The historic Peneco Albufeira Guesthouse is situated in a historical area of Albufeira, merely 0.8 km from Church of Sant'Ana and a mere 6 minutes' walk from Fishermen's Square. This 3-star guest house offers 8 rooms and amenities such as luggage storage.

The hotel is notable for its privileged location around 500 metres from the blue flag Pescadores Beach and about 10 minutes' drive from Albufeira train station. The Peneco is approximately 5 minutes on foot from Baixa de Albufeira bus stop and in proximity to Praia do Tunel Beach. Guests might as well enjoy proximity to Parque do Ribeiro, situated 0.8 km away. The sand Sao Rafael Beach lies nearly 10 minutes away by car.

This accommodation offers rooms with a mini-kitchen complete with an iron and ironing board, and air conditioning. They are furnished with sound-proofed windows, and also come with a mini-bar, coffee and tea makers. Private bathrooms have a separate toilet and a shower for guests' use.

Indian Nights Tandoori Restaurant serves a good range of healthy food and lies right around the corner from Peneco Albufeira Guesthouse.