Pousada Palácio de Estoi

Pousada Palacio de Estoi occupies a restored 18th-century palace in Estoi, on the edge of Faro, and is a member of Small Luxury Hotels of the World. It's run by Pestana as part of the Pousadas de Portugal collection and has 63 rooms across several categories, from Classic rooms up to a Special Suite. The hotel keeps its palace-era gardens and adds an outdoor pool, an indoor pool with a spa area offering massages, and a gym. Guests eat at the O Visconde restaurant or have a drink at the Bar do Palacio, both set inside the historic building, and there are meeting rooms for events. The hotel is pet-friendly and holds a Green Key certification and a TripAdvisor Travelers' Choice award for 2026. Pousada Palacio de Estoi sits close to the Roman ruins of Milreu and a short drive from central Faro and the Ria Formosa.