Whether you’re looking for where to stay in Lisbon – first time or fifth time visiting the city, the neighborhoods of Lisbon ooze an unmatched charm.
Vibrant, cobbled streets wind their way up steep alleys where the iconic yellow trams drive by. Soaring Fado music fills the street corners, and busy bars spill chattery people onto the streets into the late hours.
Lisbon is a captivating city in every possible way and has been a go-to place for me for years just to hang out, work for a few weeks, or take a quick weekend trip to Portugal with friends.
The vibrant streets of Lisbon will always have a special place in my heart and I still haven’t met anyone that hasn’t agreed on this. But different people and different trips are in need of different areas in Lisbon to stay.
This is why I’ve made this guide to where to stay in Lisbon, Portugal, so that you can find the best area to stay in Lisbon for your upcoming trip.
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⭐TOP PICKS – WHERE TO STAY IN LISBON⭐
LUXURY – Pestana Palace Lisboa Hotel & National Monument – stay in an opulent 19th-century palace with inside and outside swimming pools, a wellness center, and a garden.
MID-RANGE – Lisboa Pessoa Hotel – a fantastic hotel with a spa and wellness center including an indoor pool. There is also a nice rooftop restaurant with sweeping views of the city.
BUDGET – My Story Hotel Rossio – a beautifully decorated budget option with a restaurant and bar. Rooms are bright and stylish.
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Where to stay in Lisbon
Alfama – where to stay in Lisbon first time
Best place to stay in Lisbon for:
- History Enthusiasts
- Authentic Portuguese Culture
- Fado Music
- First-timers
Alfama is the go-to place for history enthusiasts, it is Lisbon’s oldest neighborhood, and it survived the devastating earthquake in 1755.
It is known for its rich history and Portuguese authentic ambiance and there are several Fado joints and Fado restaurants to experience the sorrowful Portuguese music form.
This district has preserved its Moorish heritage and you can stroll through its narrow streets where you’ll see several of Lisbon’s main tourist attractions, like São Jorge Castle, Lisbon Cathedral, and the National Pantheon.
Alfama is also home to some of the best Lisbon viewpoints like Miradouro das Portas do Sol and Santa Luzia Viewpoint.
There are so many reasons to visit Lisbon, and many of them are found right here in the Alfama neighborhood. This is the perfect place to stay for first timers, and still one of my favorite neighborhoods in Lisbon.
If you seek to merge yourself into authentic Portuguese History then Alfama is the right fit for you.
You can travel to all the attractions including the cathedral and castle on foot but you may consider taking Tram no.28 for a scenic journey through this charming district.
WHERE TO STAY IN LISBON – ALFAMA
LUXURY – Santiago de Alfama – a wonderful boutique hotel set in a historical building in the heart of the Alfama district with an onsite restaurant and bar.
MID-RANGE – Palacete Chafariz Del Rei – set in a 19th-century aristocratic family home, this is a lovely historic hotel where you’ll feel like a king and queen.
BUDGET – Hotel Convento do Salvador – a short walk from all Alfama’s attractions, this is a comfortable hotel and though the Tram 28 passes right outside the window, rooms are nice and quiet.
APARTMENT HOTEL – Tandem Palacio Alfama Suites – centrally located chic and modern apartments and studios with an outdoor swimming pool and views of the National Pantheon. Sleeps up to 4 people in one unit.
Bairro Alto – where to stay in Lisbon for nightlife
Best area to stay in Lisbon for:
- Nightlife
- Foodies
Bairro Alto offers a vibrant neighborhood with unmatched nightlife into the early mornings making it the best neighborhood to stay in Lisbon for night owls.
This district is filled with countless bars and clubs, including LGBTQ+ bars like Friends to Irish pubs such as Cheers making it a perfect spot for you if you’re looking for lively nightlife during your Lisbon trip.
