Lisbon, our first taste of Portugal and our European farewell after 89 incredible days, quickly captured our hearts. We reveled in exploring Lisbon’s diverse neighborhoods, pausing often to savor affordable and delicious Portuguese wine and coffee – the perfect pairing in our book.
Much like our former home of San Francisco, Lisbon’s charm lies in its distinct neighborhoods, each boasting a unique character and atmosphere. The shift from the organized, cosmopolitan streets of Baixa, Lisbon’s downtown, to the labyrinthine, ancient cobblestone alleys of Alfama is striking and immediate. These areas, though geographically close, feel worlds apart, a testament to Lisbon’s rich and layered history.
While we aren’t history scholars, our explorations, including insightful walking tours and conversations with locals, have given us a fascinating, perhaps slightly irreverent, understanding of Lisbon’s urban tapestry. Imagine “Drunk History,” but applied to urban planning: after the devastating 18th-century earthquake, Lisbon invited architects from across the globe to rebuild. This influx of diverse visions resulted in a city where Parisian boulevards meet Roman-esque cobblestone streets and Moorish influences blend with modern design.
Understanding that the “best” place to stay in Lisbon is subjective, we’ve crafted this comprehensive guide to navigate you through our top neighborhood picks. Our goal is to help you determine the ideal location based on your travel style and budget.
This guide to “where to stay in Lisbon, Portugal” will delve into our favorite neighborhoods, outlining the advantages and disadvantages of each. We’ll highlight must-see attractions within each area (whether you stay there or not) and provide curated recommendations for hotels, apartments, and hostels to kickstart your accommodation search.
View of Lisbon rooftops from a high vantage point, showcasing the terracotta rooftops and hilly terrain.
Contents
show
1 Where to Stay in Lisbon: The 4 Best Places to Stay
1.1 Where We’ve Stayed in Lisbon
1.2 Chiado: Central and Bustling (Overall Best Location)
1.3 Baixa: As Central as it Gets in Lisbon
1.4 Alfama: Cobblestone Streets & Amazing Views
1.5 Bairro Alto: For Foodies and Nightlife
1.6 Where NOT to Stay in Lisbon
Where to Stay in Lisbon: The 4 Best Places to Stay
Now that you have a glimpse into Lisbon’s neighborhood mosaic, let’s explore the best areas to stay in Lisbon. Choosing your ideal Lisbon location is a personal decision, depending heavily on your travel style and preferences. There’s no one-size-fits-all answer to the question “where should I stay in Lisbon?”. That’s why we’re detailing the pros and cons of each neighborhood to help you pinpoint the perfect fit.
Our approach to accommodation is neighborhood-first. We believe in selecting the right area before focusing on specific hotels, hostels, or apartments. While Lisbon offers many neighborhoods beyond our guide, we’ve narrowed it down to four that we believe cater to the needs of most travelers. We aim to justify our choices, providing clear reasons behind our recommendations.
For each neighborhood, we’ll follow a structured format to simplify your decision-making process:
- Neighborhood Overview & Personal Experience: We share our firsthand experiences in each neighborhood, highlighting what makes each area unique and memorable.
- Pros and Cons of Staying There: Essential factors to consider when choosing your base in Lisbon.
- Neighborhood Highlights: Our curated list of favorite cafes, restaurants, parks, and attractions that we think you’ll love.
For those seeking a quick answer: Chiado is our top recommendation for the best place to stay in Lisbon overall, offering a central location with vibrant energy. However, we encourage you to delve into the details of each neighborhood to find your perfect Lisbon home base.
Where We’ve Stayed in Lisbon
To begin, let’s share our Lisbon accommodation experiences. We visited Lisbon twice within a few months, each time staying in slightly different areas. As someone with Celiac Disease, having kitchen access is crucial for us, making apartments a preferred accommodation style.
However, after a conversation with Nuno, a local guide from We Hate Tourism Tours (highly recommended!), we’ve reconsidered recommending Airbnb in Lisbon. Nuno explained how Airbnb’s rise has significantly altered Lisbon, displacing locals as apartments are converted into short-term tourist rentals. This shift pushes residents out of the city center, changing Lisbon’s social fabric, a trend we find concerning.
