Where to Stay in Lisbon: Best Neighbourhoods & Hotels

Planning a trip to Lisbon and wondering where to base yourself? This guide covers our top picks for neighbourhoods and hotels across the city, based on our own time spent there.

By: Paul Healy | Last Updated: February 19, 2026

Lisbon is a wonderfully layered city.

You can turn a corner and find yourself on a hilltop viewpoint watching the light shift over the Tagus, or duck into a tiny bar for a glass of wine that costs next to nothing.

Some neighbourhoods are all crumbling azulejo tiles and laundry-strung alleyways; others are slick and modern with a buzzing food scene.

And wherever you stay, you’re rarely far from the major sights.

We’ve visited Lisbon four or five times over the years, and this guide draws entirely on our personal experience.

We’ve also chosen to feature hotels only — holiday rentals have had a real impact on housing for locals in Lisbon, and it’s something we’re conscious of when putting these guides together.

Table of Contents show

Quick Recommendations

Best for First-Time Visitors: Baixa / Chiado
Best for Nightlife & Creative Vibes: Cais do Sodré / Santos
Best for History & Atmosphere: Alfama
Best for Boutique Cool & Local Dining: Príncipe Real
Best for a Quieter, Residential Feel: Belém

Map: Lisbon Accommodation

All the hotels in this guide are plotted on the map below, organised by neighbourhood. It’s a good way to get a feel for how the areas relate to each other before you decide where to base yourself.

Click on the top right corner to open our map in your Google Maps app. Click the star next to the title to save it to your Google account.

Where to Stay in Lisbon

1. Baixa & Chiado (Best for First-Time Visitors)

If it’s your first time in Lisbon and you want somewhere central and walkable, Baixa and Chiado are the obvious choices.

Baixa is the flat, grid-like downtown rebuilt after the 1755 earthquake. Chiado climbs the hill to the west with bookshops, literary cafés, and designer boutiques.

You’ll be within easy reach of the iconic Tram 28, the Elevador de Santa Justa, and Praça do Comércio.

The downside is that it’s the most touristy part of Lisbon, and prices for food and drink tend to reflect that. It also gets very busy in summer.

But as a base to understand the city before venturing further out, it’s genuinely hard to beat.

Our Baixa & Chiado Hotel Picks

Bairro Alto Hotel (€€€€€) — One of Lisbon’s finest five-star addresses, perched between Chiado and Bairro Alto with stunning rooftop views over the city and the river. The design is refined and very Portuguese; the restaurant is excellent.
Alecrim ao Chiado (€€€) — A beautifully restored 18th-century guest house in the heart of Chiado with just 13 rooms, each decorated like a private home. Breakfast is excellent.
Hotel do Chiado (€€€) — Right in the heart of Chiado, this is a reliable mid-range option with well-designed rooms and a rooftop terrace that you’ll want to spend time on.
Home Lisbon Hostel (€) — A brilliant budget option that feels more like staying with friends than staying in a hostel. Family-run, warm, and social — great for solo travellers.

2. Alfama (Best for History & Atmosphere)

Alfama is Lisbon’s oldest neighbourhood and arguably its most atmospheric.

It survived the 1755 earthquake largely intact, which is why the streets are still a medieval labyrinth of steep alleys, tiled facades, and hidden squares.

This is where fado was born, and you can still hear it drifting out of tiny restaurants in the evenings.

This is our favourite part of the city and where we usually stay.

It can feel genuinely removed from tourist Lisbon — locals still live here, and elderly residents sit on doorsteps watching the world go by.

The main downside is the hills — the streets are steep and cobblestoned, so if that’s a concern, it’s worth bearing in mind before booking. It can also be noisy on weekend nights when the fado bars fill up.

But if you want to experience something real and irreplaceable, Alfama delivers.

Our Alfama Hotel Picks

Memmo Alfama (€€€€) — A sleek boutique hotel tucked into the hillside with a terrace pool and views that genuinely take your breath away.
Santiago de Alfama (€€€€) — Set inside a restored 15th-century palace, this boutique hotel does a brilliant job of blending old and new. The rooftop bar has extraordinary views over the city.
Alfama Patio Apartment (€) — A long-standing favourite in the budget category. The rooftop terrace with river views is a highlight, and the social atmosphere makes it easy to meet other travellers.
Casa do Castelo (€€) — A charming guesthouse near the castle with individually decorated rooms and the kind of personal service you just can’t get from a chain hotel.

