It’s not easy to decide where to stay in Lisbon when it’s your first visit to Portugal’s capital. Spread across seven hills, the city is a maze of different neighbourhoods, many overlapping, and each with its own special charm and character. In this guide, we dive into the best areas in Lisbon for first-time travellers, and share our personal tips on hotels and hostels in each.

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Where to stay in Lisbon: best neighbourhoods in brief

Want to skip the details? Here’s a quick snapshot of the best neighbourhoods in Lisbon for first-time visitors and our top recommended places to stay in each:

📍 Baixa (downtown): the perfect central base for exploring
My Story Hotels Figueira – characterful, stylish hotel for a weekend break
Liberator Rossio – affordable, basic hotel in a great location on Rossio Square
We Love F Tourists – friendly backpacker hostel at the top of an old townhouse

📍 Alfama and Graça: Lisbon’s famous old town and viewpoint area
Santiago de Alfama – boutique hotel in restored 15th-century building
Tings Lisbon – friendly guest house right by Lisbon’s best sunset viewpoint
This is Lisbon Hostel – small, intimate hostel with a community atmosphere

📍 Bairro Alto and Chiado: historic charm by day, lively bar scene by night
Le Consulat – characterful, distinctive hotel featured in the Michelin Guide
Independente Príncipe Real – art deco hotel-meets-hostel on cobbled road
Bairro Alto Hostel – solid budget hotel with basic double and single rooms

📍 Cais do Sodré: for food markets, nightlife and trips along the coast
Corpo Santo Lisbon Historical Hotel – 5-star luxury in a historic building
Independente Bica – great value mid-range hotel near Time Out Market
Lost Inn Lisbon Hostel – atmospheric backpacker hostel with a party vibe

📍 Príncipe Real and Estrela: for a residential feel with boutiques and parks
Montecarmo12 – designer boutique hotel with a minimalist, elegant style
Jardim da Lapa – oasis in the city with lemon-tree-lined gardens and pool
Hotel Principe Real – small boutique hotel near botanical gardens

📍 Saldanha and Marquês de Pombal: for business travel and a local vibe
EPIC SANA Marquês Hotel – stunning 5-star hotel with rooftop pool
Luster Hotel – affordable 4-star hotel with work facilities and spa
Lisboa Central Hostel – excellent all-round backpacker hostel near metro

Where to stay in Lisbon: best neighbourhoods guide

When I first visited Lisbon, it struck me as surprisingly small for a European capital. But the more I explored, the more it opened up. It’s a city built across seven hills, with neighbourhoods that blend into one another, yet each brings its own distinct feel.

For about a year at the time of writing, I’ve been doing some consultancy work with an organisation based in Lisbon. This has given me the opportunity to go back and explore more. Lisa and I also decided to visit for a proper city break, and all of this has given us the chance to get to know Lisbon’s neighbourhoods a bit more intimately.

The area you choose to stay in Lisbon will have a big impact on how you experience the city, so choose wisely. Whether you’re looking for low-key residential vibes, tourist hotspots, nightlife, art culture or foodie spots, or any combination of the above, we break it all down here.

Baixa (downtown)

Baixa is the best place to stay in Lisbon if you’re looking for convenience on your first visit. As the historic heart of the city, it is the perfect base for exploring.

We often stay in Baixa on our visits to Lisbon, not only for convenience, but also for the lively shops, cafés, pastel-coloured old townhouses, and sweeping grand plazas.

Best neighbourhoods in Lisbon: Baixa
Markets in Praça da Figueira, Baixa

Baixa stretches from the Praça do Comércio at the riverfront (where you will see the iconic Rua Augusta Arch) up to Rossio and Figueira squares, where you will often find markets, street vendors and performers in the daytime, especially at weekends.

At night, you’ll find people eating and drinking outdoors on the backstreets around these squares, and some of our favourite foodie spots are nearby. We took an excellent food and wine tour that explores some local favourites around the area.

Make sure you try the Mozambican restaurant Cantinho do Aziz for some of the best peri peri chicken in Lisbon!

The city’s top sightseeing areas surround Baixa and are easily reachable on foot. It’s a short walk to Alfama in one direction, and up to Chiado and Bairro Alto in the other.

