Overlooking the Atlantic Ocean, the Pousada is located in the village of Sagres, in the Algarve region. This village has an important historical and maritime significance, from where, 500 years ago, Prince D. Henrique's caravels left to look for new countries.

This purpose-built Pousada has a superb position on the cliff-top overlooking Sagres fort and the lighthouse of Cape St Vicent, off which many great sea battles have been fought by the likes of Admirals Drake, Rodney, Nelson and Napier. Since its erection in 1960, the Pousada has been constantly improved to cater for the increasing number of visitors who want to see this most south westerly corner of Europe and to learn something of the history of the man who gave his name to the Pousada, Infante D. Henrique, is Portuguese for Prince Henry, the son of King João I and his English-born queen Philippa Lancaster, who founded a navigation school here early in the 15th century.