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Where to Stay in Lisbon – Best Areas for Budget Travellers, Families & Couples

If you’re wondering where to stay in Lisbon for the perfect city getaway, worry not, I have you covered! 

I had the pleasure of visiting the Portuguese capital twice, and staying in different parts of the city each time. Every neighbourhood in Lisbon has a distinctive feel, and is best suited for a certain type of traveller.

The best area to stay in Lisbon will ultimately depend on you and what you’re looking for from your Lisbon trip.

Whether you’re a group of friends looking for a great night out, or a couple looking for a romantic getaway, Lisbon, and this guide, have something for you.

In this Lisbon accommodation guide I listed all the best neighbourhoods to stay in Lisbon, outlining what type of traveller they’re best suited for, as well as including some accommodation options for every budget. 

So without further ado, let’s dive in and discover where to stay in Lisbon!

Belem Tower in Lisbon, Portugal

Belem Tower in Lisbon, Portugal

Where to stay in Lisbon at a glance

Every neighbourhood in Lisbon is different, and perfect for different types of travellers. In this post you will find suggestions for places to stay in each area, but I wanted to include an overview of each area to start with.

Alfama – The oldest neighbourhood in Lisbon, with picturesque narrow cobbled streets and epic viewpoints, perfect for sightseeing.

Arroios – A multicultural area with trendy and artistic places to discover.

Bairro Alto – Home to cool bars and restaurants, it’s a vibrant and lively neighbourhood, perfect for young travellers and party goers.

Baixa – Very central, close to many attractions, home to many hostels and perfect for budget travellers.

Belém – Just outside Lisbon, home to the famous Belém Tower and Geronimos Monastery, has a more relaxed and peaceful vibe, perfect for families.

Chiado – An artistic neighbourhood with lots of affordable accommodation options.

Santo Antonio – Here you’ll find many high-end designer stores, 5-star hotels and beautiful parks, perfect for a luxurious stay.

Principe Real – Fairly central location close to botanical gardens, delicious local eateries and unique stores, perfect for first time visitors to Lisbon.

Cais to Sodré – A riverside neighbourhood which combines nightlife and sightseeing.

The famous tram 28 making its way around Alfama in Lisbon

The famous tram 28 making its way around Alfama in Lisbon

Best Areas to Stay in Lisbon

As the capital of Portugal, Lisbon offers a glimpse into the country’s seafaring past, unique cultures, and tasty cuisines. Consider staying in Alfama, Baixa, or Chiado to easily explore on foot or set sail on a sunset cruise.

Best Area to Stay in Lisbon for Sightseeing: Alfama

The neighbourhood of Alfama is the oldest in Lisbon and stretches from the São Jorge Castle to the Tagus River. If, like me, you only have two days to explore Lisbon, Alfama is the perfect place to stay.

You will love walking through the cobbled streets lined with white houses, taking in the gorgeous city views from its many “miradouros”. It’s also within easy walking distance of central Lisbon and many other attractions.

However, it is essential to note that the narrow cobbled lanes make this neighbourhood near impossible to drive in when renting a car.

Alfama is especially famous for:

  • Ancient houses in the oldest neighbourhood of Lisbon
  • 12th-century cathedral of Saint Mary Major
  • São Vicente de Fora Church
Walking along the narrow streets of Alfama neighbourhood in Lisbon

Walking along the narrow streets of Alfama neighbourhood in Lisbon

Enjoying the sunset over Lisbon from Miradouro da Senhora do Monte

Enjoying the sunset over Lisbon from Miradouro da Senhora do Monte

Here are some great places to stay in Alfama for every budget.

Budget: This is Lisbon – You’ll love the vibrant energy and rooftop terrace at this hostel in Lisbon’s old town. While we used the communal kitchen to save money by cooking our meals, you won’t go hungry as incredible restaurants and bars are within walking distance.

Click here to book your stay at This is Lisbon!

Mid-range: Hotel Convento do Salvador – Set inside a former convent, the hotel offers a unique Lisbon experience with modern amenities. Located alongside the famous Tram 28, this location will transport you back in time. It offers panoramic views of the city from the rooms, which are beautifully decorated with contemporary art.

Check prices and availability at Hotel Convento do Salvador! 

