Where to stay in Lisbon


The best Lisbon accommodation is found in the central neighbourhoods, each of which has its own atmosphere.

Where to stay in Lisbon

Written by Michael Turtle

Michael Turtle is the founder of Time Travel Turtle. A journalist for more than 20 years, he's been travelling the world since 2011.

Michael Turtle is the founder of Time Travel Turtle and has been travelling full time for a decade.

I've got lots of details about the best Lisbon accommodation below - but you can also jump straight down to my top tips on where to stay in Lisbon:

All of Portugal’s cities have an undeniable charm and allure, but Lisbon’s diverse neighbourhoods encompass the best bits of each. Choosing where to stay in Lisbon can put you in the heart of these local treasures.

From the traditional narrow streets of Alfama lined with colourful houses and artsy shops that are reminiscent of Porto, to the grand boulevards of Avenida da Liberdade which are every shade of chic, Lisbon has something for every kind of traveller.

As you walk up the hillsides overlooking the Rio Tejo and wander deeper into the city, prepare to be spoiled by breathtaking views and delicious bakeries around every corner.

Once you’ve soaked in the city centre, ride the iconic bright yellow Tram 28 up to the Graça neighbourhood and wander around some of the less touristy areas of the city

Where to stay in Lisbon

To get you ready for your trip, let’s do a deep dive into six of the best areas to stay in Lisbon, so you can make the best choice of where to stay based on your budget, nearby attractions, and atmosphere.

You can see on the map below where they’re all located. You’ll notice that, other than Belém, they seem quite close to each other – but don’t be fooled, there are some big hills that can make moving between these neighbourhoods quite tiresome!

Best Lisbon accommodation

Within each of these Lisbon neighbourhoods, there’s a range of accommodation. My tip would be to either choose an area, then find the right property for you – or, if you’re happy with any of those central areas, find the accommodation option that you’re going to fall in love with!


You can’t get more central than Baixa. Stretching out from the waterfront (and with no hills!), this neighbourhood is riddled with fancy cafes and restaurants.

Some of the city’s top attractions are in Baixa too, like the Santa Justa Lift, Praça do Comércio, and the starting point of Tram 28. The neighbourhood is well connected thanks to the Baixa-Chiado metro station and Rossio train station, so getting around is easy! 

Whilst Baixa boasts some of the finest restaurants, top attractions and is easy to get in and out of, it can get overly crowded in peak seasons and is more on the pricey side because of how popular it is. 

Still, it has something for everyone – from hostels to five-star luxury – and is one of the best places to stay in Lisbon for first-timers.


One of the best backpacker spots in town, Yes! Lisbon Hostel is very social with lots of activities and great food.

  • The Central House: A laidback hostel with a cool design and a mix of dorm and private rooms.
  • Living Lounge Hostel: It feels like a large house, adding to the security and comfort of the property, which is also close to public transport.


There aren’t many budget options in this part of town, but 262 Baixa Guesthouse is probably the nicest.

  • Pensao Nova Goa: The rooms are basic but the location is really convenient.
  • Pensao Prata: Some of the rooms have shared bathrooms in this simple but clean guesthouse.


Even though My Story Hotel Figueira is right on a busy square, this large comfortable rooms are relaxingly quiet.

  • Ferraria XVI FLH Hotels Lisboa: The modern rooms put you in the heart of the action, and there are some lovely little extras like coffee and cake.
  • Residentas Aurea: These apartment-style rooms have plenty of space and some useful amenities for longer stays.


The historic building housing The Ivens has had an incredible makeover for one of the city’s most stylish luxury options.

  • Pousada de Lisboa: The traditional touches in the rooms bring some local opulence to a smaller hotel with an excellent restaurant.
  • Villa Baixa: These studios and apartments give you a bit more space but still with all the conveniences of a hotel.

Chiado and Bairro Alto

Chiado is very similar to Baixa, though it’s a little less grand and, in my opinion, much cuter. The neighbourhood is riddled with gorgeous boutique hotels that are much more affordable accommodation options than those in Baixa. 

Known as the shopping district of the city, you’re never far away from a gorgeous clothes shop or quaint artisan pop-up. It’s also home to Livraria Bertrand, the world’s oldest bookstore! After browsing the stores, sit and sip a coffee in Café A Brasileira, where famous writers like Pessoa and Queiroz once sat and wrote. 

A bit further along, it blends into Bairro Alto, which has a similar vibe but probably feels a little more alternative. You’ll mainly notice the different at night because Bairro Alto has a much livelier bar scene.

These neighbourhoods are great for visitors who want to be close to the centre but are looking for a bit more character than Baixa. There are some hills to traipse up to get to bed, and sadly you won’t be escaping the crowds of tourists either.


Although it’s not a party hostel, Lost Inn Lisbon has a busy social scene within its clean and comfortable space.

  • WOT New Lisbon: There are some lovely local touches to the design, while the dorm rooms are modern and private.
  • Independente Principe Real: You would be forgiven for not knowing this was a hostel, with its decadent design in a former palace!


Although Lx Center Chiado can get noisy on weekends, the rooms are comfortable and some of the cheapest you’ll find in this area.

  • Cosy Room Atalaia: These clean and comfortable rooms are a good affordable option for solo travellers.
  • Pensao Praca Da Figueira: Although the rooms may seem quite simple, they’re surprisingly comfortable for the price.


Right on the southern edge of Chiado, Lx Boutique Hotel has gorgeous views over the city and the river

  • Bairro Alto Hotel: This five-star property has very cool rooms and an amazing rooftop restaurant for breakfast.
  • The Lift Apartments: The cute design is part of the appeal, and the extra space is useful if you’re travelling in a group.