As this is downtown Lisbon, there is a wide range of accommodation. Baixa has many of the city’s most beautiful boutique hotels, and there are budget options too, including some fantastic sociable backpacker hostels.

Let’s take a look at our top recommendations.

We Love F Tourists

We Love F Tourists hostel attic space

We stayed a few nights at We Love F Tourists on our latest trip to Lisbon and would happily stay there again. It’s a friendly hostel that has a social atmosphere without being a raucous party place. It also has a great location for exploring.

The hostel is a few paces away from Figueira Square, and the only downside is that you have to walk up quite a lot of stairs to reach it. We didn’t mind that so much. Set in one of Baixa’s old townhouses, it has a very cool hangout space in the attic at the top.

We stayed in a private room, which was clean and comfortable, and you can book dorms as well. There isn’t an on-site bar, but the team run events like pub crawls and also arrange tours of the city and Sintra.

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Yes! Lisbon Hostel

Yes! Lisbon Hostel communal area

Perched just around the corner from the Rua Augusta Arch, Yes! Lisbon Hostel is one of the best overall hostels in Lisbon. It’s a bit bigger and livelier than We Love F Tourists, with a big lounge hangout area and a bar, but the rooms are plenty quiet enough for a night’s sleep.

This is a great place to meet other travellers, with lots of organised activities. The shared dinners hosted by the team are a fun way to try a bit of local food while getting to know people. You can also join walking tours, pub crawls, bingo nights, karaoke, Sintra visits and all sorts more.

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Liberator Rossio

Liberator Rossio hotel Lisbon

Hotel rooms around Rossio Square can be quite expensive, but Liberator Rossio is an affordable option. The rooms are cosy and compact, but many have gorgeous views over the plaza, and you’re right at the heart of downtown Lisbon.

The hotel sits on the north side of the square, right near the Dona Maria II National Theatre and a short walk to the metro station.

Liberator Rossio has a clean, modern feel. The rooms are fairly basic, but it offers great value for money in a premium location.

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Browns Boutique Hotel

Best hotels in Lisbon: Browns Boutique Hotel

If you’re after something a bit more upmarket but still affordable, Browns Boutique Hotel is a classy pick that doesn’t charge sky-high prices.

It’s a mid-sized hotel without 32 rooms, and also features a chilled-out bistro café‑bar downstairs that’s popular with locals for quiet evening drinks. This is where the daily breakfast is served for guests too.

The rooms are spacious for the price and come with some fun, quirky touches. You might find a Roberts radio or a Marshall speaker by your bed, and some rooms even come with iMac workstations, making them a great pick for a remote work trip.

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My Story Hotels Figueira

My Story Hotels Figueira building

On my first ever visit to Lisbon I stayed at three different My Story Hotels over a few days, which you can read about in my review of My Story Hotels in Lisbon. My favourite of the three was My Story Hotels Figueira, set in an old tiled townhouse right on Figueira Square, about as central as it gets.

The rooms were spotless when I stayed, with a few nice touches. I had a a proper desk, a coffee machine, and even a little box of pastéis de nata waiting for me when I arrived. It’s a great spot if you want to be right in the middle of things but still have somewhere calm to come back to.

The hotel lobby is part of La Squadra, the on-site restaurant and café, which shifts depending on the time of day. In the morning it’s a laid-back breakfast buffet; by evening it’s buzzing, with chefs cooking in an open kitchen and happy hour cocktails at the bar (the Porto tónico was my favourite!).

I liked working there during the day as well. Good coffee, quiet corners and plenty of character.

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Pestana Rua Augusta Lisboa

Where to stay in Lisbon: Pestana Rua Augusta Lisboa

Pestana Rua Augusta sits right next to the iconic Rua Augusta Arch, bang in the middle of Baixa and a minute’s walk from Praça do Comércio and the riverfront. It’s the kind of place where you step outside straight into Lisbon’s busy pedestrian heart, but the rooms are well sound-proofed so you won’t be disturbed.

The rooms here are smart and modern, with comfy beds, USB ports, blackout curtains and some lovely touches of character. Each floor has its own plant theme, and some rooms have views of the castle. There’s a botanical and slightly minimalist feel to the decor.

