Where to Stay in Lisbon 🇵🇹: Complete Guide to the Best Areas & Hotels

Lisbon, with its seven hills and centuries of history, offers visitors a unique blend of old-world charm and modern energy. As I’ve explored this captivating city over the years, I’ve discovered that each neighborhood has its own distinct personality, from the historic lanes of Alfama to the trendy streets of Misericórdia.

🏠 Best Hotels in Lisbon

• 💎 Luxury Hotel: Torel Palace
• ✨ 5-Star: Wine & Books Lisboa
• 🏨 4-Star: Jupiter Lisboa
• 🛏️ 3-Star: AS Lisboa
• 💸 Cheap: Lisbon São Bento
• 🏢 Apartment: 137 LuxResidence
• 👨‍👩‍👧‍👦 For Families: Pestana Lisboa Vintage City Center Suites
• 🏩 For Couples: Meliá Lisboa Oriente

Choosing where to stay in Lisbon can make or break your Portuguese adventure. Whether you’re drawn to the buzz of downtown Baixa-Chiado, the peaceful gardens of Estrela, or the authentic vibes of São Vicente, this guide will help you find your perfect base in the city.

I’ll share my personal experiences and insider tips about each area, so you can make the best choice for your style and budget.

💁 Best Guided Tours in Lisbon

• Lisbon Overview on a Tuk-Tuk from € 125 (⭐4.5/5)
• Lisbon Guided Walking Tour from € 125 (⭐4.5/5)
• Eats, Street Art and Undiscovered Lisbon Food Tour from € 125 (⭐4.5/5)
• Lisbon Half-Day Sightseeing Tour by Electric Tuk-Tuk from € 125 (⭐4.5/5)
• Lisbon Traditional Boats Sunset Cruise from € 125 (⭐4.5/5)

Best Areas to Stay in Lisbon: Quick Overview

• 🏙️ For first-time visitors: Baixa-Chiado
• 🎨 For art lovers: Misericordia
• 🍲 For budget travelers: Arroios
• 🛍️ For luxury seekers: Santo Antonio
• 🏛️ For history buffs: Alfama
• 🚶 For local culture enthusiasts: Sao Vicente
• 🌿 For nature lovers: Estrela

1. Baixa-Chiado: The Heart of Historic Lisbon

First Impressions: Walking through Baixa-Chiado feels like stepping into an open-air shopping gallery, where neoclassical architecture meets vibrant city life. I’ve found this central district offers the perfect blend of history and modern energy, making it an ideal base for first-time visitors.

Historical Context: The area was completely rebuilt after the devastating 1755 earthquake, when the Marquis of Pombal designed an innovative urban plan with straight streets and elegant buildings. This revolutionary grid pattern created what was essentially the world’s first planned city layout.

Cultural Hub: The neighborhood pulses with artistic energy through its numerous theaters, art galleries, and century-old cafés. The world’s oldest bookstore and legendary cafés like A Brasileira, complete with Fernando Pessoa’s bronze statue, exemplify its bohemian spirit.

Smart Navigation: Access the Santa Justa viewpoint through Carmo Square and pay just €1.50 for the platform access, avoiding long queues. The same stunning views can be enjoyed without waiting in tourist lines.

Best Times to Visit: From my experience, the district is most charming between 10 AM and noon when shops are just opening and before the tourist crowds arrive. The morning light creates perfect photo opportunities of the historic facades.

Getting Around: The Baixa-Chiado metro station connects the Blue and Green lines, making it incredibly convenient for exploration. For the best experience, I recommend using the metro station’s escalators to navigate between Baixa and Chiado – it’s free and saves your energy for actual sightseeing.

Where to Stay in Baixa-Chiado

Best Hotels in Baixa-Chiado

• Altis Avenida Hotel – A highly-rated luxury hotel located just 250m from Lisbon’s center, featuring the excellent Rossio Gastrobar. Perfect for travelers seeking upscale accommodation with exceptional breakfast service.
• The Lumiares Hotel & Spa – This Small Luxury Hotel offers a rooftop restaurant, comprehensive spa facilities, and numerous activities including fitness center and cultural tours. Located 1,500 feet from city center.
• Pousada de Lisboa – A Small Luxury Hotel featuring the RIB – Beef & Wine restaurant, swimming pool, and fitness center. Located 2,300 feet from center.

