Pousada Palácio de Estoi is a grand 18th-century palace that has been reborn as a luxury hotel. With its dusky pink façade, elegant gardens, and sweeping views over the countryside near Faro, the Palácio de Estoi is one of Portugal’s most enchanting hotels. Let’s take a look at the history, architecture, and what you can expect when visiting this delightful destination in the Algarve.
History
The origins of the Palácio de Estoi trace back to the late 18th century when it was built as the private estate of the Viscount of Estoi, a nobleman with a love for art, architecture, and opulence. The palace became known for its lavish interiors, elaborate frescoes, and ornamental gardens filled with fountains, statues, and tiled staircases.
After the Viscount’s death, the estate fell into decline and remained largely forgotten until the early 20th century when it was partially restored. However, it wasn’t until 2009 that the Palácio de Estoi was fully transformed into the luxury Pousada it is today. It is now managed under Portugal’s Pousadas de Portugal brand, which specializes in converting historic buildings into boutique hotels.
Today, guests can walk through the same halls once graced by aristocrats and artists while enjoying modern comforts that make the palace a true fusion of the past and present!
Architecture
The Pousada Palácio de Estoi is a masterpiece of Rococo architecture, a style known for its ornamental details, light colors, and graceful curves. The exterior’s soft pink hue is complemented by white columns, domes, and gold leaf.
Step inside and the grandeur continues. Visitors are greeted by gold-framed mirrors, frescoed ceilings, antique paintings, and decorative plasterwork commissioned by the original owner. The main rooms take you right back to the splendor of 19th-century Portuguese nobility.
The hotel’s guest suites are housed in a contemporary annex designed with sleek lines, minimalist décor, and large glass windows that open onto the tranquil gardens. This transition from classic to modern design reflects the pousada’s philosophy of preserving the past while embracing the present.
The surrounding gardens are just as impressive as the palace itself. Stroll past marble statues, cascading fountains, and terraces that overlook the rolling hills of Estoi. This romantic setting has made the palace a very popular choice for weddings and photography.

How to Experience the Pousada Palácio de Estoi
Even if you’re not staying overnight, the Pousada Palácio de Estoi welcomes visitors to explore parts of the estate. Guests can enjoy a drink or light meal on the veranda, and the palace’s public rooms and terraces are open to the public, which allows visitors to experience a touch of royal ambiance without booking a suite.
For those who choose to stay, the Palácio de Estoi features an outdoor swimming pool, a luxurious spa offering Turkish baths and massages, and an elegant restaurant, O Visconde, where regional dishes such as Algarve-style seafood and locally sourced wines do their best to impress.
No matter the experience you choose, the Palácio de Estoi promises a day or a weekend unlike any other in the Algarve.