Downstairs, there’s a cosy bar with a colourful tiled mural, and a restaurant where you can get breakfast or sit out on the terrace. We haven’t tried the dinner there, but it looks an amazing spot to wind down in the evenings.

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Alfama and Graça

Alfama is the oldest part of Lisbon, known for its narrow, winding streets, historic buildings and terracotta rooftops. With strong foundations dating to the Moorish era more than a millennium ago, this was the only part of the city that survived the devastation of the 1755 earthquake.

Many of the most breathtaking viewpoints in Lisbon are located around Alfama and in the neighbouring Graça, where you will find the highest point in the city. Miradouro da Senhora do Monte has a fantastic atmosphere at sunset, with music playing, drinks flowing and sweeping views across the skyline.

Best neighbourhoods in Lisbon: Alfama
Views over the famous old rooftops of Alfama

Many of Lisbon’s defining landmarks, such as São Jorge Castle and Sé de Lisboa Cathedral, are in Alfama.

The neighbourhood is also home to many of Lisbon’s authentic Fado music houses, a genre that shaped working class communities in the city. You will also find the Fado Museum here, tucked away just back from the riverfront.

Graça, just uphill from Alfama, has a slightly quieter, residential vibe with leafy parks and stunning panoramas over the city and river.

Accommodations in Alfama and Graça tend to boutique hotels or smaller, cosy guesthouses full of local charm and personality. Let’s dive into our top recommendations, beginning with some budget picks.

This is Lisbon Hostel

This is Lisbon Hostel terrace

This is Lisbon Hostel has a really cool location on the north side of Alfama, set in a restored 19th-century building right near São Jorge Castle. The hostel has a gorgeous rooftop terrace with views overlooking Lisbon’s rooftops.

It’s a small, intimate hostel with seven guest rooms and a community atmosphere. The only downside of the hillside location is you need to walk uphill a little to reach it (as you can’t get right to the door by public transport).

Having been recently refurbished and renovated, the hostel’s rooms and facilities are in great shape. The team hosts authentic experiences for guests, from Portuguese dinners and relaxed brunches to informal language lessons.

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Inn Possible Lisbon Hostel

Inn Possible Lisbon Hostel Alfama

Conveniently nestled on the border of Alfama and Baixa, Inn Possible Lisbon Hostel has a great location for historical sightseeing and getting around the city. Five minutes’ walk in one direction takes you to São Jorge Castle, and in the other to Rossio Square.

It’s a friendly hostel with a social atmosphere and regular activities, plus there is a bright communal hangout space with big comfy sofas. The breakfast for an extra €2 will set you up perfectly for the day.

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Solar Dos Mouros

Solar Dos Mouros river views

If you’re after something a bit special in Alfama without paying luxury prices, Solar dos Mouros is a place that will stick in your memory.

Situated just around the corner uphill from Sé Cathedral, it’s a small boutique hotel with river views just as impressive as any of Alfama’s miradouros. You’ll probably take as many photos from the terrace and your window as you do when out on your walks.

The rooms each have a different vibe, some bold with colour, others more minimal, and all feeling like real thought has gone into them. No cookie-cutter design here. And while the location is right in the heart of Alfama, it’s in a quiet little pocket that stays peaceful at night.

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Tings Lisbon

Where to stay in Lisbon: Tings

We wanted to include an accommodation recommendation close to the Miradouro da Senhora do Monte viewpoint in Graça, and Tings Lisbon is practically right on top of it.

Although Tings Lisbon is officially a one-star hotel, it has more the feel of a friendly guesthouse, with home-cooked breakfasts and beautiful city views. One star definitely doesn’t mean low quality here. The owners, Annette and Thomas, originally created Tings Kathmandu in Nepal, but moved the concept to Lisbon after post-pandemic challenges. Some evenings, you might catch them hosting mini music concerts or art exhibitions in the garden.

The hotel is set in a rebuilt protected townhouse with 16 charming and unique rooms. While it’s a little removed from the main downtown sights, it’s a great pick if you’re after a slower pace and some of the best views in the city.

