The exuberant Lisbon guest house Casa Fortunato was too good not to expand. This year the design duo of António Falcão Costa Lopes and Filipa Fortunato have unveiled a sister house near the Alentejo coast in the port city of Alcácer do Sal, overhauled in their trademark folk-modern style.

The 100-year-old townhouse sleeps 12 in rooms with reclaimed floors, original wood panelling, heirloom antiques and cheerful modern additions with bold colour and character. Their ‘harlequin’ palette includes hand-stitched jewel-toned rugs, a deep wine-coloured checkerboard floor, an orange Mario Bellini sofa by B&B Italia and a cornflower-blue lounger from Patricia Urquiola. Tilework in the courtyard garden borrows from every room, culminating in a wild striped motif around the plunge pool.

This isn’t the average hotel. Every room has a curiosity, be it a sunshine-yellow Nimrod chair by Marc Newson or an artwork by Fortunato’s grandmother. There’s an honesty bar for dining and drinking, with small plates available throughout the day. Meals take place around a dining table designed by local hero Daciano da Costa. Visitors can rent a single room or all six.

Alcácer do Sal is a half hour from the beach community of Comporta, with its powdery sands, and less than an hour from Lisbon’s airport. Rooms can be hired through Boutique.

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A rosy-pink palace on the outskirts of Lisbon lists for €3.9m