Situated walking distance from the beach, Hotel Luz Bay is a modern hotel built in the typical whitewashed Algarve style. It nestles in the fishing village-turned-villa community of Luz, 3.7 miles (6 kilometers) from Lagos, and 90 kilometers from Faro Airport (FAO). The hotel is near Luz Beach, a sandy stretch that ends at a high cliff. A switchback path winds its way up to the cliff top where climbers are rewarded with panoramic coastal views. 3.7 miles (6 kilometers) east of the hotel, independent operators offer water sports in summer on Lagos Beach. There are 3 golf courses within 8 miles (13 kilometers) of the hotel, the nearest being Boavista, 1.8 miles (3 kilometers) away.
Opened in 2003 on the site of a former private club, Hotel Luz Bay retains a club-like ambience, with its landscaped gardens of citrus trees, lawns, and 3 tennis courts. The 2 pools and a children's pool are surrounded by sun terraces, while indoor facilities include a steam room and sauna. The hotel has a restaurant. From April to October, a poolside bar serves snack foods such as burgers and omeletes, and the hotel bar offers live music 5 nights weekly. With advance reservations, guests can enjoy a massage at the spa.
The hotel offers 73 air-conditioned guestrooms in 4 villa-style buildings. Some buildings have elevators to guestrooms and some don't. All rooms have furnished terraces or balconies facing the gardens and pools. Amenities include international TV channels, compact refrigerators, safes (surcharge), and bathrooms with shower/tub combinations.