With its historic city centre riddled with ancient alleyways, lively bar and restaurant scene, as well as a decent beach thing going on, Faro is a stunner of an all-round authentically Portuguese city.

It’s got Moorish city walls, medieval churches, a marina that’s packed with all the nightlife you could ever need, and a nearby national park (Rio Formosa) that shouldn’t be missed if you love getting out into the great outdoors. There’s a lot going for this place.

But… it’s the capital of the popular Algarve resort region, and people often just use Faro for its airport as a result, but not many people get to stop off and explore…

So, with the help our handy list of the best hostels in Faro, let us show you what you’re missing out on! We’ve even put the hostels into handy categories so you can choose the one that’s right for you.

Let’s check out what’s going on with the Faro hostel scene!

What to Expect from Hostels in Faro? 

Hostels are generally known to be one of the cheapest forms of accommodation on the market. That doesn’t just go for Faro, but pretty much every place in the world. However, that’s not the only good reason for staying at a hostel. The unique vibe and social aspect is what makes hostels TRULY special. Head down to the common room, make new friends, share travel stories and tips, or just have a great time with like-minded travellers from all over the world – you won’t get that opportunity in any other accommodation. 

Unlike the famous city Lisbon, Portugal’s Faro doesn’t have that much of a massive hostel scene. However, the ones that you can find are incredibly welcoming, highly ranked and offer some real value

Best Hostels in Faro

It’s kind of a no-brainer in these times, but it’s always good to mention – ALL hostels in Faro have free Wifi and in most cases, it’s pretty fast as well. When it comes to other freebies, you can normally expect free linen and sometimes even free towels. Free breakfast is occasionally on offer as well. Make sure to check the guest reviews before you book the hostel so you’ll know exactly what to expect. 

But let’s talk more about the important stuff – money and rooms! Faro’s hostels normally have three options: dorms, pods and private rooms (although pods are rare). Some hostels even offer large private rooms for a group of friends. The general rule here is: the more beds in a room, the cheaper the price. Obviously, you won’t have to pay as much for an 8-bed dorm as you would for a single bed private bedroom. To give you a rough overview of Prague’s prices, we’ve listed the average numbers below:

  • Dorm room (mixed or female-only): $20-22 USD/night
  • Private room: $52-61 USD/night

When looking for hostels, you’ll find the best options on HOSTELWORLD. This platform offers you a super safe and efficient booking process. All hostels are displayed with a rating and previous guest reviews. You can also filter your personal travel needs easily and find the perfect place for you.

Faro is absolutely beautiful, but it definitely pays off to know where to stay in Faro before you actually start your trip. You don’t want to end up miles away from the hotspots you want to explore. To help you find the ideal palace for your trip, check out our favorite neighborhoods below:

  • Marina de Faro – If you’re curious as to where to stay in Faro for your first time, our answer is definitely Marina de Faro! It is the part of town that is home to Faro’s Marina that faces the beautiful Ria Formosa.
  • Cidade Velha – Cidade Velha translates simply to Old Town in English. The Cidade Velha is the historical center of Faro. It is surrounded by 9th century walls from the Moorish occupation. It’s the ideal place for budget backpackers that want to explore the cultural side of Faro.
  • Downtown Faro – For some epic nightlife and great parties, Downtown Faro is the ideal place to stay. Faro’s downtown is the most popular place for tourists to visit and stay in Faro so you can expect loads of other travellers.

Now that you know what to expect from hostels in Faro, let’s have a look at the best options…

5. Best Hostels in Faro

No matter what kind of traveller you are, we’ve got the right hostel for you. Keep on reading and find the perfect match for your trip!

1. Best Overall Hostel in Faro – Casa d’Alagoa

Casa d' Alagoa
Casa d’ Alagoa is our pick for best overall hostel in Faro

This cool hostel in Faro is set in a crumbling old historic building – well, the front looks like that anyway. Inside it’s a different story. Casa d’Alagoa is all modern and communal, with a pretty much amazing social vibe going on: think sangria nights, BBQ nights and a whole heap of hospitality.

