In April, the MICHELIN Guide unveiled its first-ever hotel distinctions in Portugal, awarding One, Two, and Three Keys to to 55 hotels throughout the country. What follows is a closer look at eight of the country’s finest, most photogenic hotels, all distinguished with Two or Three MICHELIN Keys from Inspectors.
Vidago Palace: A Spa Retreat with a Soul of Its Own
VidagoIt’s easy to lose track of time after stepping through the gates of Vidago Palace Hotel—not just because of its nostalgic charm, but because of the way it so effortlessly balances past and present. First opened in 1910, when the Chaves region was a wellness destination for the elite drawn by its therapeutic spring waters, the hotel still preserves its Belle Époque façade and early 20th-century architecture, seamlessly paired with modern comforts.
The rooms and suites feature high ceilings, vintage furniture, hand-painted wallpaper, and classic soaking tubs—alongside large windows, private balconies, and elegant sitting areas. Water remains at the heart of the experience, thanks to a standalone thermal spa designed by the Pritzker Prize–winning architect Álvaro Siza Vieira. Guests can also enjoy a golf course, fitness center, library, wrought-iron greenhouses, outdoor pool, Douro wine tasting rooms, and several restaurants.
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Torre de Palma Wine Hotel: Rural Elegance Reinvented in the Alentejo
MonforteThough near historic cities like Estremoz and Elvas, the property is a haven of peace and nature. Guests can enjoy a full equestrian center with riding lessons and trail rides, indoor and outdoor pools, a spa, a bar, a library, and inviting communal spaces designed for relaxation. Surrounded by vineyards, the hotel has a strong connection to wine: it produces its own, and features an on-site winery, tasting room, and workshops led by expert winemakers.
In the northern Alentejo, in a hilltop village off the typical tourist track, Torre de Palma Wine Hotel delivers a refined experience deeply rooted in local tradition. Set in a former manor house dating back to 1338 and restored in 2014, the hotel blends old-world charm with contemporary comfort across 18 individually styled rooms and suites. Historic touches—like wood-beamed ceilings and antique furnishings—coexist with modern amenities, creating a warm and sophisticated atmosphere.
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Vila Vita Parc Resort & Spa: Seaside Sophistication in the Heart of the Algarve
PorchesPerched above the cliffs of Porches in the Algarve, Vila Vita Parc Resort & Spa stands out as one of Portugal’s most complete and refined hotels. Opened in 1992 and continually updated, the resort combines direct access to a private beach with a wide array of wellness, leisure, and culinary offerings. It’s home to 12 restaurants and 7 bars—from the relaxed poolside Whale Bar to the Two MICHELIN Star fine dining restaurant Ocean.
Set across lush gardens dotted with palm trees and lakes, the resort features Mediterranean-inspired architecture housing rooms, suites, and villas with sea-view terraces and handcrafted details like hand-painted ceramic tiles. It’s also the site of Portugal’s first Sisley Spa, offering an exclusive treatment menu developed by the French skincare brand, including botanical-based therapies. The extensive amenities include a golf course, beach club, gym, heated indoor pool, and water sports—striking a rare balance between Atlantic-front adventure and the comforts of a world-class luxury retreat.
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The Reserve Hotel: A New Luxury Refuge Atop the Savoy Palace in Madeira
FunchalIn Funchal, The Reserve Hotel redefines exclusivity as a “hotel within a hotel”—in this case, nestled within the luxurious Savoy Palace. With its own private entrance, The Reserve occupies the top six floors of the building and offers 40 suites with highly personalized service. Inspired by Madeira’s cliffs and lush vegetation, the design emphasizes elegant lines, with spacious rooms in marine tones, marble bathrooms, and panoramic terraces overlooking the Atlantic. Some suites feature private pools; others have wraparound balconies and separate living areas that evoke the feel of a private residence.
The experience begins at the airport, with luxury reception and fast-track service, and continues with a dedicated 24-hour personal assistant who handles everything from luggage to dinner reservations. Guests have full access to all of Savoy Palace’s facilities—including seven restaurants, Portugal’s largest spa, and multiple pools—but many choose to remain in the calm of the upper floors, home to the Jacarandá Club’s infinity pool, reserved exclusively for guests of The Reserve.
