Planning a trip to Portugal? Skip the endless searching—we've done the hardest part for you. This is the definitive list of our favorite hotels from a recent trip that swept us through the Azores, Lisbon, Coimbra, Porto, and the Douro Valley. We stayed in all of them in October 2025, carefully curating a selection of unique, boutique properties. These aren't hostels, but they aren't budget-breaking five-star resorts either. If you’re looking for stylish stays that offer incredible character and value, look no further: here is our essential Portugal hotel round-up.

Terra Nostra Garden Hotel (Furnas, Azores)

Why we love this hotel? This serene Azorean retreat is located within a botanical garden and provides 24-hour access to not only gorgeous gardens but a relaxing geothermal pool.

Vibe: Relaxing Art Deco
Number of rooms: 86
Amenities: Restaurant, Bar, Spa, Indoor Pool, Outdoor Thermal Pool and Jacuzzis, Fitness Center, Parking
Location: in the center of Furnas, on the island of San Miguel, Azores
The “not so great”: Service at front desk and in some of the restaurants could be improved. Had to track down waitstaff on numerous occasions.

Furnas makes a lovely base for exploring São Miguel, the largest and most populous island in the Azores, and the Terra Nostra Garden Hotel is the place to stay. Where else can you step out your door into a massive botanical garden and access an enormous geothermal pool just a short walk away—even at midnight? This is a larger hotel often used by tour groups, so it is busy and lively, yet it still maintains a relaxing vibe. The main restaurant is open all day, complemented by a bar and outdoor terrace open for lunch, afternoon drinks, and dinner. If you want to explore beyond the hotel grounds, several other restaurants are just a short walk away in town. Lake Furnas is nearby, offering a great half-day hike around its perimeter. Follow that with a massage at the full-service spa, and you've got quite a day. Oh, and don't forget the Pina Colada—it's made with pink peppercorns and tastes completely unlike any version you've ever had!

Santiago de Alfama (Lisbon)

Why we love this hotel? This boutique hotel with historical charm has a prime location in the Alfama district and great dining options.

Vibe: Lively contemporary classic
Number of rooms: 19
Amenities: Restaurant, Bar, Parking
Location: Alfama, the oldest neighborhood in Lisbon
The “not so great”: We found the in-room coffee machine difficult to use causing us to spill water. Also unlike many Lisbon hotels, there is no rooftop terrace and most rooms don’t have city/river views.

There are many neighborhoods in Lisbon you can choose to base yourself in. If you are looking for a quieter, cozier, and older part of town, look to the Alfama district located at the base of the castle on the riverbank. You will find a slew of cafes and restaurants nearby and a quick walk downhill to the downtown area (Baixa). The Santiago de Alfama is a great example of independent boutique hotels focused on delivering unique quality accommodations with fantastic service. My flight arrived early and my room was occupied but they quickly provided an upgrade to a much bigger room so I could access a room right away. They also invited me to have breakfast (cooked to order) while I waited for them to freshen up my room. The hotel spills historical charm with stone walls and tile floors yet very modern in the areas you want like the bathroom with hot, great pressure rain showers and fabulous Bvlgari toiletries. If you are tired after a long day of sightseeing and just want to go back to your hotel for dinner, you won’t have to worry about sacrificing a quality meal as the bistro was terrific and the bar just as good. The salmon tartar and grilled octopus were great. There’s even a gift shop with stylish locally sourced products.

Bairro Alto Hotel (Lisbon)

Why we love this hotel? Great location in the heart of Lisbon with a ton of amenities.

Vibe: Cosmopolitan luxury with a bohemian flair
Number of rooms: 87
Amenities: Restaurant, Bar, Spa, Fitness Center, Parking
Location: Bairro Alto, near the Praça Luís de Camões, Lisbon’s main square
The “not so great”: The rooftop terrace is open to the public so it can get quite busy. The hotel’s neighborhood is quite busy and we did hear some street noise at night.

If you are looking to be spoiled, this is absolutely the place for you. They have everything you could want, starting with great rooms that range from stylish single rooms—each with an excellent bathroom—to full suites featuring walk-in closets and balconies overlooking the city and the river. The rooms are split between two distinct wings, so there is something for every taste: one side maintains beautiful historical touches, while the other offers a bright, modern design aesthetic. Amenities are comprehensive, including a full gym, sauna, and treatment rooms, alongside a cozy lounge that features a bar and a movie projector for dedicated film nights. Both the main restaurant and the rooftop bar boast incredible views. Breakfast, notably, is terrific—there is no buffet; instead, guests enjoy a full à la carte menu to choose from. The bar serves fantastic cocktails and a light food menu, and there is even a charming coffee shop and bakery on the ground floor. All of this is wrapped up in a boutique hotel experience defined by constantly available, personalized service.

