Where to Stay in Lisbon, Portugal: 4 Best Areas & Hotels

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Planning a trip to Lisbon and not sure where to stay? You’re in the right place!

Lisbon is one of Europe’s most charming capital cities, with its pastel-colored buildings, sweeping viewpoints, and buzzing café culture. Whether you’re dreaming of enjoying late-night Fado music in a historic neighborhood or sipping coffee in a chic, modern square, there’s a perfect Lisbon neighborhood waiting for you.

In this guide, we’ll break down the best areas to stay in Lisbon depending on your vibe, whether you’re a first-time visitor, a history buff, or someone who just wants to be near all the action. Let’s find your perfect home base in Portugal’s sunny, hilly capital!

Where to Stay In Lisbon Map

Overview of the Best Areas To Stay in Lisbon

Lisbon’s main neighborhoods each offer something unique, from historic charm to lively nightlife. The city center is compact and pretty easy to explore on foot, with lots of major sights within walking distance of one another.

However, the city is notoriously hilly, and if you’re staying further out, you’ll likely need to use public transport such as buses, trams, or the metro. The good news is that it’s all very well connected!

• Baixa – Best for first-time visitors – Lisbon’s historic and elegant center, which is also super convenient and ideal for first-timers. Browns Downtown Hotel is the perfect place for a stylish and convenient stay.

• Chiado – Best for a central stay – A sophisticated, walkable, and super central area right next to Baixa that boasts tons of luxury shops, classic theatres, and world-class restaurants. We love Casinha das Flores for its charm and great location.

• Alfama – Best for history & culture seekers – This is the oldest part of Lisbon that oozes charm with its cobblestone streets, medieval buildings, and authentic local vibe. Alfama – Lisbon Lounge Suites is a cozy and affordable choice in this area.

• Barrio Alto – Best for nightlife – A lively part of the city that’s known for its excellent nightlife and fun, youthful energy. We think that Casa das Janelas com Vista strikes the perfect balance between style and affordability!  

Where to Stay in Lisbon

Baixa 

BEST FOR FIRST TIME VISITORS

Pros 

• Super central location 
• Lots of historical and cultural sites 
• Walkable and easy to navigate

Cons 

• More expensive 
• Lots of touristy restaurants 
• More commercial, less traditional feel

Baixa is the elegant center of Lisbon, nestled between Alfama and Chiado. It was rebuilt after a huge earthquake in 1755, so it has a more orderly, grid-like structure than Lisbon’s other warren-like areas. It’s home to big, wide streets and iconic spots like Praça do Comércio, Rua Augusta, and Rossio Square.

We think that Baixa is perfect for first-timers because it’s right in the heart of all the action. The famous Cais do Sodré pink nightlife street is right nearby, and it’s close to the Rossio Train Station, so day trips to Sintra are a breeze.

It’s also one of the flattest parts of the city, which makes it especially easy to explore on foot. This is a big bonus in a city as hilly as Lisbon—your calves will be spared from a lot of work! There are great transport connections here, too, with metro stations, trams, and buses all running through the area.

That said, Baixa is one of the more touristy neighborhoods in Lisbon, and while it’s beautiful and convenient, it doesn’t have quite the same local charm as places like Alfama or Graça. Restaurants around Praça do Comércio can be overpriced and forgettable, but Baixa is still a practical, convenient, and stylish base, especially for a short stay in Lisbon.

Luxury – $$$ 

Browns Central Hotel is a stylish 4-star boutique hotel located right in the heart of Baixa, making it a perfect base for exploring Lisbon. It’s housed in a beautifully renovated 18th-century building with decor inspired by iconic designers like Charles and Ray Eames, Arne Jacobsen, and Eero Saarinen.

Each of the air-conditioned rooms is beautifully styled with wooden floors, sleek furniture, and beautiful marble bathrooms. I also love the glamorous hotel bar, which oozes old-school glamour.

Meanwhile, Praça do Comércio and the buzzing Rua Augusta are just minutes away, so the location couldn’t be better! Prices here range between €160 and €400 per night.

Check availability and book your luxury stay here!

