3 Best Hostels in Albufeira – From Watersport Activities To Colourful Nightlife Scene

3 Best Hostels in Albufeira by Hostelgeeks

Are you ready to head to one of the most breathtaking towns in Portugal? Welcome to Albufeira! The gorgeous golden beaches and crystal clear water with dolphins playing in the sea is no stranger to tourists. It’s a town where the party never stops! And believe us; it doesn’t matter if you want to get away to soak up in the sun or let your hair down at the nightclub; Albufeira can be enjoyed in so many ways. Here you’ll discover the best hostels in Albufeira.

If you plan a trip soon, we have prepared a list of the best hostels in Albufeira. As the town is one of Europe’s most famous tourist spots, you will find many backpackers’ hostels lining the shores and streets. But since it is an expensive region, how can you be sure of getting the best accommodation and keep your travel going as enjoyable as possible? This is where we step in!

Discover the most awesome hostels in Portugal in our comprehensive guide!

Our favorite hostels in Albufeira are:

  1. Musical Hostel - best for social butterflies
  2. Rich & Poor Hostel Albufeira - best for backpackers
  3. Orange Terrace Hostel - best for solo travelers
  4. Extra: Sunfield Guest House - best for couples

Money-saving tip: Compare hostel prices with Hostelz.com. They compare prices from Hostelworld, Booking.com and others with 1 click.

Before we get into further details and discuss the best hostels in Albufeira, let’s dive deeper and learn more about Albufeira.

Albufeira is a perfect mix of historical allure and contemporary charm; the old town is famous for its cobblestone streets and Moorish influences. It is the largest and liveliest town that lines the southern Portugal coastline and is packed with flashy signs and rowdy bars. It’s an excellent destination for packaged deals and enjoying the beach, local food, and much more!

One of the most popular attractions in Albufeira is the beach and nightlife. The town provides everything you need for a fun-packed holiday with a wonderful climate, varied activities, and a buzzing holiday feel. Believe us; there is so much to love about this town, which is why the once peaceful fishing village has been transformed into one of the most popular holiday destinations.

Good To Know: We have detailed guides to the best hostels in Lagos and the best hostels in Faro.

This guide is perfect for YOU, when you…

  • are tired of crappy hostels!
  • want a social Hostel to actually meet people
  • are happy to spend $1 to $2 more for a much better experience

Albufeira boasts an extensive range of activities, accommodations, and nightlife that will keep you up for hours. With so much to offer, it’s an ideal holiday choice for couples, backpackers, and family adventurers.

You can find all 5 Star Hostels here with Hostelgeeks and all guides to “Best Hostels In” here.

Quick Introduction to Albufeira

Average price for a bed: Hostels in Albufeira cost $29 – $38 per night for a bed in a dorm. A private room has an average of around $49 per night. This is a rough average, just to give you an idea.

Prices always depend on the season and holidays. Please always check the exact rates on Hostelz.com or Hostelworld.com.

Check-In and Check-Out: The average check-in time is from 15:00 (3 pm), while the Check-Out time is before 11:00 (11 am). Hostels usually offer luggage storage in case you arrive earlier or leave later. Make sure you check if luggage storage is free or if there is an extra cost.

Getting around Albufeira: Albufeira is a great city to get around in. It has great public transportation system, including buses and taxis. There are also a number of bike rentals available, making it easy to explore the city. If you’re looking to get around the city on foot, Albufeira also has plenty of pedestrian paths and sidewalks.

Best time to travel Albufeira: The best time to visit Albufeira is during the summer months of June to August. This is when the weather is at its warmest and the days are long, making it an ideal time for a beach holiday. But remember that it can also be busy and expensive during this time. 

Safety in Albufeira: Albufeira is generally considered a safe destination for tourists. But you should always take the usual precautions, such as avoiding traveling alone at night, being aware of their surroundings, and avoiding displaying valuables in public. Pickpocketing is a common, so it is important to be vigilant when out and about.

🎁 New to Hostels? Read our guide to staying in a Hostel for the First Time here. We especially recommend reading:

The 3 Best Hostels in Albufeira are …

Let’s jump right into the coolest hostels in Albufeira.

  1. Musical Hostel – best for social butterflies
  2. Rich & Poor Hostel Albufeira – best for backpackers
  3. Orange Terrace Hostel – best for solo travelers
  4. Extra: Sunfield Guest House - best for couples

These are our favorite hostels in Albufeira. We want to make your life even easier, so we put all accommodations on a map for you. We even added our own tips for favorite restaurants, things to see, and more.