Best Cheap/Moderate Hotels

• Lis Baixa Hotel – A moderate-priced hotel in the heart of Baixa offering comfortable accommodations with easy access to main attractions.
• Rossio Plaza Hotel – Centrally located hotel offering good value with views of the historic Rossio Square.
• Solar dos Poetas – A charming mid-range hotel with Portuguese character and reasonable prices.

Best Hostels

• Gat Rossio Hostel – Modern hostel with both private and shared rooms, perfect for budget-conscious travelers.
• Inn Rossio – Budget-friendly hostel offering basic accommodations in a prime location.
• Pensao Residencial Alcobia – Traditional Portuguese guesthouse providing simple rooms at affordable rates.

2. Misericórdia: Perfect for Art Lovers

District Origins: Misericórdia got its name from the charitable institution Santa Casa da Misericordia, established in 1498 by Queen Dona Leonor. This historic foundation set the tone for the neighborhood’s blend of cultural significance and social consciousness that continues today.

Trendy Evolution: The area has transformed into Lisbon’s creative hub, with nearly 70% of residents owning their properties and a growing international community. I’ve noticed how French, Swiss, and Scandinavian expats have particularly fallen in love with this vibrant district, creating an fascinating multicultural atmosphere.

Local Highlights: Walking through Misericórdia feels like exploring a carefully curated art gallery, with colorful tiled façades and boutique shops at every turn. The neighborhood pulses with energy through its Michelin-starred restaurants and wine bars, making it a paradise for food enthusiasts.

Here are my favorite spots that capture Misericórdia’s essence:

• Miradouro de São Pedro de Alcântara for sunset views
• Teatro do Bairro for contemporary performances
• BA Wine Bar for Portuguese wine tasting
• Tapisco for innovative tapas
• São Roque Museum for classic art

Transport Connections: You’ll find yourself just 10 kilometers from Lisbon’s International Airport, with the convenient Cais do Sodré terminal only 800 meters south. The area’s central location makes it perfect for exploring the rest of Lisbon on foot or by public transport.

Seasonal Celebrations: Every June, the streets come alive with the Feast of St. António, featuring colorful parades and the famous Lisbon Sardine Festival. The summer season transforms the neighborhood as cafes and restaurants open their al fresco dining spaces.

Practical Advantage: The neighborhood offers international schools with curricula in English, French, and German, making it especially appealing for expatriate families. The Hospital St. Louis in the center of Misericórdia provides essential healthcare services.

Urban Planning: Misericórdia sits perfectly between Baixa-Chiado and Santos, offering the ideal balance of central location and neighborhood charm. Despite its tourist appeal, the area maintains its local character through friendly vendors and family-run establishments.

Where to Stay in Misericórdia

Best Hotels in Misericórdia

• Verride Palácio Santa Catarina – One of the best places to stay in Lisbon, this 5-star hotel offers a Michelin-guided restaurant, luxurious rooms, and stunning city views from its prime location.
• Lisbon Finestay 8 Building Apartments – Located in the heart of the city, these modern apartments provide an excellent base for exploring downtown Lisbon with highly-rated breakfast options.
• Casa do Mercado Lisboa – A boutique hotel offering a unique stay with exceptional breakfast in one of Lisbon’s most vibrant neighborhoods.

Best Cheap/Moderate Hotels

• Lisbon Serviced Apartments Ascensor da Bica – These well-appointed apartments provide great value in the historic Bairro Alto district.
• Bica FLH Suites – A charming mid-range option offering home-like comfort with excellent city views.
• Lisboa 1912 – This historic boutique property provides an authentic Portuguese experience in a central location.

Best Hostels

• Lisbon Lovers Hostel – A friendly hostel perfect for budget travelers wanting to stay near the best attractions.
• DoBairro Suites – Comfortable suites in the vibrant Bairro Alto district, ideal for experiencing Lisbon’s nightlife.
• LxWay Apartments Yellow Bica – Budget-friendly apartments offering great value in a prime location.

