12 Best Hostels in Algarve 2024 – Cliff walk at Praia da Marinha & Visit Albufeira Beach

Best Hostels in Algarve

Bem-venido ao Algarve! We want you to give the warmest welcome to the southernmost region of Portugal, as it is enriched with golden beaches, pristine waters and an unparalleled history! Recently, Algarve has become the ultimate vacation spot in Europe, attracting travellers who love the sea and want to take a break from the hustle of their daily life. Here you’ll find the best hostels in Algarve.

In addition, the region is called “a land of contrast”, offering both luxurious resorts and laid-back hostels with plenty of things to do. Which ultimately brings us here today. We have done extensive research and found some of the best hostels in Algarve where you’ll truly experience the vibrant spirit of Portugal!

While most people come to Algarve for the golden sands and relaxing atmosphere, it’s way more than that. Its welcoming vibe has made it one of the most popular destinations worldwide, and there’s something for everyone’s enjoyment.

The weather here is pleasant throughout the year, but summers tend to get quite hot. For that reason, you may want to consider travelling here in May or October as the climate is ideal – and don’t worry, you can still get your tan and swim on! Most importantly, don’t forget to bring a light jacket or a sweater, as nights tend to get pretty windy in Portugal, and Algarve is no exception!

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

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Make sure you read through all our guide to hostels.

Your Shortcut:

  1. Bura Surfhouse
  2. Olive Hostel
  3. Boutique Taghostel
  4. Loulé Coreto
  5. Aloha Hostel
  6. Lost & Found
  7. Musical Hostel 
  8. Casa da Madalena Backpackers Hostel
  9. Tilia Hostel
  10. Hostelicious
  11. Dunas Hostel
  12. HI Tavira

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When travelling to Algrave, you definitely must explore a local fishing village like Ferragudo. While its rural charm may entice you, the local food will take your breath away! On another note, if you have a sweet tooth, you must try a local Pasteis de Nata – it’s a puff pastry filled with custard with cinnamon sprinkled on top. (Those who are allergic to eggs need to avoid this, sadly, as the custard is made of it; look for vegan options as well). Locals say that no trip to Portugal is complete without trying the traditional delicacy!

All these things and more will create the journey of a lifetime! With our choices for the best hostels in Algrave, you’re bound to have an experience you’ll never forget!

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

List of Cities in Algarve with great hostels

Let’s waste no more time and jump right into this great Algarve hostel collection.

Here are all the destinations we cover in this guide:


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

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

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

Overview: Best Hostels by Traveler Type

🏊 Hostel with Outdoor Pool in Lagos:Bura Surfhouse
🏡 Hostel with Perfect Garden in Albufeira: Lost & Found
🎒 for Backpacker in Faro:Case de Madalena
🥳 Party Hostel in Faro:Hostelicious
🏄🏻‍♀️ Surf lovers in Alvor:Dunes Hostel
👩‍❤️‍👨Couple Hostel in Lagos:Olive Hostel
🧘Cosy Roof Terrace in Loulé: Loulé Coreto
🎉 Party Hostel in Albufeira: Musical Hostel
👩‍💻 For Digital Nomads in Tavira: HI Tavira

Top 12 Hostels in Algarve

We’ve prepared many choices, so pick the accommodation that best suits your needs! Without further ado, here are our recommendations for the best hostels in Algarve.

Best Hostels in Lagos

We recommend visiting the beautiful town of Lagos! Here, you can find the most scenic beaches in Portugal, graced with picturesque cliffs and crystal-clear water. We strongly suggest booking a tour to visit an abundance of grottos since it’s a sight that must be experienced!

If you want to know more about Lagos, check out our best hostels in Lagos

Bura Surfhouse

Bura Surfhouse offers a unique and unforgettable experience for its guests. It offers comfortable rooms and dormitories, as well as a range of activities such as surf lessons, board rentals, yoga sessions, kayaking, stand-up paddle boarding, and boat trips.

It is also close to a variety of restaurants, bars, and shops, and is located near some of the most beautiful beaches in the Algarve region. Guests can also enjoy an outdoor pool and family dinners organized by the staff.