Overview: Best Hostels by Traveler Type

🦸 Solo Traveler: Orange Terrace Hostel
🙎‍♀️ best for Female Solo Traveler: Musical Hostel
👫 For Socializing:Musical Hostel
👩‍❤️‍👨 Couple Hostel: Sunfield Guest House
👨‍👩‍👦 Family Hostel: Lost & Found – Guesthouse & Suites
👩‍💻 For Digital Nomads: Orange Terrace Hostel
🎒 for Backpacker:
Rich & Poor Hostel Albufeira
🧘 Cozy Hostel: Sunfield Guest House

1. Musical Hostel

Musical Hostel   is a newly renovated boutique hostel and the only one in Albufeira with a jacuzzi. It provides guests with air-conditioned rooms and a garden. It offers relaxed and youthful vibes and is 3 minutes from Praia do Perenco. Musical Hostel is one of the best hostels in Albufeira, offering comfortable rooms and amenities. Among the facilities, there is a 24-hour front desk with free WiFi. Additionally, there is a well-equipped kitchen space where you can cook your own meals.

The Hostel provides guests with 12 rooms to choose from, which are air-conditioned. They come with a shared bathroom and are equipped with showers. The staff is very attentive and takes care of the minute needs of the travellers.

The amazing activities you can explore for a memorable holiday include fishing, kayaking, horse riding, swimming and much more. The hostel is also hugely social, where you can meet plenty of other travellers who are experiencing the beauty of the town.

Location: The Hostel is very well located in Downtown Albufeira and is close to everything you need. The popular areas of interest you can explore near the Musical Hostel include- Peneco Beach and Albufeira Old town Square. 

The best choice in Albufeira for

  • social butterflies
Book Musical Hostel here

Check prices at:
Hostelworld | Booking.com | Hostelz.com

Hangout at Musical Hostel Musical Hostel Bunk Beds

2. Rich & Poor Hostel Albufeira

Rich & Poor Hostel Albufeira is one of the best hostels in Albufeira, right in the heart of the old town. It is known for its great location and has been remodelled to offer guests superior comfort. 

The Rich & Poor provides a terrace, snack bar, shared lounge and a bar for the guests to enjoy. The staff is very friendly and welcoming, and the rooms are clean and comfortable.

The hostel building consists of 3 floors with several dormitories. On the ground floor is a reception to address your concerns and queries and a beautiful Cafe where you can enjoy breakfast and other homemade meals.

The owners are very friendly and communicate well with all the guests. You can enjoy various activities around the hostel, including hiking, swimming, surf sessions or planning a day trip to the nearby villages.

Location: The hostel is hardly one minute from the main beach and a few steps away from the City Center, making it a great space for all backpackers. Here you can easily find anything outside the hostel, from several shopping avenues, popular sights, excellent nightlife and bars. Most of the rooms at the hostel offer incredible views overlooking the city.

This is one of the best hostels in Albufeira for

  • backpackers
Book Rich & Poor Hostel Albufeira here

Check prices at:
Hostelworld | Booking.com | Hostelz.com

Rich & Poor Hostel Albufeira Dormitory

Church of Sant'Ana only 6 minutes away from Rich & Poor Hostel Albufeira
Church of Sant’Ana only 6 minutes away

3. Orange Terrace Hostel

Orange Terrace Hostel offers a unique and captivating atmosphere, with its huge rooftop terrace complete with a covered lounge area, mini-bar, and long table for dining and socializing.

There’s a small patio with a natural buganvilia ceiling to provide some shade and character. Tour packages are also available to take you to some of the area’s most picturesque beaches.

Location: Located in the heart of the old town of Albufeira, the property is only a 5-minute walk to the beach, restaurants, bars, and stores. The incredible Algarve coast and its hidden caves and stunning beaches are only a 5-minute drive away.

For nightlife, the bar street of the old town is a mere 5-minute walk from the house, while ‘The Strip’ or New Town is a 5-minute taxi ride (or half-hour walk) away. Explore the streets of Albufeira to discover its history as a once-tiny fishing village.