Therefore, our recommendations will focus on hotels, aparthotels, and serviced apartments – establishments that blend hotel services with apartment-style living.
On our first Lisbon visit, we stayed in Baixa, near the waterfront, at Porta Do Mar Apartments. We enjoyed the location, close to the Metro and within walking distance of Chiado and Alfama. However, Baixa felt very touristy and less vibrant than other areas. The apartments were comfortable, modern, and spacious.
Bedroom interior at Porta Do Mar Apartments, featuring a bed, window, and simple decor.
During our return trip, we opted for the border of Baixa and Chiado, near Rossio Station (Baixa and Chiado Hotels on Booking.com), which we consider one of the best locations to stay in Lisbon, especially on the Chiado side. We stayed in serviced apartments (now for extended stays only and under different management).
Interestingly, my mother visited Lisbon in fall 2023, using our guides for her trip planning. I helped her choose 54 São Paulo, an aparthotel she adored. She declared it “Hands down the best place we stayed in Portugal!” 54 São Paulo offers hotel-like amenities (staffed reception) with apartment benefits (kitchen, space). She stayed in a penthouse with a private terrace and highly recommends it.
Chiado: Central and Bustling (Overall Best Location)
Street scene in Chiado, Lisbon, showcasing shops, pedestrians, and classic Lisbon architecture.
Chiado is at Lisbon’s heart. Perched on a hill, staying here minimizes uphill walks (though downhill strolls mean an eventual climb back up). This neighborhood is a vibrant hub for shopping, dining, historical sites, and cultural attractions like the Convento do Carmo, a former convent turned museum, a poignant reminder of the 1755 earthquake.
Chiado is central to Lisbon’s historical narrative. It was a focal point of the 1755 earthquake and the 1974 Carnation Revolution. The architecture is a blend of old and new, shaped by the 1988 fire that gutted the main shopping area. While facades remained, interiors were rebuilt, resulting in a unique architectural tapestry.
Navigating from Chiado to Baixa or Rossio Station is easy. You can walk, take the metro, or use the Elevador de Santa Justa, a historic elevator built in the early 1900s to connect Chiado and Baixa. However, elevator lines are often long and ticketed. We recommend walking through the Armazéns do Chiado mall for a downhill route and visiting the elevator’s viewing platform for panoramic city views.
Pros and Cons of Chiado
Pros: Chiado’s centrality is unmatched, nestled between Bairro Alto and Principe Real to the west, Alfama and Mouraria to the east, and Baixa towards the river. The Baixa-Chiado metro station provides excellent city-wide access. Chiado’s charm surpasses Baixa, with its winding alleys offering a delightful contrast to downtown Lisbon’s grid layout.
Cons: Hills are inherent to Chiado, requiring uphill walks. As a prime location, prices are higher, reflecting its desirability and central position.
Find the perfect place to stay in Chiado
Interior view of a Lisbon cafe, showcasing traditional tiles, pastries, and a cozy atmosphere.
The Best Places to Stay in Chiado
Chiado offers a range of accommodations. We’ve curated a selection of highly-rated hotels and apartments based on style, reviews, and prime locations in Chiado.
Feeling Chiado 15: Boutique Hotel in Prime Location
Feeling Chiado 15 is a boutique hotel in an exceptional location, right on the square of Convento do Carmo. It’s centrally located, steps from Chiado’s heart and within walking distance of Bairro Alto, Principe Real, and Baixa. Rooms are spacious and comfortable, with deluxe suites offering terraces and city views.
Chiado 44: Mid-Range Guesthouse with Charm
Chiado 44 is a charming guesthouse in a renovated 19th-century building, a few blocks from Baixa-Chiado metro. With only 12 rooms, expect personalized service. Rooms are stylish and comfortable, some with river views and balconies, others facing a garden with balconies. Rooms are compact, ideal for travelers focused on exploring Lisbon.
Lost Lisbon – Chiado House: Budget-Friendly Chic
Lost Lisbon – Chiado House is an intimate guesthouse with friendly service and stylish décor. It offers continental breakfast and a shared kitchen. Rooms range from twin bedrooms to double rooms. Some rooms have private external bathrooms. They also have a location on Avenida da Liberdade (Lost Lisbon Avenida House), a good location, though less central than Chiado.
