Hostels in Faro and the Algarve (2026)
Beyond Lagos, the Algarve's hostels are spread between Faro's old town and the beach resort of Albufeira. Here is what each base is like and which hostels are worth booking.
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Algarve hostels compared
4 hostels, highest rated first. Hostelworld ratings and dorm prices, checked on 6 Oct 2026. Checked 6 Oct 2026.
| Hostel | Area | Good for | Rating | Dorms from | Book, compare and details |
|---|---|---|---|---|---|
| Casa da Madalena Backpackers Hostel Historic centre, by the bus stations | 9.9/10 | from €25 | |||
| Casa da Madalena had the highest score of the Faro hostels we shortlisted (9.9 from about 1,200 Hostelworld reviews). Good for
Not for
Check prices on Hostelworld: Casa da Madalena Backpackers Hostel Details, map and FAQ: Casa da Madalena Backpackers Hostel Hostelworld rating and dorm price checked 6 Oct 2026. The live price for your dates is on the booking page. | |||||
| Tilia Hostel City centre | 9.5/10 | from €22.77 | |||
| Tilia is a calmer alternative to Casa d'Alagoa that still makes it easy to meet people, through the rooftop, a daily walking tour and yoga. Good for
Not for
Hostelworld rating and dorm price checked 6 Oct 2026. The live price for your dates is on the booking page. | |||||
| Casa d'Alagoa City centre (Praça Alexandre Herculano) | 9.3/10 | from €22.36 | |||
| Casa d'Alagoa is Faro's most-reviewed hostel on Hostelworld (about 4,200 reviews) and still holds a 9.3. It is the sociable choice in Faro, with family dinners and regular events, but it has quiet hours from 11pm. Good for
Not for
Hostelworld rating and dorm price checked 6 Oct 2026. The live price for your dates is on the booking page. | |||||
| Orange Terrace Hostel Old Town | 8.8/10 | from €21.85 | |||
| Orange Terrace is a small backpacker hostel a few minutes from Albufeira's bar street and the beach. Good for
Not for
Hostelworld rating and dorm price checked 6 Oct 2026. The live price for your dates is on the booking page. | |||||
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Where to stay in the Algarve
Faro for a short stay around a flight or a trip into the Ria Formosa; Albufeira for beaches and nightlife. If you want the classic backpacker scene, most travellers head to Lagos instead.
Faro centre & old town Best for short stays, the lagoon, flights · 3 of our hostels
Faro's walled Cidade Velha and the compact centre around the marina, beside the Ria Formosa lagoon. Boats run out to the lagoon islands, and the airport is a short ride away, so it works well for first and last nights.
In or near Faro centre & old town: Casa da Madalena Backpackers Hostel, Tilia Hostel, Casa d'Alagoa
Albufeira old town Best for beach town with evenings out · 1 of our hostels
Whitewashed lanes above the town beach, with restaurants and bars around the main square. Busy in summer, quieter than the Strip.
In or near Albufeira old town: Orange Terrace Hostel
The Strip, Albufeira Best for clubbing
Avenida Sá Carneiro in Areias de São João, east of the old town: the Algarve's busiest run of bars and clubs. Loud and late in high season.
Arriving in the Algarve
Faro airport serves the whole Algarve and is a short bus or taxi ride from Faro's centre. Trains along the Algarve line connect Faro with Albufeira's station (outside the town) and with Lagos.
Landing late? Every hostel on this page lists a 24-hour reception, including Casa da Madalena Backpackers Hostel, Tilia Hostel and Casa d'Alagoa.
Book a day out from the Algarve
These open GetYourGuide's live listings, so you can compare times, prices and reviews before you book. We may earn a commission.
Algarve hostels: your questions
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Are there hostels in Faro?
Yes. The Faro hostels on this page are Casa da Madalena Backpackers Hostel, Tilia Hostel and Casa d'Alagoa. Faro is small, so its old town and centre are a short walk apart.
Should I stay in Lagos, Faro or Albufeira?
Lagos for the backpacker scene, the cove beaches and boat trips; Faro for a night or two around a flight or a trip into the Ria Formosa; Albufeira if beaches and big nights out are the plan. Lagos has its own page with every hostel we list there.
The best hostels in Lagos What's the best area to stay in the Algarve?
Faro for a short stay around a flight or a trip into the Ria Formosa; Albufeira for beaches and nightlife. If you want the classic backpacker scene, most travellers head to Lagos instead.
How much is a hostel in the Algarve?
Dorm beds in the 4 hostels we checked in the Algarve start at €21.85 a night, and the middle of the range is about €23. These are the lowest advertised dorm prices, checked 6 Oct 2026; the price for your dates can be different, and private rooms cost more.
What are some good hostels in the Algarve?
By guest rating, the highest-rated hostels we list in the Algarve are Casa da Madalena Backpackers Hostel (Hostelworld 9.9/10), Tilia Hostel (Hostelworld 9.5/10) and Casa d'Alagoa (Hostelworld 9.3/10). The best one for you depends on the vibe: filter the list above by trip type, or sort it by price.
Travel insurance for a hostel trip: check what your policy says about theft from a dorm and about surfing before you go. Our travel insurance guide lists what to look for.