Ok. So first of all you have to be in the hostel mindset and NOT the hotel mindset. When you have achieved this the Casa d'algoa is a great place to stay. I stayed in a 6 bed bunk which for a first timer was a bit odd but after a night you get into the swing of things. The staff are all very friendly and helpful the communal spirit in the place is infectious. Yes it's a little rough round the edges but showers are hot, beds are clean and beer is cold and for €15 a night a real bargain. I would come again

I stayed in this very friendly hostel for one week in July and I loved it. It’s located in a beautiful old house with central courtyard, good kitchen and wonderful indoor / outdoor communal areas.

The staff was amazing, you can’t find better. From Beatrice who checked me in to literally everyone else I met, the staff was welcoming, helpful and cheerful.
The social activities were also very fun.

The location is great. It’s in the middle of the old town with all the sights reachable on foot and many restaurants close by. It’s about a ten minute slow walk from the bus and train stations as well (#16 bus from the airport). The small grocery store is less than a 5 minutes walk away. The beaches and caves are easily reachable by bus or train. You can’t beat the location.

The only negative is that it can be a bit noisy before midnight / 1am. The noise really travels as there are many hard surfaces and open areas plus we had the windows open due to the heat. Between 1am and 8am it’s very quiet though. Bring ear plugs if you are a light sleeper or go to bed early.

I honestly can’t wait to go back.

We are in our 60's and enjoyed our stay at this hostel. We booked a double room with private bathroom. It was a nice large, modern room just off a lovely courtyard with a nice comfy double bed. The shower was good, towels were provided and although we brought our own toiletries there was a wall mounted dispenser. All in all the room was as good as, if not better, than a budget hotel.
Breakfast was provided and we had use of a fridge, kettle and kitchen utensils etc in the communal kitchen. We could have cooked if we wanted to and there was a washing machine so assume that we could have used that too..
There is a roof terrace over looking a small square planted with trees which is very pleasant.
The staff were really nice and helpful and someone is on duty 24 hours. Orlando, who showed us round, was very friendly.
If you need tickets for boat trips etc they can book these for you.
If I visit Faro again I would stay here.