10 Gorgeous Hotels in Olhão, Portugal + Where to Stay

Before our trip to the Algarve, I spent hours and hours scouring booking sites for the best Olhão hotels, mainly because I have impossibly high standards when it comes to hotel accommodation. 

I dug deep into the reviews, scrolled through hundreds of photos, and triple checked the facilities before finally settling on Casa dos Mercados. It’s a gorgeous, aesthetic boutique hotel in a five-star location right on the waterfront. Honestly, if you’re short on time, just book your stay here.

But if you want a bit more info or find it’s fully booked (there’s only six suites), then I’m sharing my complete shortlist to make your trip planning a breeze. 

These are all the best hotels in Olhão for every type of traveller (and trust me, I’ve looked at them all!). At the bottom, you’ll also find some FAQs about where to stay in this eastern Algarve gem to help you plan your trip. 

10 Best Olhão Hotels for Every Traveller 

1. Casa dos Mercados 

Best for foodies

What’s the Vibe: Minimalist boutique by the sea.
Distance to Waterfront: On the waterfront
Facilities: Two dipping pools, sunbathing terrace, all-day kitchen for tea, coffee and cake.
Star Rating: ****
Average Price Per Night: ~€250

Casa dos Mercados is the hotel we eventually settled on during our trip to Olhão, and I’m so glad we did! 

In terms of location, it’s a 10/10, right on the waterfront next door to the famous municipal markets and dozens of gorgeous local restaurants. 

There’s a small dipping pool surrounded by plush loungers, which is the perfect place for those warmer days. The main pool was even heated, so you can use it during the shoulder seasons too. 

Our room was fairly small, but that’s because we booked at the last minute and it was the only one left. There are six suites in total, and each one has an aesthetic, minimalist vibe, with lovely little touches like a vintage speaker and a Smeg kettle to use. 

Another thing we loved about this hotel was the little rooftop (where there’s another tiny plunge pool). We enjoyed watching the sunset from up here with a chilled glass of wine. 

Breakfast is included and served in the charming kitchen, with loads of homemade goodies like cake, pastel de nata, and cooked options like scrambled eggs on offer. You also have access to this kitchen throughout the day for unlimited tea and coffee and sweet treats whenever you want them! 

In terms of price, it’s mid-range, but the overall feel is luxury, so there’s definitely excellent value for money here. 

2. Casa Amor 

Best for luxury 

What’s the Vibe: Secluded exclusivity in a riad-style boutique.
Distance to Waterfront: ~5min walk
Facilities: Rooftop pool, sunbathing terrace, courtyard restaurant, communal lounge, shopping boutique.
Star Rating: *****
Average Price Per Night: ~€550

Casa Amor was my second choice for a hotel in Olhão and one that I very nearly booked. It’s got a very similar vibe to Casa dos Mercados but a step above in terms of luxury. 

It’s located further towards the centre of town, but still only a 5-10 minute walk to the seafront. You’ve got a lovely little pool on the rooftop, plus a charming coffee shop and upscale restaurant that leans into local flavour and seasonal produce. 

There’s also an Art gallery-cum-boutique next door where you can shop for the cutest handmade souvenirs. 

In terms of decor, think luxe traditional – whitewashed walls, antique rugs, and a cosy Moorish-style courtyard. 

If you’re looking for quiet luxury, this is the place for you!

3. Pure Formosa Concept Hotel 

Best for views 

What’s the Vibe: Modern bolthole with unparalleled city views.
Distance to Waterfront: ~6min walk
Facilities: Rooftop pool and bar, sunbathing terrace, optional breakfast, small business centre.
Star Rating: ***
Average Price Per Night: ~€280

We went to the Pure Formosa Concept Hotel for a drink on their rooftop and were thoroughly impressed by the views and vibes! I also have a friend who stays here every year and wouldn’t stay anywhere else. 

The rooftop pool is a dreamy spot for a swim, and the bar dishes up the perfect sundowners. 

It’s right by the church and the main square, so you’re perfectly central in terms of location, and everything is within walking distance. 

It’s got a sleek and modern vibe, and the rooms are comfy but fairly basic. Think crisp white bedding, big windows, and open wardrobes, plus all the essential amenities like a mini bar and tea and coffee making facilities.

