Portuguese architecture firm Atelier Rua and Belgium-based interior design firm Studio Stories teamed up to deliver a carefully renovated rental property in southern Portugal’s Algarve region where guests can unwind surrounded by rolling hills, vibrant villages, and pristine coastal views.

Casa Dois is one of three existing guesthouses from the new hospitality brand, the Addresses.

Located in the quaint fishing town of Olhão, Casa Dois marks one of three converted Portuguese guesthouses within a growing portfolio from the Addresses, a boutique hospitality brand. Its updated design is anchored in a philosophy that stays true to the region’s heritage and overall atmosphere. "The Algarve’s good weather and traditional lifestyle were relevant to the design," says Francisco Freitas, principal architect of Atelier Rua.

From the ground-level patio, an original spiral staircase leads up to the private rooftop terrace.

The two-story guesthouse features a private outdoor space on both levels to "recreate the social and leisure spaces of a traditional Algarve home," adds Ana Tomé, who works alongside Freitas as principal architect at Atelier Rua. The outdoor gathering spaces also help to bring natural light inside the guest residence-a feat the architects achieved by taking advantage of the former warehouse’s existing architectural elements.

A fish depot from the former warehouse was transformed into a marble plunge pool on the patio.

To create the main-level patio, for example, the architects demolished an existing vaulted ceiling while preserving two original arches to create an indoor/outdoor connection with the open-plan living spaces. From the private patio, an original spiral staircase leads to the açoteia (Portuguese for "rooftop terrace"), which offers impressive views of the Rio Formosa, the Algarve’s nearly 40-mile-long coastal lagoon.

The Atelier Rua architects renovated the converted guesthouse with whitewashed walls and terra-cotta floors to emulate traditional building styles in southern Portugal.

Subtle nods to the building’s industrial leanings can be seen in the thin steel framing elements and handrails that line the açoteia, which translates to "rooftop terrace" in Portuguese.

Throughout the interior and exterior spaces, terra-cotta floors add warmth to the home’s primarily white palette. "One could say white is the color of the cubist city of Olhão," says Freitas. "White and terra-cotta elements are commonly used in construction throughout the south of Portugal."

Two beautifully preserved arches with glass doors and windows establish an indoor/outdoor connection between the patio and open-plan living spaces.

Warm, earth-toned furnishings contrast the guesthouse’s primarily white palette.

Inside the guesthouse, Belgian design firm Studio Stories focused on "soft colors and earthy tones," says creative director Katrien de Jonghe. The team took advantage of the former fish warehouse’s "big curves and high ceilings" to render a calm and relaxed vibe throughout the interiors.

Belgian interior design firm Studio Stories sourced handmade ceramics and vases from local shops and flea markets throughout southern Portugal’s Algarve region.

The Portuguese warehouse conversion includes two bedrooms, each with an en suite bathroom.

For the smaller details, de Jonghe’s team perused the region’s shops and flea markets to source a selection of handmade ceramics and vases. The interior spaces are intended to evoke the experience of "following the sun," de Jonghe explains. "We tried to create different corners that lend themselves to hanging out at different times of the day."

A wood-burning fireplace sits between two arched doorways in the open-plan kitchen, dining, and living areas.

Award-winning Portuguese architecture firm Atelier Rua renovated the former fish warehouse, while Belgian interior design firm Studio Stories curated the interior.

Casa Dois accommodates four people, with two bedrooms and two en suite bathrooms. While the specialized concierge service offered by the Addresses can help guests arrange local tours-such as horseback riding and surf lessons-visitors might find that one of the greatest rewards from staying at the Portuguese guesthouse comes from sipping a morning coffee on the rooftop and soaking up the surrounding coastal views.

Each of the guesthouses in the Addresses’ portfolio blend original Portuguese architecture and heritage details with contemporary influences and amenities.

Casa Dois is located in the heart of the Algarve's largest fishing port-the quaint village of Olhão, which is just 30 minutes from the Faro Airport in southern Portugal.