Music and laughter fill the streets in the evenings and there are plenty of venues catering to food enthusiasts whether you prefer local or international flavors. You can enjoy Jazz shows at Páginas Tantas or go for a live concert performance at Jam Club.
Bairro Alto offers a different charm during the day. Strolling through the district you’ll find boutiques and colorful streets with street art.
Most of the attractions are within walking distance such as Miradouro de São Pedro de Alcântara which offers a breathtaking view of the city.
You can also take the traditional funicular instead of walking up and down the hill which is a tourist attraction in itself.
Bairro Altofeels like a complete different place in the daytime when the streets are calm while everyone is sleeping off their hangover from the night before.
WHERE TO STAY IN LISBON – BAIRRO ALTO
LUXURY – Raw Culture Art & Lofts Bairro Alto – a really cool place with plenty of unique artwork on display. Rooms are all unique and some have a balcony. They also have vegan breakfast.
MID-RANGE – Lisboa Pessoa Hotel – a fantastic hotel with a spa and wellness center including an indoor pool. There is also a nice rooftop restaurant with sweeping views of the city.
BUDGET – Le Consulat – a great hotel with spacious, clean rooms and good breakfast. There is a restaurant and bar onsite.
Baixa
Best area to stay in Lisbon for:
- Shopaholics
- History buffs
Baixa is great for shopping enthusiasts, as it boasts a plethora of upscale boutiques and charming souvenir stores lining its main street, the historical Rua Augusta.
Situated right at the heart of the city, it offers easy access to famous landmarks, including Commerce Square, Rossio Square, and the Santa Justa Elevator making it one of the best areas to stay in Lisbon.
One of the most iconic historical sites is the Convento do Carmo, which is a ruined convent where basically just the shell of the building is left after it was severely destroyed in the 1755 earthquake.
Many of the sights are within walking distance, yet you’ll have no trouble hopping on trams and funiculars to explore other areas.
This is by far the best area to stay in Lisbon for tourist attractions as you are an easy walk from Alfama and can take the tram to Belem.
WHERE TO STAY IN LISBON – BAIXA
MID-RANGE – Lisboa Carmo Hotel – a lovely hotel in a historical building located on Carmo Square by the Carmo church. There is a restaurant onsite as well as several restaurants in the nearby area.
BUDGET – Browns Downtown Hotel – a great boutique-style hotel at a good value for money. No restaurant or bar, but it’s very quiet and has great service.
Chiado
Best area to stay in Lisbon for:
- Shopaholics
- Foodies
Chiado, located at the heart of Lisbon offers a perfect blend of culture and art and offers great options for shopping as well as gastronomy.
This vibrant quarter is known for its theaters, museums, and historical cafes, making it one of the best places to stay in Lisbon for art lovers.
I recommend exploring Chiado Museum which showcases an exceptional compilation of contemporary Portuguese art or see a show at the National Theater Sao Carlos. The streets of Chiado district are filled with art galleries and beautiful buildings.
If you are a shopaholic then Chiado is a great place to stay with a lot of posh boutiques and shops.
Do not miss visiting the historically significant cafe Brasileira, a beloved spot for poets & writers for its artistic and architectural beauty.
If you’re a dedicated foodie, you’ll get spoilt for choices in Chiado when it comes to culinary delights.
Especially the Time Out Market is a must-visit with selections from some of the top restaurants in the city, and one of the reasons alone why Chiado is one of the top places to stay in Lisbon for foodies.
The majority of tourist attractions in Chiado are easily reachable on foot allowing you leisurely exploration along picturesque streets. You can also take the iconic Bica funicular, tram, or bus to reach other neighborhoods.
WHERE TO STAY IN LISBON – CHIADO
MID-RANGE – Montebelo Vista Alegre Lisboa Chiado Hotel – a beautiful hotel set in a renovated historical building. Rooms are spacious and quiet.
BUDGET – GS Chiado Boutique Studios & Suites – offers spacious and clean rooms within walking distance from top tourist attractions. Good value for money.