Luxury: São Vicente Alfama Hotel – This Trius Hotel offers you a serene stay in the Alfama neighbourhood. The location is hard to beat, with incredible views and sights within walking distance. The terrace features azulejo tiles, similar to those in the nearby São Vicente de Fora Church.

Book your stay at São Vicente Alfama Hotel here!

The view from the rooftop of This Is Lisbon hostel

The view from the rooftop of This Is Lisbon hostel

The Coolest Neighbourhood in Lisbon: Arroios

Arroios was voted the coolest neighbourhood in 2019 by Time Out for its multiculturalism. It is a modern mix of many nationalities all living cohesively in Lisbon’s centre.

Walking is encouraged, with an open-air exhibition at Mercado de Culturas.

You can admire the colourful basketball court painted by urban artist Akacorleone at Braancamp Freire garden, as well as the oldest library in Lisbon. 

Arroios is the place to be if you want to see:

  • Contemporary art galleries
  • Fonte Luminosa park
  • Nightlife at Casa Independente
Castelo de Sao Jorge in Lisbon, Portugal

Castelo de Sao Jorge in Lisbon, Portugal

I have listed below some great places to stay in Arroios for every budget.

Budget: Exe Saldanha – This three-star hotel is excellently located in the trendy neighbourhood of Arroios. It delivers a high standard of accommodation while only asking a fraction of the price.

See prices and availability at Exe Saldanha here!

Mid-range: Dom João Lisboa – You’ll find this quiet hotel in Arroios to be a welcomed escape after a day of sightseeing. The small balcony attached to your room overlooks Jose Estevao road, which is home to street art and a cute book store.

Click here to book your stay at Dom João Lisboa!

Luxury: DoubleTree by Hilton Fontana Park – Settle in for a luxurious stay at this four-star hotel in the heart of Lisbon. The rooms feature en-suite bathrooms with a contemporary white, black, and grey colour palette. Unwind in the peaceful interior garden featuring a waterfall or the excellent on-site Mediterranean restaurant.

Book your stay at DoubleTree by Hilton Fontana Park here!

The view over Lisbon and the river from Miradouro de Santa Luzia

The view over Lisbon and the river from Miradouro de Santa Luzia

Where to Stay in Lisbon for Nightlife: Bairro Alto

One of Lisbon’s most vibrant nightlife spots, Bairro Alto offers affordable places to stay with views over the city towards the Tagus River. The narrow streets of Bairro Alto are full of local bars and restaurants.

Staying here means you can enjoy a wild night out in Lisbon, and then not have to worry about a long journey back to your accommodation. While it can get a bit noisy at night, it’s the place to be if you’re looking for a party getaway.

Choose your accommodation carefully, as the steep hills and narrow streets can make navigating to your hotel by car challenging.

Stay in Bairro Alto if you want to see:

  • Lively nightlife with numerous bars
  • Bica Funicular
  • São Roque Church
Walking next to the famous Elevador da Bica in Lisbon, Portugal

Walking next to the famous Elevador da Bica in Lisbon, Portugal

Here are some of the most accommodation options in Barrio Alto for every budget.

Budget: Lookout Lisbon Hostel – If you are looking for a fun place to stay with free walking tours and pub crawls, this is the hostel for you. It is situated on the first floor with rooms boasting views of São Jorge Castle. You can make use of the shared kitchen or hang out in the common lounge to mingle with fellow travellers.

Click here to book your stay at Lookout Lisbon Hostel!

Mid-range: Le Consulat – This four-star hotel is reasonably priced in an excellent location with rooms overlooking the quaint Luís de Camões square. The friendly, attentive staff and beautiful interior will ensure your stay is second to none.

Check out prices and availability at Le Consulat here!

Luxury: Bairro Alto Hotel – Set in a gorgeous 18th-century building, this hotel offers you a luxurious experience in the heart of Lisbon. Dine in the restaurant with a menu created by an award-winning chef, or stay in with room service. Step outside onto Camoes Square and explore the city on foot. Nearby attractions include Bica Funicular, National Museum of Contemporary Art, and Ribeira Market.

See prices, availability and reviews by other travellers at Bairro Alto Hotel here!

