Overview of the best places to stay in Lisbon

Alfama

Staying in the most picturesque part of Lisbon

Alfama is one of the oldest neighborhoods in Lisbon and really shows off the city’s charm. Located right in the center, it’s full of narrow, winding streets that go down from Castelo de São Jorge, leading to cozy squares and beautiful corners. You’ll also find here the best places for Fado music is Lisbon.

What’s great about Alfama is how pretty and scenic it is. It’s perfect for anyone who loves history and wants to be surronded by exceptionnal photo ops. Seriously, the views from here are stunning! It’s the neighborhood for anyone wanting to soak up the most romantic side of Lisbon. The neighborhood has that classic Lisbon feel that makes it memorable for visitors.

On the downside, Alfama can be very touristy. It’s also a bit far from public transport, so getting around can be tricky. The steep streets can be hard to walk on, especially if you have mobility issues. You’ll probably need to climb a hill or hop on a (crowded) tram to get anywhere.

Main attractions in Alfama

• São Jorge Castle
• Sé de Lisboa
• Miradouro de Santa Luzia
• Fado Museum

Choose to stay here if:

• You want to see the prettiest parts of the town
• You like a location with historic charm
• You love great boutique hotels

TYPE	ACCOMMODATION	PRICE
Luxury	Vincci Alfama	From € 360 / night
Luxury	Santiago de Alfama Boutique Hotel	From € 283 / night
Mid-range	Hotel Convento do Salvador	From € 196 / night
Mid-range	Sapateiros 44	From € 194 / night

Baixa

Where to stay in Lisbon for the most central location

If you want to be in the center of everything, Baixa is a great choice. It’s lively, full of energy, and packed with places to eat.

Baixa is the historic heart of Lisbon, with grand squares, elegant buildings, and a simple grid layout that makes it easy to explore. It’s flat, which is rare in Lisbon, and right between the hilly neighborhoods of Bairro Alto and Alfama. This “downtown” area (that’s what the word Baixa means) is super convenient, with plenty of shops, restaurants, and has easy access to public transportation. You can easily walk to the train station for your next destination or even a day trip.

That said, it can feel pretty crowded, and it’s not the most authentic part of the city. Since it’s at the bottom of the hill, be ready to walk uphill to reach most other areas. And while there are tons of restaurants, especially around Praça do Comércio, a lot of them are tourist traps. You might want to eat elsewhere for a better experience.

Main attractions in Baixa

• Praça do Comércio
• Rua Augusta Arch
• Money Museum

Choose to stay here if:

• You want the most central location
• You don’t mind the late-night noise
• You want to do day trips out of Lisbon
• You don’t have a car

TYPE	ACCOMMODATION	PRICE
Luxury	Hotel da Baixa	From € 410 / night
Mid-range	Memoria Lisboa FLH Hotels	From € 180 / night
Mid-range	Urbano FLH Hotels	From € 178 / night
Budget	Living Lounge Hostel	From € 113 / night

Príncipe Real

The most trendy place to stay in Lisbon

Located northwest of Lisbon’s city center, Principe Real is just a 15 minute walk from the main attractions. The neighborhood is known for its trendy and chic vibe, and it was even named one of the coolest street in the world by Time Out. With stunning views of the Lisbon skyline and green public parks, Principe Real is a great place to stay in Lisbon.

On the plus side, Principe Real offers plenty of cool cafés and restaurants if you want to enjoy the more authentic side of Lisbon. It’s not as crowded as other parts of the city, so it feels more laid-back. The neighborhood’s parks and quiet streets make it a great place to wander and enjoy the slower pace of travel.

However, there are a few downsides. The steep, narrow hills can be tricky to walk around, especially if you’re not used to the terrain. Also, because it’s such a popular and fashionable area, hotels here can be more expensive than other neighborhoods in Lisbon.

Main attractions in Príncipe Real

• Jardim do Príncipe Real
• Miradouro de São Pedro de Alcântara
• Museu Nacional de História Natural e da Ciência

Choose to stay here if:

• You love good petiscos
• You want local atmosphere that balances well chic and laid-back
• You have friends in town

TYPE	ACCOMMODATION	PRICE
Mid-range	Casa do Jasmim by Shiadu	From € 179 / night
Luxury	Memmo Príncipe Real	From € 385 / night
Mid-range	Alegria Boutique Hotel	From € 185 / night
Budget	Hotel Botanico	From € 123 / night

Chiado

Where to stay in Lisbon for first timers

Chiado is one of the most central neighborhoods in Lisbon and a great place to stay if you want to be close to everything. (If you’re arriving by metro, Chiado is the area you reach after taking the escalators up from the Baixa-Chiado station.) It’s a trendy area with a mix of old and new architecture. You’ll find here stylish shops, cozy cafés, and lots of cultural landmarks. Chiado also has a rich history. Important events like the 1755 earthquake and the 1974 Carnation Revolution, which helped shape the city into what it is today, happened here.

