If you’re trying to figure out where to stay in Portugal, this guide has you covered. We personally stayed in every accommodation on this list, choosing spots that are well-located, comfortable, great value, and undeniably cute.
I’m going to admit something to you… I am kind of hard to please when it comes to accommodation.
Not in a “I need to stay in a Four Seasons to be satisfied” kind of way, but in a “I have a lot of boxes to check” kind of way.
It has to:
- be well-located
- be comfortable
- earn rave reviews
- not break the budget
- be cute, of course!
While planning our trip to Portugal, I spent a lot of time researching places to stay, and I’ve got to say, I really outdid myself on this trip.
Every place we stayed at in Portugal was a winner!
In fact, we had such amazing accommodations that I’m sharing them with you so you can quite literally steal my plan and have a dream Portugal trip without all the time researching!
You’re welcome!
Speaking of which, you can steal our entire itinerary with the click of a button!
Or, you can simply keep scrolling to get the details on all the places we stayed at in Portugal!
Portugal Accommodation Guide
If you know the location you’re looking for, jump down to that section, or just keep scrolling to see it all!
Portugal accommodation must-haves
All the places we booked checked most of these boxes:
☑ Mid-range budget
On average, we spent $170 per night (avg in Madeira was slightly higher). I was really happy with this budget when considering the AMAZING places we were able to stay. But the good news is if your budget is less, you can totally find cheaper stays.
☑ Well located
We always pick places that are close to main attractions so we can walk to get around.
☑ Aesthetic
I’ll be the first to admit I’m a sucker for a cuuuute hotel!
☑ Rave reviews
I’m a review snob & take them very seriously (I kind of have a system hehe). I honestly think this is why I rarely have bad experiences with accommodation.
→ Related: Want our foolproof system for finding the best hotels & Airbnbs? Check out our top accommodation booking tips!
☑ Family-friendly
Since we travel with 2 little ones, we need a space that accommodates us all. Every single place we booked in Portugal had a crib (plus most had kids toys, a high chair, and dining stuff).
☑ Kitchen
All but one spot on this list has some sort of kitchen set up. This helps keep costs down because we like to do a fair amount of cooking.
☑ Unique
This is a bonus, but several of the places we stayed at in Portugal were truly one-of-a-kind. I’m at a time in my life that I will seek out unique accommodation & pay more for a space that feels like an EXPERIENCE & not just a place to rest my head.
☑ Outdoor space
I really appreciate outdoor spaces in accommodation. With the exception of Lisbon & Porto, every place we stayed in Portugal had an outdoor area we could spend time in.
Okay, are you ready to find out where to stay in Portugal?…
Lisbon
We didn’t expect to fall so hard for Lisbon—but we absolutely did!
The colorful neighborhoods, incredible food, and welcoming people. We were very pleasantly surprised by how much we loved this city.
Portugal’s vibrant capital is usually the jumping off point for most travelers on their first trip to Portugal with easy access to day trips.
When we were researching where to stay, we focused on well-located places that make it simple to explore on foot, while still offering comfort, charm, and good value. Here are our top Lisbon accommodation picks (including where we personally stayed!) to help you find the perfect home base in the city.
Insider tip: Book accommodation in Lisbon EARLY!
There will always be options, but if you want something that is cute, well-located, and not super expensive, you’ll want to book early for a good selection. We were a little late on booking this one. We got lucky and really liked our place, but pickings were SLIM.
Our top pick: Alfama apartment
Our rating: 8/10
This bright, stylishly renovated apartment was the perfect homebase for us! It’s on a quiet pedestrian street in the heart of the historic Alfama neighborhood, just steps from the famous tram 28 and walking distance to pretty much everything.
Note: There is no elevator here (common for Lisbon) so keep this in mind if you have a stroller!
- reasonably priced for Lisbon
- PERFECT location in the cutest/quiet square
- a bit on the small side, but no issues
- no outdoor space or anything unique
Lisbon Airport Hotel
Our rating: 10/10
This 4-star aparthotel is just minutes from the Lisbon airport and honestly might be the best airport hotel we’ve ever stayed at. The rooms are compact but incredibly well-designed for families, and with a rooftop pool, bar, and restaurant on-site, you genuinely don’t need to leave. The staff were also some of the kindest we encountered in all of Portugal.
- best airport hotel we’ve ever stayed at
- really kind staff
- room is small but designed SO WELL for families
- pool, bar, restaurant (you don’t have to leave!)
- very close to the Lisbon airport
Alternatives:
- Completely refurbished in 2016
- Private terrace right in the heart of historical Alfama
- Full kitchen, bathroom with a tub and in-unit laundry
- Fully restored apartment in the historic district with views over the red rooftops and river
- Full kitchen and eating area
- Well decorated
Porto
We arrived in Porto with sky-high expectations. So many travelers told us they loved it even more than Lisbon—and honestly, it lived up to every bit of the hype.