If you’d like to explore a couple more of well-located options in central Lisbon, these are both strong places to start. Figueira by The Beautique Hotels & Spa sits right on Praça da Figueira, putting Baixa, Rossio, and Alfama within easy walking distance. The interiors lean modern and polished, with a calm atmosphere that feels like a comfortable retreat after a day of exploring the city.

Another option is Lisboa Carmo Hotel, perched just above Chiado near the historic Carmo Convent. It has a more intimate, classic feel, and the elevated location adds a quieter note while still keeping Lisbon’s main sights, cafés, and shopping streets close by.

Mid-range – $$

Browns Downtown Hotel is a modern hotel with a stylish mix of textures and contemporary furniture. It’s super trendy and even has hi-tech workstations equipped with iMac computers down in the lobby area—not bad, right?

But our favorite thing about this place is its 5-star location. Rossie Square is a 5-minute walk away, and iconic landmarks like São Jorge Castle and Praça do Comércio are all within easy reach. The famous tram 28 also stops right outside! Meanwhile, the nightlife in Barrio Alto is just 15–20 minutes away on foot.

This place is absolutely perfect for anyone who wants a stylish and convenient stay in Lisbon that won’t break the bank. Small double rooms here cost between €150 and €225 per night. Last-minute bookings tend to cost more, so be sure to book your stay ASAP!

Check current rates and secure your stay here!

If that one doesn’t quite work out, these two are good backups. Lisboa Pessoa Hotel is set just off Chiado and takes inspiration from Portuguese poet Fernando Pessoa, giving the spaces a calm, literary tone. Its wellness facilities and thoughtful design make it a comfortable choice for slowing down while staying close to Lisbon’s cultural heart.

You might also consider Tempo FLH Hotels Lisboa, a small, modern hotel tucked into the Baixa area. The rooms are clean and comfortable, and the location works especially well if you want easy access to historic streets, riverfront walks, and public transport connections across the city.

Budget – $

We Love F Tourists is a fun and friendly budget hostel located in central Lisbon, just a 3-minute walk from Rossio Metro Station and close to all the city’s main sights. It’s ideal for solo and budget travellers who want a social yet comfortable base.

All rooms have scenic views and access to shared bathrooms, with daily cleaning included. What’s not to like? There’s a fully equipped shared kitchen for guests who want to cook, plus a snack bar for light bites and local treats.

The communal lounge is a cozy hangout spot with comfy sofas, a flat-screen TV, DVDs, and even an iPad for guest use. We also love the cute little bar here, where guests can kick off a fun night out with a few cocktails! Dorm beds here cost between €60 and €130 per night.

Reserve your budget-friendly stay in Lisbon here!

For comparable stays with a different atmosphere, start with these. My Story Hotel Augusta places you directly on Rua Augusta, one of Lisbon’s most iconic streets. It’s a great fit if you enjoy being surrounded by energy day and night, while still having a comfortable, nice room to retreat to once the city slows down.

If price is a priority, Lisbon Lounge Hostel is a solid choice in Baixa, known for its friendly, social atmosphere and polished shared spaces. It suits those who enjoy meeting other guests while staying close to major sights, cafés, and public transport.

Related Read: Need some help planning your trip to Lisbon? Check out our expertly created 3-day itinerary so that you don’t miss out on the highlights and hidden gems!

Chiado

BEST FOR A CENTRAL STAY

Pros

• Super central location
• Great base for exploring nearby neighborhoods like Bairro Alto, Alfama, and Baixa
• Charming mix of historic architecture and modern flair

Cons

• Hilly terrain means you’ll be walking up and down a lot
• Prices for accommodation, food, and shopping tend to be higher
• Can be busy with tourists, especially during peak seasons

Chiado is as central as it gets in Lisbon! It’s situated on a hill that offers easy access to all the city’s main attractions. It’s a vibrant area that’s a mix of history, shopping, dining, and culture.

The area is dotted with historical landmarks, including the Convento do Carmo—a former convent partially destroyed in the 1755 earthquake that now houses a museum. It also played a key role in Portuguese history, particularly during the 1974 Carnation Revolution that ended the dictatorship.

The architecture here is a fascinating blend of old and new, shaped by the aftermath of the 1988 fire that gutted much of the area. A lot of the facades remained intact, but the buildings boast much more modern interiors.

