Alvor’s ancient cobbled streets have sprung to life with riverfront seafood restaurants, shops, and night spots. Here are two budget hotels that make for an affordable base from which to explore the Portuguese beach town.

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1

Luna Alvor Bay

Alvor, Portimao

The Luna Alvor Bay is a 149-room, mid-range apartment hotel in a quiet complex that's walking distance to both the beach and attractions in downtown Alvor. Since it's set in an apartment tower, it lacks standard hotel features like a fitness center or a full restaurant, but the trade-off is large contemporary studios with kitchenettes. The outdoor pool is small, but the lounge bar has a nice outdoor terrace. 

2

Cheerfulway Clube Brisamar

Alvor, Portimao

The 107-room Luna Clube Brisamar is the most affordable all-inclusive option in the area. For families on a budget, the price may be right, but the dated one-bedroom apartments are the only type available. They have kitchenettes and balconies, but also old tube TVs; the air conditioners are mounted in the living rooms where they can't cool the bedrooms in hot weather. The outdoor pool has a big sundeck with a bar, and the all-inclusive rates make meals easy with kids, but with just the one buffet restaurant and lounge bar, there aren't many choices.