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Santiago de Alfama Boutique Hotel

Best places to stay in Lisbon: Santiago de Alfama Boutique Hotel

If you’re in the mood to treat yourself, Santiago de Alfama is a proper boutique experience in a beautifully restored 15th-century building just below the castle, with the picture-perfect cobbled streets of Alfama right on the doorstep. When you walk outside you’re instantly in the middle of the neighbourhood’s life, but once you’re inside, it’s all calm and quiet.

Described as the “best boutique hotel in Lisbon” by Forbes Magazine, this place is a top shout for a romantic getaway or special celebration. The breakfast is especially good, prepared with fresh seasonal produce (and some incredible poached eggs!).

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Pousada Alfama

Pousada Alfama lounge

Pousada Alfama sits right in the lively heart of the neighbourhood, just by the old medieval gates of Portas do Sol. From this elevated setting you can enjoy gorgeous river views in luxurious surroundings.

While the hotel is set in a historic building, the furnishings and facilities have a modern feel.

The breakfast is not only superb but is served until 11am, a rarity in hotels, giving you plenty of space to take it slowly when you want a lie-in.

Bairro Alto and Chiado

Spread over the hilly area just to the west of Baixa, Bairro and Chiado together form one of Lisbon’s most dynamic and stylish areas.

By day, Chiado has an elegant and cultural feel, filled with historic cafés, little museums, theatres, bookstores and shopping streets. Its defining landmarks include Carmo Convent, an awe-inspiring roofless Gothic convent reduced to a skeleton of a building by the 1755 earthquake, and Elevador de Santa Justa, a century-old neogothic iron lift that connects with the streets of Baixa below.

As evening falls, the neighbouring Bairro Alto wakes up with lively bars, restaurants, and a nightlife scene that is popular with both locals and visitors.

Staying around here means you’ll be at the centre of Lisbon’s creative energy, a great choice if you want a combination of culture and after-dark fun.

We’ve picked out some of the best accommodation picks across the two neighbourhoods for a range of budgets. Let’s get into it.

Independente Príncipe Real

Independente Príncipe Real hotel

While Independente Principe Real is named for the Principe Real neighbourhood, its location is right on the cusp of Bairro Alto, facing onto one of the neighbourhood’s cobbled sloping roads.

This is an art deco hotel-meets-hostel, with a boutique feel and excellent value for money. It occupies two renovated 19th-century palaces with the era’s classic tall windows and high ceilings inside. The rooms vary from budget dorms to private suites, with a choice of rooms in between, some featuring balconies with river views.

There’s also an in-house restaurant and bar with a matching art deco style where you can relax at the end of the day. Rise early here and you can walk a few paces for the city’s most breathtaking sunrise view at Miradouro de São Pedro de Alcântara.

We haven’t stayed in many places that cater so well to different budgets as Independente Principe Real, and it’s a great spot on the crossroads of three of Lisbon’s best neighbourhoods.

Bairro Alto Hostel

Cheap places to stay in Lisbon: Bairro Alto Hostel

Although it’s called a hostel, Bairro Alto Hostel has more of a budget hotel vibe than a backpacker stay. There are no dormitories, just a choice of basic double and single rooms.

If you’re after a well-located base with decent facilities and you aren’t fussed about luxury, this place is excellent value. Like Independente Principe Real, it’s perched right next to Miradouro de São Pedro de Alcântara, where you can also hop on the historic Glória Funicular down to Baixa.

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Le Consulat

Le Consulat Lisbon

One of Lisbon’s most characterful and distinctive hotels, Le Consulat is set in the former Brazilian consulate building and is featured in the Michelin Guide. Each of its huge rooms is like a private art exhibition.

The hotel overlooks Luís de Camões Square, which is right on the border of Chiado and Bairro Alto, perfect for navigating the area.

You can choose from a range of rooms, apartments and suites, with the Consulaire and Ambassadeur suites at the top end coming with private kitchenettes and dining areas.

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Montebelo Vista Alegre Lisboa Chiado Hotel

Montebelo Vista Alegre Lisboa Chiado Hotel

If you want to stay somewhere a little under the radar but seriously well put together, Montebelo Vista Alegre in Chiado might be your spot. Part of the historic Portuguese ceramics brand Vista Alegre, the hotel’s interiors are bathed in beautiful tilework and little design details that give a truly authentic Lisbon feel.