Sapientia Boutique Hotel (Coimbra)

Why we love this hotel? Location is unreal - you can’t get any closer to the university!

Vibe: Quiet, with modern yet rustic minimalism
Number of rooms: 22
Amenities: Restaurant, Bar
Location: Next to the University of Coimbra. At night, the neighborhood is very quiet and you need to walk down the hill to get to the restaurants and shops.
The “not so great”: Service was a bit hard to find at times, particularly with the front desk manager telling us how overworked he was and that he was the only person actually working hard at the hotel.

Chances are if you are coming to Coimbra you are coming to visit the university. It is the one of the oldest in the world dating back to 1290 and has become a UNESCO World Heritage Site due to the stunning buildings and interiors including the Joanina library, the Paco das Escolas, and San Miguel Chapel. There is no hotel closer than the Sapientia just across the street from the Joanina Library. We loved the extra touches at this hotel from the welcome drink served on the peaceful patio under the tree to the free wine hour served on the rooftop deck during sunset. The rooms were all quite large with good sized sofas for relaxing. Many of the rooms also have kitchenettes if you are so inclined to use them. The clean, contemporary style rooms are great but do note, many have loft areas which require climbing stairs to get to the bed and bath. We definitely felt at peace staying at this hotel due to the tranquil environment. This property was a great value.

M Maison Particulière (Porto)

Why we love this hotel? A renovated 16th-century townhouse, it feels like you are staying with friends and the location cannot be beat.

Vibe: Intimate dark academia
Number of rooms: 10
Amenities: Restaurant (breakfast only)
Location: Heart of historic Porto
The “not so great”: Since the hotel is on a highly restricted street in the city center, expect to be dropped off about half a block away instead of directly at the door. You also have to be let in the front door by a member of staff as the door is always locked. Some of us found it charming, while others were impatient:)

Porto lodging is a tale of two areas, and we recommend staying on the old town side of the Douro River rather than the Gaia side. We prefer being close to better restaurants, shopping, and historic sites, then simply heading to Gaia for a twilight drink when lights of old Porto are sparkling. The Maison Particulière is perfectly situated in the heart of the old town, and the location truly can’t be beaten. Charming cafés and great shops—including Claus Porto, the famous luxury soapmaker, which is a must-visit—are literally just a few steps away.

When you arrive at this exclusive, intimate hotel, you simply ring a bell. You’ll be greeted by staff who quickly learn you by name, instantly making you feel like it's your private home-away-from-home. The rooms are generously sized and uniquely decorated with an Old-World Grandeur aesthetic; some suites even feature original Picassos! Our top-floor room included a balcony with breathtaking views across Porto, providing a beautiful setting for morning coffee, which is delivered right to your room. To ensure the highest quality, breakfast is entirely made-to-order (you must reserve your dining time the night before) and is served in an atmospheric dining room with many delicious options.

Quinta De S Bernardo Winery & Farmhouse (Douro Valley)

Why we love this hotel? The service is incredibly warm, and with so many indoor and outdoor nooks, you'll always find space to relax.

Vibe: Stylish yet warm family farmhouse
Number of rooms: 7
Amenities: Restaurant, Bar, Spa, Indoor Pool, Outdoor Pool, Fitness Center, Kayaks, Paddleboards, E-Bikes, Parking
Location: Rural setting in Douro Valley
The “not so great”: Standard rooms could be a bit larger and have more storage

From the moment you arrive, the staff know you by name. The service is wonderfully relaxed and casual, yet still top-notch. The culinary experience is exceptional, boasting far more options than you'd expect from a small hotel. The main dining room serves an extravagant buffet breakfast, small bites for lunch, and a three-course dinner. For a truly memorable evening, you can choose the Greenhouse Dinner, an eight-course meal with optional wine pairings set in a candle-lit greenhouse, or the Chef’s Table Experience, where you watch your dinner prepared with commentary from the head chef.

Beyond dining, there are plenty of amenities to enjoy. You can simply relax poolside while staring at the beautiful scenery, play a game of billiards, hike through the nearby vineyards, paddleboard on the Douro, or enjoy a wine tasting featuring the estate’s own production. Housed in a historic manor, the rooms have been stylishly refurbished to a high standard, with some rooms even featuring balconies and private pools.

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