Where to Stay in Lisbon?

The best neighborhoods and our personal hotel recommendations

Latest update: March 31, 2023

Hotel prices in Lisbon

Lisbon used to be a very cheap destination – but now the prices for an overnight stay have increased significantly.

For a nice double room in a decent 3-star hotel in the city center, you should expect to pay 80 euros in the low season between November and March.

In the summer months, you’ll have to pay considerably more for a decent room in the center – expect prices of around 150 euros for two people.

In the center of Lisbon, hotels are usually a bit more expensive, it gets cheaper further out. If you book early, you can save a few euros.

The best neighborhoods to stay in Lisbon

If you are traveling to Portugal’s capital for the first time, you should stay right in the city center. That’s why we would recommend booking your Lisbon accommodation in one of these neighborhoods:

• Baixa / Chiado – Ideal for your first visit
• Bairro Alto – Ideal if you want to immerse yourself in the nightlife
• Alfama – Perfect if you like to walk and want to experience old Lisbon up close
• Rato / Príncipe Real – Ideal if you want to experience authentic Lisbon life, also great to explore with kids

Overview of the districts on a map

For your better orientation, we have marked the best districts for accommodation in Lisbon on this map.

Staying in Baixa and Chiado

The Baixa and Chiado districts are wonderful places to stay. It is especially ideal if it’s your first time in Lisbon and you want to be close to all the important sights.

It’s safe to say that Baixa and Chiado form the tourist center of the city. This part of the city is also home to some of the most popular tourist attractions in Lisbon.

Many streets in Baixa are pedestrian zones that are overrun with tourists and street performers during the day. There are also lots of cafes, restaurants, and shops catering to them.

The best-known sights in this part of the city are most certainly the Praça do Comércio and the Elevador de Santa Justa, which connects the Baixa district with the higher up district of Chiado.

Pros of staying in Baixa/Chiado:

• You are right in the center.
• Many important sights of the city are within walking distance.
• You can get around easily via public transport – also great for day trips around Lisbon.
• Very well connected to Lisbon’s airport.

Cons of staying in Baixa/Chiado:

• The two neighborhoods are the most touristy part of Lisbon (especially Baixa).
• Hotel prices are a bit higher.
• This area isn’t as charming as the other neighborhoods presented here.

Where to stay in Baixa/Chiado?

Tempo FLH Hotel Lisboa is the perfect place for your first trip to Lisbon. The price-performance ratio is fantastic and you are staying right in the city center. In addition, the rooms are very cozy and the breakfast is delicious. It offers anything you need!

The Lisboa Prata Boutique Hotel is also very centrally located and the rooms are nicely furnished with stylish designs.

Staying in Bairro Alto

Do you want to experience nightlife in Lisbon? Then you may want to think about staying in Bairro Alto. This Lisbon neighborhood really comes to life in the evening, offering countless nightlife options such as cool bars, pubs and restaurants.

However it’s still possible to find hotels in a quieter area in Bairro Alto. So you won’t have a long way to reach your accommodation after a night out and can still enjoy the peace and quiet in your hotel room at night.

Make sure to find a hotel in one of the quieter streets of the neighborhood or a room that doesn’t directly face the street. Your best bet is to carefully read through what other guests have posted about their stay at the hotel.

Pros of staying in Bairro Alto:

• You are right in the center of the city’s nightlife.
• Many of the city’s major sights are within walking distance.
• You can get around easily via public transport.
• Very well connected to Lisbon’s airport.

Cons of staying in Bairro Alto:

• It gets very loud here, especially at night.
• The neighborhood is on a hill, the walk there can be exhausting.

Where to stay in Bairro Alto?

Our personal top tip for this neighborhood is Dear Lisbon Charming House – which is really charming: you will experience extremely friendly staff, beautiful room decor, as well as delicious breakfast!

The great thing about staying overnight on one of the hills is of course the beautiful view of the city – which you can also enjoy from the terrace at Dear Lisbon.

Staying in Alfama

If you don’t mind going up and down many flights of steps, want to be close to most major sights, and want to experience the somewhat touristy, but still typical old town quarter of Lisbon, then Alfama is the right place for you.

Of course, the city’s historic center is a great starting point to explore Lisbon. But you should be aware that the district’s steep, narrow alleys and steps can be pretty hard on the legs. So unless the tram stops near your hotel, you should be prepared to do your fair share of walking.

The highlight of the neighborhood is its charm and of course the medieval castle complex Castelo de São Jorge in the castle district.

Pros of staying in Alfama:

• You are right in the historic city center.
• Many of the city’s major sights are within walking distance.
• There are lots of lookout points that provide a great view of the whole city.

Cons of staying in Alfama:

• Alfama consists of steep alleys and streets, so you should be in good shape.
• The neighborhood isn’t that well connected to the metro.
• The range of places to stay isn’t as large as in other parts of the city.

Where to stay in Alfama?

Our favorite hotel in Alfama is the Hotel Convento do Salvador, which is located directly at the Miradouro das Portas do Sol, one of the most beautiful viewpoints of Lisbon and is very well connected to public transport.

The rooms are simply furnished and the colors are bright and inviting. Eye Catching is the cozy courtyard where you can have breakfast and relax.

Staying in Rato / Príncipe Real

If you’d like to stay a little further outside the tourist bubble, but still don’t want to be too far from the most important attractions, then the area around the Praça do Príncipe Real is the perfect choice for you. Also, if you are in Lisbon with kids, we would recommend this part of the city for your stay.

There are small boutiques, great restaurants, and bars everywhere. And the locals meet by the park kiosks, which are so typical of Lisbon, to gossip over wine or coffee. We marked the neighborhood’s two main squares Praça das Flores and Praça do Principe Real on our map.

It only took us about 10 minutes on foot to get to Bairro Alto in the evening whenever we were up for a bit more action or to the Baixa district when we set out to explore Lisbon’s sights.

If you have more than a few days to spare for Lisbon, a hotel near the Praça do Príncipe Real is a great way to explore Lisbon off the beaten path.

We’d stay here again any day!

Pros of staying near Praça do Príncipe Real:

• It’s a less touristy part of Lisbon.
• Many of the city’s major sights are still within easy walking distance.
• There are lots of lookout points that provide a great view of the whole city.
• You get a slightly better value for money than in other parts of town.

Cons of staying near Praça do Príncipe Real:

• The tourist center of the city is a 10 to 15-minute walk away.
• The selection of hotels isn’t all that great.

Where to stay near Praça do Príncipe Real?

When staying in Lisbon, we personally recommend The Felix 10, which is not really located in the Rato district, but in Santos. The small boutique hotel is very child-friendly and has a great roof terrace with a fantastic view.

The Casa do Jasmim by Shiadu, with its beauiful view, is also a great option. The location is super: it’s pleasantly quiet inside the hotel, but still has numerous restaurants and bars all around.

Do you have a favorite place to stay in Lisbon that you’d like to share with us?

Have you ever been to Lisbon? Which neighborhood did you stay in, and would you stay there again or choose a different area next time? We’d love to hear about your experiences and look forward to your comments.