The hotel is right in the middle of Chiado, close to cafés, theatres, and those narrow side streets that always seem to lead somewhere interesting. Right across the road you can go for a coffee at Fábrica Coffee Roasters, one of our favourites on the Lisbon scene.

Overall, Montebelo Vista Alegre is polished without being flashy, and a good option if you want something elegant but a bit more personal than the big international names nearby.

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Bairro Alto Hotel

Bairro Alto Hotel Lisbon

Bairro Alto Hotel has a reputation as one of Lisbon’s best boutique stays for good reason. Sitting right on the edge of Luís de Camões Square, where Chiado and Bairro Alto meet, you’re basically at the crossroads of everything: cafés, plazas, viewpoints, trams, nightlife, you name it. It’s a busy location, but the hotel still feels calm and refined, with just the right amount of luxury.

We love the hotel’s rooftop bar, where locals come in for the views that stretch right out over the river. It’s not a budget option, but if you’re looking to splurge on a stay that’s both stylish and central, you can’t go wrong here.

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Cais do Sodré

Once a gritty dockside area, Cais do Sodré has been transformed into one of Lisbon’s trendiest and most cosmopolitan neighbourhoods. Overlooking the riverbank, it’s home to the famous Time Out Market, standing side-by-side with the more traditional 19th-century Mercado da Ribeira – as you can read about in our guide to food markets in Lisbon.

Cais do Sodré has also become known for its raucous nightlife scene, centred around Pink Street, a former red light district that has become a hive of bars, clubs and late-night spots.

Cais do Sodré neighbourhood Lisbon
The steep, picturesque back streets of Cais do Sodré

The area has also grown into a thriving hotspot for coworking in Lisbon, with an array of laptop cafés and coworking space (including Second Home inside Time Out Market).

Cais do Sodré station is also the city’s main transport hub for travelling off west along the coastline, towards Belém and beyond to the seaside marina town of Cascais.

Overall, it’s one of the best neighbourhoods in Lisbon if you want modern, urban vibe with great food and drink on your doorstep, and ease of getting around. Accommodation-wise, Cais do Sodré has some of the city’s best party hostels as well as some seriously swanky boutique hotels. Let’s dive into it.

Sunset Destination Hostel

Sunset Destination Hostel Cais do Sodre

Not many backpacker hostels come with a rooftop pool, but that’s exactly what you get at Sunset Destination Hostel. Not only that, but the rooftop also features a cocktail bar.

The hostel is set inside Cais do Sodré station, so you’re right on the doorstep of nightlife while being a quick train ride away from beaches along the coastline.

Sunset Destination Hostel has quite a party atmosphere, so it’s not the best choice if you want somewhere laidback, but ideal if you want to meet and socialise. There are lots of fun regular events, like pub crawls, organised tours and weekly communal BBQ nights.

The hostel also has an “urban jungle lounge” and a sustainable urban garden where fresh produce is grown.

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Lost Inn Lisbon Hostel

Cheap places to stay in Lisbon: Lost Inn Hostel

Lost Inn Lisbon Hostel is another lively, sociable hostel in Cais do Sodré. The setting here is a bit more atmospheric and relaxed, in an 18th-century building with vaulted ceilings and époque tiles that give the place a heritage feel.

The building is two minutes’ walk from the nightlife epicentre of Pink Street, and you can join organised bar crawls every night. But at the same time, there are still places to wind down, with comfy couches and reading spaces in the hostel’s common spaces.

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Selina Secret Garden Lisbon

Where to stay for a Lisbon workation: Selina Secret Garden

We’re a big fan of the Selina hostels chain because of their focus on coworking. Midway on the road from Cais do Sodré up to the Estrela neighbourhood, Selina Secret Garden Lisbon has a funky coworking setup and a ton of other cool features.

Like other Selinas we’ve visited, it has an outdoor pool, as well as a rooftop hangout area with great views. There is a programme of wellness-focused events through the week, including yoga or dance classes and social nomad meetups.

It’s not just for backpackers, either – there’s a wide range of accommodation options from dormitories to family rooms. If you’re looking for somewhere to plug in and get some work done but also meet people and hang out, this could be your go-to.