Location: Bura Surfhouse is located 1.8 km from Porto de Mos Beach and 2.2 km from Praia da Forte da Bandeira. It is 2.2 km from Meia Praia Beach and 2.3 km from Batata Beach. Faro Airport is 89 km away, and the accommodation offers a bar and barbecue facilities.

Book Bura Surfhouse here

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

Chill out in Bura Surfhouse outdoor pool Bura Surfhouse Dormitory

Olive Hostel Lagos

If you’re seeking a laid-back vacation, you may want to consider the Olive Hostel in Lagos. It has a central location and is nested in an old building that was recently renovated. The noteworthy monuments and buzzing restaurants are just steps away from the accommodation, and the beach is 10 minutes away.

Olive Hostel features a variety of room options, from all-female dormitories to private double bedrooms. In addition, you’ll love the patio as it is the perfect place to relax from the bustle of Lagos. Due to its incredibly relaxing atmosphere, travellers have dubbed the Olive Hostel an oasis in a vibrant party town.

Book Olive Hostel Lagos here

Compare prices at: Booking.com | HostelworldHostelz.com

Olive Hostel Lagos is one of the best hostels in Lagos, Portugal
Olive Hostel Lagos

Olive Hostel Lagos is one of the best hostels in Lagos, Portugal

Boutique Taghostel

Fan of hostels with a rustic charm? Then, you’ll love Boutique Taghostel! This accommodation is nested in the heart of Lagos, offering stellar views of the marina. As soon as you get settled, you should head to the terrace to feel tranquil Mediterranean vibes.

Although the rooms are simply decorated, they provide the utmost cleanliness and comfort. Additionally, it is the perfect place for people who like to socialise and enjoy their alone time. The Boutique Taghostel runs like a well-oiled machine thanks to the helpful staff, as they can take care of your every need.

Tip: You should ask reception to book a dolphin-watching tour.

Book Boutique Taghostel here

Compare prices at: Booking.com | HostelworldHostelz.com

Boutique Taghostel is one of the best hostels in Lagos, Portugal

Boutique Taghostel is one of the best hostels in Lagos, Portugal

Best Hostels in Loulé: Loulé Coreto

Loulé Coreto screams in colour, offering a vibrant atmosphere all around! The hostel is located on Loulé’s main avenue, near all the popular attractions. Moreover, it’s quite a social accommodation, so you’ll have the opportunity to meet some friendly folks along the way.

There are plenty of rooms with different combinations, but no private bathrooms exist. While Loulé Coreto serves breakfast for an additional fee, there is a well-equipped kitchen where you can make your meals. The hostel’s best feature is the spacious roof terrace – you could back in some rays while swaying on the hammock!

Book Loulé Coreto here

Compare prices at: Booking.com | HostelworldHostelz.com

Loulé Coreto Hostel Private Bedroom

Best Hostels in Portimao: Aloha Hostel

People who like a dash of history in their travels should stay at the Aloha Hostel! This is because all the famous landmarks of Portimao are in its vicinity and you can learn a lot about Portugal’s rich history! The place is recently renovated and features all the necessary amenities.

When it comes to rooms, there is an array of options to choose from, all of which are really spacious, even for hotel standards! However, since we always aim to be transparent, you should know that the Aloha Hostel has no air-conditioning, so the best way to beat the humidity is by opening a window – keep in mind its central location is pretty noisy.

Book Aloha Hostel here

Compare prices at: Booking.com | HostelworldHostelz.com

Aloha Hostel Portimão Dorm

Aloha Hostel Common Area

Best Hostels in Albufeira

Party animals need to flock to Albuferia! What was once a quaint fishing village is now a party central! In addition to perfect beaches, you can rave at many bars and clubs along the strip until dawn.

Good To Know: We have a detailed guide to the best hostels in Albufeira

Lost & Found – Hostel & Suites

Lose yourself in the beauty of Albuferia and find your way back to Lost & Found! This is an accommodation set in the countryside, away from the bustle of the city, but the beach is close by. If any of you like to surf, this will be the ideal place!

All of the rooms in the guesthouse are equipped with a separate bathroom and air-conditioning, and there are private options as well. Since the fruits inspire Lost & Found in the area, they’ve designed the perfect garden where you can have peace of mind.