Walking along Rua Augusta in Lisbon

Walking along Rua Augusta in Lisbon

Best Place to Stay in Lisbon on a Budget: Baixa

Baixa was completely rebuilt in a neoclassical style following the devastating earthquake of 1755. This grand and historic neighbourhood is in the centre of Lisbon.

It is a favourite amongst budget travellers for its affordable hostels. It’s also in close proximity to Lisbon’s top attractions and the bustling nightlife in neighbouring Bairro Alto.

You’ll be close to all the action, without actually being inside the chaos of it all. Especially if you have a 48 hour Lisbon Card, you’ll love this area for its easy access to sights and public transport.

Baixa is especially famous for:

  • Santa Justa cast-iron elevator built in 1902
  • Some of the oldest cafes and restaurants in Lisbon
  • Viewpoint with a fountain at Miradouro de São Pedro de Alcântara
The view over Lisbon from Miradouro de Sao Pedro de Alcantara

The view over Lisbon from Miradouro de Sao Pedro de Alcantara in Baixa

Discover below the best places to stay in Baixa for every budget!

Budget: Lisbon Destination Hostel – This fun hostel is located in the Rossio Train Station. With a communal garden and a lounge covered in plants, you will feel comfortable connecting with other travellers in this space. It’s perfect also if you plan on doing a Sintra or Evora day trip, as you’ll already be in the train station to get there!

Book your stay at Lisbon Destination Hostel here!

Mid-range: Lisbon Art Stay Apartments – If you are looking for a characterful and colourful place to stay in Baixa, consider this group of apartments. With large murals, painted ceilings, and a sunny terrace, you will feel the creative energy flowing in this hip boutique hotel.

Click here to book your stay at Lisbon Art Stay Apartments!

Luxury: Browns Central Hotel – Soak in a marble bath in the Master’s Suite in this well-located four-star hotel. A Marshall Stanmore sound system and vinyl player will help transport you back in time. After a day of exploring, you can unwind with a drink from the stylish on-site bar or the convenient Smeg mini bar in your room.

Check out prices and availability at Browns Central Hotel!

The common area at Lisbon Destination Hostel

The common area at Lisbon Destination Hostel

A fun Lisbon location for Families: Belém

This neighbourhood to the west of Lisbon is home to the traditional Pastel de Nata and provides incredible views of the Tagus River, as well as some of the most iconic sights in Lisbon.

Here you can explore the 16th-century ​​Jerónimos Monastery and Tower of Belém, alongside other sights within walking distance of your accommodation.

It’s the perfect place to stay for families as it’s quieter and more laid back than central Lisbon, while still being close to famous attractions. Central Lisbon is only a 15-minute drive away.

Consider visiting Belém with your family in mid-May for the Iberian Mask Festival to appreciate the handicrafts and witness folk dances from around the peninsula. Children are sure to love the event!

Travellers stay in Belem to see:

  • Monastery of Jeronimos
  • Tower of Belém
  • Pastéis de Belém
Admiring Belem Tower in Lisbon

Admiring Belem Tower in Lisbon

I listed some wonderful places to stay in Belem for every budget.

Budget: Terrace Lisbon Hostel – This hostel offers you access to the historical sights of Belém while providing you with a comfortable place to kick back and relax. The small outdoor garden is a friendly place to cross paths with other travellers, while the shared kitchen lets you save by making your meals.

Book your stay at Terrace Lisbon Hostel here!

Mid-range: Geronimos Guest House – Settle into this guest house with a garden and hot tub conveniently located close to the Jeronimos Monastery. The suite offers a comfortable space, allowing you to feel at home. This is thanks to the terrace, air-conditioning, soft linen, and private bathroom.

Check out prices and availability at Geronimos Guest House here!

Luxury: Palacio do Governador – Within walking distance of the Tower of Belem, this five-star hotel from Nau Hotels & Resorts is breathtakingly beautiful. You’ll be treated like royalty when you book a spa treatment at the wellness centre. A refreshing indoor and outdoor pool help to make this one of the most lavish accommodations in the area.

Click here to book your stay at Palacio do Governador!

The beautiful courtyard of Geronimos Monastery in Lisbon

The beautiful courtyard of Geronimos Monastery in Lisbon

Lisbon’s Artistic Neighbourhood: Chiado

This neighbourhood in the heart of Lisbon is home to high-end boutique shops in Rua Garrett avenue, as well as art galleries and the National Theatre of São Carlos.