Even with two little ones in tow, the city’s colorful streets, azulejo-covered buildings, and warm, slightly gritty charm pulled us right in.
Porto felt welcoming in a way that stays with you, and our only real regret was not having more time there. Below you’ll find the accommodation that we personally stayed in (it made our stay even better!) and some that we’d wholeheartedly recommend for your own Porto adventure.
Our top pick: Myo Design House
Our rating: 9/10
This is where we stayed and it worked perfectly for our family of 4. It is centrally located and after a recent renovation, looks even better than the photos.
- perfectly located
- much bigger than we were expecting
- beautiful aesthetics (it got a redesign so it’s even better than the photos online!)
- Juliette balcony
- really comfortable bed and couch
Alternatives:
Óbidos
This medieval village is undeniably charming during the day, but once the day-trippers leave is when the real magic happens. It becomes peaceful, atmospheric, and almost storybook-like.
Staying overnight lets you experience a completely different side of the town — quiet cobblestone streets, glowing lanterns, and a calm that makes you feel like you have the whole place to yourself. Here are the best places to stay to soak up Óbidos at its most magical.
Our top pick: Cozy house with castle views
Our rating: 10/10
We highly recommend this home! It’s comfortable, fully equipped, has lovely castle views, and within walking distance of the old city. The owners are very sweet and give a personal welcome on arrival. Perfect for families with kids—it’s much more personal than a hotel!
- perfect walkable location
- super sweet owners
- EVERYTHING you need & more (full kitchen, 2 bathrooms, all the kid stuff)
- sweet outdoor space with a view of the castle
- really affordable (one of the cheaper places we stayed)
Alternatives:
Azenhas do Mar
This cliffside village had one of our favorite sunsets (and seaside meal!) in all of Portugal. Azenhas do Mar feels peaceful, romantic, and a bit more of a hidden gem than nearby Sintra, making it the perfect spot to slow down and savor the coastline.
Here are the best places to stay if you want to experience its magic for yourself.
Our top pick: Boho boutique hotel
Our rating: 10/10
We highly recommend this boutique hotel! It is beautifully-designed and is in such a lovely area. It’s kind of a splurge, but worth it (in my opinion). We also recommend getting breakfast here.
- gorgeous design (loved everything about it!)
- balcony with a VIEW
- plunge pool, common space, outdoor hang out area
- wonderful breakfast (additional cost)
Alternatives:
Monsanto
Perched on a hillside and built right into massive granite boulders, Monsanto feels like a real-life fairytale, and yet it somehow remains one of Portugal’s best-kept secrets.
Despite being nicknamed “the most Portuguese village of Portugal,” most travelers (and even many locals we met) have never been.
Yes, it’s a bit of a trek to get here, but spending the night is absolutely worth it. Once the daytime visitors leave, you’re left with quiet lanes, glowing stone houses, and a peaceful, magical atmosphere you won’t soon forget.
Insider tip: Book accommodation in Monsanto EARLY!
This town is TINY and if you want to add it to your itinerary (you should!), book early because there are very few accommodations. HIGHLY recommend the place we stayed.
Our top pick: Unique rock house
Our rating: 10/10
This place is even better than the pictures and it is incredibly unique. It was a highlight of our entire trip to Portugal, so we’d highly recommend booking this spot. The owner doesn’t speak much English, but she is very kind and you can communicate through Google Translate.
- super unique (photos don’t do it justice!)
- owner is SO NICE (doesn’t speak much English)
- host provides a simple dinner (soup) in the evening and breakfast
Alternatives:
Lousã
Tucked into the mountains of central Portugal, Lousã is the gateway to the region’s famous Shale Villages. These are tiny, historic villages revived through sustainable tourism and there are a lot of really unique places to stay.
Staying here lets you slow down and experience a quieter, more traditional side of Portugal, with hiking trails that wind through forests, connect villages, and lead to some seriously beautiful viewpoints.
It’s a perfect base for nature lovers, hikers, and anyone looking to explore one of the country’s most unique cultural landscapes. Here are our top recommendations:
Our top pick: Cadeira – home for creativity
Our rating: 13/10
This accommodation is a DESTINATION. I cannot say enough good things about it. This restored historic village has been transformed into an art haven and boutique hotel to prevent it from being destroyed.
It’s easily one of the most unique places we’ve ever stayed, we highly recommend staying here!
- order dinner ahead of time to be delivered to your room
- most incredible balcony for relaxing
- great breakfast is included
- excellent value
Alternatives:
- Candal: Casas Da Laranjeira Brava
- Talasnal: Casas da Urze TER
Peneda-Gerês National Park
Portugal’s only national park is a place where wild landscapes and rural village life blend seamlessly. There are no gates and no entry fees, only tiny communities tucked right into the mountains alongside the waterfalls, trails, and viewpoints.
