Where to Stay in Lisbon: Best Areas & Hotels

Looking for insider tips on where to stay in Lisbon? Well, you’ve hit the jackpot!

I just returned from a whirlwind 6-day trip to this delightful capital city of Portugal, armed with a suitcase full of memories and a notebook filled with golden nuggets.

I had the unique chance to not just visit, but actually live in four different hotels across the best neighborhoods of Lisbon, to really get a good feel of what each neighborhood offers and which area is the best to stay in.

I was accompanied by my savvy aunt, a soon-to-be Lisboeta, who’s considering trading her middle-class lifestyle in the U.S. for a sun-drenched retirement in this vibrant city. 

We strolled through popular neighborhoods and uncovered the coolest nooks and crannies, all to give you the most comprehensive guide to Lisbon’s great neighborhoods.

P.S. You can read about what we did and what activities I recommend in my guide to the 40 Best Things to Do & Places to Visit in Lisbon!

Whether you’re hunting for short-term rentals, the most expensive places, or just a great neighborhood to stay in while visiting the capital of Portugal, I’ve got the insights.

So sit tight and get ready to explore Lisbon, one neighborhood at a time!

Top 7 Best Lisbon Neighborhoods

Now, let’s dive headfirst into the mosaic that is Lisbon’s neighborhoods. Each one is a universe onto itself, offering unique vibes, sights, and experiences.

Here are the top seven neighborhoods you absolutely must consider for your stay in Lisbon, Portugal’s captivating capital:

1. Baixa & Chiado

Welcome to the heart of the city! Here’s where Lisbon’s history and modernity coalesce. Cobblestone streets, the bustling Rua Augusta, the majestic Praça do Comércio, and the historic Elevador de Santa Justa are all within a short walk. It’s a hub of excitement and one of the best neighborhoods to stay in Lisbon. And oh, the pastéis de belém you can savor here!

• Budget: Draft Hotel & Rooms – Located smack in the city center, this place is ideal for budget travelers.

• Mid-range: Hotel Santa Justa – Great location with comfortable rooms and, yes, they’ve got an elevator.

• Luxury: Bairro Alto Hotel – Set between the bohemian Bairro Alto and chic Chiado, this hotel screams luxury with a hint of local charm.

2. Alfama

Lisbon’s oldest neighborhood, Alfama, is a must for anyone looking to experience authentic Lisbon. The narrow streets leading up to the Castelo de São Jorge are a delight to wander through. Plus, the area is filled with Fado music bars where you can tune into the soulful sounds of Portugal.

• Budget: Charming Alfama Apartment – With a full kitchen and free use of two bikes, this Lisbon apartment feels more like a family gathering.

• Mid-range: Memmo Alfama – This is a modern hotel nestled within ancient structures; a perfect symbiosis of old and new.

• Luxury: Santiago de Alfama – A 5-star boutique hotel, as authentic as the neighborhood itself.

3. Bairro Alto & Príncipe Real

Now, if you’re looking for a place that never sleeps, Barrio Alto is your go-to. It’s the epicenter of Lisbon’s nightlife with bars, restaurants, and clubs teeming with life until the sun peeks. But there’s more: in daylight, you’ll be charmed by its artistic boutiques and traditional pastelerias. Just a short walk away is Príncipe Real, an elegant and trendy neighborhood brimming with antique shops, charming gardens, and the oldest bookstore in the world, Livraria Bertrand.

• Budget: Lisb’on Hostel – A modern hostel that matches the vibrant energy of Bairro Alto.
• Mid-range: The Independente Principe Real – An eclectic blend of old and new, just like Bairro Alto itself.
• Luxury: Memmo Príncipe Real – A sleek and contemporary hotel that reflects Príncipe Real’s upscale atmosphere.

4. Belém

If you have a penchant for historical sites and pastries – Belém is your sweet spot. It’s home to the iconic Torre de Belém, the grandiose Mosteiro dos Jerónimos, and the pastry shop of Pastéis de Belém – the creators of the famous egg tart. It’s slightly out of the city center, but hey, all the more reason for a scenic tram ride!

• Budget: Famous Crows Lisbon Suites – It’s simple, it’s clean, and it’s near the famous Belém pastries.

• Mid-range: Hotel Jerónimos 8 – An oasis of modernity amidst the historical gems of Belém.