APARTMENT HOTEL – Dream Chiado Apartments – lovely studio apartments with kitchen, clean and bright rooms, sleeping up to 4 people comfortably.
Rossio – where to stay in Lisbon on a budget
Best area to stay in Lisbon for:
- Budget travelers
- Central Location
Lisbon’s central square, Rossio or Praça Dom Pedro IV, is the perfect spot for travelers seeking a central location with a dash of history.
With a 19th-century backdrop and a charming central fountain, Rossio is often referred to as Lisbon’s core and it’s by far one of the top places to see Christmas lights when visiting Lisbon in winter.
Selecting Rossio as where to stay in Lisbon Portugal, puts you right in the heart of Lisbon’s liveliness, yet accommodation there is more affordable than in the neighboring districts which is pretty awesome considering you’re basically located in the middle of all the historical neighborhoods.
The square plays host to cultural events and festivities while serving as an ideal starting point to explore the city.
Many prominent landmarks are just a walk away. You can also take the train from the historic Rossio Railway Station, renowned for its Neo-Manueline style architecture, to explore many exciting day trips from Lisbon to nearby towns like Sintra and Cascais.
Rossio’s proximity to attractions like Santa Justa Elevator, the Alfama district, São Jorge Castle, and the Baixa district make it an excellent base.
If you ask me, it might just be the best area to stay, Lisbon shows its best side from Rossio AND it’s affordable.
WHERE TO STAY IN LISBON – ROSSIO
MID-RANGE – Convent Square Lisbon, Vignette Collection – a nice hotel with an indoor swimming pool and sauna, perfect for relaxing after long days of walking. The common area is also inviting.
BUDGET – My Story Hotel Rossio – a beautifully decorated budget option with a restaurant and bar. Rooms are bright and stylish.
APARTMENT HOTEL – The Visionaire Apartments – offers 1-2 bedroom apartments sleeping up to 6 people, this is a great option for families with the opportunity to prepare food at home.
Belém
Best area in Lisbon to stay for:
- History Buffs
- Delightful Pastries
- Families
Belém, positioned alongside the serene waters of the Tagus River, is a historical district in Lisbon.
This is a calmer area of Lisbon with plenty of green spaces, including a botanical garden making it the best location to stay in Lisbon for families.
Among the top attractions, the awe-inspiring Belém Tower and Jerónimos Monastery are both commemorated as UNESCO World Heritage sites. The latter serves as the final resting place for Vasco da Gama.
The Belem neighborhood is also known for its Pastel de Belem, which are delectable custard tarts, so make sure you go to a bakery to try them.
Whilst numerous attractions are within strolling distance in Belém such as the Jerónimos Monastery and the Monument of Discoveries, a short tram ride (tram no. 15) will take you to the city center to explore other neighborhoods like Baixa and Alfama.
WHERE TO STAY IN LISBON – BELÉM
LUXURY – Pestana Palace Lisboa Hotel & National Monument – stay in an opulent 19th-century palace with inside and outside swimming pools, a wellness center, and a garden.
MID-RANGE – Altis Belem Hotel & Spa – on the riverfront next to the Monument of Discoveries, this is a fantastic option with swimming pools and a spa.
BUDGET – Setubalense – located on the main street in Belém, the hotel is only a short walk from the Jeronimos Monastery. Rooms are comfortable and have a balcony.
Reflections on the best places to stay in Lisbon Portugal
When planning a trip to Lisbon, where to stay is an important decision as it affects your entire trip. I hope this guide to the best neighborhoods to stay in Lisbon has helped you decide where suits you the best.
Nonetheless, Lisbon’s excellent tram system makes it easy to get around no matter where you choose to base yourself, and don’t forget to pack your best walking shoes, because no matter where you stay, there will be lots of walking while exploring Portugal’s eclectic capital city.
Happy travels!