A great choice for

  • solo travelers
Book Orange Terrace Hostel here

Check prices at:
Hostelworld | Booking.com | Hostelz.com

Orange Terrace Hostel, AlbufeiraDorm

Orange Terrace Hostel, Albufeira Lounge Area

4. Sunfield Guest House

Sunfield Guest House is one of the best hostels in Albufeira for couples. It assures guests of warm, welcoming vibes, with ten well-appointed rooms. Most of the rooms at the guest house come with a room safe, coffee-making amenities and a hospitality tray with freshly laundered towels. Other facilities include a terrace, free parking and an open-air poolside bar serving a wide range of drinks and snacks.

You can easily use the outdoor pool area for swimming and relaxation. One of the best parts is the heated swimming pool and sun loungers. Take some time off and relax while socialising with other guests at the guesthouse.

There is also a fully equipped fitness centre and games room where you can enjoy leisure activities. Overall the Sunfield Guest House is beautiful and offers comfortable beds and delicious breakfast.

Location: Sunfield Guest House is located in Albufeira in the Algarve Region, 2.7 km from The Strip, 3 km from Oura Beach, 5 km from Fisherman’s Beach, and 23 km from Faro Airport.

This is one of the best Albufeira hostel for:

  • couples
Book Sunfield Guest House here

Check prices at:
Booking.com | Hostelz.com

Sunfield Guest House Private Bedroom

Sunfield Guest House Outdoor Pool

Best Hostels in Albufeira for Solo Travelers? 

We think that the best hostel in Albufeira is Orange Terrace Hostel.

The hostel offers private rooms, as well as dormitory-style rooms, so you can choose the one that best suits your needs. The hostel also has a communal kitchen, common area and free Wi-Fi.

The staff are friendly and helpful, and the hostel is located in a central area of the city, making it easy to explore the local attractions.

Book Orange Terrace Hostel here

Check prices at:
Hostelworld | Booking.com | Hostelz.com

Orange Terrace Hostel Rooftop

More Hostels worth a mention

We sure listed the best hostels in Albufeira above and we hope that you found the perfect hostel for you, but if you want another option, here you go!

Lost & Found – Guesthouse & Suites

Lost & Found – Guesthouse & Suites in Albufeira Portugal is a great place to stay for a relaxing and enjoyable holiday. The hotel is located in the heart of Albufeira, with easy access to the beach, shops, restaurants, and nightlife. The staff at the hotel is friendly and accommodating, and the rooms are comfortable and well-appointed.

The hotel offers a variety of room types, ranging from single rooms to two-bedroom suites. The staff at Lost & Found – Guesthouse & Suites in Albufeira Portugal can help you arrange trips to local attractions and activities, such as boat trips, diving, and sightseeing. They can also help you book tickets to shows and events in the area.

Compare prices atBooking.com | Hostelworld | Hostelz.com

Lost & Found - Guesthouse & Suites Outdoor Area Lost & Found - Guesthouse & Suites Dorm Room

Backpacking tips for Albufeira 

Albufeira is an outstanding holiday destination offering so much more than fantastic weather and mesmerising nature. It used to be a fishing village and now has transformed into a popular party destination in the South of Portugal. Let us share with you some amazing backpacking tips for a superb holiday:

1. Fantastic beaches surround Albufeira, it is close to popular diving locations and has some great watersport activities. One of the most visited beaches lies to the right of the old town- Praia Pescadores. The expansive beach has interesting rock formations. It is known to be crowded during the peak season, June-August, and you will find more secluded gems as you further walk out of the town. It’s great for spending quality time and relaxing.

2. Albufeira hosts some of the most impressive natural wonders, including the Benagil Cave. Here you will find an impressive cave with a worn circle in the ceiling created by natural erosion. Through this space, the blazing sun casts its beam, shining unique light into the cave. This can only be experienced by taking a boat or kayak to the Benagil Cave.

3. If you wish to be surrounded by limestone cliffs, turquoise waters, and picturesque views, you must visit Marinha beach. Spend an afternoon here swimming in the ocean and soaking up the sun. The most beautiful highlight here is the path along the cliff sides that gives you some of the most jawdro[[ing views of the surroundings. Getting here from Albufeira is a 30 minutes ride by car and makes for a perfect stop on the road trip.

4. Besides beaches, many beautiful villages are scattered across Portugal’s southern coastline. One of them is the Carvoeiro town known for its traditional houses and a small beach tucked between two impressive cliffs. You can visit for a day to relax between the coves, paddle boarding, or snorkelling. There are many kayaking tours available along the coastline.

5. You can also take surf lessons at Amado beach if you love hitting the waves. The high winds, waves and stunning beaches make for perfect watersport activities. You can also join here for a popular jeep safari, a unique way of exploring the place. It’s an excellent place to practise your surfing skills.

