Faro is the capital and largest city in Portugal’s southern region known as the Algarve, and the listings here are really for the whole region rather than just for Faro itself. This is primarily a sunshine beach resort with not much in the way of cultural offerings, although during summer it is known as a party destination. If coming from Lisbon, you’ll likely change trains in Faro, though that might be a good reason not to stay here.
The booming Algarve region is lined with newer hotels, and that has kept prices very reasonable, even during peak summer months. There are about 20 all-inclusive resorts in this region, in addition to about 250 other hotels and resorts. The beaches are lovely and the weather is among the best in all of Europe, so value here is quite good. English is widely spoken, which isn’t true at some of Spain’s similar resort area.
Food and drinks are modestly priced in Faro compared to most other European beach resort areas. Since this is really a string of small towns and beach areas, the range is wide and some sections are quite pricey.