• Luxury: Palácio do Governador – If living in a 17th-century palace sounds like your thing, this is your stop.

5. Parque das Nações

If you’re a fan of contemporary architecture, trendy restaurants, and riverfront views, Parque das Nações should be your go-to spot. Once a wasteland turned Expo ’98 site, it’s now a chic area showcasing the best of modern Lisbon. Oh, and you can also check out the Oceanário, Europe’s largest indoor aquarium.

• Budget: Star inn Lisbon – A budget-friendly choice close to the airport, with a comfy stay ensured.

• Mid-range: VIP Executive Arts Hotel – A sleek hotel that encapsulates the modern vibe of the area.

• Luxury: Myriad by SANA Hotels – A futuristic luxury hotel in Lisbon. The views of the Tagus river are a cherry on top.

6. Avenida da Liberdade & Marquês de Pombal

A stroll down the Avenida da Liberdade is the perfect antidote to a shopping itch. High-end boutiques, luxury hotels, and theatres line this leafy boulevard, which leads to the bustling Marquês de Pombal Square. And if the hustle and bustle get too much, pop over to the serene Parque Eduardo VII.

• Budget: Hotel ibis Lisboa Liberdade – A no-frills option located close to the action.

• Mid-range: PortoBay Marquês – A comfortable mid-range hotel with a rooftop pool.

• Luxury: Valverde Hotel – A 19th-century townhouse turned luxury hotel, nestled right in the Avenue.

7. Graça & Mouraria

The streets of Graça and Mouraria are steeped in history and community spirit. The neighborhoods boast two of the best miradouros (viewpoints) in town – Miradouro da Senhora do Monte and Miradouro da Graça. And Mouraria – it’s the birthplace of Fado, so you can expect to hear the soul-stirring music wafting through the narrow streets.

• Budget: Mouraria Lisboa Hotel – Budget-friendly, cozy, and offers a killer view from the patio.

• Mid-range: Hotel Mundial – Located near the bustling Rossio Square, the rooftop bar is a highlight.

• Luxury: The Lumiares Hotel & Spa – Nestled in a 18th-century palace, it provides a luxurious stay with stunning city views.

Related read: When’s the Best Time to Visit Portugal? A Comprehensive Guide

Best Places to Stay in Lisbon (Top Hotel Picks)

It’s time to unpack the best hotels that the Portuguese capital has to offer. Remember, Lisbon’s hospitality is as warm as a fresh pastel de nata, so let’s check out your potential homes-away-from-home:

Best Luxury Hotels in Lisbon

1. Four Seasons Hotel Ritz Lisbon: Located near the Parque Eduardo VII, this hotel offers a taste of the grandeur of yesteryears. Their rooftop running track is perfect for a morning jog with panoramic views.
2. InterContinental Lisbon: Situated on the central location of Avenida da Liberdade, this luxury hotel provides easy access to Lisbon’s vibrant downtown. Spoil yourself with their sumptuous breakfast, a spa day or just sink into their comfy beds after a long day.
3. Pestana Palace Lisboa: A 19th-century palace turned hotel – need I say more? This property boasts luxurious rooms, lush gardens, and a fantastic pool to relax in.

Best Boutique Hotels in Lisbon

1. Lisbon Art Stay: This apartment hotel is the perfect blend of comfort, art, and creativity. Each room is unique, with contemporary art splashed all over the walls. It’s situated right in the heart of the city center, just off the bustling Rua Augusta.
2. Santiago de Alfama: Remember this gem from our tour of Alfama? It’s a charming boutique hotel that perfectly reflects the rich history of the area.
3. The Lumiares: Tucked away in Bairro Alto, each room here is like a trendy, modern apartment, complete with a small kitchenette. You’re going to love their rooftop bar, trust me.

Best Budget Hotels in Lisbon

1. Stay Hotel Lisboa Centro: A great spot with cozy rooms and it’s just a short walk from the Anjos and Picoas metro stations. Convenient, right?
2. Hotel ibis Lisboa Parque das Nações: Clean, comfortable, and right in the heart of the modern district of Parque das Nações. And, it won’t burn a hole in your pocket!
3. We Love F Tourists: Despite the tongue-in-cheek name, this budget hotel located near Rossio square is known for its friendly staff and clean rooms. They truly do love tourists!