Chiado is an ideal neighborhood for those who love being at the center of things, whether you’re shopping, dining, or sightseeing. It’s surrounded by other lively areas like Bairro Alto and Baixa, with easy access to the Baixa-Chiado metro station. Speaking of which, the Elevador de Santa Justa is a fun way to travel between Chiado and Baixa, though it can be crowded. 

All in all, you’ll need to prepare for hills and higher prices in Chiado, but you can’t beat the location. 

Luxury – $$$

Hotel do Chiado is a charming and elegant hotel in the heart of Chiado, just a short stroll from Rossio Square and the iconic Elevador de Santa Justa. One of the hotel’s standout features is its rooftop terrace, which offers sweeping views over the city and São Jorge Castle. It’s perfect for a sunset drink!

Meanwhile, the rooms are bright, modern, and comfortable, many offering panoramic city views. Some even come with spacious private terraces, complete with outdoor seating. It’s a great option if you want a little more space to unwind after a day exploring the city. Rooms at Hotel Chiado cost between €275 and €500 per night.

Check availability and reserve your stay at Booking.com!

If you’re drawn to more refined stays in Lisbon’s historic core, these two are worth considering. Art Legacy Hotel Baixa-Chiado blends contemporary design with a more colorful, gallery-like style, set between Baixa and Chiado for easy access to shops, museums, and riverfront walks. The atmosphere is polished but relaxed, making it a comfortable place to unwind after a day in the city.

Eurostars Lisboa Baixa sits in the heart of Baixa, just a short walk from Praça do Comércio and the riverfront, with metro and tram connections close by. The rooms are modern and comfortable, making it a practical place to stay if you want to explore Lisbon easily while remaining close to its historic streets.

Mid-range – $$

Casinha das Flores is a charming and intimate guesthouse just a short walk from the Baixa/Chiado metro. It’s set in a historic building and offers a cozy, authentic Lisbon stay with a touch of the city’s quintessential old-world elegance. 

The rooms here are comfortable and individually styled, featuring air conditioning, free WiFi, private bathrooms, and satellite TV. Some even include balconies with beautiful views over the city rooftops and the Tagus River.

Meanwhile, the iconic Tram 28 stops just a few steps away, so you can leave the hotel and hop right onto a scenic ride through Lisbon’s most picturesque streets. Rooms here usually cost between €100 and €300 per night.

Book your stay at Casinha das Flores here!

If you’re drawn to places with a strong sense of character, these two offer very different experiences. Palácio das Especiarias is set inside a historic palace near Chiado, with richly decorated interiors that lean traditional and atmospheric. The stay feels immersive and romantic, especially if you enjoy old-world details and a more theatrical take on Lisbon’s past.

For a much lighter and more modern contrast, Bica FLH Suites sits near the Bica funicular, one of Lisbon’s most photographed corners. It has a contemporary, understated look, and the setting makes it easy to reach nightlife, viewpoints, and public transport while avoiding a big-hotel atmosphere.

Budget – $

GS Chiado Boutique Studios & Suites offers amazing value for money! These rustic-chic suits and apartments have a modern feel with touches of Lisbon’s traditional charm, like mosaic bathroom floors. 

It’s in a prime location, right in the heart of all the action, but on a quieter street so that you won’t be bothered by noise. It’s sparkling clean with friendly and welcoming staff, and tons of great cafés, bars, and restaurants are just a short stroll away.

Standard suites here cost between €150 and €250 per night, but bigger studios and apartments cost a little more.

Check out all room categories and book your stay here!

If you’re looking at two smaller stays with very different moods, these are easy to compare. Solar dos Poetas sits in a historic building near Chiado, with classic interiors and a quietly traditional feel that reflects Lisbon’s old-world charm. It suits those who enjoy a more intimate setting, with cultural sights and cafés just a short walk away.

By contrast, Cais Urban Lodge offers a more contemporary, apartment-style stay close to the waterfront. The spaces are modern and functional, and the location works well if you like having dining, river walks, and transport connections nearby.

