Where to Stay in Lisbon: The Best Areas & Hotels for First Timers

Roof terrace of The Felix 10 in Lisbon

In a nutshell

  • Not sure where to stay in Lisbon? Then keep reading! In this article, we share the best neighborhoods and hotels in Lisbon for every budget.
  • Our three favorite hotels in Lisbon are the Tempo FLH Hotel Lisboa in the city center, the boutique hotel The Felix 10 with a rooftop terrace, and Hotel Convento do Salvador in Alfama’s historic old town.
  • Up next, we’ll walk you through these hotels and share more insider tips for places to stay in Lisbon, sorted by the most beautiful districts to stay in and different price ranges.

What Does a Hotel in Lisbon Cost?

Lisbon is one of the most popular destinations for a city trip in Europe. As a result, accommodation prices in Lisbon have gone up noticeably – but they’re still lower than in Paris or London.

For a double room in a simple hotel in central Lisbon, you can expect to pay around 100 euros during the low season from November to March. In the summer months, prices increase, and you should plan on at least 150 euros for two people.

If you stay in a neighborhood just outside the city center, hotels are usually cheaper than right in the middle of town. Booking early can also help you save a bit of money.

The Best Neighborhoods to Stay in Lisbon

If you’re visiting Portugal’s capital for the first time, staying right in the heart of Lisbon is usually the best choice. That’s why we recommend booking your accommodation in one of these neighborhoods:

  • Baixa / Chiado – the best area to stay in Lisbon for first-time visitors.
  • Alfama – the Old Town, where you’ll experience Lisbon’s historic charm.
  • Bairro Alto / Príncipe Real – perfect if you enjoy going out in the evening.
  • Santos – ideal if you want to experience authentic Lisbon life.

Map of Lisbon Neighborhoods

To make orientation easier, we’ve created a map showing the best neighborhoods to stay in Lisbon.

You’ll also find four selected sights marked on the map to help you get your bearings.

Map of Lisbon neighborhoods
On the map you can see the best neighborhoods to stay in Lisbon

Baixa and Chiado

Rua Augusta Lisbon
The busy shopping street Rua Augusta is located right in the heart of the Baixa district (© fotokon)

Baixa and Chiado are the perfect neighborhoods to stay in if you’re visiting Lisbon for the first time.

Baixa and Chiado form the tourist center of Lisbon, so you’ll be staying right in the middle of the action and can easily reach all the main attractions in Lisbon.

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

Another big plus: the two train stations Cais do Sodré and Rossio are close by, making it easy to take day trips to Cascais or Sintra.

Many streets in Baixa and Chiado are pedestrian zones that are lively during the day, with street artists, cafés, restaurants, and plenty of shops.

Pros of staying in Baixa/Chiado

  • You’re staying right in the city center
  • Many of Lisbon’s top sights are within walking distance
  • Excellent public transport connections, including for day trips around Lisbon
  • Very easy access to Lisbon Airport

Cons of staying in Baixa/Chiado

  • Very touristy, especially in Baixa
  • Hotel prices tend to be higher
  • Less charming than some other Lisbon neighborhoods

Where to stay in Baixa/Chiado?

Tempo FLH Hotel Lisboa is a fantastic choice for your first trip to Lisbon. The value for money is excellent, the rooms are very comfortable, and the breakfast is delicious. Just keep in mind that it’s an adults-only hotel, so it’s not suitable for stays with children.

The Lisboa Prata Boutique Hotel is also centrally located and offers stylishly designed, comfortable rooms.

Alfama

View of the medieval castle Castelo de São Jorge in the district of Alfama
View of the medieval castle Castelo de São Jorge in the district of Alfama

In Alfama, you’ll stay in Lisbon’s traditional old town, close to many major sights.

Alfama is the city’s historic heart and one of the most atmospheric neighborhoods to stay in Lisbon. With its narrow, winding streets, it may be touristy, but it still feels wonderfully authentic.

Be prepared for lots of walking up and down hills. Unless a tram stops right outside your hotel, you’ll want to be comfortable on foot.

The biggest highlights of Alfama are its unique charm and the impressive Castelo de São Jorge overlooking the neighborhood.

Pros of staying in Alfama

  • You’re staying in the historic city center
  • Many major attractions are within walking distance
  • Plenty of viewpoints with beautiful city views

Cons of staying in Alfama

  • Lots of steep streets and stairways
  • Not very well connected to the metro
  • Limited choice of hotels

Where to stay in Alfama?

Our top hotel in Alfama is the Hotel Convento do Salvador. It’s located right by the Miradouro das Portas do Sol, one of the most beautiful viewpoints in Lisbon, and is very well connected to public transport.

The rooms are simply furnished, with bright, welcoming colors. A real highlight is the cozy courtyard, where you can enjoy breakfast and relax.

Bairro Alto and Príncipe Real

Bairro Alto
Bairro Alto is one of the coolest neighborhoods to stay in Lisbon

Bairro Alto is perfect if you enjoy going out at night. Right next door, Príncipe Real offers a quieter and more relaxed alternative.

Bairro Alto sits on one of Lisbon’s seven hills and borders Chiado. The area truly comes alive in the evening, with countless bars, pubs, and restaurants lining the streets.

That said, you can still find hotels in quiet locations in Bairro Alto. Just make sure to check recent guest reviews before booking.

If you’d rather play it safe, choose a hotel in the neighboring Príncipe Real district. It’s slightly outside the very center, but feels very authentic, with small boutiques, excellent restaurants, and classic Lisbon park kiosks on almost every corner.

Pros of staying in Bairro Alto/Príncipe Real

  • Ideal if nightlife is important to you
  • Many of Lisbon’s top sights are within walking distance
  • Easy to get around thanks to public transport in Lisbon
  • You can find some reasonably priced accommodation

Cons of staying in Bairro Alto/Príncipe Real

  • The area is hilly, so walking can be tiring
  • Bairro Alto can be quite noisy in the evening and at night
  • From some hotels in Príncipe Real, it takes a bit longer to reach the city center

Where to stay in Bairro Alto/Príncipe Real?

Our personal recommendation in this area is the Dear Lisbon Charming House. True to its name, it impresses with incredibly friendly staff, beautifully decorated rooms, and a delicious breakfast.

Casa do Jasmim by Shiadu is worth booking for the fantastic terrace views alone. The hotel is pleasantly quiet, yet surrounded by plenty of restaurants and bars.

Santos

Street near Hotel Felix 10 in Lisbon
Tram 25E takes you from Santos to the center of Lisbon in no time

Santos is our insider tip if you want to stay slightly outside the tourist crowds but still close to the center of Lisbon.

If you’re spending more than just a couple of days in the city, staying in Santos is a great way to explore Lisbon off the beaten path. The neighborhood is also a good choice if you’re traveling to Lisbon with kids.

You can reach the famous Rua da Bica and Bairro Alto in about 20 minutes on foot. The lovely riverside promenade along the Tagus is only around 15 minutes away.

Pros of staying in Santos

  • You’re staying in a less touristy part of Lisbon
  • Good connections to the city center
  • Great views from many spots in the neighborhood
  • Many hotels offer excellent value for money

Cons of staying in Santos

  • You’re a bit outside the very center of Lisbon
  • The selection of hotels is fairly limited

Where to stay in Santos?

One of our favorite hotel tips in Lisbon is The Felix 10. This small boutique hotel in Lisbon is very child friendly and features a beautiful rooftop terrace with fantastic views – a real hidden gem for accommodation in Lisbon.