3. Arroios: Where to Stay for Budget Travelers

Cultural Evolution: Time Out recently crowned Arroios as the world’s coolest neighborhood, and I can see why. This vibrant district has transformed from its working-class roots into a dynamic hub where art, food, and diversity create an intoxicating mix.

Market Magic: The recently renovated Mercado de Arroios buzzes with local vendors selling fresh produce and hosts some of the city’s most exciting international restaurants. I’ve discovered everything from Syrian delicacies to Portuguese classics under one roof.

Student Scene: With around 11,000 students at Instituto Superior Technico, the area pulses with youthful energy. The pop-up markets near the university offer unique local food and handmade clothing that won’t break the bank.

My favorite budget-friendly spots in Arroios:

• Anjos70 for vintage shopping and alternative markets
• Padaria do Bairro for authentic Portuguese pastries
• Mezze for affordable Middle Eastern cuisine
• How About Coffee for specialty coffee
• Nepal Curry House for budget-friendly Asian food

Green Escapes: The Campo dos Mártires da Pátria offers a peaceful retreat with its Jardim Braancamp Freire, featuring a colorful basketball court designed by urban artist AkaCorleone. The garden provides a perfect spot for afternoon relaxation away from the city buzz.

Viewpoint Discovery: The Miradouro do Monte Agudo offers breathtaking views over Lisbon and the Tagus River. This hidden gem provides the perfect sunset spot without the tourist crowds of more famous viewpoints.

Library Legacy: The Library of St Lazarus, Lisbon’s oldest, sits within a stunning 19th-century building. Its historic halls offer a quiet space to discover the city’s fascinating past.

Transport Connections: Located just 10 kilometers from Lisbon’s International Airport, with excellent metro access and flat terrain. The neighborhood’s central position makes it ideal for exploring the rest of Lisbon on foot.

Where to Stay in Arroios

Best Hotels in Arroios

• Torel Palace Lisbon – A luxurious hotel in the heart of the city featuring two restaurants including a Michelin-starred venue, stunning views, and a pool just 450m from the centre of Lisbon.
• The One Palácio da Anunciada – An elegant 4-star hotel offering comprehensive spa facilities, fitness center, and highly-rated breakfast options in a great location.
• Dos Reis by The Beautique Hotels – A boutique hotel with contemporary design, featuring the ANARCHIA restaurant and excellent connectivity to the rest of the city.

Best Cheap/Moderate Hotels

• Empire Lisbon Hotel – A comfortable mid-range option perfect for those looking to stay in a authentic Lisbon neighborhood.
• New Style Lisbon Hotel – A charming moderate-priced hotel offering great value in one of Lisbon’s most vibrant areas.
• O Jardim da Tessa – A cozy hotel with a garden setting providing a peaceful retreat in the busy city.

Best Hostels

• Lisboa Sweet Family Homestay – A welcoming family-run hostel offering a home-like atmosphere for budget travelers.
• Hostel Crespo – A friendly hostel with both private and shared rooms in a convenient location.
• Ibis Lisboa Saldanha – A reliable budget choice from a trusted brand, offering clean rooms and good transport connections.

4. Santo Antonio: Best Place to Stay for Luxury Seekers

District Evolution: Located in the heart of Lisbon, Santo Antonio emerged from the merger of three historic parishes – São Mamede, São José, and Coração de Jesus. The area has transformed into one of Lisbon’s most prestigious neighborhoods, comparable to Beverly Hills in LA or the Champs-Élysées in Paris.

Luxury Boulevard: The iconic Avenida da Liberdade forms the district’s backbone, hosting prestigious brands like Chanel, Gucci, and Louis Vuitton. Walking down this Parisian-inspired boulevard feels like stepping into a fashion capital, with its tree-lined sidewalks and elegant architecture.

Digital Hub: With seven major coworking spaces including LINNK and WorkAvenida, the area has become a hotspot for digital nomads. The blend of traditional charm and modern amenities creates an ideal environment for remote workers and entrepreneurs.

