Where to Stay in Lisbon: Best Areas and Accommodations
Are you planning a trip to the vibrant capital of Portugal? Have you already jotted down all the must-see attractions, the places to savor bacalhau à brás or pastéis de Belém, and the charming viewpoints to capture breathtaking views? Perfect! But now comes the important question: where to sleep in Lisbon? In this guide, we will explore the best neighborhoods to stay in Lisbon and suggest a selection of hotels, hostels, and apartments that are good, beautiful, and affordable 😉
Indeed, Lisbon has a hotel offering for every taste and budget: from economical hostels in the heart of the city to boutique hotels with views of the Tagus River, and apartments with kitchens ideal for family travel. The challenge will be selecting just one!
How much does it cost to sleep in Lisbon? It all depends on your preferences and budget: there are luxury hotels charging over €200 per night, but you can also find dormitory beds in hostels for around €20. If you are looking for a mid-range option, you can expect to pay about €50-80 for a double room with a private bathroom in a central location.
As you can see, Lisbon can be as economical (or luxurious) as you want. In the following sections, we will highlight the best areas to sleep and provide our personal recommendations.
Before diving into your hotel search, it's essential to understand how Lisbon is organized. While it may seem small, it is filled with hills, neighborhoods with unique personalities, and a wealth of history at every corner. Therefore, choosing the right place to stay in Lisbon can save you from unnecessary uphill walks and help you enjoy the city much more.
The Portuguese capital spreads along the banks of the Tagus River, built on seven hills, creating a distinctive geography of steep streets, epic viewpoints, and charming trams. The most central (and flattest) area is Baixa, the true heart of Lisbon, rebuilt after the great earthquake of 1755. From there, the city unfolds into other zones with vastly different atmospheres.
Here are the main neighborhoods in Lisbon that are worth considering when looking for accommodation:
- Baixa and Chiado: central, lively, and incredibly convenient for walking or using public transport. Perfect for first-time visitors who want everything within reach.
- Alfama: the oldest and most charming neighborhood in Lisbon, featuring narrow streets, fado music, and views of the Tagus. Ideal for those who appreciate a bohemian vibe and don’t mind some hills.
- Mouraria: multicultural, authentic, and with a local atmosphere that’s very appealing. Located next to Alfama but less touristy.
- Bairro Alto: the party district. By day it appears calm, but at night it fills with bars and vibrant life. If you're looking for nightlife, this is your place.
- Belém: slightly further from the center, surrounded by history and monuments. Ideal if you’ve visited before and prefer a more relaxed environment.
With that said, let’s delve into the best neighborhoods and areas to stay in Lisbon, with accommodation options for every budget.
La Baixa: Our Favorite Area to Stay in Lisbon
If you’re seeking a central location that is well-connected and charming, La Baixa should be your choice. This is the historical heart of the city, an area reconstructed after the great earthquake of 1755, featuring wide streets, monumental squares, and many of Lisbon’s most important tourist attractions within walking distance.
Here, you will be just steps away from Praça do Comércio, the Santa Justa Elevator, Rua Augusta, and countless cafes, shops, and restaurants. You’ll have everything at your fingertips, meaning you can explore without needing to hop on a tram (which is always a plus!).
La Baixa is perfect for first-time visitors to Lisbon and those returning who want a comfortable base. Additionally, there are options for every budget: from affordable hostels with a friendly backpacker atmosphere (around €20 for a dorm bed) to boutique hotels with views of the Tagus or beautiful central squares.
Recommended hotels in La Baixa:
Chiado: A Blend of Tradition and Modernity
Another highly recommended area to stay in Lisbon is Chiado, one of our favorite neighborhoods for its perfect blend of tradition, culture, and modernity. It sits between the lively Bairro Alto and the central La Baixa, making it an incredibly convenient choice for exploring the city on foot.
Chiado is the kind of place where you can spend hours wandering: charming shop windows, century-old bookstores, designer boutiques, vintage cafes, and terraces ideal for people-watching. It has that bohemian charm that captivates.
If you’re fortunate enough to find accommodation here, don’t hesitate: it’s a quiet area at night, centrally located, and full of daytime vibrancy. Plus, it’s well-connected by public transport, including trams and metro.
