Where to Stay in Lisbon: Best Areas and Top Picks for Every Budget
Choosing where to stay in Lisbon depends on what you’re looking for: historic charm, bustling nightlife, or accessibility to sights.
Having visited the Portuguese capital several times, I’ve seen how my impressions and favorite neighborhoods have changed with each trip.
This guide explores the best areas for every budget and preference, so you can make the most of your visit!
Key Takeaways
- Lisbon has a variety of unique neighborhoods, each offering diverse experiences and accommodations for different budgets.
- Chiado and Baixa are ideal for first-time visitors due to their central locations and accessibility to major attractions— perfect if you’re following my 5 days in Lisbon itinerary.
- For a more local vibe, neighborhoods like Alfama and Graça provide charm and character, while Bairro Alto is perfect for nightlife lovers.
Overview of Lisbon’s Neighborhoods
Lisbon’s neighborhoods each tell a unique story, shaped by diverse architectural styles and vibrant cultures. The city’s eclectic mix of old and new is a testament to the various architects who helped rebuild Lisbon after the 18th-century earthquake.
From narrow, winding streets to wide, cosmopolitan avenues, each neighborhood offers a distinct ambiance that adds to the city’s charm.
Every visit to Lisbon feels like a new adventure. The city is sprawling, and despite visiting multiple times, I always find something new to discover.
The distinctiveness of each neighborhood ensures that no two experiences are the same. Whether you’re wandering through the historic lanes of Alfama or exploring the trendy shops in Príncipe Real, Lisbon never ceases to amaze.
As we dive into the specific neighborhoods, you’ll see why Lisbon is one of my favorite cities! Each area has its unique character.
So, let’s get into it and find out where to stay in Lisbon to make the most of your visit.
Chiado: The Heart of Lisbon
Chiado, often regarded as the heart of Lisbon, is located in the center of the city. This central, walkable neighborhood is known for its architecture, lively shopping scene, and close proximity to many of Lisbon’s major sights.
With streets lined with both high-street brands and unique Portuguese labels, Chiado offers a shopping experience like no other.
Accessibility is one of Chiado’s greatest assets. Easily reachable by metro, bus, and the famous tram #28, this area is a hub for exploration.
Most major attractions are within walking distance, making it perfect for visitors who want to explore without relying on transport.
While in Chiado, don’t miss out on wandering the neighborhood to experience the historic charm. Shopping enthusiasts will love browsing through the high-end boutiques and local shops.
And of course, end your day with a glass of Portuguese wine at one of the many cute cafés overlooking the Tagus River.
Best Hotels in Chiado
When it comes to accommodations, Chiado does not disappoint. For those seeking luxury, Casa Balthazar offers self-catering apartments with stunning views, pools, and garden areas.
If you’re looking for a blend of historical charm and modern luxury, The Ivens is the grandest 5-star hotel in Chiado, providing an opulent stay.
For travelers who prefer spacious living areas, the LV Premier Apartments are a great choice, offering lots of natural light and scenic views.
Meanwhile, Hotel do Chiado, another elegant 4-star hotel, provides modern apartments right next to the bustling shopping streets, ensuring you’re always in the thick of the action.
And for those who wish to be at the very heart of it all, Chiado Square Apartments are perfectly situated for an immersive experience.
➡️ Book Chiado Square apartments
Budget travelers can also find excellent options in Chiado. Lost Inn Hostel, located in the historical heart of Lisbon, offers comfortable stays close to the vibrant Pink Street. Each of these accommodations offers something unique, making your stay in Lisbon both comfortable and memorable.
Baixa: Convenience at Your Doorstep
Baixa is an excellent choice for those who want to be in a convenient place in the heart of Lisbon’s action. If you’re still deciding where to stay in Lisbon for easy access to sights, Baixa should be at the top of your list.
Baixa is extremely convenient for accessing major sights and public transport, making sightseeing and exploring the city very easy.
This neighborhood is strategically positioned between two significant hills, making it the perfect hub for exploring the city. It’s no wonder Baixa is a favorite among first-time visitors to Lisbon.
What makes Baixa stand out is its modern urban design and grid layout, which enhances navigability. The neighborhood is well-connected by public transportation, with multiple metro lines and regional trains available.