Alfama

BEST FOR HISTORY & CULTURE SEEKERS

Pros

• Charming and romantic area
• Lots of excellent viewpoints
• Great bars and restaurants

Cons

• Very hilly and can be tricky to navigate
• Not super easy to access

Alfama is arguably the most romantic neighborhood in Lisbon, so it’s a great pick for couples or anyone who wants to soak in the city’s unparalleled charm. With its winding alleyways, cobblestone streets, and colorful houses draped in laundry and flowerpots, walking around Alfama really does feel like stepping into a postcard. 

The neighborhood tumbles down from the hilltop Castelo de São Jorge and offers endless charm around every corner. We love strolling through and exploring the intimate plazas, seeing groups of older men playing cards, and enjoying fado shows in the evening.

Whether you’re wandering aimlessly or headed to a miradouro (viewpoint) like Miradouro de Santa Luzia for panoramic views, Alfama invites you to slow down and soak it all in. It’s a bit like Lisbon’s answer to Trastevere in Rome or Montmartre in Paris. 

For us, the main downside to Alfama is that it’s not that well-connected, so it’s not the most convenient base for exploring the entire city. Scenic Tram 28 stops here, which is handy, though it can get crowded. Still, if you’re more keen to soak up a local and atmospheric side of Lisbon than to tick off the main tourist attractions, Alfama is a dreamy spot to do just that.

Luxury – $$$

Pousada Alfama is located right in the heart of Alfama, and it offers a romantic stay with postcard-perfect views. It’s just a short stroll from St. George’s Castle, the Miradouro da Senhora do Monte, and the iconic Commerce Square, so it’s ideal for history buffs!

Inside, the rooms are cozy and well-equipped, featuring air conditioning, soundproofing, private bathrooms, and some even have balconies that offer dreamy river views. The hotel itself has a calm, boutique feel, with an intimate courtyard and stylish interiors that blend traditional touches with modern luxuries.

It blends comfort, location, and classic Lisbon charm. Double rooms here range between €200 and €400 per night.

Check current rates and book your stay at Pousada Alfama here!

If you’re considering stays with a strong sense of place, these two offer very different takes on Lisbon. Áurea Museum by Eurostars Hotel Company sits along the riverfront and incorporates archaeological remains into its design, giving the hotel a distinctly historic atmosphere. The setting feels calm and refined, with Alfama and Baixa both within easy walking distance.

For a more residential feel inside the old town, Alfama – Lisbon Lounge Suites are tucked into the heart of Alfama’s narrow streets. The apartments are simple and comfortable, working well if you prefer extra space and a local neighbourhood setting close to viewpoints, tram lines, and traditional cafés.

Mid-range – $$ 

Alfama – Lisbon Lounge Suites offers a clean and modern stay inside a heritage building, just a short walk from São Jorge Castle. Whether you’re here for a few days or a few weeks, these spacious apartments will serve you well with their kitchenettes and roomy living areas.

Lisbon’s traditional trams stop right outside this building, which is super convenient. Meanwhile, the Fado Museum, the Portas do Sol viewpoint, and the super scenic Jardim de Julio de Castilho are all just a 5-minute walk away.

Basically, you’re perfectly placed to soak in the postcard-worthy beauty and vibrant atmosphere of Lisbon’s most charming neighborhood. Rooms here cost between €100 and €150 per night.

Book your luxury stay in Alfama here!

For a more independent stay nearby, Castello Prime Suites offers modern, apartment-style accommodation close to São Jorge Castle. The spaces are clean and comfortable, and the location works well if you like having Alfama’s streets and transport links within easy reach while keeping a bit more privacy.

If you’re drawn to quieter stays within Lisbon’s historic quarters, Hotel Convento do Salvador is set inside a former convent in Alfama, with light-filled interiors that balance contemporary comfort and a sense of history. The atmosphere is calm and reflective, well-suited for slowing down while still being close to viewpoints and tram connections.

Budget – $

This Is Lisbon Hostel is a fantastic place to stay. Honestly, the low price tag is just an added bonus! 

This hostel is perched on a hillside in Alfama, so the multiple terraces offer panoramic views of Lisbon’s colorful buildings and terracotta roofs. It also offers a variety of activities, including surf lessons and yoga classes, and there’s a colorful kitchen and a fun bar. 