People love Chiado for its charm and convenience. It has some of the best places to eat, shop, and stay. One thing that makes it so convenient is that it’s easy to get around without having to walk up steep hills all the time. You can take the metro or the famous Elevador de Santa Justa if you want to move between neighborhoods.

The only downside is that it can get pretty busy. So if you’re looking for somewhere quiet and peaceful, it might not be the best choice in Lisbon. But if you want to be right in the middle of Lisbon’s action, Chiado is hard to beat.

Main attractions in Chiado

• Livraria Bertrand
• Museu Arqueológico do Carmo

Choose to stay here if:

• It’s your first time in Lisbon
• Other neighborhoods being within walking distance is a must
• You wants easy access to Lisbon’s major tourist attractions
• You don’t have a car

TYPE	ACCOMMODATION	PRICE
Luxury	Blue Liberdade Hotel	From € 740 / night
Mid-range	Chiado 44	From € 194 / night
Mid-range	Alecrim ao Chiado	From € 175 / night
Luxury	Dare Lisbon River	From € 235 / night
Luxury	Montebelo Vista Alegre	From € 328 / night

Belem

Where to stay in Lisbon for families

Belém is a historic neighborhood by the Tagus river and around 20 minutes by car from the center of Lisbon. It’s known for its famous sights, like the Belém Tower and the Jerónimos Monastery. The area has lots of museums, green spaces, and an overall calm atmosphere.

It’s a great spot for families looking for a place to stay. Most of the main attractions are close to each other, so it’s easy to walk and explore. Many hotels and apartments here also offer larger rooms, which is helpful if you’re traveling with children. Belem feels open and peaceful. It’s perfect if you want a break from busy Lisbon.

The only thing to keep in mind is that Belém isn’t in the center of Lisbon. (It even technically not part of Lisbon!) Getting to and from the city can take some time, and the area is quieter, which might not be for those looking for an exciting nightlife. But if you’re okay with that, Belém is a lovely family-friendly neighborhood.

Main attractions in Belem

• Jerónimos Monastery
• Belém Tower
• Monument to the Discoveries
• MAAT – Museum of Art, Architecture and Technology

Choose to stay here if:

• It’s a family vacation
• You are on a budget
• You don’t mind being far from the main sights

TYPE	ACCOMMODATION	PRICE
Luxury	Altis Belem Hotel & Spa	From € 301 / night
Luxury	Palácio do Governador	From € 458 / night
Luxury	Wine & Books Lisboa Hotel	From € 406 / night
Budget	Geronimo Guest House Belém	From € 104 / night

Bairro Alto

Where to stay in Lisbon for the nightlife

Bairro Alto is the best place to stay in Lisbon if you love nightlife. This lively neighborhood is packed with bars, restaurants, and clubs, with parties that go late into the night. Whether you’re looking for a cozy pub, a cocktail bar, or a club, you’ll find it here. It’s also right next to Chiado and has a long history, dating back to the 16th century. Unlike other parts of Lisbon, it wasn’t completely destroyed by the earthquake, though it was later updated by the government.

During the day, Bairro Alto feels much more relaxed, with quirky cafés, great food, and a welcoming vibe. It’s also super convenient, with easy access to trains, shopping, and plenty of places to eat.

But heads up. It’s loud! The same energy that makes it fun at night also means a lot of noise, so if you’re looking for a quiet stay, this might not be the best fit.

Main attractions in Bairro Alto

• Igreja de São Roque
• Elevador da Glória

Choose to stay here if:

• You want a thriving nightlife scene
• YOu want to be close to the city center
• You are on a budget
• You don’t mind that it gets a bit noisy

TYPE	ACCOMMODATION	PRICE
Budget	Selina Secret Garden Lisbon	From € 113 / night
Luxury	Bairro Alto Hotel	From € 542 / night
Luxury	The Lumiares Hotel & Spa	From € 425 / night
Mid-range	My Suite Lisbon	From € 178 / night

Avenida da Liberdade

Where to stay in Lisbon for a luxury stay

Avenida da Liberdade is one of Lisbon’s most elegant and well-known streets. It runs from the busy Rossio Square in the Baixa area up to the green park of Parque Eduardo VII. The avenue is wide and lined with trees, connecting Praça dos Restauradores with Praça Marquês de Pombal. It’s a peaceful place to walk, especially compared to the louder, more crowded parts of the city. People often compare it to the Champs Elysées in Paris, but it feels more relaxed: with more trees, less noise, and a unique Lisbon charm.