Casa do Barao: Boutique Hotel with a Pool Oasis
Casa do Barao is a charming 19th-century boutique hotel with a library and a pool. It’s in a prime Chiado location, close to attractions. With only 12 rooms, it offers a bed & breakfast feel. Rooms range from standard to premium with terraces. Breakfast is served in a garden patio. The pool is a rare and welcome amenity in central Lisbon.
Baixa: As Central as it Gets in Lisbon
Baixa, Lisbon’s downtown, stretches along the Tagus River between Alfama and Chiado, bordering Cais de Sodre to the north. It’s Lisbon’s most central and, consequently, most tourist-heavy area. Rebuilt after the 1755 earthquake by Marquês de Pombal, Baixa features a grid layout, a stark contrast to Lisbon’s other neighborhoods.
We stayed in Baixa on our first Lisbon trip. Its central location is ideal for city exploration. It’s well-served by public transport, including Tram 28 and metro stations. Rossio and Santa Apolónia train stations are within walking distance. Baixa offers numerous dining options, including Pastelaria Santo António, home to Lisbon’s best pastel de nata (according to our unofficial taste test and our walking tour guide, Isabel from Withlocals – highly recommend Isabel!).
While Baixa is a convenient base, we suggest exploring beyond Baixa to discover Lisbon’s more authentic neighborhoods.
Street view in Baixa, Lisbon, showcasing grand buildings, shops, and pedestrian activity.
Pros and Cons of Staying in Baixa
Pros: Unbeatable centrality and excellent public transport links. Baixa is flat, making walking easier. Walkable to train stations for day trips to Sintra and journeys to Porto.
Cons: Baixa is tourist-centric and less authentic than other areas. It’s relatively expensive due to its prime location. Being at the bottom of a hill means uphill walks to other neighborhoods. Restaurants, especially on Praça do Comércio, can be tourist traps.
Find the perfect place to stay in Baixa
The Best Places to Stay in Baixa
Baixa offers a mix of hotels, apartments, and hostels. Here are five recommended options in Baixa:
My Story Hotel Figueira: Stylish Boutique Hotel on Figueira Square
My Story Hotel Figueira is a charming hotel on Figueira Square, near Rossio Square, Alfama, and Chiado. Part of a Portuguese chain known for beautiful hotels, it offers colorful, spacious rooms with comfortable beds. Some rooms overlook the square (potentially noisier). It features 24-hour reception, breakfast, and an Italian restaurant.
Be Poet Baixa: Modern Hotel with Ideal Location
Be Poet Baixa boasts a perfect location, equidistant to Alfama, Rossio Station, and Praça do Comércio. Rooms are modern, comfortable, and affordable, equipped with coffee makers. Beds are consistently praised for comfort.
Porta Do Mar: Cozy Apartments (Our Baixa Stay)
Porta Do Mar Apartments are well-located, near the metro, Rossio station, and the tram to Belém. Apartments offer kitchen facilities. Natural light varies depending on the apartment location within the building. We stayed in a split-level apartment, ideal for families or small groups.
Casas da Baixa Jules & Madeleine: Spacious Serviced Apartments
Casas da Baixa Jules & Madeleine are serviced apartments near Porta Do Mar. They offer various sizes, from studios to two-bedroom apartments, in a restored 18th-century building. Apartments blend historic charm with modern amenities and functional kitchens. Casas da Baixa Lighthouse is another nearby option from the same group.
Home Lisbon Hostel: Family-Run Boutique Hostel
Home Lisbon Hostel is a family-run hostel in Baixa, near Lisbon Cathedral and Alfama. Known for “Mamma’s Dinner” featuring Portuguese cuisine, it’s a smaller, intimate hostel. They offer private rooms and dorms (max 8 people). Private rooms are cozy and well-decorated, some with balconies. Nicolau, a popular brunch spot, is located on the ground floor.
Alfama: Cobblestone Streets & Amazing Views
Narrow street in Alfama, Lisbon, with traditional buildings, laundry hanging, and a sense of historic charm.
Alfama is arguably Lisbon’s most captivating neighborhood. Its romantic, serpentine streets cascade from Castelo de São Jorge, with squares and corners filled with al fresco dining and the melancholic sounds of Fado music. Alfama evokes Trastevere in Rome or Montmartre in Paris – neighborhoods known for their romantic ambiance.
