Pena D’Água: a boutique hotel at the foot of the Serra da Estrela

Perched high on the slopes of the Serra da Estrela, where the streets wind steeply upward and the old textile mills still stand along the river, lies Covilhã. For centuries, wool and cloth were woven here for all of Europe; today, the city is primarily the gateway to the country’s largest nature park. And right in the heart of the historic center, in a carefully restored city palace, you’ll find Pena D’Água: a boutique hotel just seventeen kilometers from rugged mountain scenery.

This is no ordinary hotel. It’s a Belle Époque townhouse with a contemporary wing, a spa offering mountain-inspired treatments, a restaurant housed in an Art Nouveau building, and rooms that tell the story of Covilhã as a textile city. It’s the ideal base for exploring the Serra da Estrela by day and returning in the evening to something more charming than just any hotel room. And you book direct with the hotel, without a middleman, getting the price and personalized service that come with it.

Pena D’Água at the entrance to the Serra da Estela Nature Park

What makes Pena D’Áqua so special is that it’s located just 17 kilometers from the Serra da Estrela Nature Reserve, Portugal’s largest protected nature reserve. So here, you get the best of both worlds: a lively, historic town and direct access to wild mountain scenery.

The hotel: historic charm, modern comfort

Pena D’Água is housed in two buildings that together form a unique complex. The main building is a lavish Belle Époque townhouse featuring high ceilings, fine woodwork, and ornate details. The new wing, the Villas, features contemporary architecture with panoramic views of the surrounding area and maximum privacy. Both buildings are connected by a courtyard garden and a glass walkway.

The hotel offers a total of 33 rooms and suites, including spacious family suites and detached villas with private terraces. Each room has its own unique character, ranging from the cozy and intimate Classic Room with a view of the courtyard to the Executive Villa with a balcony and panoramic mountain views.

All rooms feature free Wi-Fi, air conditioning, a minibar, a safe, a rain shower with designer toilets, bathrobes, and slippers. Plus, you’ll have free access to the indoor and outdoor pools.

Spa & Wellness: Mountain Treatments for Body and Mind

After a day of hiking in the Serra da Estrela, there’s nothing better than returning to a full-service spa. Pena D’Água Health offers mountain-inspired treatments: massages, body treatments, facials, and couples’ rooms. The spa is accessible via a bridge that connects the two buildings.

The wellness facilities also include a heated indoor pool, an outdoor pool (open from May through October), a sauna, and a hammam. It’s the perfect way to unwind after an active day in nature.

Açafrão Restaurant: Saffron Gold on the Table

Next to the hotel, in a separate Art Nouveau-style building, is the Açafrão restaurant. The name refers to saffron, the golden spice that captivated all of Europe during the Age of Discovery and still holds a prominent place on Covilhã’s culinary scene.

The restaurant combines local flavors with international influences. Think of dishes featuring regional products such as Serra da Estrela cheese, lamb from the mountains, and seasonal vegetables. Breakfast (included with every stay) is served here daily from 8:30 to 10:30 a.m.

Active or relaxing: something for every pace

In addition to its proximity to the nature park, Pena D’Água also offers e-bike rentals, allowing you to explore the surrounding area at your own pace. Archery lessons are available on-site, and the hotel also organizes tours on electric e-quads through the historic city center.

You can also take various tours from the hotel:

• to the Serra da Estrela with viewpoints: Varanda dos Carquejais, Vale Glaciar, Senhora da Boa Estrela, Cântaro Magro, to the Tower, Lagoa Comprida, Vale do Rossim, and Covão da Ametade (approx. 4 hours)
• to Covão dos Conchos and Lagoa Comprida (about a 10-km hike)
• to the historic villages of Monsanto and Piodão, or to Belmonte and Sortelha

Within walking distance, you’ll find the Museu de Arte Sacra, the Igreja de Santa Maria (one of Portugal’s most beautiful churches, with its impressive azulejo façade), and the Carrilho da Graça Bridge, an architectural gem offering sweeping views of the valley.

Practical Information

13. Address: Rua de São Francisco Álvares 25, 6200-051 Covilhã, Portugal

14. Rooms: 33 rooms and suites (Classic Bedroom through Executive Villa)

15. Breakfast: Included (buffet or à la carte), daily from 8:30–10:30 a.m.

16. Spa: Indoor pool , outdoor pool (May–Oct), sauna, hammam, treatments by appointment

17. Pets: Pets welcome (surcharge applies)

18. Parking: Available for a fee

19. Check-in / check-out: Check-in 3:00 p.m.–12:00 a.m. / Check-out 12:00 p.m.

20. Accessibility: Accessible by train from Lisbon and Porto (Covilhã station); by car, approximately 3 hours from Lisbon or 2.5 hours from Porto

Frequently Asked Questions About Pena D’Água

Is Pena D’Água a good base for exploring the Serra da Estrela?

Yes, absolutely. The hotel is located just 17 kilometers from the Serra da Estrela Natural Park. From Covilhã, you can head into the park every day for hikes and return to the luxury of the hotel in the evening.

Are pets allowed at Pena D’Água?

Yes, the hotel is pet-friendly. There is a small fee for pets. The family villa, in particular, is specially designed for guests with pets.

Is there a spa on site?

Yes. Pena D’Água Health offers a full range of wellness services: massages, body treatments, facials, couples’ rooms, a sauna, a hammam, and swimming pools. Treatments must be booked in advance.

When is the best time to visit?

The hotel is open year-round. Hikers and cyclists will enjoy it most in the spring (April–June) and fall (September–November). In the winter, there may be snow in the mountains (great for alternative sports). The outdoor pool is open from May through October.

How far is Pena D’Água from Lisbon?

Covilhã is about a 3-hour drive from Lisbon and 2.5 hours from Porto. There are also direct train connections.