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Independente Bica

Independente Bica Cais do Sodre

Standing one block back from Time Out Market in a classic Lisbon-style Pombaline building, Independente Bica is about as central as it gets in Cais do Sodré. The iconic Ascensor da Bica yellow funicular starts right by the hotel, hence the name.

Despite the lively surroundings, the hotel is well sound-proofed with double-glazed windows, so the party atmosphere nearby won’t disturb your sleep.

It’s a super convenient location with public transport just steps away, and the rooms and amenities feel like great value. The place has the vibe of a boutique hotel but with more affordable prices than many other spots in the neighbourhood.

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Dare Lisbon River

Dare Lisbon River accommodation

Another reasonably priced boutique hotel right near Time Out Market is Dare Lisbon River. This place has a stylish, bright and modern feel, with rooms individually decorated.

Best of all – at the time of writing – there is a free wine policy in the afternoons and evenings! The breakfast is outstanding too, in continental style and made with fresh local produce, served until 11am for those lazy mornings.

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Corpo Santo Lisbon Historical Hotel

Luxury Lisbon stays: Corpo Santo Historical Hotel

If you’re looking for 5-star luxury in Lisbon, Corpo Santo Lisbon Historical Hotel ranks among the very best, in a building that incorporates a 14th-century Fernandina Wall and looks onto 17th-century noble houses.

The historic setting is balanced with sleek modern comforts, including an outstanding restaurant. Set just back from the river, you’re also close to Cais do Sodré’s restaurant and bar scene but in a quiet little pocket away from the noise.

Everything feels genuinely luxurious here, from the complimentary spa services to the amazing hotel breakfast, which is genuinely one of the best in the city.

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Príncipe Real and Estrela

Venturing into Lisbon’s leafy suburbia, the neighbouring Principe Real and Estrela neighbourhoods will give you a more laidback and local experience of the city.

Príncipe Real is an upcoming trendy area that has seen a new wave of independent shops, cafés and foodie spots. Just next door, Estrela is best known for the spectacular Estrela Basilica with a 114-step climb to its domed roof. We also love Estrela’s sprawling green gardens and parks nestled between residential streets.

Escadaria do Parlamento Lisbon Estrela
Lisbon’s Parliament Staircase, tucked between Principe Real and Estrela

We’ve often spent time wandering through Estrela and Principe Real en route to Campo de Ourique, another lively little neighbourhood a little further out.

These neighbourhoods are perfect if you want to stay somewhere charming and calm, while still being within easy reach of the city centre.

Accommodation in Estrela and Principe Real tends to be boutique hotels or stylish guesthouses, so it’s ideal if you want a mixture of atmosphere and comfort. These are some of the best hotel picks in the area.

Casa de Sao Mamede Hotel

Casa de Sao Mamede Hotel Lisbon

Set in a renovated 18th-century building that was originally built for a magistrate, Casa de Sao Mamede Hotel has an old-Lisbon feel to it, with antique decor setting the tone throughout the interior, filled with period furniture, rugs and paintings.

Constructed just three years after the 1755 earthquake, it was one of the earliest to use the tremor-proof “birdcage” style. The hotel has 28 sizeable rooms which all have private bathrooms. A continental breakfast is served in a wood-panelled dining room, adding to that old-world feeling.

Botanical gardens and Estrela’s parks are a short walk from the hotel, as is Rato metro station. It’s a great option if you want to experience Lisbon with a bit of historic charm and you prefer character and authenticity over flash.

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Hotel Principe Real

Hotel Principe Real Lisbon

Hotel Principe Real is a small boutique hotel in a secluded location near the botanical gardens in Principe Real. Set on a characterfully steep Lisbon side street, it’s also right near a main tram line for a short ride into downtown, while the restaurants and bars of Principe Real are right nearby.

With only 18 large, individually decorated rooms, the hotel has a homely feel, with delicious freshly cooked breakfasts made to order every morning. The prices are much more reasonable than some of the more upmarket boutique hotels in the area, without compromising on comfort or quality.

This part of Principe Real is right near the hilltop, and you’re just a few minutes’ walk away from the stunning sunrise views at Miradouro de São Pedro de Alcântara.