4. Casa Rosa Villa 

Best for a local feel 

What’s the Vibe: Colourful guesthouse set around a traditional courtyard.
Distance to Waterfront: ~7min walk
Facilities: Courtyard pool, breakfast included, honesty bar, sauna and massage treatment rooms.
Star Rating: ****
Average Price Per Night: ~€380

I quickly learned that all the ‘Casa’ named hotels in Olhão shared a similar vibe – whitewashed walls, traditional architecture, and boutique in size, each with their own little quirks. 

Casa Rosa Villa was no different, situated in a very central location just off the main square with the church. 

It has a really sweet courtyard pool area surrounded by colourful outdoor furniture, plus a rooftop terrace for sunbathing. There’s also a sauna and spa where you can book massages. 

The exterior is painted a soft rosy pink, while the nine bedrooms sport bright, coral walls and boho furniture and accessories. 

Like many of the other ‘Casa’ boutiques, breakfast is included, with everything from local pastries to eggs cooked to order on the menu. Little touches like afternoon snacks left in the rooms and an honesty bar for cocktails by the pool give this stay an extra special feel.

The staff at this place are often highlighted as being personable and on hand to help you organise any local tours or experiences. 

5. Real Marina Hotel and Spa 

Best for families 

What’s the Vibe: Large resort-style hotel right facing the lagoon.
Distance to Waterfront: On the waterfront.
Facilities: Indoor and outdoor pool, fully equipped spa, gym, two restaurants and two bars.
Star Rating: *****
Average Price Per Night: ~€350

If you are the type of person who likes to have all the facilities at hand on holiday, like a gym, spa, restaurant, and pool, then the Real Marina makes a great choice. 

The facilities make it a particularly popular spot for families since rainy weather days can be spent at the indoor pool, and child-minding facilities are on offer for a grown-ups-only evening out. Plus, there’s a kids’ splash pool outdoors for the littlest guests. 

The spa is also attractive if you’re travelling out of season, it’s fully kitted out with a hot tub, steam room, and massage options. 

It’s definitely the biggest hotel in Olhão by size – it dominates one side of the waterfront. This location makes it very handy for going out to eat or getting the ferry to the beach; everything is within a 10-minute walk. 

And if you fancy staying in, there are two bars and restaurants to choose from, including one overlooking the Ria Formosa salt marshes with a menu inspired by the estuary. 

6. AL – Alojamento Local Pension Bicuar

Best for budget stays 

What’s the Vibe: Back-to-basics bolthole with a traditional feel.
Distance to Waterfront: ~1-minute walk
Facilities: Rooftop terrace, family rooms available, some rooms with shared bathroom facilities.
Star Rating: **
Average Price Per Night: ~€65

Olhão is a pretty budget-friendly destination in general, but if you’re also looking for cost-effective accommodation, Pension Bicuar fits the bill. 

It doesn’t compromise when it comes to location, being just a few streets behind the main waterfront and minutes from those iconic markets. The star of the show here is the pretty rooftop terrace overlooking the sugar-cube city, complete with traditional Portuguese tiling. 

There’s also a communal kitchen where you can whip up meals or keep drinks cold to enjoy on the roof. 

Rooms are cosy if a little dated, with a traditional kind of charm. Some come with a Juliet balcony overlooking the cobbled streets below, while others are more basic and super budget options might share a bathroom. 

7. Hotel Cidade de Olhão 

Best for shopping 

What’s the Vibe: Bright and modern boutique with a pool by the station.
Distance to Waterfront: ~10-minute walk
Facilities: Pool and bar, optional breakfast, rooms with balconies or kitchenettes.
Star Rating: ***
Average Price Per Night: ~€185

If you’re looking for budget-friendly Olhão hotels with a pool, Hotel Cidade should be on your list. It’s located a little bit further into the new part of town, which is great if you love to shop and browse the local boutiques. 

However, you’re still no further than a 10-minute walk from the waterfront with its restaurants and ferries to the beach. Meanwhile, the train station is just a 1-minute walk, perfect for daytrips. 

The rooms are clean and basic with a dash of colour, and some come with balconies. You can also opt for a studio with kitchenette facilities, which is a handy choice for families. 

A bar next to the pool makes it easy to cool off with a cocktail in hand, too.

8. GuestMar 

Best traditional guesthouse 

What’s the Vibe: Cosy, ocean-themed guesthouse.
Distance to Waterfront: On the waterfront.
Facilities: Rooftop terrace, breakfast included, family rooms available
Star Rating: ***
Average Price Per Night: ~€115

One of the things I love about Olhão is the laidback, authentic vibe, which is why the guesthouses here have such a good reputation. 