This area is known for luxury. You’ll find beautiful old buildings from the 18th century, fancy boutique hotels, and many of Lisbon’s top 5-star places to stay. The street is full of designer stores and stylish shopping centers. Even though it feels quiet, it’s really well connected. You can easily walk to downtown and the waterfront, and there are plenty of transport options, including direct access to the airport. It’s a safe, calm neighborhood, great for families or anyone who wants a peaceful stay close to the city’s main sights.

The downside? It’s not cheap. Hotels and Airbnbs here can be pricey. And if you’re hoping to find a more local or budget-friendly vibe, Avenida da Liberdade might feel a bit too polished or upscale.

Choose to stay here if:

• You plan on going a shopping spree
• Upscale hotels are what you’re looking for
• You don’t mind being far from the main sights

TYPE	ACCOMMODATION	PRICE
Luxury	Heritage Avenida Liberdade	From € 291 / night
Mid-range	The Lisbonaire Apartments	From € 165 / night
Budget	Lisboa Central Hostel	From € 115 / night

Cais do Sodré

Where to stay in Lisbon for a long term stay

Cais do Sodré is one of Lisbon’s most exciting and fast-changing neighborhoods. It used to be known for its connection to the city’s maritime trade and is still a ferry terminal linking Lisbon to Cacilhas. In the past, it had a rough reputation and was even considered a red-light district. But today, it’s a trendy area by the water, full of energy. With good access to public transport, it’s a great spot to explore the city from.

This neighborhood is now famous for Pink Street and the popular Time Out Market. It’s also one of the best places in Lisbon for food and nightlife. You’ll find amazing seafood, cozy cafes, and lively bars that often spill out onto the street, especially on weekends. The atmosphere is fun, with something always going on. Plus, if you’re working remotely, there are also plenty of coworking spaces and coffee shops to set up for the day.

Still, Cais do Sodré isn’t the quietest place. Since it’s known for parties and nightlife, it can get pretty loud at night. There are also fewer hotels in the area, and it’s probably not the best choice for families with small kids.

Main attractions in Cais do Sodré

• Ribeira das Naus
• Cais das Colunas
• Mercado da Ribeira
• The Pink Street

Choose to stay here if:

• You are on a workcation
• You are a foodie
• You don’t mind the late-night noise

TYPE	ACCOMMODATION	PRICE
Luxury	Corpo Santo	From € 285 / night

Estrela

Where to stay in Lisbon on a budget

Estrela is a quiet neighborhood in Lisbon, located halfway up the hill between São Bento and Campo de Ourique. Inside this neighborhood you’ll find one of the city’s prettiest parks: Jardim da Estrela. In the past, it was home to a large British merchant community, and you can still see some of that history in the old mansions, many of which are now used as embassies.

These days, Estrela is becoming more popular, especially with people looking for a relaxed and affordable place to stay. It has a local feel, with green spaces, peaceful streets, and a slower pace of life. If you’re traveling on a budget and want something more authentic than the busy tourist areas, this could be a great choice.

That said, it’s not the best spot if you’re hoping for a lot of nightlife or easy public transport. Things are a bit quieter here, and you might need to walk or take a tram to get around.

Main attractions in Estrela

• Basílica da Estrela
• Jardim da Estrela
• Tram 28
• Museu da Marioneta

Choose to stay here if:

• You are on a budget
• You are looking for a local experience
• You are okay with being farther from the main sights
• You are looking for the best area to live as an expat

TYPE	ACCOMMODATION	PRICE
Luxury	The Felix 10	From € 218 / night
Mid-range	Jardim da Lapa by Shiadu	From € 179 / night
Budget	Lisbon City Villa	From € 109 / night

FAQ and Tips

Which is the best area of Lisbon to stay in?

If you’re visiting Lisbon for the first time and only staying for a few nights, Baixa and Chiado are the best options. These central neighborhoods are located between Bairro Alto and Alfama, making them the perfect base for exploring the city. Blending tradition with lively squares, you’ll be at the heart of Lisbon’s costal downton.

How many days in Lisbon do you need?

Lisbon isn’t just a city full of travelers like us, it’s a city that truly lives and breathes! You can easily spend several days here without getting bored. But if you’re planning to visit other cities, you’ll want to decide how many days to stay in Lisbon. I’d recommend 3 days (maybe 4). Make sure to try as many pastéis de nata as you can and plan a day trip to Sintra!

What area is the center of Lisbon?

The historical center of Lisbon includes Baixa, Chiado, Bairro Alto, and Alfama. Baixa is considered the centre of the city, located at the bottom of Lisbon’s famous seven hills. But in my opnion, Chiado is also as central as it can get.