Portugal is cheaper than anywhere else in western Europe, which is reflected in the prices of these great places to stay, from arty cabins in the Algarve to a cool surfer's hostel near Lisbon
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Winning tip: Fonte da Estrela
A thatched lime-walled Pixie Hut and two self-catering artistic wood cabins on lush mountain site walking distance from a river. It's owned by a sculptor, and there are fruit trees, owls, geckos, golden orioles and woodpeckers. We flew to Faro, hired a car, drove to the beach (15minutes' away), crashed a few art exhibitions for free wine and nibbles, then returned to Fonte da Estrela to siton the terrace overlooking rolling hills, watching for owls, drinking red wine, and talking art to our attentive host, Toin. There are studio facilities for artists and sculptors or borrow a three-man tent and do a Robinson Crusoe down by the river.
airbnb.co.uk/rooms/93545, Pixie Hut from £35, cabins from £30
turkeyplace
Algarve
Quinta dos Carricos camping site, Praia da Salema
Great value place for peace and quiet, space and scenery. We were there at May half-term and had the place almost to ourselves. Staff are extremely helpful and friendly. The in-house restaurant serves great pizzas plus meals, and wine is good value at €1.60 a glass. Superb beaches nearby and the quieter western seaside villages are on hand. Our five-night stay with pitch for one tent, parking, Wi-Fi and showers etc, was only about €100.
+351 282 695 201, quintadoscarricos.com
ysihoward
Camping in Lagos
The old port of Lagos has historic buildings, beaches, surfing, nightlife and superb camping at the spotless Turiscampo (from €18 for two). There's a large pool, children's pool, shaded poolside, small supermarket, bar and good restaurant. There are also chalets to rent if you don't want to fly with a tent (from €43). English is spoken at reception. For a world-class walk head out west atop golden-ochre cliffs. Refuel on tasty authentic chicken piri-piri (€5) at Churrasqueira Praça d'Armas. Visit the hippy market (free, of course) and for €3.80 the Sagres bus will take you to the south-west tip of Europe – once the end of the Roman world where the sun was believed to drop hissing into the sea.
turiscampo.com
susanmagicbus
Villa Termal das Caldas de Monchique Spa Resort, Monchique
Superb value spa high in the hills, far from the madding crowd. A slightly fantastical collection of buildings set in sunny valley a bit like a mini Port Merrion. We paid €178 for two nights B&B including two treatments for each of us. Large room looked over a beautiful courtyard. Excellent buffet breakfast in 1692 restaurant, and our deal included wine with dinner one night. Double rooms with spa access can be had from €50 a night.
+351 282 910 910, monchiquetermas.com
ysihoward
Lisbon and around
Residencial Alegria, Lisbon
Stayed here in 2003 and it cost €39. An absolute bargain. Went back this year and it was less than €60 a night for the two of us. It doesn't look like the photos on the website, but I would still wholeheartedly recommend this hotel. It is a three-minute walk from Avenida metro station on Avenida da Liberdade, within easy reach of Rossio. We found four restaurants in the area in one week, all of them really good.
+351 213 475 522, alegrianet.com. Doubles from €43 room only
bennionfire
Paradise Hostel, Baleal
An oasis in a desert of busy surf hostels, tucked away from the main road with a relaxed and friendly vibe. Facilities are fantastic with a huge common room with pool table, and volleyball courts – great fun after surfing. It is possibly the best spot to watch the sunset I've ever been to. They also do free pick-ups from Peniche bus station.
+351 960 207 149, paradise-baleal.com. From €15 a night
victoriatangle
Alentejo
Monte Alerta B&B, Monsaraz
Two hours' drive west from Lisbon, in the Alentejo region, is the ancient hilltop village of Monseraz. Below, by the Alqueva dam, is a small family-run bed and breakfast called Monte Alerta. It is a charming white-stoned villa with a garden and a swimming pool (as well as a real fire in winter). It is the ideal base for exploring the area, which is sparsely populated, with undulating hills dotted with cork trees. Within a 30-minute drive are the historic towns of Évora, Elvas and Estremoz. Spectacular sunsets can be enjoyed in the garden with a drink (BYO).
+351 966 768 307, montealerta.pt. Doubles €85 B&B (seasonal promotions available online)
chips2
Porto
Hotel Davilina, Vila Nova de Gaia
Finding cheap accommodation by the sea with sunshine for three young, energetic children can be tricky, but Vila Nova de Gaia has fantastic beaches, cheap hotels and great beach cafes. The lesser-known Vila Nova de Gaia is on the other side of the river Douro from Porto. We stayed in a family room at welcoming Hotel Davilina, next to a tram stop which took us into Porto or, more importantly, straight to beautiful white sandy beaches. Stop at Miramar to see the church in the sea, Capela do Senhor da Pedra, then have lunch at the beach cafe before strolling one tram stop along the boardwalk to the village. Then head back into town, for a pastel de nata pastry and glass of something Portuguese at one of the friendly local cafes and bars.
+351 223 757 521, hoteldavilina.com. Twins and doubles €30, family suites €40 room only
jomaher