An evening stroll through Alfama is a must-do on any Lisbon itinerary, whether you choose to stay here or not.
Pros and Cons of Staying in Alfama
Pros: Alfama exudes charm and romance with its narrow streets and cobblestones. It offers stunning viewpoints over Lisbon, particularly beautiful at sunset. Alfama is rich in bars and restaurants, especially near the castle.
Cons: Alfama is the least accessible Lisbon neighborhood. Expect uphill/downhill walks or crowded Tram 28 rides. Taxis and Ubers struggle in the narrow streets. Walking is essential. If mobility is a concern, consider other neighborhoods. Alfama is also relatively expensive and has fewer accommodation options. Gentrification is a significant concern, with tourist accommodations impacting local residents.
Find the perfect place to stay in Alfama
Lisbon History Mural in Alfama, depicting historical scenes and figures in colorful tiles.
The Best Places to Stay in Alfama
Alfama offers various accommodations, from upscale hotels to cozy apartments. We’ve selected highly-rated options with great reviews in Alfama.
Hotel Convento do Salvador: Luxurious Hotel with Terrace Views
Hotel Convento do Salvador is near Miradouro das Portas do Sol viewpoint, offering a luxurious feel at relatively affordable prices. Built in a former convent, it has a terrace and bar. It’s within walking distance of the castle, viewpoints, and restaurants like Miss Can (canned fish). It’s an eco-friendly hotel. Rooms are well-designed, though compact. River view rooms are available for a surcharge.
Casas do Bairro Conqvistador: Alfama Apartments with Kitchens
Casas do Bairro Conqvistador offers apartments in Alfama with kitchen access. They feature one-bedroom apartments, some with balconies, modern amenities, and comfortable furnishings. It’s part of a family-owned group including a wine shop and coffee shop, offering guest discounts.
Archi-Pelago Alfama Design Suites: Boutique Guesthouse with Style
Archi-Pelago Alfama Design Suites is a Portuguese-owned guesthouse blending modern minimalist style with Alfama’s historic charm. Some rooms have terraces with historic stone arches. Rooms are minimalist, encouraging exploration and use of common spaces. A shared kitchen is available.
Bairro Alto: For Foodies and Nightlife
Street in Bairro Alto, Lisbon, during daytime, appearing quiet with colorful buildings and parked cars.
Bairro Alto, adjacent to Chiado, dates back to the 16th century. While less damaged by the earthquake, it was modernized during Lisbon’s reconstruction. Today, Bairro Alto is Lisbon’s nightlife center, packed with bars, clubs, and restaurants.
By day, Bairro Alto is quiet. But after sunset, it transforms into a lively hub, with streets filled with people enjoying drinks. From wine bars to speakeasies and late-night clubs, Bairro Alto offers Lisbon’s best nightlife. Be prepared for noise if staying here.
Pros and Cons of Bairro Alto
Pros: Bairro Alto is nightlife central. It offers a vast array of bars, restaurants, and clubs. It’s safer than Cais do Sodre, another nightlife area.
Cons: Bairro Alto is noisy, especially at night. It’s not ideal for those seeking quiet accommodation.
Find the perfect place to stay in Bairro Alto
The Best Places to Stay in Bairro Alto
Here are some highly-rated Bairro Alto accommodations for various budgets:
Stylish Hotel: Casa das Janelas com Vista
Budget Boutique Hostel: The Independente Hostel and Suites
Spacious Apartments: Bairro Alto Bronze of Art Apartments
Bed & Breakfast: Dear Lisbon – Charming House
Where NOT to Stay in Lisbon
For short Lisbon trips (4 days or less), staying near the city center is recommended for easy access to attractions. Limit your search to areas south of Rua do Salitre, east of Alfama, and west of Principe Real.
Avoid Cais de Sodre, near Time Out Market by the river. While generally safe, it’s known for frequent drug offers. It’s a good area for dining and nightlife, but consider staying elsewhere.
Planning a trip to Portugal?
Explore our other Portugal guides for trip planning:
Portugal: (Link to Portugal Guide – if available)
Lisbon: (Link to Lisbon Guide – if available)
Porto: (Link to Porto Guide – if available)
The Algarve: (Link to Algarve Guide – if available)