You can also walk to many of Lisbon’s main attractions, with everything from shops to restaurants within walking distance.
There is a metro station and the Rossio train station right in Baixa, further highlighting its accessibility for travelers.
Baixa’s cosmopolitan atmosphere is complemented by its wide streets and dining options, providing a fun urban experience.
For those looking for activities, a walking tour around Praça do Comércio and the famous Arco da Rua Augusta is a must. This area offers a wealth of attractions within walking distance, ensuring that you’ll never run out of things to do on an easy walk.
Top Accommodation in Baixa
When it comes to accommodations, Baixa offers something for everyone. Hotel da Baixa, a highly-rated 4-star hotel, provides modern amenities and a prime location, making it a top choice for visitors.
For a bit more charm, Lisboa Prata Boutique Hotel, a 3-star hotel, is known for its excellent location in the heart of Baixa.
➡️ Book Lisboa Prata Boutique Hotel
If you’re looking for serviced apartments, here are some options:
- Casas da Baixa Jules & Madeleine: Spacious and budget-friendly options with all the amenities you need.
- Visionaire Apartments: Located near Rossio Station, providing beautiful and spacious rooms, ideal for families or larger groups.
- Lisbon Art Stay Apartments: Offer quirky and colorful apartments, perfect for a memorable stay.
➡️ Book Casas da Baixa Jules & Madeleine
For budget travelers, the Central House Lisbon Baixa is a higher-end hostel in a great location, offering a blend of comfort and convenience. No matter your budget or preference, Baixa has the perfect place for you.
➡️ Book the Central House Lisbon Baixa
Alfama: Lisbon’s Oldest Quarter
Alfama is Lisbon’s oldest and most iconic neighborhood, steeped in history and offering breathtaking views at every turn.
Alfama is a must-visit for history lovers, thanks to its rich heritage, ancient streets, and historical landmarks.
With its narrow, winding cobblestone streets and historic architecture, the Alfama neighborhood has an old-world charm that is so beautiful. This neighborhood is a mix of tourism and local energy, creating a unique and authentic atmosphere.
Alfama is known for its romantic ambiance, making it an ideal place for couples to stay. The neighborhood is also known for its hilly terrain, so be prepared for some steep climbs.
However, the effort is well worth it, as Alfama offers some of the best city views in Lisbon, especially at sunset.
When visiting Alfama, don’t miss exploring the Castelo de São Jorge and the Sé Cathedral. These landmarks provide a deep dive into Lisbon’s rich history and offer stunning panoramas of the city.
Even if you don’t stay in Alfama, it’s a must-visit neighborhood! It quickly became my favorite in Lisbon.
⭐️ Explore Castelo de São Jorge
Where to Stay in Alfama
Alfama’s accommodations are as charming and historic as the neighborhood itself. For a unique stay, consider Hotel Convento do Salvador, an eco-friendly hotel built into a former convent with an outdoor terrace offering stunning views.
Another great choice is Pousada de Alfama, located opposite the Miradouro das Portas do Sol, providing insane views of the river.
➡️ Stay at Hotel Convento do Salvador
➡️ Check availability for Pousada de Alfama
For those seeking a luxurious experience, Memmo Alfama is a top 4-star hotel, offering modern hotel amenities and panoramic views over the Tagus River.
If you prefer a more intimate setting, Palácio das Especiarias is a charming restored 4-star hotel, a 400-year-old historic building with a cute garden and rooms featuring Juliette balconies.
➡️ Stay at Palácio das Especiarias
Note- navigating Alfama’s narrow streets can be challenging, and taxis may have difficulty reaching some accommodations. Additionally, high demand and limited transport options can drive up prices.
Despite these challenges, the unique charm and stunning views make Alfama an incredible place to stay in Lisbon.
Bairro Alto: Nightlife Hub
If nightlife is your priority, this is where to stay in Lisbon for late nights, rooftop bars, and lively energy. It’s a top choice for night owls seeking late-night entertainment, socializing, and bar hopping in Lisbon.
This neighborhood comes alive at night, with its streets filled with bars, clubs, and restaurants. The lively atmosphere makes Bairro Alto a favorite among those looking to experience Lisbon’s energetic nightlife.