Book Lost & Found here

Compare prices at: Booking.com | HostelworldHostelz.com

Lost & Found - Guesthouse & Suites Outdoor Area

Lost & Found - Guesthouse & Suites Dorm Room

Musical Hostel

Compared to Lost & Found, the Musical Hostel has a location in the heart of Albuferia! In addition, party animals are going to love this place, as the strip with all the bars and clubs is just minutes away!

The Musical Hostel includes comfortable and clean rooms and a perfectly-equipped kitchen. Previous travellers loved the staff’s hospitality, as they tend to your every need. Lastly, there’s a bonus you’ll most surely enjoy – a relaxing hot tub!

Book Musical Hostel here

Compare prices at: Booking.com | HostelworldHostelz.com

Hangout at Musical Hostel

Musical Hostel Bunk Beds

Best Hostels in Faro

Faro is the capital city of Algarve, offering modern sophistication and historical allure. You’ll see cobbled streets lined with lush palm trees and breathtaking Portuguese architecture. Moreover, you can witness the ancient beauty of the Old Town – it was destroyed by an earthquake in 1755, but the country has restored it to its initial charm.

If you are up for it, we also have a detailed guide to the best hostels in Faro

Casa da Madalena Backpackers Hostel

As the name suggests, Case de Madalena is perfectly suited for backpackers across the globe! It is nested in the historical part of Faro, offering alluring and Bohemian vibes. Most travellers have said that the hostel feels like a warm hug!

The rooms at Casa de Madalena are clean and spacious, providing personal storage spaces for everyone. The rooftop terrace is a lovely feature where you’ll meet fellow backpackers. Finally, make sure to get breakfast every morning in this hostel, as their pancakes are mouth-watering!

Book Casa da Madalena here

Compare prices at: Booking.com | HostelworldHostelz.com

Casa da Madalena Backpackers Hostel Terrace Casa da Madalena Backpackers Hostel

Tilia Hostel

The furnishings of the Tilia Hostel are unmatched – vibrant colours and cosy decor all around! You’ll enjoy a stunning view of Faro, provided by the rustic windows. It has a pretty chill atmosphere, where you can kick back and enjoy your vacation in Algarve’s capital.

Remember that this is not the most social place, so all of you who like to talk for hours need to find other options. On another note, the staff is lovely and will provide you with anything you need!

Book Tilia Hostel here

Compare prices at: Booking.com | HostelworldHostelz.com

Tilia Hostel Dorms Tilia Hostel Terrace


In contrast to the Tilia Hostel, Hostelicious is the place to be for all social butterflies and is one of our top choices for the best hostels in Algarve! This accommodation features abundant common spaces where you can meet incredibly fun people! Its central location also attracts a lot of party-goers since there are plenty of bars in the area.

The rooms are decorated in modern simplicity and are equipped with all the necessary amenities. You should know that Hostelicious has its “quiet time”, ensuring that all the guests get a good night’s sleep!

Book Hostellicious here

Compare prices at: Booking.com | HostelworldHostelz.com

Hostellicious Common Area Hostellicious Dorms

Best Hostels in Alvor: Dunas Hostel & Guesthouse

Nested in the quaint village of Alvor sits the Dunas Hostel. Here, you can achieve peace as you stroll down and witness the beauty of the village. Additionally, you can spend your night on Bar’s Street, where there are plenty of – you’ve guessed it – bars.

The accommodation is recently renovated with modern furniture. Furthermore, there are 13 rooms, all of which provide cleanliness and comfort. The nearest beach is Alvor Beach where you could do a lot of watersports like surfing and kayaking.

Book Dunas Hostel & Guesthouse here

Compare prices at: Booking.comHostelz.com

Dunas Hostel & Guesthouse Bunk Bed

Dunas Hostel & Guesthouse Common Area

Best Hostels in Tavira: HI Tavira – Pousada de Juventud

If you want to wind down and have a tranquil holiday, you may want to head to HI Tavira. While it’s not really social, digital nomads will enjoy this place as it offers the ideal working atmosphere.

As the name suggests, HI Tavira caters mainly towards youth, though people of all ages are more than welcome to stay! Similarly to Aloha, this hostel doesn’t have any air-conditioning or ventilators, so humid nights may be a problem.

