The Best Budget Hostels to Book in Lagos, Algarve

Lagos has plenty of great hostels for a budget-friendly stay
Lagos has plenty of great hostels for a budget-friendly stay | Courtesy of Suntrap Hostel /Expedia
Nina Santos

Lagos is one of the Algarve’s popular party destinations, fringed with stunning beaches, and although the local hotels can sometimes be a bit pricey, there are many hostels where adventurous travelers can stay on a budget and enjoy themselves at the same time. These spots in particular are budget-friendly and conveniently close to many sought-after sights. If you’re counting your euros but still want to enjoy your time, read our compilation of top inexpensive hostels in Lagos – bookable on Culture Trip.

1. The White Butterfly Hostel

Hostel, Hotel

An outdoor area at The White Butterfly Hostel with white walls, a palm tree and other tall potted plants, chairs and tables
Courtesy of The White Butterfly Hostel / Expedia

Located in the center of Lagos, this hostel was built inside a renovated Portuguese estate and comes complete with outdoor terraces, an entertainment room, and even a stone Jacuzzi. This laid-back establishment encompasses a relaxed way of life often felt in the Algarve, with 24-hour reception and a policy that allows cancellations up to 24 hours before your check-in date. Guests are welcome to enjoy a cup of coffee in the house before exploring the beautiful surroundings in Lagos.

2. HI Lagos Youth Hostel


An outdoor seating area with blue chairs and tables surrounded by the terracotta roof and balconies at HI Lagos Youth Hostel
Courtesy of HI Lagos Youth Hostel / Expedia

Perhaps HI Lagos Youth Hostel is where you’ll make new friends the next time you visit Lagos, Portugal. It has been certified by Hostels International, also goes by the name Pousada de Juventude, and offers bright and airy rooms in addition to a dining area and common area – pool, anyone? And if you need an extra incentive, breakfast is included.

3. Hutch Hostel


A bedroom with blue and white walls, blue sheets on two bunkbeds and a blue cupboard at Hutch Hostel
Courtesy of Hutch Hostel /

If you enjoy yoga, plan on doing a cliff walk in Lagos, or enjoy group dinners, this may be the hostel for you. Hutch Hostel is one of Lagos’ budget hostels that’s a short walk from many sights, restaurants, and bars.

4. Tamar Guesthouse

Hostel, Guesthouse

A light and spacious bedroom with a wooden bed, white sheets and windows at B38 - Tamar & Patio
Courtesy of B38 - Tamar & Patio / Booking

This spot, which is run by two friends, also goes by the name Tamar Guesthouse, and although it’s considered a hostel it’s also classified as a bed & breakfast. In addition to the price, previous guests have boasted about the cleanliness and location, which is a short walk from the major landmarks and around the corner from a grocery store.

5. Lagos City Center Guest House and Hostel

Hostel, Hotel

Bedroom with two beds, black and white striped sheets, a bedside table and lamp at Lagos City Center Guest House and Hostel
Courtesy of Lagos City Center Guest House and Hostel / Expedia

Those who prefer comfort over parties may like the Lagos City Center Guest House and Hostel. This accommodation offers different rooms from five-person apartments to triples but doesn’t include multiple-person dormitories (eight or more) as noticed in other hostels. The kitchen is shared unless you choose the apartment, but each room has its own bathroom for a little extra privacy.

6. Top City Hostel and Suites

Boutique Hotel, Suite Hotel

A rooftop pool area with sun loungers, wooden decking and city and sea views at Top City Hostel & Suites
Courtesy of Top City Hostel & Suites / Expedia

This new budget hostel seems to have something for everyone, so much so that it may be hard to believe that Top City Hostel really is a budget-friendly accommodation. Seaside views, a rooftop pool, and a garden bar only begin to scratch the surface of this beautiful space that only opened last June. Although breakfast is not included in the price, the hostel’s central location places guests near many Portuguese cafés in addition to most of the city’s landmarks.

7. Suntrap Hostel

Hostel, Hotel

A rooftop terrace with a green floor, white tables, chairs and walls and blue and yellow sun loungers at Suntrap Hostel
Courtesy of Suntrap Hostel / Expedia

Suitably named, the Suntrap Hostel is a bright and airy space due to the floor-to-ceiling windows and is filled with five room types – from doubles to multiple-person dormitories.

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