While Bairro Alto is bustling with activity, it’s essential to be mindful of your belongings, especially at night.
The neighborhood’s unique character and local energy make it an interesting area to explore, whether you’re enjoying a glass of wine at a rooftop bar or listening to live music at one of the many venues.
For daytime activities, consider exploring the surrounding neighborhoods or taking a leisurely walk through Bairro Alto’s charming streets. The area offers a great blend of cultural experiences and local attractions that make it a must-visit in Lisbon.
Recommended Stays in Bairro Alto
Bairro Alto offers a variety of accommodation options, from quirky guesthouses to luxury hotels with rooftop bars.
For a touch of luxury, The Lumiares Hotel & Spa is a 5-star hotel with a rooftop bar and spa, offering a luxurious stay with stunning city views.
➡️ Book The Lumiares Hotel & Spa
For budget travelers, consider staying at a hostel, which offers private rooms and a central location.
➡️ Book Safestay Lisbon Bairro Alto
Whether you’re looking for a luxurious stay or a budget-friendly option, Bairro Alto has something to offer every traveler. Its unique character and lively atmosphere make it an unforgettable part of any Lisbon experience.
Príncipe Real: Trendy and Green
Príncipe Real is a trendy and upscale neighborhood known for its green spaces, cultural scene, and excellent shopping and dining options.
This area offers a more relaxed atmosphere compared to the bustling city centre, making it a perfect place for those looking to unwind and enjoy a more leisurely pace.
Conveniently located just a short walk from Bairro Alto, Chiado, and Principe Real is an ideal base for exploring Lisbon. The neighborhood’s small parks, trendy urban designer shops, and cozy cafés create a lively yet laid-back ambiance that appeals to both locals and visitors.
Transportation in Príncipe Real is well-established, with good access to metro and bus services, making it easy to navigate the city.
Whether you’re strolling through the leafy streets or enjoying a meal at one of the many restaurants, Príncipe Real offers a delightful blend of tranquility and urban charm.
The area features a nice mix of locals, visitors, and accommodation options, contributing to its vibrant and authentic atmosphere.
Best Hotels in Príncipe Real
Principe Real boasts some of the best hotels in Lisbon, offering a range of luxury and boutique accommodations.
Memmo Principe Real is a standout option, providing 5-star luxury with exquisite design, top-notch service, and a peaceful location equipped with a view pool. Montecarmo12 is another small luxury hotel that offers an upscale experience for guests.
➡️ Stay at Memmo Príncipe Real
For those who appreciate artistic decor and personalized service, Casa Príncipe is a top choice, contributing to a cozy and intimate atmosphere. The Vintage features a rooftop bar, allowing guests to enjoy stunning views while relishing various beverages.
Boutique hotels offer unique and charming stays. Each of these accommodations below provides a blend of historical charm and modern amenities, ensuring a memorable stay in Príncipe Real:
Avenida da Liberdade: Luxury Avenue
If you’re looking for where to stay in Lisbon for a luxury experience, Avenida da Liberdade is unbeatable. It’s known for its high-end shopping, elegant accommodations, and exquisite architecture.
This grand avenue, inspired by Parisian design, is lined with designer boutiques, grand hotels, and upscale restaurants, making it a favored destination for both locals and tourists seeking a taste of luxury.
It is also renowned for its great dining, offering visitors a vibrant food scene with excellent local restaurants and memorable culinary experiences.
The central area features a cobbled park with greenery and lively kiosk bars, adding to the avenue’s European-style ambiance.
Whether you’re strolling along the tree-lined spaces or enjoying a meal at a high-end restaurant, Avenida da Liberdade offers a refined and elegant experience that is hard to match.
For those looking to stay in Lisbon in style, Avenida da Liberdade provides a range of 5-star, unique, historical, boutique, and chain hotels.
The luxurious accommodations and exceptional service make it a perfect choice for travelers seeking a sophisticated and relaxing stay.
Top Picks on Avenida da Liberdade
When it comes to top hotel picks on Avenida da Liberdade, EPIC SANA Lisboa Hotel delivers luxury accommodations with a spa and wellness center, situated in proximity to major attractions.
EPIC SANA Lisboa Hotel also features a stunning rooftop pool, offering guests a luxurious spot to relax while enjoying panoramic city views.