→ Fun fact: Did you know this was one of the areas most affected by the devastating fire of 1988? The blaze destroyed much of the neighborhood, but thanks to a reconstruction project led by architect Álvaro Siza Vieira, it now looks more beautiful than ever.
Recommended hotels in Chiado:
Bairro Alto: The Heart of Lisbon's Nightlife
If you’re all about nightlife, good vibes, and soulful bars, note this down: Bairro Alto is your place. This neighborhood is the rebellious spirit of Lisbon, where there are always people in the streets, music pouring from every corner, and plans stretching into the early morning hours.
During the day, it may seem like a calm and slightly rundown area, with buildings covered in graffiti and cobblestone streets. But when night falls, it completely transforms: the bars open their doors, fado houses fill up, and the streets overflow with life. Expect cheap drinks, laughter, urban art, and a carefree atmosphere that will capture your heart.
However, an important note: if you’re looking for a quiet accommodation for a good night’s sleep, this is not your best option. Bairro Alto is all about noise, fun, and celebration. But if you want to be part of the more authentic and carefree side of Lisbon, then this neighborhood is perfect for you.
→ Tip: Many accommodations offer rooms with good sound insulation. If you want to stay in the area but sleep peacefully, make sure to check the reviews of the lodging.
Recommended hotels in Bairro Alto:
Alfama: The Soul of Lisbon
Alfama is synonymous with Lisbon's essence: narrow cobblestoned streets, laundry hanging in the sun, grandmas in windows, and guitars strumming in local taverns. This is one of the oldest and most characterful neighborhoods in Lisbon, and it’s also the birthplace of fado, Portugal's most traditional (and melancholic) music.
It's a neighborhood with a soul, steeped in history at every corner and with a unique charm that makes it stand out. A few years ago, it was considered a humble and somewhat neglected area, but today it has become one of the most sought-after neighborhoods, and it is undoubtedly one of the best places to stay in Lisbon.
The best part? Waking up to have the Miradouro de Santa Lucía, the Lisbon Cathedral, or the iconic Tram 28 just a short stroll away. Perfect if you seek a local and tranquil experience, away from the tourist hustle (although it is becoming more popular).
The only downside is that Alfama is filled with hills, stairs, and steep streets, which can be a workout, so keep that in mind!
Recommended hotels in Alfama:
Hostels: Affordable Accommodation in Lisbon
Are you traveling solo and looking to save some money by sleeping in a shared room? Are you part of a group of friends eager for a good atmosphere? Or do you simply enjoy the vibe of hostels, meeting new people and sharing travel experiences? Lisbon is a fantastic city for that, and fortunately, there are plenty of well-located hostels with good facilities and affordable prices.
Many hostels offer complimentary breakfasts, activities for guests, and fantastic common areas equipped with sofas, cold beers, and a welcoming atmosphere. Here are our picks for the best hostels in Lisbon (good, beautiful, and cheap):
- Urban Garden Hostel
- Lisboa Central Hostel
- Sant Jordi Hostels Lisbon (note that this one is not as cheap)
Areas to Avoid When Staying in Lisbon
While there are many areas to stay in Lisbon, there are also a few that we do not recommend, especially if your plan is to explore on foot and have the main tourist sites nearby.
Belém and Parque das Nações, for instance, are beautiful and tranquil neighborhoods, but rather distant from the historic center. Contrary to what you might read in some blogs, we do not consider them ideal locations for accommodation, at least for a first visit to Lisbon.
They are not unsafe (not at all!), but if you're like us and enjoy walking through the city without stopping, you will appreciate having your accommodation in a more central neighborhood. From Belém or Parque das Nações, you will be quite dependent on public transport, which can take away time and flexibility.
Map of Recommended Neighborhoods to Stay in Lisbon
Here is a map showcasing the best neighborhoods to look for accommodation in Lisbon, along with the locations of the recommended hotels and hostels:
We hope this guide helps you clarify where to stay in Lisbon, highlighting the best neighborhoods and recommended areas. Our advice is straightforward: if you want to make the most of Lisbon, it's best to stay in areas like La Baixa, Chiado, Alfama, or Bairro Alto. This will make it easier for you to explore the city step by step and without stress!
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