Family Fun: The botanical garden in Príncipe Real is perfect for kids to explore exotic plants while adults enjoy a quiet moment. Nearby cafés make it easy to relax after a day of sightseeing.

Overall Safety: Santo Antonio is one of Lisbon’s safest districts, particularly around the upscale Avenida da Liberdade area. The neighborhood maintains strong security measures with regular police presence, especially in tourist areas. While Lisbon ranks as one of the safest cities in Europe, it’s still wise to exercise normal urban precautions, particularly regarding pickpocketing in crowded areas.

Transport Connections: The area is exceptionally well-connected with multiple metro stations including Rato (yellow line), Avenida (blue line), and Marquês de Pombal (blue line). The neighborhood’s central location makes it perfect for exploring the rest of Lisbon on foot, while excellent public transportation options provide easy access to all parts of the city.

Where to Stay in Santo Antonio

Best Hotels in Santo Antonio

• PortoBay Liberdade – A luxury hotel offering comprehensive spa facilities, swimming pool, and highly-rated breakfast just steps from Avenida da Liberdade.
• Iberostar Selection Lisboa – One of the best hotels in this area featuring two restaurants, spa facilities, and a swimming pool perfect for a luxurious stay in Lisbon.
• TURIM Boulevard Hotel – A sophisticated hotel offering guided walking tours and bicycle rentals to explore the best attractions in Lisbon.

Best Cheap/Moderate Hotels

• Empire Marques Hotel – A comfortable mid-range option in one of Lisbon’s most prestigious neighborhoods.
• Exe Liberdade – A great place to stay offering excellent value near the famous Avenida da Liberdade.
• HF Fénix Music – A unique music-themed hotel perfect for those looking to stay in a creative atmosphere.

Best Hostels

• Hotel Dublin – A budget-friendly option ideal for travelers wanting to explore the city center.
• Ibis Lisboa Liberdade – A reliable choice for those who want to stay near major attractions without breaking the bank.
• EasyHotel Lisbon – A no-frills option offering clean rooms and an excellent location for city exploration.

5. Alfama: Perfect for History Lovers

District Legacy: Alfama proudly stands as the only neighborhood that survived the devastating 1755 earthquake, preserving its medieval Moorish layout. Its labyrinthine streets and historic architecture tell stories spanning from Phoenician settlers to modern-day Portugal.

Cultural Heartbeat: The melancholic sounds of fado music echo through narrow alleys, especially in the evening hours when local taverns come alive. The district’s authentic atmosphere is enhanced by traditional restaurants, craft shops, and the famous Feira da Ladra flea market held every Tuesday and Saturday.

Here are the must-visit historical landmarks in Alfama:

Safety Measures: The neighborhood ranks as one of Lisbon’s safest areas, with regular police presence and well-lit streets. I’ve found that even solo travelers feel comfortable exploring the area, though it’s wise to watch for pickpockets in tourist hotspots.

Local Rhythms: The district comes alive during the Santos Populares festival in June, transforming into a vibrant celebration of Portuguese culture. The narrow streets fill with the aroma of grilled sardines and the sound of traditional music, creating an unforgettable atmosphere.

Practical Navigation: While the steep hills can be challenging, the iconic Tram 28 provides a scenic route through the neighborhood for just €3.10. I recommend starting your exploration early in the morning when the streets are quieter and the light perfect for photography.

Transport Options: The area is served by several public transport options including bus routes 737 (to the hilltop), and the iconic Tram 28. The nearest metro stations are Santa Apolónia and Terreiro do Paço on the Blue line, though both are at sea level requiring uphill walks.

Where to Stay in Alfama

Best Hotels in Alfama

• Alfama Lisbon Lounge Suites – Located in one of the best neighborhoods in Lisbon, this boutique hotel offers elegant suites with stunning views of the Tagus River and is perfect for those seeking an authentic stay in the oldest part of Lisbon.
• Pousada Alfama – A charming 4-star hotel featuring a beautiful terrace, excellent breakfast, and prime location just steps from São Jorge Castle, making it an ideal choice for your first visit to Lisbon.
• ON/SET Alfama - Lisbon Cinema Apartments – These historical apartments provide a perfect blend of traditional Portuguese charm and modern comfort in the heart of the city’s most authentic neighborhood.

