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In many ways, Portugal is something of a forgotten country in Europe. Sure, everyone’s heard of Lisbon, but for rail passengers it’s all tucked away in the corner of the continent so one has to go all the way through a dead part of Spain just to get to the country’s border. But travelers who make the effort to go to Portugal are rewarded with a unique country and culture that isn’t nearly as Spanish as most people expect. Hotel prices in Portugal are quite reasonable by European standards, and Portugal hostel prices are even better, so this is an ideal destination for curious people on a budget.

Of course, most of the attention falls on the capital city of Lisbon, and most of the Portugal hostels are in Lisbon as well. It’s a compact and fashionable city on a river that is extremely easy to visit if you stay in or near the center of town. Most of the hostels in Lisbon are located near the center, with several up in the Old Town area of Barrio Alto up on the hill overlooking the center. This is an excellent area for budget travelers because it’s loaded with fun nightlife, prices are very reasonable, and it’s easy to get back and forth to and from the more-expensive retail district just below.

But there is much more to Portugal than just Lisbon. The northern coastal city of Porto is known for industry and port wine more than for tourism, but travelers are discovering that there is much more to the city than that. A few Portugal hostels have opened up over the last few years in Porto, and it’s likely that more will follow.

The region that makes up the south of Portugal is collectively called the Algarve. With a small western coast and a long southern coast, this area is where you’ll find most of Portugal’s resort communities. They are popular places with expats from around Europe as they combine good weather with affordable living, but they are also very popular among holiday-makers looking to spend a week in a sunny area.

When searching for Portugal hostels in the Algarve it’s a bit tricky. Faro is the regional capital and largest city, and also has an international airport, but it’s just one of many cities along the Algarve where resorts can be found. Faro is the gateway to the resort area, but most visitors prefer the smaller towns of Albufeira, Armacao de Pera, Lagos, Monte Gordo, Portimao, Quarteira, Tavira, and Vilamoura.

Outside of Lisbon, there aren’t a ton of hostels in Portugal, at least in the traditional sense of dorm rooms and shared kitchens. They are there, but they are mixed in with budget hotels and inns, many of which do feature shared bathrooms and common areas. In areas where lodging is already reasonably priced there is little reason to have dorm rooms with 20 beds in them. This is all good news for the budget traveler so check the listings and you might find a place nicer than you expected for what you’d expect to pay for a typical Portugal hostel.