Where to Stay in Lisbon in 2024: Best Neighborhoods and Areas

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.

These alluring streets of Lisbon will always have a special place in the hearts of visitors. 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 exactly you can find the best area to stay in Lisbon for your upcoming trip.

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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.

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
where to stay in Lisbon first time

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.

Besides, this district is cherished for preserving its Moorish heritage and takes you into Portugal’s History. 

You can stroll through its narrow streets and find yourself among historic treasures such as São Jorge Castle, Lisbon Cathedral, and the National Pantheon.

While exploring, you’ll find colorful houses, medieval architecture and some of the best Lisbon viewpoints like Miradouro das Portas do Sol.

There are so many reasons to visit Lisbon, and many of them are found right here in the Alfama neighborhood.

best places to stay in Lisbon Portugal

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.


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
best area to stay in Lisbon

Bairro Alto offers a vibrant and eclectic 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 those craving a lively nightlife.

Music and laughter fill the streets in the evenings and it offers a variety of venues catering to food enthusiasts. 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. You’ll also find diverse dining options from international flavors and authentic Portuguese cuisine.

Most of the attractions are within walking distance such as Miradouro de São Pedro de Alcântara which offers a breathtaking view of the city. Enjoy Classic Funicular (Cable Car) instead of walking up and down the hill.

Bairro Alto is truly a different place in the daytime when the streets are calm while everyone is sleeping off their hangover from the night before.


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.


Best area to stay in Lisbon for:

  • Shopaholics
  • History buffs
Lisbon best area to stay

Baixa, the lively heart of the city, is the perfect choice for a diverse range of travelers making it one of the best areas to stay in Lisbon.

With its rich history, stunning squares, and lively ambiance, this vibrant district is a haven for those seeking an unforgettable experience.

Baixa caters to shopping enthusiasts, as it boasts a plethora of upscale boutiques and charming souvenir stores lining its main street, 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. 

For those who have a deep interest in history, Baixa offers an abundance of remarkable historical attractions.

One of the most iconic ones is the Convento do Carmo, a captivating convent in ruins that serves as a poignant reminder of the devastating 1755 earthquake.

Many of the sights are within walking distance. Plus, 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 too.


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.


Best area to stay in Lisbon for:

  • Shopaholics
  • Foodies
best part of Lisbon to stay

Chiado, located at the heart of Lisbon, is an exceptional district that charms with a perfect blend of culture and art and offers great options for shopping as well as gastronomy.

This vibrant quarter is notably celebrated for its theaters, museums along historical cafes, making it one of the best places to stay in Lisbon for art affictionates.

You must consider exploring Chiado Museum which showcases an exceptional compilation of contemporary Portuguese art or pay a visit to National Theatre Sao Carlos, offering you a taste of Lisbon’s theatre scene.

Wander through elegant streets filled with various galleries and studios waiting to be discovered by you.

If you are a shopaholic then surely Chiado would turn out to be a paradise for you, due to its range of posh boutiques and shops.

Do not miss visiting the historically significant cafe Brasileira, a beloved spot for poets & writers where you can enjoy coffee while absorbing the atmosphere.

Food lovers can get spoilt for choices in Chiado when it comes to culinary delights. 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 Portugal for foodies.

The majority of tourist attractions in Chiado are easily reachable on foot allowing you leisurely exploration along picturesque streets and if needed to explore other neighborhoods then iconic Bica funicular or nearby trams and bus endpoints can be utilized.


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
where to stay Lisbon

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.

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; take the historic Rossio Railway Station, renowned for its Neo-Manueline style architecture, where you can catch a train to explore the many exciting day trips from Lisbon to nearby towns like Sintra and Cascais.

Rossio’s proximity to attractions like Santa Justa Elevator, São Jorge Castle, and Baixa district make it an excellent base.

Whether you prefer strolling around or using trams and buses, Rossio gives you access to everything including Lisbon’s rich past combined with modern comforts. It might be the best area to stay, Lisbon shows its best side from 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.


Best area in Lisbon to stay for:

  • History Buffs
  • Delightful Pastries
  • Families
what area to stay in Lisbon

Belém, positioned alongside the serene waters of the Tagus River, stands as a historical district in Lisbon that calls to seekers of history and those with an inclination for sweet indulgence.

This locality is celebrated for its grand heritage, scenic riverfront views, and not least importantly its scrumptious treats.

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.

For those with a keen enthusiasm towards history, Belém treasures are aplenty. Visit the awe-inspiring Belém Tower commemorated as a UNESCO World Heritage site along with Jerónimos Monastery a stunning architectural marvel which serves as the final resting place for Vasco da Gama.

These structures serve as an embodiment of the Portuguese era of Exploration legacy.

The delectable and world-renowned Pastéis de Belém – custard tarts whose origins traced back to this very neighborhood should not be missed.

The wafting scent of freshly baked pastries will guide you effortlessly to the historic Pastéis de Belém bakery where you can unwind and relish these sweet temptations.

Whilst numerous attractions are within strolling distance in Belém such as Belém Palace and Monument to Discoveries, a short tram ride (tram no. 15) will take you to the city center if further exploration beckons.

With its rich chronicles of exquisite architecture combined with mouthwatering pastries, Belém extends an enchanting experience coupled with culinary delights for globetrotters.


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!