Best Cheap/Moderate Hotels

• Top Alfama Apartment – Offering great value for money, these well-appointed apartments provide a comfortable base for exploring the surrounding historic district and nearby attractions.
• Casa da Lucia – A cozy guesthouse with a homely atmosphere and friendly staff, situated perfectly for those who want to stay in the authentic part of Lisbon without breaking the bank.
• Alfama Terrasse – These modern apartments feature private terraces offering some of the best views of Lisbon, perfect for travelers seeking a home-like experience.

Best Hostels

• Blue Urban Alfama – A stylish hostel offering both private and shared rooms, ideal for budget-conscious travelers wanting to experience authentic Lisbon life.
• Casas de Fado – This charming budget accommodation provides clean, comfortable rooms in a traditional building perfect for those looking to stay in the historic heart of Lisbon.
• Barracão de Alfama – These renovated apartments offer excellent value with their fully equipped kitchens and authentic location in one of Lisbon’s most characteristic neighborhoods.

6. São Vicente: Best Area for Culture Enthusiasts

Cultural Heart: Walking through São Vicente feels like stepping into a living museum where ancient monasteries meet street art and local life. The neighborhood pulses with an authentic energy that I discovered while exploring its steep, cobblestone streets lined with traditional houses and hidden viewpoints.

Historic Legacy: The São Vicente de Fora Monastery, dating back to 1147, stands as the district’s crown jewel, housing Portugal’s largest collection of baroque azulejo tiles. I was amazed to find that this architectural marvel contains more than 100,000 tiles depicting various scenes, including the famous Fables of La Fontaine.

Market Magic: The Feira da Ladra, Lisbon’s most iconic flea market, brings the neighborhood to life every Tuesday and Saturday with its vibrant atmosphere. I love browsing through antiques, vintage items, and local crafts while chatting with friendly vendors who’ve been here for generations.

Price Guide:

Insider Tip: Visit the monastery rooftop just before closing time for spectacular sunset views over Alfama and the Tagus River without the crowds.

Common Mistakes: Many tourists miss the free public elevators that can help navigate the steep hills, and often overlook the early morning hours when the neighborhood is at its most authentic. I recommend wearing comfortable, non-slip shoes as the traditional Portuguese cobblestones can be slippery.

Transport Access: The area is served by the Santa Apolónia metro station (blue line) and several bus routes, making it easily accessible from any part of Lisbon. The neighborhood’s steep hills can be challenging, but the historic tram 28 provides a scenic alternative for reaching higher points.

Where to Stay in São Vicente

Best Hotels in São Vicente

• The Editory Riverside Santa Apolónia – A luxurious hotel offering stunning river views and excellent connectivity, making it one of the best places to stay for those seeking both comfort and convenience in Lisbon.
• Dona Graça Lisboa – A boutique hotel with panoramic city views from one of the best viewpoints in Lisbon, perfect for those looking to stay in an authentic neighborhood.
• Lisbon Unique Apartments – An artistically designed hotel offering a unique stay with character in one of Lisbon’s most charming areas.

Best Cheap/Moderate Hotels

• Albergaria Senhora do Monte – A moderate-priced hotel with spectacular views of the city and comfortable rooms perfect for your trip to Lisbon.
• Loios Studios and Apartments – Well-equipped apartments offering great value and a home-like atmosphere in a historic setting.
• FLH Portas do Sol Cozy Flat – Cozy apartments providing a comfortable base for exploring the surrounding historic district.

Best Hostels

• Casa Vovó – A charming hostel offering a warm, family atmosphere perfect for budget travelers wanting to experience authentic Lisbon life.
• Classic Topfloor Apartment by LovelyStay – A cozy apartment in an authentic neighborhood, ideal for those who want to stay like a local.
• Lisbon Nest – A welcoming budget option perfect for those who decide to stay in one of Lisbon’s most characteristic areas.

7. Estrela: Ideal for Families

Garden Paradise: The Jardim da Estrela serves as the neighborhood’s green heart, offering 4.6 hectares of exotic plants and peaceful lakes. I love spending mornings here watching locals play chess and children feeding the ducks beneath century-old trees.