The amazing pool and fantastic views are just a couple of the things that make Memmo Principe Real such a special hotel.


If you’re looking for a more authentic neighbourhood, then Alfama is your best bet. It’s actually the oldest neighbourhood in the city – and one of the few to survive the 1755 earthquake that wiped out most of the city.

Made up of narrow streets decorated with gorgeous tiled houses, the neighbourhood is an intricate labyrinth with surprises around every corner. Keep a look out for the fado houses around the neighbourhood, these restaurants have the best traditional food and often have live music too!

Now is a good time to come and stay in the Alfama neighbourhood as it’s slowly becoming more gentrified and touristy, so it’s now or never if you want to experience the essence of a once very working class and residential area of Lisbon. 

Don’t think you’ll be missing out on attractions either, some of the best viewpoints in the city, like Miradouro de Santa Luzia and Miradouro das Portas do Sol, as well as top attractions like Castelo de São Jorge, Lisbon Cathedral, and the National Pantheon are in Alfama. 

I think it’s one of the best place to stay in Lisbon, though the steep hill to get there and lack of public transport around Alfama are worth considering.


In the heart of the neighbourhood, Tandem Palacio Alfama Suites have several sizes with beautiful views and a lovely shared pool area.


The modern design of the rooms at São Vicente Alfama Hotel are just one highlight of this welcoming local property.

  • Pousada Alfama: A fantastic location means some of the elegantly-designed rooms have views across the river.
  • Hotel Convento do Salvador: Although it’s set in a former convent, there’s a vibrant and fun atmosphere to the hotel.


Graça is like Alfama but a little less crowded, and further up the hill. There are lots of local pastelerias (bakeries) where you can fill up on pastel de natas and try some of the stranger Portuguese delicacies, like pastel de feijão (a pastry filled with a sweet bean filling!). 

Whilst most tourists only venture this far up the hill on Tram 28, the views are worth the extra effort even if you’re walking. The Miradouro da Graça viewpoint has particularly spectacular views over the city and down to the Tejo River.  

The narrow cobbled streets, quaint shops, and laid-back atmosphere make Graça an attractive neighbourhood for travellers seeking authenticity and those staying for longer who want to find more affordable accommodation options and soak up the local culture. 

I’ve got a whole story about the best things to do in Graça, including the best viewpoints and street art. 


Set within an elegant historic building, Sant Jordi Hostels Lisbon still has plenty of modern comforts to make this a wonderful stay.

  • Unique Lisbon Rooms: This friendly property feels like you’re in a local house, including use of a shared kitchen.
  • Tings Lisbon: A beautiful hotel with design features, you’ll sometimes find great deals for rooms on quieter nights.


There are a few lovely apartments to choose from at this well-located property with a friendly local host.


Set in a renovated historic building, the amazing 1908 Lisboa Hotel even has a regularly-changing art gallery!

  • Lisbon 5 Hotel: The bright rooms have a chic design and very comfortable beds.
  • Mouraria Lisboa Hotel: While only two stars, there are local touches throughout the whole hotel – and the breakfast is a highlight.

Avenida da Liberdade

Designer shops, luxury hotels, and grand streets characterise Avenida da Liberdade. The neighbourhood was built in 1879 and inspired by the boulevards in Paris.

Unlike the more traditional neighbourhoods of Lisbon, Avenida da Liberdade is made up of wide streets lined with big names like Emporio Armani and Louis Vuitton.

Accommodation here is more on the expensive side, but if you’re looking to splash out, Avenida da Liberdade will flower you with luxury.

The big international hotels in the neighbourhood are some of the best hotels in Lisbon, and their central location makes them perfect for exploring the rest of the city.


With privacy for the dorm beds and lots of freebies, there’s a good reason Lisboa Central Hostel is one of the city’s most popular.


The design of Hotel Hotel is breathtaking and the stylish pool is a wonderful feature in summer months.


A truly five-star hotel, Hotel Avenida Palace has embraced the heritage of its opulent 19th-century building.

  • Heritage Avenida Liberdade: The modern restoration of this heritage building has created large comfortable rooms with some classic decor elements.
  • Valverde Hotel: The pool offers a tranquil oasis in the centre of this stylish property with a contemporary take on a luxurious location.


Belém is a gem if you’re looking to stay as far from possible from the flocks of tourists on your holiday in Lisbon. It’s particularly perfect for families with small kids that need something a little calmer, but still want to be close to attractions and great restaurants. 

You’ll be near iconic landmarks like the Belém Tower, Palácio Nacional de Belém, and Jerónimos Monastery as well as great museums and art galleries, like the Museu Coleção Berardo and the MAAT. In fact, I’ve got a whole story about the best things to do in Belém.

Peaceful, riddled with parks and green spaces, and home to some of the best accommodation options in Lisbon – what’s not to love?

The only drawback is that Belém is about 20 minutes away from the city centre, though there are good public transport links, so getting back and forth isn’t complicated. There’s also not a big nightlife scene in Belém, so it’s definitely not the ideal place to stay if you’re here for your stag night!


There are both dorms and private rooms at Terrace Lisbon Hostel, where it feels more like a home than a backpacker hangout.


No ordinary apartment, Design Loft Belém is a stunning modern space that puts you in the centre of cool Lisbon.


Right on the waterfront, Altis Belém Hotel & Spa has exquisite modern rooms with epic views down the river.

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