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Montecarmo12

Montecarmo12 Design Boutique Hotel Principe Real

If you’re after somewhere with a touch of modern elegance and a bit more sophistication – perhaps for a romantic couple’s getaway – Montecarmo12 is our top pick in Príncipe Real. Just be prepared to pay a little extra for the experience.

The hotel is set in a historic building that has been restored and modernised by Aires Mateus, one of Portugal’s most renowned architects. With just 10 rooms, the hotel has a luxuriously exclusive feel.

The rooms are bright, white and clean with a minimalist design and majestic floor-to-ceiling windows. Some feature balconies with spectacular river views.

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Jardim da Lapa by Shiadu

Jardim da Lapa

Located all the way over on the south side of Estrela, not far from the main port area of Lisbon, Jardim da Lapa is an oasis of tranquility that feels like you’re in the countryside even though you’re close to the city centre.

The highlight of the hotel is its beautiful gardens lined with lemon trees and featuring an outdoor swimming pool that is open all year round.

All rooms include work desks, so if you’re looking for somewhere to stay on a remote working visit to the city where you can escape the noise, this place is the perfect retreat.

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Saldanha and Marquês de Pombal

Saldanha and Marquês de Pombal have a modern and business-focused feel, twinned with a more local, residential atmosphere than the tourist hotspots like Baixa or Alfama.

Geographically, this area is closer to the centre of Lisbon, and so it’s also a great springboard for exploring in any direction – whether towards the riverside for the tourist highlights, or north and inland into suburbia for the “real” Lisbon, as locals might say.

Marquês de Pombal is distinguished by its huge statue that stands on a plinth in the middle of a major roundabout at the bottom of Parque Eduardo VII. Locals jog around the park in the mornings, and if you walk up to the top you can enjoy sweeping views of the city below.

Where to stay in Lisbon centrally: Marquês de Pombal
The Marquês de Pombal statue is one of Lisbon’s central landmarks

Saldanha, just to the north-east of Marquês de Pombal, has become a thriving community of coworking spaces and local cafés. You will also find some great local food spots around here, like Mercado 31 de Janeiro.

Together, these neighbourhoods are known for their wide avenues, office towers and excellent metro connections. It’s the ideal kind of base for business travel, or if want to stay in the city for a longer period while working – or even if you’d just prefer a quieter stay away from the tourist bustle.

Although less historic than other parts of the city, there is a good range of accommodation options around Saldanha and Marquês de Pombal. You’ll find comfortable mid-to-high-end hotels with convenient access to transport and shopping centres, as well as some great value backpacker hostels. These are our top picks.

Lisboa Central Hostel

Lisboa Central Hostel for backpackers

Any hostel that hosts something called “Milkshake Monday” has my attention. Yes, at Lisboa Central Hostel, guests all get a free milkshake every Monday! And there’s also Lemonade Tuesday, when… yes, you get the picture.

Even if your stay doesn’t coincide with a Monday or Tuesday, this is a fantastic all-round hostel that is clean, well run and good value. It has a friendly, sociable and welcoming vibe with a mixture of travellers of all ages – just the place we like to stay.

The location is excellent for getting around, just a couple of minutes’ walk away from Marquês de Pombal Square where you can hop on public transport in any direction.

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Lisbon Top Hostel

Lisbon Top Hostel dormitories

Lisbon Top Hostel is like a backpacker hostel combined with a guest house, situated right by Parque Eduardo VII. It has classic dormitories with cheap beds and good facilities, and also a choice of private rooms with en suite bathrooms.

While this place doesn’t have the social atmosphere of other hostels, it’s a really pleasant, comfortable base for exploring the city, with lots of space, as well as an excellent communal kitchen for self-catering. It also has a very nice sun terrace and quiet lounge area, perfect for relaxing with a book at the end of the day.

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Turim Lisboa Hotel

Turim Lisboa Hotel Avenida

Turim Lisboa Hotel is a 4-star hotel with mid-range prices in a great location on the edges of Saldanha. It’s a sizeable hotel with 56 rooms, and features a cute little rooftop swimming pool. You can expect a clean, modern vibe with friendly service.

The in-house restaurant serves classic Portuguese cuisine, and you’re also within a close walk from Saldanha’s array of international restaurants.

