Where to Stay in Lisbon: Our Hotel Tips by Neighborhood

What does a hotel in Lisbon cost?

Lisbon is a hugely popular destination for a city trip in Europe. As a result, prices for accommodation in Lisbon have risen significantly — though they’re still cheaper than in Paris or London.

For a double room in a basic hotel in central Lisbon, you’ll pay around 100 euros during the off-season between November and March. In the summer months, prices are higher — expect to pay around 150 euros for two people.

If you stay in a neighborhood a bit outside of central Lisbon, hotels are cheaper than in the city center. Booking early is another good way to save a few euros.

If you want budget accommodation in Lisbon, check out our article all about how to find affordable places to stay in Lisbon.

The best neighborhoods to stay in Lisbon

Especially if it’s your first time visiting the capital of Portugal, your best bet is to stay in the center of Lisbon. We recommend booking your Lisbon accommodation in one of these neighborhoods:

• Baixa/Chiado: Ideal for a first visit.
• Alfama: In the old town, you’ll experience Lisbon’s historic charm.
• Bairro Alto/Príncipe Real: Great if you love going out at night.
• Santos: Ideal for getting to know the authentic side of Lisbon.

The neighborhoods at a glance on a map

To help you get your bearings, we’ve put together a map with the best neighborhoods to stay in Lisbon.

To make orientation even easier, four selected landmarks are also marked on the map.

Staying in Baixa and Chiado

Baixa and Chiado are perfect for where to stay in Lisbon if it’s your first time in the city.

Baixa and Chiado are the tourist center of Lisbon. You’ll truly be right in the middle of it all, with easy access to all the major attractions in Lisbon.

Top highlights in Baixa/Chiado include the Praça do Comércio, the Rua Augusta, and the Elevador de Santa Justa, which connects Baixa with the higher-up Chiado district.

Also super handy: the two train stations Cais do Sodré and Rossio are nearby — from there, you can easily make day trips to Cascais or Sintra.

Many streets in Baixa/Chiado are pedestrian zones that during the day are packed with tourists and street performers, and lined with cafés, restaurants, and shops.

Advantages of staying in Baixa/Chiado

• You’re right in the center of it all
• Many of the city’s major attractions are within walking distance
• Excellent public transit connections — also great for day trips around Lisbon
• Very well connected to Lisbon Airport

Disadvantages of staying in Baixa/Chiado

• Very touristy (especially Baixa)
• Hotel prices are quite high
• The neighborhood isn’t as charming and characterful as many other parts of Lisbon

Our hotel recommendations for Baixa/Chiado

The Tempo FLH Hotel Lisboa is, in our opinion, the best hotel for a first trip to Lisbon. The value for money is excellent, the rooms are really cozy, and the breakfast is delicious. Note that it’s an adults-only hotel — you can’t stay here with children.

The Lisboa Prata Boutique Hotel is also very centrally located, and the rooms are tastefully decorated with stylish designs.

Staying in Alfama

Staying in Alfama puts you right in Lisbon’s classic historic district, close to many of the city’s top sights.

Alfama is the historic heart of the city and a great base for exploring Lisbon. The neighborhood is made up of narrow, picturesque alleyways — it’s touristy, but still completely authentic.

In Alfama, going uphill and downhill is part of daily life. Unless a tram stops right outside your hotel door, you should be comfortable walking on hilly terrain.

The real highlight of the neighborhood is its charm itself and the Castelo de São Jorge in the castle quarter.

Advantages of staying in Alfama

• You’re right in the historic heart of the city
• Many of the city’s major attractions are within walking distance
• In many spots, you’ll have stunning views over the city

Disadvantages of staying in Alfama

• Alfama is full of steep alleys and stairs
• The neighborhood isn’t as well connected to the Metro
• Limited hotel selection

Our hotel recommendations for Alfama

Our top pick for the best place to stay in Alfama is the Hotel Convento do Salvador, which is located right at the Miradouro das Portas do Sol, one of the most beautiful viewpoints in Lisbon. It also has excellent public transit connections.

Staying in Bairro Alto and Príncipe Real

Bairro Alto is ideal if you love going out at night. The Príncipe Real neighborhood is right next door and offers a quieter alternative.

The Bairro Alto neighborhood sits on one of Lisbon’s seven hills and borders Chiado. In the evening, Bairro Alto truly comes alive — the neighborhood has countless nightlife options like cool bars, pubs, and restaurants.

But don’t worry — you can also find hotels in quieter locations in Bairro Alto. Just read through other guests’ reviews carefully before booking.

If you want to play it safe, stay in the adjacent Príncipe Real neighborhood. It’s a little further from the center, but in return it’s very authentic — everywhere you look there are small boutiques, great restaurants, and the park kiosks that are so typical of Lisbon.

Advantages of staying in Bairro Alto/Príncipe Real

• Perfect if you want to go out a lot
• Many of the city’s major attractions are within walking distance
• Great connections to Lisbon’s public transportation
• You’ll find some affordable lodging here

Disadvantages of staying in Bairro Alto/Príncipe Real

• You’re staying on a hill, and getting there can be tiring
• Bairro Alto gets loud, especially in the evenings and at night
• From some hotels in Príncipe Real, it takes a bit longer to reach the center

Our hotel recommendations for Bairro Alto/Príncipe Real

Our personal top pick for this neighborhood is the Dear Lisbon Charming House — which truly lives up to its name: the room decor, the friendly staff, and the delicious breakfast are all seriously charming.

The Casa do Jasmim by Shiadu is worth it for the amazing terrace views alone. On top of that, the hotel is pleasantly quiet and surrounded by plenty of restaurants and bars.

Staying in Santos

Santos is our under-the-radar pick for where to stay in Lisbon if you want to escape the tourist crowds while still being close to the center.

If you’ve planned more than just a few days in Lisbon, a hotel in Santos is a great option for exploring Lisbon off the beaten path. The neighborhood is also a solid choice if you’re traveling to Lisbon with kids, since it’s a bit quieter.

On foot, it’s about 20 minutes to the famous Rua da Bica and Bairro Alto. The lovely promenade along the Tagus River is only about 15 minutes away.

And you don’t have to walk far for a meal — Santos itself has plenty of great restaurants.

Advantages of staying in Santos

• You stay in a less touristy part of Lisbon
• Great connections to the city center
• Stunning views in many spots
• Many hotels with excellent value for money

Disadvantages of staying in Santos

• You’re staying a bit outside the main center of Lisbon
• The hotel selection isn’t as large

Our hotel recommendations in Santos

We stayed at The Felix 10 and can recommend it wholeheartedly. This small boutique hotel in Lisbon is very family-friendly and has a fantastic rooftop terrace with breathtaking views — a real local favorite for Lisbon accommodation!