The custom-made beds were built for COMFORT rather than sticking as many bunks as you can in a room. The sort of place you want to come back to, there are literally so many reasons why this is easily the best overall hostel in Faro.

Why you’ll love this hostel:

  • BBQ and Sangria nights
  • Incredibly social atmosphere
  • Bike rental

Previous guests keep mentioning in the reviews how incredibly social and welcoming the hostel staff is. They really turn a normal hostel into a proper home away from home. Loads of travellers come back especially for the social nights, the incredible food and amazing hospitality. If this is your first time travelling as a solo traveller or just in general, Casa d’Alagoa is the perfect place for you.

If you want to explore the region a bit more, head to the reception and ask for the bike rental. Instead of relying on your own feet or public transport, get your hands on a bike and spend the day admiring the stunning landscape. Before you leave, grab a free city map, just so you won’t get lost. The staff will be able to direct you to the best paths and hotspots in Faro as well – local knowledge always goes a long way!

2. Best Party Hostel in Faro – Le Penguin Hostel

Le Penguin Hostel
Le Penguin Hostel is our pick for best party hostel in Faro

Anything to do with penguins? Nope. But this is a bustling social hostel that’s just perfect for meeting new people and having a good time, and we can’t fault that. It’s quite small though – only 30 peeps can stay here – but it means that with all the ping pong tournaments, themed parties and quiz nights you’ll get to know each other pretty well.

The vibe here is distinctly fun. There’s a swimming pool and the all-important bar. Basically, if you’re looking for the best party hostel in Faro, this is IT. Don’t expect mad ones though: it’s just about FUN.

Why you’ll love this hostel:

  • Netflix and Playstation
  • Daily dinners
  • Free Wifi

What’s better than curing your hangover by playing playstation, chilling in comfy bean bags while watching Netflix or sleeping the day away in a super comfy bed? I think we made our point here… Le Penguin isn’t just great for partying and socializing, it’s also a super chill place where you can recharge before your next adventure.

The hostel also offers all the facilities that a backpacker needs, including WiFi, hair dryer, a great breakfast, tea and coffee, lockers, luggage storage, movies, games, flexible check-out and much more. All free of charge, because they also hate hidden costs! The friendly staff, formed by a team of passionate and laid back travellers, will do everything they can to make sure that you have an amazing time in Faro.

3. Best Hostel for Solo Travelers in Faro – Hostel 33

Hostel 33
Hostel 33 is our pick for best hostel for solo travelers in Faro

Run by a Portuguese family, and set inside a renovated old building, this top hostel in Faro features big, spacious rooms and an outdoor terrace bathed in sunlight. As you might expect, it’s a very social place – even the staff like to have a chat (over a glass of Portuguese wine or two).

The best hostel for solo travelers in Faro is also located in a pretty central spot, meaning you can get around easily by yourself – it’s also near public transport, which helps, and the beach is nearby, too.

4. Best Hostel for Digital Nomads in Faro – Casa da Madalena Backpackers Algarve

Casa da Madalena Backpackers Algarve
Casa da Madalena Backpackers Algarve is our pick for best hostel for digital nomads in Faro
  • $$
  • Free Breakfast
  • Rooftop Terrace
  • Cafe

Here you might wanna get your work done in the morning: this is a classically Portuguese place where they ‘respect siesta time’ – so you might as well join ’em and catch a few Z’s too. Oh, and it looks dang cool as well.

The best hostel with a private room in Faro, you’ll be able to find a loada different spots to set up your own lil’ workstation here, inside AND outside. The staff are also genuinely warm and friendly, which really makes all the difference. Bonus: free breakfast on the sick rooftop terrace.

5. Best Hostel for Couples in Faro – Wax Hostel

Wax Hostel
Wax Hostel is our pick for best hostel for couples in Faro

This recommended hostel in Faro sits right on the beach, so it definitely strikes us as the best hostel for couples in Faro. You can get that beach holiday getaway kinda vibe here – though it doesn’t exactly come at the budget prices.

Wax Hostel is all about soakin’ up those stunning views. Sunsets from here are pretty dang spectacular, we gotta say; sit up on the terrace and admire a sundowner every evening with your partner. The rooms are simple and stylish and are the perfect place to unwind as a couple. Yep, sounds good to us.