Best Hostels in Lisbon

1. Home Lisbon Hostel: This place is as homely as hostels get. They even have ‘Mamma’s Dinner’ where you can enjoy home-cooked Portuguese meals. A short walk away from Praça da Figueira, it’s smack dab in the middle of the action.
2. Yes! Lisbon Hostel: Known for its vibrant social scene and super-helpful staff, this is an excellent choice for solo travelers or those looking to make friends. And it’s just a stone’s throw away from the pink street – the epicenter of Lisbon nightlife.
3. LX Hostel: Located in the LX Factory, a trendy, hipster-ish part of Alcântara, this hostel is minimalist and chic, perfect for young professionals or digital nomads looking for a creative environment.

Still not convinced? You can search through over 1,000 hotels, hostels, and rental homes in Lisbon here 👇

Best neighborhood in Lisbon for…

Sightseeing

There’s no beating Alfama and Belém when it comes to sightseeing. Nowhere else in Lisbon will you find such an eclectic mix of historic charm, UNESCO World Heritage sites, and breathtaking miradouros (viewpoints).

Alfama, one of Lisbon’s oldest neighborhoods, is a labyrinth of narrow streets, ancient houses, and vibrant street art. Don’t miss out on the Sé Cathedral and Castelo de São Jorge.

In Belém, you’re spoiled for choice with the Torre de Belém, Mosteiro dos Jerónimos, and Padrão dos Descobrimentos offering a peek into Portugal’s Age of Discovery. This area is perfect for history buffs and those who love to walk and explore.

Nightlife

Bairro Alto is the undisputed king of Lisbon’s nightlife. This district comes alive when the sun sets, with a medley of bars, clubs, and live music venues. Whether you’re a party animal or a laid-back bar hopper, Bairro Alto’s got you covered. Don’t miss Pink Street, the epicenter of Lisbon’s night scene, formerly a red-light district, now a party hotspot. Pro tip: enjoy a fado performance for a dose of local culture.

Near the beach

If beach vibes are your thing, the suburb of Cascais is your perfect spot. While technically not in Lisbon, it’s just a short train ride away from the city center.

This coastal town boasts sandy beaches, a charming historic center, and a laid-back atmosphere. It’s an excellent choice for surfers, beach lovers, and anyone looking to escape the city’s hustle and bustle for a day.

For food and restaurants

If you’re a self-proclaimed foodie, the vibrant neighborhood of Baixa won’t disappoint. From traditional Portuguese fare at the bustling Mercado da Ribeira to Michelin-starred dining experiences, Baixa is Lisbon’s foodie paradise. With a plethora of cafes, bakeries, and restaurants lining the streets, you’re never far from your next culinary adventure here.

Wondering what to eat in Lisbon? Check out my guide to the 17 best foods in Portugal that you should try for an authentic taste of the city 🥘

For families

For a family-friendly environment, Parque das Nações stands out. Its contemporary architecture, large green spaces, playgrounds, and the Oceanário make it an ideal spot for families. Not to mention the cable car ride along the Tagus River, which the kids will surely love!

For first-timers and solo travelers

First time in Lisbon? You can’t go wrong with Baixa-Chiado and Avenida da Liberdade. The area offers a central location, easy access to public transportation, including metro lines and tram 28, and an array of attractions. Here, you can easily wander from the Rossio Square to the Elevador de Santa Justa, or indulge in some retail therapy in the nearby shopping district. Plus, with many other tourists around, solo travelers will feel comfortable exploring the heart of the city.

For shopping

For shopping aficionados, the elegant Avenida da Liberdade is your runway. This boulevard, likened to the Champs-Élysées of Lisbon, is lined with international luxury brands, high-end boutiques, and unique souvenir shops.

Not to forget, the quirky shops at Chiado, where you can find anything from Portuguese cork products to the world’s oldest bookstore, Livraria Bertrand.

For a local feel

To experience the life of a true Lisboeta, make your way to Campo de Ourique. Located a bit off the beaten path, this residential neighborhood is known for its local markets, traditional Portuguese cafes, and a laid-back atmosphere. If you’re lucky, you might even stumble upon a festa de bairro, a neighborhood street party!

