very convenient location to reach all of the attractions. Within a 10 minute walk, you can find yourself in the Old Town or a beautiful place with amazing cliffs.

In Lago Marina, you will be able to find nice shops, great Portuguese restaurants by the water, and cute bars. Here there are also nice hotels from luxury to budget and I have already picked the best ones for you. I don’t want you to miss the chance of staying in these beautiful hotels so do not forget to make your booking in advance!

Lago Marina is also a great starting place if you want to head off and explore other parts of the region. If you are planning on spreading your trip over multiple spots, you might want to read my post about where to stay in Algarve!

Luxury hotel
2 1 Lagos Avenida Hotel With spa

Lagos Avenida Hotel is located right at Lagos marina and offers amazing Atlantic ocean views. The beautiful hotel has a nice outdoor pool, a very good breakfast, air-conditioned rooms with a private balcony, a bar, and private parking. Faro Airport is an hour’s drive and the city centre is within walking distance.

Other accommodation options in Lagos Marina

2 2 Casa Flor do Mar

This hotel offers rooms with traditional Portugues decoration, a terrace, free wifi and is within walking distance to the beach

2 3 Casinha Alegre Rooms

This traditional Portuguese style apartment features fully furnished rooms, free wifi and is a 5-minute walk to the beaches and town center

2 4 Sea View Penthouse airbnb

Centrally located near the beach, this Airbnb offers an amazing terrace overlooking the Atlantic ocean and rooms with great amenities

Things to do in Lagos Marina

3. Batata Beach – the best of both worlds in Lagos, Portugal

3 Batata Beach For nightlife

Batata Beach is located 2 km (1 mile) south of Old Town Lagos. It is a very charming neighborhood with a great beach town vibe. Here you will find many nice shops, bars, and restaurants, but the best thing about this area is that you are located right between Batata Beach and the Old Town which is also the party district. 

Doesn’t it sound exciting to stay in a place with gorgeous beaches but also be very close to the best nightlife in town!?

Batata beach offers golden sand beaches with unique cliff views. Spend your days chilling on the beach swimming in the crystal clear water, kayaking, and paddleboarding. But if you want to enjoy the nightlife, don’t be hard on yourself during the day as the bars and clubs in the Old Town are open till the early hours of the morning!

Luxury hotel
3 1 The Salty Lodge with ocean view

This resort overlooking the Atlantic ocean offers a spacious room with views, private parking, and an airport shuttle. Guests can rent a bike and surfboards for free from the resort. The beach, restaurants, and town center are all just a 5-minute walk.

Other accommodation options in Batata Beach

3 2 Kintsugi Center Lagos

This hotel is just a 10-minute walk to the town center and offers beautifully decorated rooms with free wifi

3 3 The 17 Hostel with hot tub

This centrally located hostel has a beautiful rooftop terrace, air conditioning, and the beach is 5 minutes walk away

3 4 Top Floor Apartment vacation rentals

This Airbnb overlooking to Atlantic ocean offers fully furnished rooms, a large terrace, and free parking

Things to do in Batata Beach

  • Take photos from the cliffs of Batata Beach
  • Have a nice cocktail at Mar Restaurant & Bar
  • Get a suntan swim and kayak on Batata beach
  • See impressive rocks at Praia dos Estudantes
  • Check out the vibrant bars and restaurants in the Old Town

4. Meia Praia – the best place to stay in Lagos for families

4 Where to stay for cheap Meia Praia

Meia Praia Beach is located 5 km (4 miles) east of Lagos Old Town and is the largest beach in Lagos. Its laid-back atmosphere, sandy beach great for family-friendly water sports, as well as carefree beach resorts, make this the perfect area to stay in Lagos for travellers with kids. 

In Meia Praia, the water is calm and protected and the beach has lifeguards in summer. So you can enjoy swimming in the crystal clear water, making sandcastles with the kids, and trying new water sports such as kayaking and paddleboarding. 

Here you will also be able to find many nice shops, cafes, and restaurants. Meia Praia Beach has everything for you to have a fun family summer holiday and it is time to check out the best places to stay in this charming town. 

Luxury hotel
4 1 Iberostar Selection Lagos

The 5-star hotel overlooking the beautiful Atlantic ocean offers 2 swimming pools, a spa, and wellness center, and a room with sea views. Guests can enjoy a fully-equipped fitness center, beautiful spa with hot tub, private beach, and also take a golf course! With its relaxing atmosphere, Iberostar is one of the best places to stay in the Algarve Region. 

Other accommodation options in Meia Praia

4 2 Dom Pedro Lagos Beach Golf Dream

This hotel offers a nice room with a sea view and a private balcony and is very close to the beach

4 3 Marina Guest House

The centrally located hotel that is 10 minutes walk away from the city center and offers air conditioning rooms

4 4 House Meia Praia

This beautifully decorated Airbnb has an outdoor swimming pool, comfortable rooms, and a 2-min walk to the beach

Things to do in Meia Praia

5. Dona Ana Beach – where to stay in Lagos for beaches

5 Best neighborhood Dona Ana Beach

Dona Ana Beach (Praia Dona Ana) is located just a 20-minute walk south of Lagos Old Town. It is one of the best beaches in Lagos, Portugal so if you want to spend a lot of time chilling on the sand or swimming in the beautiful water, you will love Dona Ana Beach.