Penha Longa Resort: History, Nature, and Elegance on the Edge of Sintra
SintraNestled among the pines and misty hills of the Sintra mountains—a former summer retreat for Portuguese royalty—Penha Longa Resort offers a unique blend of exclusivity and serenity. Located within the Sintra-Cascais Natural Park and part of the Ritz-Carlton portfolio, the resort spans a vast estate with 14th-century roots, where a former monastery now houses the spa and shared spaces. The hotel features 194 rooms and 44 suites, all with private balconies overlooking the mountains or golf course.
Penha Longa is home to seven dining venues, including LAB by Sergi Arola and Midori, both awarded One MICHELIN Star. Guests also enjoy indoor and outdoor pools, nature trails for walking or running, and a seasonal kids’ club. With its deep connection to history and breathtaking natural setting, a stay here promises tranquility, culinary excellence, and refined leisure. Though just outside Lisbon, it’s close enough to easily enjoy the best of the capital too.
Book the Penha Longa Resort with The MICHELIN Guide →
The Lince Santa Clara: Monastic Heritage Meets Urban Comfort
Vila do CondeSet between the Ave River and the Atlantic Ocean, on the highest point of Vila do Conde, the former Santa Clara Monastery has been transformed into a contemporary hotel—without erasing the marks of time that shaped it. Originally founded in 1318 and expanded in the 18th century, the building was reimagined by architect Carvalho Araújo, who preserved key elements like the neoclassical façade and stone arches, now woven into the hotel’s shared spaces.
The Lince Santa Clara features 87 rooms, many with vaulted ceilings beneath the old mansard roof, white marble bathrooms, and Art Deco-inspired details. The Sisley spa occupies a quiet wing and includes a stone-lined indoor pool. Outside, the infinity pool stretches into the gardens, surrounded by an olive tree cloister, a pomegranate orchard, and the monastery’s original stone staircase. Discovered during renovations, the hotel’s signature restaurant, Oculto—awarded one MICHELIN Star—sits in a vaulted brick chamber with beautifully restored stone walls.
Les Suites at The Cliff Bay - PortoBay: Exclusive Views on Madeira
FunchalOn the edge of Funchal, Madeira’s lively capital, overlooking the Atlantic, The Cliff Bay has long stood as one of the island’s most prestigious hotels. Building on that legacy, its owners expanded into the neighboring property to create something even more exclusive: Les Suites at The Cliff Bay – PortoBay, a luxurious enclave of just 23 suites, each featuring floor-to-ceiling windows with ocean views, marble bathrooms, and spacious balconies. The property blends two restored century-old villas with a sleek modern wing, all nestled within terraced gardens and fronted by a spectacular infinity pool with panoramic views of Funchal Bay.
Guests of Les Suites enjoy full access to the facilities of The Cliff Bay, including a spa, outdoor jacuzzis, direct sea access, swimming pools, and a diverse array of dining options. The crown jewel is Il Gallo d’Oro, a Two MICHELIN Star restaurant, alongside casual outdoor lunch spots and a bar serving poncha, Madeira’s traditional local drink.
Book Les Suites at The Cliff Bay - PortoBay com with The MICHELIN Guide →
Quinta do Paral: A New Standard for Luxury Wine Tourism in Portugal
VidigueiraLocated in Vidigueira, in the southern Alentejo, Quinta do Paral is a prime example of how wine tourism can evolve into a truly sophisticated experience. Founded by German entrepreneur Dieter Morszeck—former owner of the high-end luggage brand Rimowa—the 200-hectare estate has been completely renovated to host a luxury resort that combines wine heritage, contemporary design, and meticulous attention to detail. With just 22 rooms, spread between a 17th-century manor house and a modern wing, the hotel embraces a minimalist and elegant aesthetic.
The experience begins even before arrival: the hotel offers a private plane to transport guests from Lisbon to this rural retreat in just 15 minutes. Once there, visitors can explore the vineyards, sample local grape varieties aged in clay amphorae, or simply unwind by the pool.
Top image: The Reserve Hotel in Madeira
