The original buidling on this site was built in the 1880's by a wealthy family associated with seafaring. The current owner purchased the premises in 1987 but, due to its severely deteriorated condition, found it necessary to demolish the building in 1998.

As the original structure was listed as a building of architectural interest, the owner had to mirror the original style and features in constructing the Hotel Residencial S. Algarve. You will note the original pineapples which have been repaired and replaced along with the hand-painted tiles (some of the originals have been preserved in the glass cabinets in the foyer).

In 2004, two adjacent buildings were purchased in order that the hotel could be extended. Whilst excavating to lay the foundations, Roman ruins were exposed. Work was halted for nearly two months whilst archeologists identifed the layout of the Roman building and removed pottery.