Basilica Grandeur: The stunning 18th-century Basilica da Estrela stands as one of Lisbon’s most impressive architectural achievements, featuring a massive dome visible from various city viewpoints. Inside, I discovered an extraordinary nativity scene crafted from cork and terracotta, featuring over 500 detailed figures.

Market Treasures: The monthly craft market transforms the garden into a vibrant showcase of local artisans and designers. The stalls offer everything from handmade jewelry to organic produce, creating a perfect weekend activity.

Museum Highlights: The unique Puppet Museum housed in the Convento das Bernardas tells the story of Portuguese puppet theater through centuries. Its collection includes over 1,000 puppets from around the world, making it a fascinating visit for both adults and children.

Evening Ambiance: As sunset approaches, the neighborhood takes on a golden glow as locals gather in traditional pastelarias and casual restaurants. The peaceful atmosphere makes it perfect for evening strolls and authentic dining experiences.

Local Rituals: Morning coffee culture thrives in the numerous historic cafés surrounding the garden, where residents have maintained their daily routines for generations. The weekend brings families to the garden for picnics and outdoor concerts during summer months.

Transport Connections: The area is well-served by the iconic trams 25 and 28, plus several bus lines connecting to central Lisbon. The upcoming metro station will make this neighborhood even more accessible.

Where to Stay in Estrela

Best Hotels in Estrela

• Olissippo Lapa Palace – One of the best hotels featuring two restaurants, comprehensive spa facilities, and an outdoor pool just 2.3 km from the city center.
• York House Lisboa – A boutique hotel offering an intimate atmosphere in one of Lisbon’s most elegant neighborhoods.
• Palácio Ramalhete – A historic palace turned luxury hotel providing an authentic Portuguese experience in one of the finest areas of Lisbon.

Best Cheap/Moderate Hotels

• Cheese & Wine Suites – Charming mid-range accommodation perfect for those looking to stay in a quieter part of Lisbon.
• Lisbon Check-In – A comfortable hotel offering good value and easy access to the best things to do in Lisbon.
• Garam Lisboa – Modern accommodation providing excellent amenities for a moderate price in a peaceful setting.

Best Hostels

• Superb Central Lisbon Apartment – Well-equipped apartments perfect for those who want a home-like experience during their trip to Portugal.
• Madragoa Plus – Budget-friendly accommodation in a traditional neighborhood offering authentic local experiences.
• Lisbon Apartment – Comfortable apartments providing an affordable base to explore the surrounding area.

❓ FAQ

Which area is best for first-time visitors to Lisbon?

Chiado and Baixa district are the best areas for your first trip to Portugal. The Baixa neighborhood offers central location, easy access to attractions, and excellent transport connections. You’ll find the best restaurants, shopping, and historic sites within walking distance, making it perfect for exploring Lisbon if you’re a first-time visitor.

Where should I stay in Lisbon for nightlife?

If you’re planning nights in Lisbon, choose to stay in Bairro Alto. This vibrant area comes alive after dark with countless bars, live music venues, and restaurants. The Bairro Alto Hotel area provides easy access to nightlife while being close enough to other central attractions.

What’s the most authentic neighborhood to stay in?

Alfama stands as the most authentic area in Lisbon city. This historic neighborhood offers narrow streets, traditional Fado houses, and local apartments in Lisbon. Home Lisbon hostels and da Baixa accommodations in this area provide a genuine Portuguese experience.

Where should families stay in Lisbon?

Estrela and Príncipe Real are ideal for families visiting Lisbon. These quiet residential areas offer apartments in Lisbon with more space, proximity to parks, and a peaceful atmosphere while still being close to central attractions. The Lisboa Carmo Hotel area also provides good family-friendly options

What’s the best area for food lovers?

Choose to stay in Chiado or Principe Real for the best restaurants and culinary experiences. These neighborhoods combine traditional Portuguese eateries with modern dining spots, making them perfect for food enthusiasts. You’ll find the best local and international cuisine, markets, and food tours in these areas.