Because the park is spread across several distinct regions, choosing the right home base makes a big difference. We recommend staying near the areas we highlight below so you don’t spend all your time driving. Here are our top picks for where to stay in Peneda-Gerês.
Our top pick: Countryside house (with a twist!)
Our rating: 11/10
This house feels like Snow White’s cottage—I can’t even explain how unique it is! It’s built into the rockface and even has a trap door.
- best outdoor space we had in Portugal
- super unique (built into the rockface!)
- full kitchen for cooking
- amazing value
Alternatives:
Madeira
Madeira is where rugged beauty and nonstop adventure collide—an island of dramatic cliffs, misty forests, colorful coastal villages, and black-sand beaches rising straight out of the Atlantic.
It feels both wild and wonderfully welcoming, and after spending an adventure-packed week here with our daughters, we were genuinely blown away.
For the best experience, we recommend choosing a stay that’s somewhat central and has an outdoor space where you can enjoy breakfast with a view.
Anything along the southern coast between Arco da Calheta and Câmara de Lobos makes a great base with lots of options. And while Funchal is fun for restaurants and a quick wander, we don’t think it’s the best place to stay—the magic of Madeira is in its nature, not in a city highrise.
Here are our top accommodation picks to help you soak it all in.
Insider tip: Book accommodation in Madeira EARLY!
Book this first! We had so little to choose from (again, got lucky). We could have found something cheaper or better located if we had booked earlier.
Where we stayed: Chalé das Figueirinhas
Our rating: 8/10
📍Camacha
This is where we personally stayed and it was really nice for our family. The house is cozy and has everything you need, plus, it’s in an incredibly peaceful area.
The only drawback is that it’s not near much of anything, so we had to do more driving than if we had stayed in a little more centrally-located area. (For this reason it’s not our top pick in Madeira.)
- cozy house with everything you need
- good for families
- incredibly peaceful area
- drawback: it’s not near much, so lots of driving
Alternatives
Arco da Calheta: Calhau Grande
- family-owned
- reasonably priced for Madeira
- rave reviews
- beautiful outdoor area for sunset
Porta do Sol: Escarpa – The Madeira Hideaway
- located in the sunniest area of the island
- amazing pool and views
- onsite restaurant
Madalena do Mar: Tropical house
- sea views from your private terrace
- nice central south-coast location
- recently renovated
- good for families
Douro Valley
When we were planning our Portugal itinerary, we weren’t sure if we would stay in the Douro Valley. As it happens, we wound up making it a day trip from Porto and didn’t need any of the research we had done on places to stay.
But since we’ve already done all the research, we figured we’d include it here in case you’re planning to spend a night or two in Portugal’s famous wine region.
Our top picks for where to stay:
- Quinta de S.Bernardo – Winery & Farmhouse (worth the splurge): The Quinta de São Bernardo farmhouse is stunning and the onsite restaurants are not to be missed.
- The Wine House Hotel (most unique): Stay in a wine barrel room at Quinta da Pacheca (aka the Wine House Hotel).
- Portovella Lodges & Bungalows (most affordable): These riverside bungalows have a modern design and a beautiful pool
- Octant Duoro (all-around amazing choice): Octant Douro earns consistent rave reviews and has a stunning infinity pool.
- Tip: Choose a river view room.
Want the perfect Portugal trip planned for you?
Looking for more family-friendly accommodations?
Want to see more of the country?
We planned the PERFECT (I don’t say that lightly!) Portugal road trip itinerary and it is totally done-for-you, including the places we actually stayed at with two kids, and all our tips for where to eat and how to spend your time.
We have 3 versions, though I cannot stop raving about the hidden gems road trip route.
These were all crafted from our own travels plus countless hours of research and insider tips from locals. And they will save you SO MUCH TIME.
All you need to do is worry about packing (and again, we’ve got all sorts of tips for you there!)
Portugal Hidden Gem Road Trip: We have a 2-week road trip itinerary that takes you through Lisbon, Sintra, Óbidos, Lousa, Monsanto, Peneda-Gerês National Park, Porto, the Douro Valley, and more.
Lisbon & Porto Itinerary: There’s also a Lisbon and Porto itinerary for those short on time, and a Madeira itinerary for the ultimate island adventure.
Madeira Itinerary: Our 1-week Madeira itinerary includes the best highlights, hikes and hidden gems of this island paradise. You can use it on its own, or combine it with our other Portugal itineraries for an epic trip!
Whichever route you choose, you’ll get a complete, stress-free plan packed with expert advice and local recommendations so you can simply show up and enjoy the adventure.
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Katie Diederichs is the lead writer and co-founder of Two Wandering Soles, where she creates in-depth travel guides, itineraries, and tips designed to help readers plan better trips with confidence. With a background in journalism, photography, and design, she combines thorough research with firsthand experience to deliver clear, practical, and visually driven travel content. As the primary trip planner, Katie turns complex logistics into easy-to-follow advice travelers can actually use.