Pousada Palacio de Estoi
Located about 10 km from Faro in the eastern Algarve, Pousada Palácio de Estoi is the region's only palace hotel creating a striking blend of history, elegance, and contemporary comfort. Officially known as Palácio do Visconde de Estoi, this estate is more commonly referred to as Palácio de Estoi. It's a romantic property complete with a pink palace and gardens inspired by Versailles.
The palace's story begins in the 18th century as the estate of a nobleman. Construction halted after the nobleman's death in 1847 and was later revived by his brother. In the 19th century, it was purchased by Francisco José da Silva, the future Viscount of Estoi, who completed the construction and celebrated its grand opening with a lavish three-day party.
Decline and revival
The estate remained in the family for nearly one hundred years. But despite its grandeur, the palace fell into disrepair through the mid-20th century. It was acquired by Faro's municipal authority in the late 1980s. Comprehensive restoration (1992–2000s) transformed it into a luxury pousada, officially re‑opening on Easter 2009. In 2015 it became part of the Small Luxury Hotels of the World and managed by the Pestana Hotel Group.
Architectural mix
Interior details of the palace.
The palace displays a lavish mix of Italian Baroque, Rococo, Neoclassical, and Romantic styles. Inside are frescoed halls, a restored chapel (which also serves as the hotel reception) with original altarpieces, grand salons, and a museum-like exhibition area tracing Estoi's Roman, Islamic, and medieval heritage.
Arrival
The N2 highway runs nearby but reaching the village of Estoi requires navigating a few narrow rural roads. If you're driving a car, be sure to turn on GPS. As we approached the palace (you really can't see it from the road), it was hard to tell at first where the entrance was, but we saw cars parked diagonally along one side of the road and saw what looked like a small museum entrance. Although not well marked, this was in fact the entrance (the palace's former chapel) both to the hotel and the palace where the public can take tours of the palace and gardens (for a small fee) during certain times of the day.
The rooms and corridors are modern
Hotel room corridors with contemporary art for sale. Some corridor walls also show pictures of the palace restoration.
A modern extension has been added to the property, housing sixty-three contemporary rooms and suites, as well as the hotel's spa, and indoor and outdoor swimming pools. This part of the hotel in my opinion is a stark contrast from the historic palace, featuring a sleek and minimalist design that we didn't think went with the rest of the property.
Spacious room with private patio. A complimentary gift of fresh fruit was waiting for us.
Since we were only planning to stay one night, we reserved a Standard room, and it was exceptionally clean and spacious with a private patio overlooking a small part of the garden.
The palace rooms are gorgeous!
Interior palace rooms.
After getting settled in our room, we set out to explore the palace and the gardens. The common rooms of the palace are opulent and provide areas for relaxation, a drink, or for contemplation.
A Versailles-style Garden
The palace garden.
In front of the palace lies a magnificent Versailles-style garden, adorned with classical statues, decorative fountains, manicured hedges, and lush plants — including Algarve orange trees. The garden cascades down over two lower terraces, connected by grand staircases decorated with blue azulejos (traditional Portuguese tiles).
These lower garden levels are open to the public but can only be accessed via a gate in the lower village, near the small church. Even hotel guests must use this public entrance, as the ornate wrought-iron gate from the hotel grounds remains closed. This helps maintain privacy for guests, especially those relaxing by the outdoor pool, which sits directly beside the sculpture garden.
'O Visconde' Restaurant
O Visconde Restaurant, Bar, and Patio.
Located in what was once the original palace kitchen the hotel restaurant offers Algarve regional cuisine. During the evening of our brief stay, we were escorted to the restaurant patio for dinner. Sitting with a view of the ancient pillars and enjoying a delicious dinner with excellent and attentive service, it was a romantic and memorable setting.
Public tours
The public can tour the palace and gardens along with a museum room containing artifacts and historical information, although hotel guests have complimentary access to all. As of this writing, public tours cost 2.50€ per person and you pay this at the hotel reception area (the palace chapel). Certain days and hours apply. The hotel rooms, pools, and spa are not accessible to the public, but the restaurant is open to the public by reservation.
What's nearby
Beyond the palace walls, Estoi and the surrounding region offer a blend of culture, history, and natural beauty.
Wander the Estoi Village to see the neoclassical Igreja Matriz de Estoi, ornate local architecture, and sample local pastries. The village is small and can be accessed by walking up a hill from the palace or by a palace garden gate in the lower part of the village.
Just a five‑minute drive away, explore the excavated Roman Ruins of Milreu, the remains of a 1st–4th century Roman villa, with mosaics, thermal baths, a temple, and interpretation center.
Faro Exploration - Head 15 minutes west to Faro and explore its medieval Old Town, Sé Cathedral, the haunting Bone Chapel in Nossa Senhora do Carmo, and picturesque marina.
If you visit:
Pousada Palácio de Estoi website.
The palace is suitable for weddings, conferences, and boutique events.
Complimentary underground parking for guests.
Dogs up to 15 kg are welcome (extra fee).