The hotel is also just around the corner from Museu Banksy, one of the city’s coolest art museums. Here you can see dozens of recreations of Banksy’s artwork in a series of video installations, graffiti, canvases, light projections and murals.

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Luster Hotel

Where to stay in Lisbon with a view: Luster Hotel

If you want to stay closer to the heart of Saldanha, Luster Hotel is an excellent value 4-star option right next to Praça Duque de Saldanha, the area’s central roundabout.

This hotel is a great choice for a business trip or workation, with more affordable rates than the area’s premium business hotels. Rooms come with proper work desks, and there’s a very decent spa and wellness centre with a sauna, steam room, and hot tub – plus indoor and outdoor pools that stay open year-round.

At the same time, the vibe of the hotel leans more boutique than business, which adds a bit of charm to your stay even if you’re mostly there to work.

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EPIC SANA Marquês Hotel

EPIC SANA Marquês Hotel city views

EPIC SANA Marquês Hotel is one of Lisbon’s top 5-star hotels, which you will also find featured in our guide to hotels in Lisbon with rooftop pools. The views from the top of the building are up there with the city’s best miradouros, but without the crowds.

If you want to go all-out luxury for your Lisbon trip and you’re willing to shell out for it, you can’t go wrong here. There’s a full wellness centre with a spa, Turkish baths, a vitality pool, and treatment rooms if you really want to unwind. And if you’re not heading out for dinner, the hotel’s Japanese and Italian restaurants are genuinely impressive, not just filler options.

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Lumen Hotel & The Lisbon Light Show

Lumen Hostel Lisbon

We love a hotel with a special theme or feature – and Lumen Hotel has one of Lisbon’s most alluring. Every day here you can experience a video-mapping show in the hotel’s unique “photosynthesis courtyard”.

This is another top-class hotel with a rooftop pool, but one that falls into the more affordable bracket, with deluxe rooms beginning at mid-range prices. The hotel has a modern, comfortable feel, with facilities including a fitness centre. It’s a great all-round option for a weekend break.

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Alternative Lisbon neighbourhoods to consider

We’ve aimed to cover the best neighbourhoods in Lisbon for first-time visitors in depth, but if you’re interested in staying somewhere more low-key or seeing an alternative side of the city, these are some other areas you could consider:

  • Campo de Ourique is a relaxed, residential neighbourhood just a little further out than Principe Real and Estrela. We love the big food market here, and we always make the effort to visit for lunch when we’re in the city. This is the kind of less-touristy area we’d choose to live if we eventually move to Lisbon ourselves.
  • Arroios is one of Lisbon’s most diverse and up-and-coming areas, covering a sprawling area to the north of Graça. The neighbourhood has a multicultural and creative vibe, featuring some great book stores, galleries and foodie spots.
  • Parque das Nações is a former industrial wasteland that has been transformed into a modern maze of bold, contemporary architecture, landscaped gardens and waterfront promenades. I enjoyed visiting coworking spaces in the area, which continue to grow as it becomes a hotspot for entrepreneurs and startups. It feels like a different city altogether.
  • Belém is often visited by tourists for its famous tower and the magnificent Jerónimos Monastery, but not many people choose to stay here. It’s a curious option for the more inquisitive traveller, home to many of the city’s best museums, with a more laidback vibe to it. The 7-kilometre riverside stroll from Belém to downtown is one of Lisbon’s nicest walks, and also great for a morning run.

Map of the best neighbourhoods in Lisbon

You can explore the locations of the Lisbon neighbourhoods featured in this guide and our recommended accommodation options by clicking the map below:

Map of where to stay in Lisbon

Have you already spent time in the Portuguese capital? Share your thoughts on the best places to stay in Lisbon in the comments below.

Want some activity ideas for your trip? Check out our guide to the best things to do in Lisbon.

For self-catered accommodation in the city, see our recommended Vrbo apartments in Lisbon.

Travelling elsewhere in Portugal on your trip? Check out our guide to the best neighbourhoods in Porto.

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Wondering where to stay in Lisbon on your first visit? We break down the best neighbourhoods in Lisbon plus recommended hotels and hostels. #lisbon #lisbonhotels

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