More Epic Hostels in Faro

Haven’t found the right hostel for you yet? Don’t worry, there are plenty more options waiting for you. To make the search a bit easier, we’ve listed more epic hostels in Faro below.

Hub 1878 Faro

Hub 1878 Faro
Hub 1878 Faro is our pick for best cheap hostel in Faro

Hub 1878 Faro is stylishly designed with a load of historical features and mismatched tiles going on. It’s not one of the coolest hostels in Faro, but it’s definitely got a laid-back vibe that means chilling out here is as easy as just pulling up a chair.

Air con is everywhere, which is a godsend when this city gets hot hot hot. It’s also pretty big: this Faro backpackers hostel boasts two communal kitchens, two lounges and a very nice terrace. The room rates alone make this the best cheap hostel in Faro, and the free breakfast is definitely a plus, too.

Best Hostel with a Private Room in Faro – Sunlight House

Sunlight House
Sunlight House is our pick for best hostel with a private room in Faro
  • $$$
  • Free Breakfast
  • Shuttle Bus
  • Bicycle Hire

Sunlight House has a sorta B&B slash hostel comb thing going on, which is a good thing if you’re after the best hostel with a private room in Faro. Yep, the rooms here are NICE – soft colours, wooden floors, minimal decor. Lots of attention to detail. It’s a pretty cool Faro hostel tbh.

The outdoor terrace, complete with sea views, is a very decent place to chill (this is also where they serve up the supremely tasty free breakfast). And as the cherry on top, the staff here have a lotta local knowledge to help you discover the city. Top dollar though.

Things DO go missing sometimes…

lock iconPsst! Heading to a hostel? Don’t forget to pack a padlock! It’s well worth having one so you can secure your locker and protect your stuff!

More Best Hostels In Faro

Stay in the middle of the action (or in an off the beaten path location) using our comprehensive neighborhood guide for Faro!

Faro Beach Life Hostel

Faro Beach Life Hostel
Faro Beach Life Hostel
  • $
  • Common Room
  • Bicycle Hire
  • Outdoor Terrace

As you might be able to guess from the name of this budget hostel in Faro, this one’s on the beach. That makes it great for catching rays, splashing around, surfing and generally just walking along the sand. Oh and don’t forget the sunsets.

Some rooms have views of the beautiful Rio Formosa lagoon, which is always nice. The family atmosphere at this Faro backpackers hostel gives it a low-key, unfussy vibe. Basically, it’s a solid place to stay. Especially if you like the beach.

Baixa Portugal Terrace

Baixa Portugal Terrace
Baixa Portugal Terrace
  • $$
  • Bar
  • Luggage (+ Bicycle, Surfboard) Storage
  • Free Breakfast

Set in the bustling downtown area of Faro, this Faro backpackers hostel has its own rooftop terrace and bar, which is great for a few sunset drinkies. The staff here are keen surfers and bikers, so if you are too you’ll be happy to know they got plenty of storage for all that.

This is a good place to base yourself for enjoying the bars and restaurants of downtown and makes for a recommended hostel in Faro for anyone wanting to explore the city. The staff are very laid-back, so don’t expect ’em to be overly attentive.

HI Hostel Faro

HI Hostel Faro
HI Hostel Faro
  • $
  • Free Breakfast
  • Book Exchange
  • Outdoor Terrace

This Faro branch of Hostelling International is a pretty big place with 60 beds and a loada different choices when it comes to rooms. It’s a decent option if you want to chill near the beach. Plus it’s cheap!

The staff at this place are friendly and welcoming and somehow they tend to attract guests who are pretty much the same, making for a good hostel for solo travellers in Faro. Luxurious this ain’t: it’s unfussy and definitely suited to those who’d rather be out and about.

Hostel do Largo

Hostel do Largo
Hostel do Largo
  • $$$
  • Outdoor Terrace
  • Free Breakfast
  • Communal Kitchen

You’ll find Hostel do Largo in central Faro, close to the market and all the other delights this town has to offer. It’s pretty stylish actually, and may well be one of the coolest hostels in Faro. Rejoice, for the dorm beds here are NOT bunk beds.