It’s in a great location, too, with Rossie Metro Station, Castelo de São Jorge, and Lisbon Flea Market just a 5-minute walk away. If you’re looking to explore Lisbon for less and soak up its unique charm, this is the perfect base for your trip. Beds here cost between €70 and €115 per night.

Check prices and availability for this top-value stay here!

If you’re looking for two options that offer a mix of historic charm and local vibes, these two are great choices. Mouraria Lisboa Hotel is located in the heart of Mouraria, one of Lisbon’s oldest neighborhoods. The hotel blends modern comfort with the area’s traditional character, making it a good option for those wanting to experience Lisbon’s cultural heritage while staying close to the city center.

On the other hand, Albergaria Senhora do Monte is perched on a hill with sweeping views of the city. This simple, family-run hotel offers a more laid-back atmosphere and is ideal if you enjoy a quieter setting with easy access to Alfama and Baixa, along with a charming local vibe.

Related Read: Want some ideas on how to spend your time in Lisbon? Check out our list of 10 exciting things to do in Lisbon to help you make the most of your trip!

Bairro Alto

BEST FOR NIGHTLIFE

Pros 

• Great nightlife and a lively atmosphere
• Walkable area 
• Central and well-connected 

Cons

• Loud at night 
• Lots of steep hills

Bairro Alto is a vibrant, historic neighborhood in Lisbon. Honestly, it’s probably best known for its lively nightlife, but it also has a very unique charm. We love exploring the maze of narrow streets here and soaking up the Bohemian atmosphere during the day, or checking out all of the unique bars at night.

One reason that the area feels so unique is that it was one of the few parts of Lisbon that didn’t suffer extensive damage during the 1755 earthquake. It retains a lot of its original character, although, of course, it has undergone some modernization. Today, its old buildings house tons of bars, clubs, and restaurants.

From wine bars, trendy cocktail spots, and dance clubs that stay open until the wee hours, Bairro Alto’s nightlife scene caters to everyone. And if the bars here aren’t enough for you, Lisbon’s raucous Pink Street is just a 10-minute walk away. However, Bairro Alto is a MUCH less sketchy area, so we definitely suggest basing yourself here. 

Basically, this area is perfect for night owls and partygoers. I love strolling around here in the evening and seeing both locals and tourists enjoying their drinks out on the street. If I were visiting Lisbon on a bachelor’s or bachelorette’s weekend, this is definitely where I would stay! 

Luxury – $$$

Pátio do Tijolo offers lovely, airy rooms with private balconies or patios. The rooms are also soundproofed, so you don’t need to worry about being disturbed by the area’s noise.

However, if you do want to stay out late, you’re just a 5-minute walk from the beating heart of Bairro Alto. That’s what I call the best of both worlds! If you opt to include breakfast with your stay, you’ll start each day with a delicious buffet that includes everything from fried eggs and pasteis de nata to fresh fruit.

All of the shared spaces here are super stylish, and the staff couldn’t be nicer. Double and twin rooms here cost between €185 and €500 per night.

Snag the best prices by booking in advance on Booking.com!

If you’re looking to stay along one of Lisbon’s most polished avenues, these two are easy comparisons. Avani Avenida Liberdade Lisbon Hotel sits just off Avenida da Liberdade, offering a contemporary setting with a relaxed feel and easy access to high-end shopping, restaurants, and metro lines. The overall vibe is modern and comfortable, a good fit if you like being central without feeling rushed.

Nearby, Hotel Marquês de Pombal places you close to the square of the same name, with Avenida da Liberdade right at your doorstep. The style leans classic and understated, and the location works well for getting around the city quickly, thanks to nearby transport connections and walkable streets.

Mid-range – $$

Casa das Janelas com Vista is a charming guest house with a modern, homely vibe. The rooms are comfy and get lots of natural light, and they all have their own private balconies where you can watch the goings-on in the streets below. 

There’s a cozy living room here where you can play board games and enjoy Portuguese wines by night, and major attractions like the Chiado and Miradouro districts are only 10 minutes on foot. Meanwhile, bus stops, metro stations, and the Santa Justa Funicular Railway are all just a few minutes away on foot. 