3. Príncipe Real (Best for Boutique Cool & Local Dining)

Príncipe Real sits just above Bairro Alto and has quietly become one of Lisbon’s most desirable neighbourhoods.

It’s leafy, residential, and a little bit slower-paced than the areas around it — the kind of place where weekend mornings feel genuinely relaxed.

The neighbourhood is known for antique shops, concept stores, and some of the best independent restaurants in the city.

There’s a lovely organic farmers’ market on Saturdays in the Jardim do Príncipe Real.

It’s also very close to the Museu Nacional de Arte Antiga and a short walk from Chiado.

It’s a more grown-up, low-key alternative to the busier parts of town. Prices are a little higher, and it’s not the place to come if you want to be in the thick of the tourist action.

But if you want a neighbourhood where you can genuinely feel like a local for a few days, this is it.

Our Príncipe Real Hotel Picks

Casa Balthazar (€€€€) — A small, beautifully restored townhouse hotel with just 17 rooms. Elegant without being stuffy, and the rooftop pool is a lovely bonus.
The Lumiares Hotel & Spa (€€€€) — A lovely aparthotel concept with spacious suites in a converted palace. If you want more space and some self-catering flexibility, this is one of the best options in the neighbourhood.
Casa do Jasmim by Shiadu (€€€) — A hidden gem tucked into the quieter streets of Príncipe Real. The homemade breakfast — made daily with produce from their own organic farm — is exceptional.

4. Cais Do Sodré & Santos (Best for Nightlife & Creative Vibes)

Cais do Sodré was once a rough area around the ferry terminal and not somewhere you’d linger after dark. These days it’s been completely transformed, and the Time Out Market — one of the best food halls in Europe — draws crowds from morning to midnight.

Pink Street (Rua Nova do Carvalho) has become famous for its bar scene — literally painted pink, it’s lined with clubs and bars that stay busy well into the early hours.

It’s buzzy, a bit chaotic, and great fun if nightlife is on your agenda.

Neighbouring Santos has a cooler, more creative edge — independent galleries, design shops, and a cluster of restaurants that have drawn Lisbon’s foodie crowd.

If you’re a light sleeper, choose your hotel carefully — Pink Street is genuinely loud at weekends, and the noise carries.

Our Cais Do Sodré & Santos Hotel Picks

Pensão Amor (€€) — An utterly unique place to stay, built above the famous Pensão Amor bar. Decorated with an eccentric, slightly risqué artistic aesthetic — it’s not for everyone, but if the vibe speaks to you, you’ll love it.
CAIS Urban Lodge (€€€) — A design-led aparthotel in a restored 18th-century Pombaline building, right between Cais do Sodré and Chiado. Suites, studios and apartments that sleep up to six, with artful interiors.
JAM Lisbon (€€€) — A carbon-neutral warehouse conversion on the riverbank in Santos, designed with radical sustainability credentials and genuine style. The rooftop pool and bar with Tagus views are seriously good.

5. Belém (Best for Monuments, Museums & the Riverside)

Belém sits about 6km west of the city centre along the Tagus, and it’s unlike anywhere else in Lisbon.

This is where the great Age of Discovery expeditions departed from, and the neighbourhood still carries that sense of grand historical weight — the Torre de Belém, the Jerónimos Monastery, and the Monument to the Discoveries are all within a short walk of each other.

It’s also a genuinely lovely place to spend time — the riverside gardens are beautifully kept, the MAAT and Berardo museums make it a great destination for contemporary art.

Most importantly, the famous Pastéis de Belém bakery does the best pastéis de nata we tried in Lisbon.

The trade-off is location. Belém is a little removed from central Lisbon — you’re looking at a 20-minute tram or 15-minute train ride into the city.

For some people, that’s a deal-breaker; for others, it’s a relief to come back to somewhere quieter at the end of the day.

Our BeléM Hotel Picks

Palácio do Governador (€€€€€) — A stunning five-star hotel inside a restored 16th-century fortress just steps from the Torre de Belém. The rooms are elegant and restrained and the garden is gorgeous.
Altis Belém Hotel & Spa (€€€€) — A sleek modern hotel right on the riverfront with spectacular Tagus views from many of the rooms. The spa and infinity pool make it feel like a proper retreat, and the location for the main sights is unbeatable.
Jerónimos 8 (€€€) — A well-regarded boutique hotel a short walk from the monastery it’s named after. Comfortable, stylish, and very well positioned — a solid mid-range choice if you want to be based in Belém without spending five-star money.