Hotel Lisboa Plaza is also a great option and features a lovely terrace, stunning views, a swimming pool, and an on-site restaurant. Guests have noted that the staff at this five-star hotel are very friendly and helpful, adding to the overall experience.
Valverde Hotel is another top pick, known for its Art Deco style and an outdoor pool, adding to the luxurious experience. Each of these accommodations provides a unique blend of luxury and comfort, making Avenida da Liberdade a top choice for discerning travelers.
LX Factory: Artsy and Modern
LX Factory is a vibrant artsy district outside of the city centre, known for its trendy shops, art galleries, and youthful cultural scene that attracts visitors and locals alike. This neighborhood feels like a smaller, self-contained community, brimming with creativity and modernity.
LX Factory stands apart from other Lisbon neighborhoods with its unique character and appeal to art lovers.
Although LX Factory is less central, its charm and artistic vibe make it worth the extra effort to get there. It became one of my favorite neighborhoods!
Whether you’re exploring the trendy shops or enjoying a meal at one of the many restaurants, LX Factory offers a unique and engaging experience that you won’t find anywhere else in Lisbon.
For those who appreciate modern art and culture, LX Factory is the perfect location. The district’s modern atmosphere and creative energy make it one of my favorite neighborhoods in Lisbon, and a place you’ll want to return to again and again.
Best Accommodations in LX Factory
LX Factory offers a range of stylish accommodations that cater to travelers looking for a unique and modern stay.
Hotel da Estrela, a member of the Small Luxury Hotels of the World, offers upscale accommodations just a short distance from the artsy district.
Casa Boma Lisboa offers unique apartments with private balconies and river views, enhancing the stay experience near LX Factory. Monte Belvedere Hotel by Shiadu offers rooms with river views, perfect for sightseeing.
The hotel features airy rooms with a spacious and light-filled atmosphere, creating a relaxing environment for guests.
➡️ Stay at Monte Belvedere Hotel by Shiadu
Budget travelers will find LX Hostel a friendly and conveniently located option for exploring the area. I stayed here on one of my visits to Lisbon.
Lastly, The Jardim da Lapa by Shiadu offers an outdoor pool, garden, and cozy lounge, making it a popular choice near LX Factory.
➡️ Book The Jardim da Lapa by Shiadu
Each of these accommodations provides a comfortable and memorable stay, perfect for experiencing the creative energy of LX Factory.
Santos & São Bento: Polished and Cool
Santos & São Bento are eclectic city neighborhoods perfect for creative types, foodies, and digital nomads. These areas are known for their dining scene and fun atmosphere, making them a great place to stay in Lisbon.
Santos, in particular, is home to the National Museum of Ancient Art and the lively restaurants and bars at Docas de Santo Amaro. São Bento offers a nice blend of historical charm and modern amenities, ensuring a great and engaging stay.
Whether you’re exploring the local attractions or enjoying a meal at one of the many restaurants, these neighborhoods provide a polished and cool experience.
Both neighborhoods are incredibly well connected to the rest of Lisbon by public transport, making it super easy to reach central Lisbon in minutes.
Train stations are conveniently located nearby, providing accessibility to trains, trams, and ferries, as well as a place to purchase or recharge transport cards.
For those looking for a more relaxed and creative vibe, Santos & São Bento offer a unique and engaging atmosphere.
The neighborhoods’ mix of cultural experiences and local charm make them a must-visit for anyone staying in Lisbon.
Top Places to Stay in Santos & São Bento
Santos & São Bento offer a variety of accommodation options that cater to different preferences and budgets.
Felix 10 is a B&B known for its imaginative decor and friendly hosts, providing a unique and welcoming experience.
York House Lisboa, set in a former convent, features a lush terrace for relaxation, a boutique hotel experience, and a blend of historical charm and modern amenities.
For a more budget-friendly option, Famous Crows Lisbon Suites provide clean and simple comfortable rooms with fully equipped kitchenettes, ensuring comfort and convenience in a convenient location.
➡️ Stay at Famous Crows Lisbon Suites
No matter your budget or preference, Santos & São Bento have the perfect place for you to stay in Lisbon.