Book HI Tavira here

Compare prices at: Booking.com | HostelworldHostelz.com

HI Tavira – Pousada de Juventude Common Area

HI Tavira – Pousada de Juventude Dorm

Backpacking Tips for Algarve

A quick web search will give you thrilling activities in Algarve, depending on your liking. However, we have singled out a few tips to make your trip memorable.

As we’ve mentioned, Lagos is filled with picturesque beaches. However, you’ll want to visit the village of Bengali to witness the breathtaking Bengali Caves! The perfectly-rounded opening will provide stellar sky views as you bathe in crystal waters.

We’ve got you covered if you’re looking for the best beach in Algarve! Introducing Praia da Marinha, a haven where you can bask in some rays and chill out by the relaxing sound of the waves. Furthermore, you may want to check out the M Rock while there, as it offers the ideal snorkelling spot. Bring your own gear since there are no shops nearby.

The most southwestern point of Europe is in Algarve. Check out Cabo de Sao Vicente to see the iconic lighthouse in all of its glory. Fun fact: it can be seen from 97km (60 mi) away, and ancient civilisations believed it was the ending point of the world!

Top 5 Tourist Attractions in Algarve

1. Praia da Rocha: Located in Portimão, Praia da Rocha is one of the most popular and beautiful beaches in Algarve. With its golden sand, crystal clear waters, and stunning sunsets, this beach is the perfect spot for swimming, sunbathing and relaxing.

2. Ponta da Piedade: Ponta da Piedade is a stunning cliff-side spot with beautiful rock formations and breathtaking views of the ocean. Here, visitors can go on boat tours, explore the stunning caves or just take in the breathtaking views.

3. Faro Old Town: This charming old town is the perfect place to explore the region’s history and culture. With its narrow cobbled streets, whitewashed buildings and inviting cafes, Faro Old Town is a must-visit for anyone traveling to Algarve.

4. Albufeira: Albufeira is one of the most popular tourist destinations in Algarve, and it’s easy to see why. With its stunning beaches, vibrant nightlife and lively atmosphere, Albufeira has something for everyone.

5. Sagres: Sagres is a picturesque fishing village located in the westernmost point of Algarve. Here, visitors can explore the stunning beaches, go on boat trips or take in the stunning views of the Atlantic Ocean.

What about the cheapest hostels in Algarve?

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 Algarve.

  1. Open Hostelz.com with a full list of all hostels in Algarve
  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.

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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 Algarve 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

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

Need an eSIM Card for Algarve?

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

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Our Favorite Hostels in Algarve put on a map + sights

How about we put all hostels that we just mentioned on a map? Of course, we did this for you.

Below you find our handmade map with all hostels, our secret tips, and so much more.

Personally, we love to plan our trips with a map having all sights and potential hostels on it. We thought this map will help you with planning your trip too.

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

Here is the overview:

  1. Bura Surfhouse – Hostelworld | Booking.com
  2. Olive Hostel – Booking.com | Hostelworld
  3. Boutique Taghostel – Booking.com | Hostelworld
  4. Loulé Coreto – Booking.com | Hostelworld
  5. Aloha Hostel – Booking.com | Hostelworld
  6. Lost & Found – Booking.com | Hostelworld 
  7. Musical Hostel – Booking.com | Hostelworld 
  8. Casa da Madalena Backpackers Hostel – Booking.com | Hostelworld 
  9. Tilia Hostel – Booking.com | Hostelworld
  10. Hostelicious – Booking.com | Hostelworld
  11. Dunas Hostel – Booking.com
  12. HI Tavira –  Booking.com | Hostelworld

We recommend booking your hostel as early as possible!

All of the best Algarve hostels are popular; especially in high season. To make sure you end up in those stylish hostels, secure your room or bed as soon as you have your travel dates fixed.

Any questions about hostels in Algarve? 🤔

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 Algarve?


Join our Facebook Group!

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

Flights to Algarve?

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 Algarve 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 Algarve by Hostelgeeks

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Our Favorite Travel Resources 2024

👏 Booking Hostels: Always find better deals for Hostels on Hostelz.com. They compare prices from Hostelworld and Booking.com.

✈️ Cheap Flights: The first websites we always check are Skyscanner and Google Flights.

🤒 Travel Insurance Simplified: We always go either with Safetywing and Hey Mondo.

🤓 Smart Travel Tools you need to know: Find a list of our favorite travel tools.

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