If you are travelling on a tight budget, Chiado has affordable apartments and places to stay. At the same time, the blue and green metro lines make it easy to head off on day trips from Lisbon.

Chiado is the perfect place to stay if you want easy access to:

  • National Museum of Contemporary Art and several notable galleries
  • Must-visit Café A Brasileira in Largo do Chiado
  • Archeological Museum and the Filigree Museum
The famous Santa Just lift in Lisbon

The famous Santa Just lift in Lisbon

Why not stay at one of these lovely accommodation options for every budget while in Chiado?

Budget: Boho Guesthouse These rooms and apartments offer a perfect budget accommodation in Lisbon city centre. You won’t sacrifice comfort or location when booking at the Boho Guesthouse. Plus, the communal kitchen means you can save by preparing your own food using ingredients sold at the nearby market.

Click here to book your stay at Boho Guesthouse!

Mid-range: Madalena by The Beautique Hotels – In the heart of Lisbon, this stylish hotel strikes a balance between boutique and beauty. It features a bar and restaurant, as well as room service if you are hoping to stay in bed. Each room has air-conditioning, a private bathroom, and a small patio with city views.

 See prices and availability at Madalena by The Beautique Hotels here!

Luxury: Corpo Santo Lisbon Historical Hotel – This five-star hotel features part of the 14th-century Fernandina Wall and is surrounded by 17th-century houses. The gorgeous rooms have a relaxing atmosphere, and many of Lisbon’s top attractions are on your doorstep.

Book your stay at Corpo Santo Lisbon Historical Hotel here!

Rossio Square in Lisbon, Portugal

Rossio Square in Lisbon, Portugal

Stay Near Lisbon’s Luxurious Avenue: Santo António

This district in the centre of Lisbon is positioned around a prominent roundabout and is home to many high-end designer stores and five-star hotels.

The wide avenue running through the centre is bordered by leafy parks and is a relaxing area to explore, despite being more business orientated.

If you want to treat yourself to a luxurious stay while in Lisbon, this is the neighbourhood to stay to ensure you do so. Santo António is especially famous for:

  • Avenue of Liberty
  • Busking bands in the evening
  • Botanical gardens
Arco da Rua Augusta in Lisbon, Portugal

Arco da Rua Augusta in Lisbon, Portugal

Here are some of the most magical places to stay in Santo António for every budget.

Budget: Hotel Botanico – This three-star hotel is neat and is an ideal choice for families seeking an affordable place to stay in Lisbon. The staff are incredibly helpful in making your stay a pleasant one, and the location is hard to beat. You’ll be able to step outside the front door and into leafy outdoor spaces.

Click here to book your stay at Hotel Botanico!

Mid-range: Hotel Lisboa Plaza – Relax at this four-star family-run hotel. It sits in a central location and is perfect for tourists. It has an on-site cafe, bar, and chic terrace – all contributing to the relaxing atmosphere. You can also borrow a book from the library to read in front of the fire or make the most of the well-equipped fitness centre.

Book your stay at Hotel Lisboa Plaza here!

Luxury: Portobay Liberdade – This boutique hotel is among the best accommodations in San António. It boasts an incredible spa and wellness centre. You can also soak up the sun while enjoying the spacious indoor swimming pool. The private parking lot lets you conveniently park your car during your stay in Lisbon. Head out the front door onto the cobbled streets and you’ll easily reach Avenida da Liberdade.

Check out prices and availability at Portobay Liberdade here!

A beautiful sunset over Lisbon

A beautiful sunset over Lisbon

Smart Location to Stay in Lisbon: Principe Real

This leafy suburb is close to many of the top sights in Lisbon and has numerous parks offering shaded spots to relax.

Head out into the beautiful botanical gardens, or peruse one of the many art galleries. While this neighbourhood is small in size, it packs a punch.

Here you’ll find local designers and premiere fashion stores only avenues away from timeless antique shops. Stay in Principe Real if you want easy access to:

  • Beautiful botanical gardens
  • Coffee & a chocolate from Bettina & Niccolo
  • Dramatic drag shows at Finalmente Club
Discovering beautiful corners and houses with azulejos facades in Alfama, Lisbon

Discovering beautiful corners and houses with azulejos facades in Alfama, Lisbon

I listed below some great places to stay in Principe Real for every budget.

