Now I'm not sure if they still offer Algarve deals out of season (March was touch and go weatherwise, so Feb might be totally out) but we paid £9 for a 4 star hotel, which was situated about 10mins from Albufeira Old Town.
Defintely worth a look at Hotelopia, even for other countries. The key cost issue is going to be the flight but if you can go midweek and avoid weekends you might bag a bargain. I'm sure we only paid £100 for two of us to fly to Faro, and just £54 for 6 nights in the hotel. There was car hire as well, but of course that is optional. Without that, £154 for 6 nights for two people anywhere is a bargain.
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