GuestMar bottles up that traditional charm and serves it up in the form of an 8-bedroom guesthouse, complete with pretty tiling, sea-themed decor, and an ultra-friendly Portuguese service. 

Room options include everything from economy doubles to bijou studio apartments perfect for a small family. There’s also a pretty rooftop terrace, and a homemade breakfast complete with regional specialities is included in the room rate. 

9. B&B Hotel Olhão Algarve 

Best for daytrips 

What’s the Vibe: Modern motel-style spot by the shopping centre.
Distance to Waterfront: ~20-minute walk
Facilities: Rooftop terrace, indoor lounge area, free parking.
Star Rating: ***
Average Price Per Night: ~€138

If you’re mainly using Olhão as a jumping-off point to explore the rest of the Algarve and plan on renting a car, this modern B&B hotel could be a good option. 

It’s located on the outskirts of town, but with quick access to the train and bus terminals. You’ve also got plenty of cafes and shops within walking distance, as it’s right by a large shopping centre. 

It’s around a 20-minute walk to the waterfront and beach ferries.  

The rooms and communal areas have a very modern feel, and there’s a nice outdoor terrace. Free parking is a bonus for those looking to explore!

10. Design Apartment by Sisters of Paradis 

Best self-catering 

What’s the Vibe: Upscale two-bedroom apartment with lagoon views.
Distance to Waterfront: On the waterfront.
Facilities: Communal rooftop pool, fully-equipped kitchen, laundry facilities, parking.
Star Rating: ****
Average Price Per Night: ~€346

While there are a handful of guesthouses and hotels in Olhão to choose from, a good portion of the accommodation is self-catering holiday lets. These are perfect for families, and there are lots of options from luxe to budget. 

I usually prefer having the extra facilities of a hotel, but this Design Apartment also offers access to a communal rooftop pool in the complex, with incredible views over the Ria Formosa Natural Park and Atlantic Ocean beyond. 

It’s got two bedrooms, a sleek modern kitchen and all the essentials like a coffee machine, dishwasher, and laundry facilities. 

If it’s self-catering you’re after, look no further! 

Hotels in Olhão, Portugal: FAQs 

What is the best area to stay in Olhão?

The best area to stay in Olhão is near the waterfront, where you’ll find the famous municipal market, a working fishing port, and a long line of tempting local restaurants and bars. You can also choose to stay in the central area near the Nossa Senhora church if you like strolling the old town and don’t mind a 5-10 minute walk to the waterfront. 

What are the best Olhão hotels with a pool?

There are only a handful of Olhão hotels with a pool, and in my opinion, the best ones are Casa Amor (for boutique luxury feel), Casa dos Mercados (in the perfect location with a small dipping pool), and Pure Formasa Concept Hotel, with its swish modern rooftop pool and bar.

What are the best luxury Olhão Hotels?

Olhão has a small but high-quality selection of luxury stays. Casa dos Mercados is the standout, with a prime waterfront location, minimalist rooms, and a pool overlooking the lagoon.

Nearby, Octant Vila Monte offers a more boutique, countryside-luxury feel with beautiful gardens and a slower pace, while Casa Amor Olhão is a stylish riad-style guesthouse known for its rooftop and design-led interiors.

How long to stay in Olhão?

A stay of 2–3 days is ideal to experience Olhão at a relaxed pace, enough time to explore the town, visit the markets, and take a ferry to at least one or two of the nearby barrier islands and their beaches. If you’re using it as a base to explore the wider Algarve, you could easily extend to 4–5 days.

Are there any all-inclusive Olhão hotels? 

No, not really. Olhão isn’t known for large all-inclusive resorts; its appeal is more about boutique stays and authentic experiences. Most hotels operate on a bed and breakfast basis, encouraging visitors to explore the town’s excellent local restaurants and seafood scene.

What is the best time to visit Olhão?

The best time to visit Olhão is between May and October, when the weather is warm, the ferries are running regularly, and life revolves around the water, with traditional fishing boats coming and going from the harbour and long days spent on the islands. 

For something more lively, plan your trip around mid-August to experience the famous Seafood Festival, when the town comes alive with music, fresh seafood, and a true sense of local culture. If you prefer a quieter, more authentic feel, late spring and early autumn offer a more relaxed atmosphere while still delivering that same true Algarve charm.

Read about more things to do in Olhão here.