6. Apart from exploring the beaches and nearby towns of Albufeira, spend some time in the old town of Albufeira. Here you will find cobblestone streets, tiled and whitewashed houses, picturesque churches and plenty of bars. Walk around the heart of the village for some time and stop at the beautiful viewpoints overlooking the beach. The historic town is built on a cliff, so wear good walking shoes when exploring the place.

These are some of the most popular places in Albufeira that you shouldn’t miss on your holiday. Make sure to plan your itinerary well to spend quality time at the town and beaches.

What about the cheapest hostels in Albufeira?

Of course, there are always cheap hostels. But how do you actually find them? When you are traveling on a shoe-string budget and you want to save every dollar, there are ways to find the cheapest places in Albufeira.

  1. Open Hostelz.com with a full list of all hostels in Albufeira
  2. add your dates
  3. Order the listings by price

Simple as that.

Hostelz.com is a price comparison site for hostels. They list every single one in the world and tells you exactly which website is cheaper to use.

Another smart Tip: Check what is actually included, and what is excluded. Take a closer look at the location, too. A further location might mean more costs in transport.

Any Discounts?

You can find all our hostel discounts worldwide here. Subscribe to our newsletter to receive the freshest hostel discounts directly in your inbox. We even have special discount codes we only share in the newsletter.

It is completely free to join!

How to book?

The most popular booking platforms are Booking.com and Hostelworld.com. On both platforms, your credit card is 100% protected and the booking 100% confirmed.

We included some handy links to each of the recommended hostel. Just click on the hostel name. The link will lead you to check prices and availability.

Read: Step-by-Step guide on how to book with Hostelworld

We recommend booking your hostel as early as possible! All of Albufeira best hostels are popular; especially in high-season. To make sure you end up in those stylish and good hostels, secure your room/bed as soon as you have your travel dates fix.

The coolest Hostel App you need comes as well from Hostelworld. It gives you super cool features like you can contact your hostel mates beforehand, ask questions, and make plans together. Find more details in our review of the app.

Download the Hostelworld App here

QR Code to Download your Hostelworld app with one scan
Scan the QR Code with your Smartphone to download the Hostelworld App from the App Store - like a real Hostel Geek!

The best way to find hostels: Hostelgeeks website and Hostelworld App

Need an eSIM Card for Albufeira?

Get your eSIM Card with Airalo.com instantly online. It is easy to set up and cheap! Read our review of Airalo here.

No more searching for mobile stores. Get your eSIM Card for now and enjoy it instantly after landing in your new destination.

Get your eSIM Card now

Need an eSIM Card for Albufeira?

Our Favorite Hostels in Albufeira put on a map + sights

We’re listing all the three best Albufeira hostels on a map to give you an idea of the location and distances between them.

Any questions about hostels in Albufeira? 🤔

Join our Facebook Group!

Ask all your questions and connect with like-minded wanderers 🔥


Here we share with you the most asked question:

Any questions about hostels in Albufeira?


Join our Facebook Group!

Ask all your questions and connect with like-minded wanderers 🔥

Flights to Albufeira?

We use Skyscanner and Omio.com to find cheap flights and good connections all over the globe.

Skyscanner has a bunch of cool features like Multi-City Trip. Instead of doing this research step-by-step, Skyscanner offers this flight planning tool.

Our Step-by-Step Guide to Skyscanner

review of Skyscanner flight searches

Here are more hostel guides to check out in Portugal:

Party Hostels in Portugal:

Surf Hostels in Portugal:

Things to do in Portugal:

Over to you

Do you have any questions left, maybe doubts? Then please leave it in the comment below. We are very keen to help you - and actually you would even do us a favor!

Your question will help us to improve this Albufeira guide.

Last note: Our commitment

This is a genuine article to help you travel a bit smarter, and find the best place on a budget! We will never recommend you any place we haven’t evaluated or are not convinced by. We are constantly updating all our guides to keep them as fresh and accurate as possible.

Safe travels,
The Hostelgeeks

Best Hostels in Albufeira

We are 100% Independent: Some links on Hostelgeeks are so-called affiliate links. If you decide to book through these links, we earn a small commission at no extra cost to you. Your support allows us to keep producing high-quality, independent content free of influence from hostels or external advertisers. Learn more here. 🙏

✏️ Read our Editorial Guidelines