Nestled in the Peneco Beach district, Sweet Dreams Hotel Albufeira is within 20 minutes' walk of the Hermitage of Nossa Senhora da Orada.

Fishermen's Square is located 450 m from this Albufeira hotel, and such natural sites as Praia dos Aveiros Beach is 3.3 km away. Standing a mere 0.6 km from the blue flag Pescadores Beach, the guest house is about a 10-minute ride from the scenic swimming Sao Rafael Beach. There is the Santa Eulália Beach 3.2 km away, and Albufeira Old Town Terminus bus station is just around the corner from the Sweet Dreams Albufeira.

Spice Lounge serves a good range of Balti food and lies approximately 5 minutes' walk from the property.