More Lisbon Neighborhoods

Beyond the most famous districts, Lisbon is a mosaic of diverse neighborhoods, each with its own distinct personality. So, allow me to guide you through a couple more worth noting.

All these neighborhoods have their own unique appeal and are worth considering for your stay in Lisbon depending on your interests and preferences.

Príncipe Real

Príncipe Real sits north of Bairro Alto and it’s a real gem. Pardon the pun, I couldn’t resist. The area is known for its stunning 19th-century mansions, tree-lined streets, and high-end boutiques. If you’re an art aficionado, you’ll be happy to know that Príncipe Real is the heart of Lisbon’s burgeoning contemporary art scene. The crown jewel of this area, the Príncipe Real Garden, is a perfect place for a peaceful afternoon in the middle of the city.

Mouraria

Mouraria, Lisbon’s most multicultural neighborhood, is just a short walk from Alfama. It’s full of life and offers a stark contrast to the city’s more upscale districts. Home to people from more than 50 nationalities, Mouraria is a melting pot of cultures, tastes, and traditions. The neighborhood’s vibrant street art scene adds to its urban charm.

Avenidas Novas

Avenidas Novas is a blend of the old and new. Here, modern architecture and busy shopping streets are interspersed with historic mansions and quiet, leafy parks. With its excellent transport connections, this is a great base for business travelers or anyone seeking a more relaxed vibe.

Graça

Finally, don’t forget Graça, perched on the highest of Lisbon’s seven hills. Known for its stunning miradouros – Miradouro da Graça and Miradouro da Senhora do Monte – it offers panoramic views of the city. This is an older neighborhood with a strong local community, yet it has been welcoming a younger crowd in recent years, becoming a trendy spot for new businesses.

Getting around in Lisbon

Navigating Lisbon can seem daunting due to its steep hills and narrow streets, but trust me, it’s part of the city’s charm.

The public transportation system is well-developed, including buses, trams, funiculars, and the metro. The latter is often the best way to move around, with four lines covering most of the city, including tourist hotspots.

I recommend downloading the Citymapper app to help navigate you around Lisbon on the metro. The app is free and easy to use – I swear by it in any city that I visit!

Famous Tram 28 is a fun (albeit sometimes crowded) way to explore the city. It passes through many of Lisbon’s best neighborhoods and top tourist attractions. The city also has an extensive bus network, but it can be trickier to navigate for a newcomer.

Walking is a good option for short distances as many attractions in central Lisbon are in close proximity to each other.

For longer distances, or when your legs complain about Lisbon’s hills, taxis and ride-hailing services like Uber are widely available. They are reasonably priced, especially if you’re sharing the ride.

Safety in Lisbon

Lisbon is generally a safe city, and like many European capitals, the risk of violent crime is low. However, some areas are safer than others. Central districts like Baixa-Chiado, Avenida da Liberdade, and Príncipe Real are well-trafficked and patrolled, making them safer especially at night.

However, petty crimes like pickpocketing and purse snatching can happen, especially in tourist-heavy areas or on public transportation. 

Here are some practical tips to stay safe in Lisbon:

• Always keep your belongings secure and be aware of your surroundings, especially in crowded areas.
• Be wary of overly friendly strangers offering help, as it could be a scam.
• Avoid walking alone in less-traveled areas at night.
• Use licensed taxis or reliable ride-hailing services for late-night travel.

As a rule of thumb, common sense and vigilance go a long way in ensuring a safe and enjoyable trip to Lisbon. With these tips in mind, you’re all set to explore this charming Portuguese capital!

Thanks for reading!

And there you have it, my comprehensive guide to the best neighborhoods and accommodations in sunny Lisbon.

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As we journeyed together through the heart of the city to its vibrant outskirts, I hope I’ve helped to paint a vivid picture of what makes each area unique. One of my favorite memories is of sitting in a local café in Príncipe Real, sipping the iconic Portuguese cherry liqueur, ginjinha, as the sun set over the pastel-colored buildings. Magic moments like this await you in every corner of Lisbon. 

👂 Now, I’m eager to hear from you – Which Lisbon neighborhood caught your imagination? Have you already strolled through the narrow streets of Alfama, or is the modern appeal of Parque das Nações calling your name?

Drop a comment below and share your thoughts!

Obrigado for joining me on this journey, and safe travels!

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