Breakfast is also a highlight here—served daily in the inviting lounge with fresh local goodies and great coffee. Rooms here range between €160 to €300.

Check availability and book your stay here!

If you’re considering stylish stays near Avenida da Liberdade, these two offer different takes on the area. Blue Liberdade Hotel has a modern, easygoing feel, set close to shops, cafés, and metro connections along the avenue. It works well if you like contemporary design paired with a lively, central location.

For a quieter alternative nearby, Eurostars Das Letras sits on a quieter street just off the avenue. The atmosphere is more subdued and comfortable, making it a good fit if you prefer to stay close to the action while returning to a more relaxed setting at the end of the day.

Budget – $

Friendly Hills Bairro Alto is an excellent budget-friendly option for those looking to stay in the heart of the vibrant Bairro Alto. It’s just a 3-minute walk to the sophisticated Chiado area, with vibrant nightlife right on your doorstep and some of Lisbon’s most upscale cafés, restaurants, and shops just around the corner.

As for the property itself, it’s minimalist but sparkling clean. The beds are also super comfy, and the rooms have shared bathrooms, which are all kept in tip-top shape. This place is all about keeping costs low and comfort high!

Rooms here cost between €50 and €215 per night, depending on the time of year and room category selected.

Check out all the details and book your stay in Bairro Alto here!

If you’re keeping an eye on costs but still want something with character, these two are good options. SATURdAYS is a small, creative stay with playful interiors and a relaxed, informal feel. It suits short stays well, especially if you like places that feel personal rather than polished.

For a quieter and more residential setup, Seven Dreams Suites offers simple, spacious suites that give you a bit more room to settle in. It’s a comfortable choice if you prefer a calmer setting, with public transport nearby for getting around Lisbon easily.

Other Activities to do While in Lisbon

Once you’ve locked in where to stay, it’s time to start filling up your Lisbon itinerary! There’s so much to do in this city, but these were a few standout experiences that truly made our trip. From zooming through the hills in a tuk tuk to watching the sunset from a sailboat, these tours gave us the perfect mix of history, food, and local flavor.

• Explore the city by tuk tuk – This private tour was the perfect way to see Lisbon in a flash! We zipped through Alfama, Belém, and Bairro Alto, stopped at stunning viewpoints, and tasted pastéis de nata—all while our local guide shared stories that brought the city to life.

• Eat your way through Lisbon’s backstreets – We loved this food and wine tour through Mouraria and Baixa! With a local guide leading the way, we tasted everything from Mozambican samosas to octopus salad, sipped local wine, and even visited a Fado house—so fun and flavorful!

• Sintra and Cascais Day Trip – From the misty mountaintop palace in Sintra to the sunny seaside charm of Cascais, this small-group tour packs in stunning views and history in one unforgettable day. We wandered palace halls, sampled pastries, and soaked up clifftop scenery at Cabo da Roca!

• Cruise Lisbon’s hills with ease – This e-bike tour made exploring the steep streets of Alfama and Mouraria a breeze! We hit all the top viewpoints, learned local history from a fantastic guide, and loved the mix of fun, fitness, and unforgettable scenery along the way.

• Catch the sunset from the water – Watching Lisbon light up at golden hour on this sailboat cruise was pure magic. We cruised past iconic sights like Belém Tower and the 25 de Abril Bridge while sipping Portuguese wine and soaking up the views—an unforgettable way to end the day.

Thanks for reading!

After a full day of wandering Lisbon’s hills, snapping sunset photos, and indulging in wine and pastries, having the right place to rest your head is essential. Whether you’re after boutique charm, modern luxury, or a budget-friendly base, Lisbon has something to suit every travel style and budget.

And if you’re still in planning mode, be sure to check out our other Portugal blogs here—they’re packed with tips, inspiration, and ideas to help you make the most of your time in this unforgettable city. Or here are some of our favorites that you might find useful as you plan your trip:

10 Exciting Things To Do In Lisbon, Portugal

How to Spend THREE DAYS in Lisbon, Portugal: 3-Day Itinerary

10 Best Things to do in Albufeira, Portugal 

10 Best Things to do in Lagos, Portugal