Budget: Safira – This spacious guesthouse in the centre of Lisbon is a five-minute walk from the tree-lined boulevard and shops on Liberty Avenue. The rooms are spread across four floors, each with a private bathroom. In the evening, leave the tranquil guesthouse to enjoy a petiscos and a cerveja at one of the nearby bars.

 Check out prices and availability at Safira here!

Mid-range: Casa de Sao Mamede Hotel – This small hotel in a 17th-century building is the ideal place to rest your head. The charming rooms are air-conditioned and have en suite bathrooms. This three-star hotel offers an excellent location and has lovely restaurants nearby.

Book your stay at Casa de Sao Mamede Hotel here!

Luxury: Memmo Príncipe Real – This five-star hotel is the perfect place to rest after a day of exploring Lisbon. The trendy location offers a terrace with views over the city and an outdoor pool. The hotel invites you to indulge in Portuguese and international cuisines at its on-site restaurant. Alternatively, unwind in your air-conditioned room in nothing but your bathrobe and slippers and enjoy room service.

 Click here to see prices and availability at Memmo Príncipe Real!

Praca do Comercio in Lisbon, Portugal

Praca do Comercio in Lisbon, Portugal

Best Location to Stay in Lisbon Along the River: Cais do Sodré

This riverside neighbourhood was transformed from a neglected dock and red-light district into a trendy and colourful place to stay. The nightlife here is interesting, with bachelor and hen parties often taken to the streets.

This neighbourhood is a great combination for those searching for fun nightlife, without compromising on the tourist sightseeing element of their Lisbon trip.

If you are looking for a late-night in Lisbon you’ll find a great mix of bars between Bairro Alto and Cais do Sodré.

Some of the most famous attractions in Cais do Sodré include:

  • St Paul’s Church
  • Pink Street
  • Time Out Market for food
The famous Pink Street in Lisbon

The famous Pink Street in Lisbon

Here are some of the best places to stay in Cais do Sodré for every budget!

Budget: Sunset Destination Hostel – If you are looking for simple rooms or affordable dorms, this well-located hostel may be for you. It has a terrace overlooking the River Tagus with a basic bar and a small swimming pool to cool off. While the communal kitchen does not feature a stove or oven, you won’t go hungry. There is also an in-house chef and plenty of restaurants nearby.

Book your stay at Sunset Destination Hostel here!

Mid-range: 262 Boutique Hotel – You’ll love the wooden floors and ceilings in this excellently located boutique hotel. Located in a historic building, it is worth noting there is no lift to the second and third floors (you’ll be used to stairs at this point). Enjoy breakfast, lunch, or dinner at the on-site restaurant, or visit the nearby Timeout Market for a quick meal.

Click here to book your stay at 262 Boutique Hotel!

Luxury: Lx Boutique Hotel – Located in the meeting point of Chiado, Baixa, and Cais do Sodré is this four-star boutique hotel. It is the perfect place to unwind and is home to Confraria, one of the top restaurants in Lisbon. The rooftop suite is spacious and offers stunning views over the River Targus from a private balcony.

Check out prices and availability at Lx Boutique Hotel!

Time Out Market in Lisbon

Time Out Market in Lisbon

Final thoughts on the best areas to stay in Lisbon

There you have it, the ultimate guide to the best neighbourhoods and areas to stay in Lisbon! Have you been to Lisbon before? How did you find it? Let me know in the comments below!

During my two weeks in Portugal I visited Lisbon twice, and had the pleasure of staying in Baixa and Alfama. The two neighbourhoods were distinctly different, and I loved staying in both for different reasons.

Where you stay during a trip can sometimes make or break it, and Lisbon is no different. That’s why I wanted to outline exactly where to stay in Lisbon for every travel mood and budget.

I hope you find this article useful in deciding where to stay in Lisbon!

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Photo collage of a blonde girl walking alongside Elevador da Bica and the same girl overlooking the sunset over Lisbon with text overlay saying "where to stay in Lisbon"

Photo collage of Pink Street in Lisbon, the cloisters of Jeronimos monastery, Belem Tower and Elevador da Bica with text overlay saying "9 best areas to stay in Lisbon"