Clean and quiet (I mean, sometimes the staff aren’t always there), it’s not exactly a party hostel but you can easily explore the town from this place. The rooms are also large, which makes a change from cramped dorms. Plus there’s a rooftop terrace to chill on. Nice.

Well’Come! to Algarve

Well'Come! to Algarve
Well’Come! to Algarve
  • $$
  • 24 Hour Security
  • Cable TV
  • Rooftop Terrace

This Faro hostel is a place that’s run with love and enthusiasm. Set in downtown Faro, this place is pretty close to the marina and all of its bars, cafes and restaurants, so there’s plenty to explore for backpackers with itchy feet.

The bus and train stations are also quite nearby, meaning you can get out and about to explore the local area as well as just the streets surrounding the hostel. It’s small and cosy, a pretty solid option for a few nights. Ain’t poppin’ but it’s close to places that are.

New Charme Guest House

New Charme Guest House
New Charme Guest House
  • $
  • Cafe
  • Laundry Facilities
  • Tours/Travel Desk

In the New Charme Guest House (though it’s a hostel really) you’ll find comfy beds and helpful staff who’ll equip you with maps and plenty of local knowledge. Set in a historic building, the rooms here are also refreshingly spacious.

This youth hostel in Faro is near the central station, so you don’t have to lug your backpack halfway across town sticking out like a sore thumb. That’s a plus for us. Though it’s a great stop off on the way to the airport, there’s more to it than that. They arrange all sorts of activities for ya here – kayaking, scooter hire, tours – you name it.

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Guest House Sao Filipe

Guest House Sao Filipe
Guest House Sao Filipe
  • $$
  • Luggage Storage
  • Air Con
  • 24 Hour Security

A guesthouse hostel combo, this place is modern and colourful, which we guess makes for a cheery aesthetic at least. Though the atmosphere here isn’t what we’d call buzzing, it’s a nice enough place to stay. Especially if you like peace and quiet.

One of the most attractive things about this budget hostel in Faro is its room rates. Very affordable. Elsewhere in Guest House Sao Filipe you’ll find a sun terrace where you can bake in the sun or read a book in the shade. Calm place.


  • $$
  • Communal Kitchen
  • Airport Transfer
  • Bicycle Hire

Hostellicious. It’s sort of a pun and we like it. We also like that this top hostel in Faro is well located near to the nightlife of the city, but it’s still a place where you can actually get some sleep, too.

This Faro backpackers hostel also features comfy, modern beds, a well equipped communal kitchen, a sun terrace, common room – all of it decorated in simple industrial chic-esque sorta style. Not eye-poppingly amazing, but cool enough.

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What to Pack for your Faro Hostel
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Pants, socks, underwear, soap?! Take it from us, packing for a hostel stay is not always quite as straight forward as it seems. Working out what to bring and what to leave at home is an art we have perfected over many years.

Check out our definitive Hostel Packing list for our top packing tips!

This cool city is waiting for you!

FAQ about Hostels in Faro

Here are some questions backpackers ask about hostels in Faro.

Travel Safety Tips for Faro

And don’t forget Travel Insurance! We’ve put together a roundup of Travel Insurance for backpackers – check it out here, or if you’re low on time, get a quote from World Nomads, our favorite travel insurance provider.

Getting an estimate from World Nomads is simple – just click the button or image below, fill out the necessary info, and you’re on your way!

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The Algarve can be overrun with parties and backpackers sometimes. Avoid drinking too much and follow these Portuguese safety tips to ensure your trip is a good one!

More Epic Hostels in Portugal and Europe

Hopefully by now you’ve found the perfect hostel for your upcoming trip to Faro.

Planning an epic trip all across Portugal or even Europe itself?

Don’t worry – we’ve got you covered!

For more cool hostel guides around Europe, check out:

Over to you

By now I hope our epic guide to the best hostels in Faro has helped you choose the perfect hostel for your adventure!

If you think we’ve missed anything or have any further thoughts, hit us up in the comments!

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