Lesser-Known Neighborhoods to Explore
If you’re eager to experience Lisbon beyond the usual tourist trail, I’ve got you covered! Make time to explore Santos and São Bento – trust me on this one.
Tucked west of the city center, these neighborhoods are absolutely perfect for those seeking a more authentic vibe (and honestly, they’re some of my favorite spots in the city!).
I love wandering the winding streets lined with colorful townhouses, discovering tucked-away art galleries that’ll make your camera very happy, and popping into natural wine bars that attract both locals and visitors in the know – you’re going to love the atmosphere!
Santos is a creative hotspot that I’m completely obsessed with – it’s brimming with design studios, trendy cafes, and some of the city’s best wine bars that I always recommend to friends.
São Bento, meanwhile, charms with its relaxed pace, antique shops where you could spend hours, and multicultural eateries that never disappoint.
Both neighborhoods are incredibly well connected to the rest of Lisbon by public transport, making it super easy to reach central Lisbon or other neighborhoods in minutes – which is honestly a game-changer.
If you’re looking for a stay in Lisbon that offers a unique blend of culture, creativity, and community, Santos and São Bento are the perfect hidden gems to add to your itinerary, and I promise you won’t regret it!
Other Neighborhoods Worth Considering
Graça and Estrela are two such areas that provide a more local vibe and quality dining options. Graça is known for cozy wine bars, community gardens, historic architecture, and stunning views.
Estrela, a pleasant residential neighborhood accessible by tram and bus, is known for its parks and market, providing a relaxed living experience. Both Graça and Estrela attract remote workers and food enthusiasts.
In addition to these hidden gems, consider visiting Belém and Park of Nations. Belém, just west of the city center, is known for its historic sites and beautiful architecture.
The Park of Nations offers modern attractions and stunning city views, making it a great location for exploring Lisbon’s contemporary side.
Whether you’re looking for the quietest neighborhood or a vibrant cultural scene, Lisbon has something for everyone.
General Tips for Visiting Lisbon
✅ Visit during the shoulder season (spring or fall) for better deals and fewer crowds.
✅ Use public transport — metro, trams, and buses are easy to navigate.
✅ Uber and Bolt are reliable rideshare options for getting around the city.
✅ From the airport, the Red Line metro is the most affordable way to reach the city center (about 20 minutes).
✅ Lisbon is generally safe, but watch out for pickpockets in busy tourist areas.
✅ Don’t miss Castelo de São Jorge, Belém Tower, and LX Factory.
✅ Take a day trip to Sintra to explore its colorful palaces and stunning landscapes
Frequently Asked Questions
What is the ideal time to visit Portugal for budget travelers?
The ideal time for budget travelers to visit Portugal is during the shoulder seasons in spring or fall, when you can score great deals and enjoy fewer crowds. This way, you’ll get the most out of your trip without breaking the bank!
What is the recommended duration for visiting Lisbon?
For a well-rounded experience in Lisbon, aim for about five days to explore both the must-see sights and local gems. This way, you can truly soak in the culture and vibe of the city.
What are some iconic landmarks to visit in Lisbon?
You can’t miss visiting Castelo de São Jorge and Belém Tower when you’re in Lisbon; they truly capture the city’s rich history and stunning architecture!
What is a recommended breakfast spot in Lisbon?
You can’t go wrong with Fábrica Coffee Roasters for a great cup of coffee, and make sure to stop by Manteigaria for some delicious pastel de nata.
Where can you experience traditional Fado music?
You can soak in traditional Fado music at cozy places like A Baiuca or Clube de Fado, where the atmosphere truly brings the music to life.
Final Thoughts
Choosing where to stay in Lisbon can enhance your travel experience. Each area has unique characteristics that cater to different traveler preferences.
Chiado serves as an excellent central point, balancing charm and accessibility. For those prioritizing convenience, Baixa is ideal due to its proximity to major attractions and transit options.
Alfama is appealing with its romantic atmosphere, yet the steep hills can make access challenging. Bairro Alto is vibrant and lively, especially at night, making it perfect for nightlife enthusiasts.
Each neighborhood offers something special, ensuring that your stay in Lisbon is both memorable and enjoyable.
So, whether you’re a first-time visitor or a seasoned traveler, Lisbon’s diverse neighborhoods have something to offer everyone. Have the best trip!
