When you offer a pink palace, gardens inspired by Versailles and views of the mountains and sea, it’s no surprise that Palácio Estoi Pousada is so popular for weddings. “It’s like a fairy tale,” says Bruno Raimundo, pousada manager. “With the gardens, we can accommodate almost everything. The only thing missing is a church.”
The history of the palace began in the 18th century as a nobleman’s estate. Later, in the 19th century, it was acquired by the future Viscount of Estoi, Francisco José da Silva, who finished the building work and commemorated the palace’s completion in style with a party that lasted three days.
The property remained in the same family for almost a century, until it was bought by Faro town council in the late 1980s, virtually in a state of abandon. In 2009, it opened as a Pousada de Portugal, later becoming part of the Small Luxury Hotels international network after major restoration.
Photos of the palace’s refurbishment can be found in the hotel’s new corridors, which were built to house 63 rooms (including three suites). All of this was designed by the architect Gonçalo Byrne, who demonstrates how it’s possible to combine modernity with one of the Algarve’s historic landmarks. “The architecture was carefully considered not to create any visual impact, not to spoil or diminish the palace’s importance,” highlights Raimundo.
The spacious, bright rooms contrast with the pink of the neighbouring palace and its mix of Rococo, Baroque and Neo-classical styles.
While the new building boasts all the comforts of a five-star hotel (two outdoor pools, a heated indoor one, and spa), the palace, which non-guests can visit for a symbolic fee, is a veritable journey through time.
Entrance is gained through an old Louis XV style chapel, where the reception is located. Since 2020, there has also been a museum, which exhibits Islamic, Romanesque and classical finds from the region. This is also open to the public.
For many, the real find here is the salão nobre, the palace’s great hall, with its painted ceiling. “It has so many details that you can see something different every day,” proffers Raimundo.
Nearby is the Visconde restaurant, which “showcases Algarve gastronomy”, according to Raimundo, and focusses on local produce. The seafood cataplana for two people is one of the house specialities, as is the fish of the day, both of which are paired with Algarve wines.
Essentials

Palácio Estoi
Pousada
A pink palace, gardens inspired by Versailles, and views of the mountains and the sea.