Dona Ana Beach is a very scenic beach offering amazing cliff views with turquoise color water. Spend your day on the beach relaxing and taking some super instagrammable photos to make your friends jealous. Then, check out the nice Portuguese restaurants and bars to have a nice local meal. 

Whilst they are amazing, Dona Ana is not just about the nice beaches, if you are into outdoor activities then this town also offers scenic hiking trails just for you!. Here you will find many nice accommodation options with convenient locations to the beach and mountains. 

Luxury hotel
5 1 Costa dOiro Ambiance

This 4-star resort offers a relaxing atmosphere with its charming rooms, great breakfast swimming room, garden, and lovely restaurant. You can have delicious Portuguese food in their restaurant while listening to traditional music and enjoy cocktails at the bar. The city center and beaches are within walking distance of the resort. 

Other accommodation options in Dona Ana Beach

5 2 Apartamentos Pinhao Free cancellation

Located near the beach this hotel offers rooms with a private balcony and free wifi

5 3 Cozy Family House with Patio

This Airbnb near the beach can accommodate up to 3 guests and has modern amenities

5 4 Design Studio with Great sea view

Design Studio has an epic terrace overlooking the beach and has fully furnished modern rooms

Things to do in Dona Ana Beach

  • Enjoy chilling and swimming on Dona Ana Beach (Praia Dona Ana)
  • Have nice drinks and snacks at Repolho Gastrobar & Garrafeira
  • Try delicious local seafood at ​​Luca’s Rooftop Restaurant
  • Have a day trip to go scuba diving in Algarve
  • Spend some time at ​​Praia de Porto de Mos further down the coast
  • Go hiking at Ponta da Piedade and see amazing cliffs views
👑 Luxury price:€320
💵 Mid-range hotel:€180
🛏️ Budget:€80
🏠 Airbnb:€100
💰 Accommodation prices:High
📍 Best Area:Lagos Old Town
🛎️ Best luxury hotel:Iberostar Selection Lagos
👛 Best budget hotel:Olive Hostel Lagos

FAQs about Lagos, Portugal accommodation

6 Best places to stay Lagos in Portugal

🗺️ Where is the best area to stay in Lagos, Portugal?

Lagos Old Town is the best area to stay in Lagos for the first-timers offering easy access to the beaches and main landmarks. Some of the best hotels near Old Town are Residence Lagos and Inn Seventies.

🤔 Is Lagos (Portugal) worth visiting?

Yes, Lagos is totally worth visiting with its beautiful old town, gorgeous beaches, and colorful nightlife.

🛏️ What are the best hotels in Lagos?

Iberostar Selection Lagos located in Meia Praia and Lagos Avenida Hotel in Lagos marina are the best hotels to stay in Lagos,Algarve. 

🏠 What are the best Lagos boutique hotels?

Kintsugi Center Lagos and Villas D. Dinis (adults-only hotel) are the best boutique hotels in Lagos.

⏱️ How many days do you need in Lagos, Portugal?

I suggest you stay at least 3 days to explore beaches and go on tours in Lagos, Algarve. 

🚖 Is there an Uber in Lagos, Portugal?

Yes, but not very common. I suggest you rent a car to get around easily in Lagos, Algarve. 


7 Where to stay without a car in Lagos

This is the end of our tour of Lagos, Algarve. I hope you have already found your favorite place and started to pack your beach essentials! In this blog post, I talked about the best hotels in Lagos from luxury to budget as well as Airbnbs in each area and I am confident that you won’t regret staying in one of these. 

As I’ve already said, being close to all attractions, Lagos Old Town is the best area to stay in for first-timers. However, Lago Marina and Batata beach are also areas within walking distance to each other so you can make your choice based on the vibe of the area, then easily explore the city on foot. 

In order to get better deals on hotels and not miss your favorite place do not forget to make a reservation in advance!

I am sure you will have a great time in Lagos, Portugal. To sum up, here are the 2 best hotels to stay in Lagos, Algarve which have great locations as well as good reviews. I definitely recommend you to stay in one of these if you can’t decide between the awesome options in this list!

  • Iberostar Selection Lagos -The best Luxury resort to stay in Lagos with an epic pool overlooking the ocean
  • Dom Pedro Lagos – A great place to stay in Lagos with a good location and facilities such as an outdoor pool and private beach

If you have any other suggestions or questions about Lagos, the Algarve region, and Portugal please do not be shy and leave a comment below. I’ll be happy to leave a reply to them!

Enjoy your time in Lagos,


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