Where to Stay in Lisbon 2025: Best Neighborhoods & Hotels

We have visited Lisbon twice, staying in two different neighborhoods in the city. Where you choose to stay can make a bigger impact on your overall experience than the hotel you choose.

On our first visit, we stayed near Marquês de Pombal, which sits outside of the historic district. We chose this location because we had a rental car for day trips and driving in the historic district can be a nightmare. But to get to the city center, it was either a very long walk or an Uber ride to get there, and it seemed to take Uber drivers an incredibly long time to get to our hotel.

On our second visit to Lisbon, we stayed in Bairro Alto and loved it. We could walk almost anywhere, it was extremely easy to get an Uber right from our hotel door, and being in the heart of the city was fantastic.

Based on these two experiences, we recommend staying in the neighborhoods of Bairro Alto, Chiado, or Baixa, and then picking a hotel in one of these neighborhoods that fits your budget.

We get into this in much more detail later in this guide.

This guide starts off with information about where to stay in Lisbon organized by location. After this section, we also list the best properties organized by cost and travel style (or skip ahead now).

Here are the best places to stay in Lisbon.

Geography 101: A Brief Overview of Lisbon

Before we get into the best hotels in Lisbon, here is a quick geography lesson. This is very important if it is your first visit to Lisbon.

Lisbon sits on the Tagus River. The majority of things to do in Lisbon are clustered together in the city center, which sits on the north bank of the Tagus River. In this relatively small area are the neighborhoods Baixa, Chiado, Alfama, Bairro Alto, Principe Real, Cais do Sodre, and Graça.

Sitting farther to the west is Belém (home to Belém Tower and the amazing Jerónimos Monastery) and Alcantara. These are great areas to visit but because of their location, it will take you longer to get to the city center. For first time visitors to Lisbon, we recommend staying at one of the more centrally located neighborhoods.

It’s also important to know that Lisbon is a hilly city. You’ll do a fair amount of hill and stair climbs as you explore Lisbon but there are funiculars (called elevators or ascensors) that can help save you some steps.

Where to Stay in Lisbon: On a Map

Here is a map of the best places to stay in Lisbon. Each color corresponds to a different neighborhood in Lisbon. The black markers indicate the top attractions in Lisbon.

Best Places to Stay in Lisbon: By Neighborhood

In this guide, budget hotels are 2-star properties, mid-range hotels are 3-star properties, upscale hotels are 4-star properties, and luxury hotels are 5-star properties.

Baixa

Prime Location in the Heart of Lisbon

Baixa is the touristy heart of Lisbon. Its central location means you can walk to many of Lisbon’s top attractions and you will stay near some of its top restaurants.

Baixa is one of the lower areas of Lisbon, so from here it is an uphill walk to most places in Lisbon. This grid of streets is bordered by the Tagus River and it sits between Chiado (to the west) and Alfama (to the east).

Top Attractions in Baixa: Praça da Comércio, Arco da Rua Augusta, Rua Augusta, Rossio Square, Rossio Train Station, Santa Justa Elevator (which takes you up to Chiado)

Pros of Staying in Baixa: This flat neighborhood, with its grid layout, is easily walkable. From Baixa, you will be within walking distance of many of Lisbon’s most famous sights. It also has a handy location next to the Rossio train station, great for traveling on to your next destination in Portugal or day tripping to Sintra or Cascais.

Cons of Staying in Baixa: Baixa is one of the lowest parts of Lisbon, so from here it will be an uphill walk to Alfama, Chiado, and Principe Real. This neighborhood is also very touristy and lacks the charm you will find in Chiado or Bairro Alto.

Praça do Comércio

Santa Justa Lift. The lower level is in Baixa. If you ride the elevator to the top, it takes you up to Chiado and some fantastic viewpoints of Lisbon.

Best Hotels in Baixa

LUXURY: Art Legacy Hotel Baixa-Chiado. This beautiful boutique hotel is located just a short walk from the Santa Justa Elevator and Rossio Square. It gets exceptional reviews for its location, facilities, WiFi, and cleanliness. Some rooms have a terrace or balcony with an exquisite view of Lisbon.

UPSCALE: Ando Living – Douradores Townhouse. If you want to stay in a luxurious apartment in the city center, this is a fantastic place to consider. It gets exceptional reviews and offers a long list of two-bedroom apartments, perfect for families and small groups of travelers. All apartments have a washing machine, balcony, and air conditioning and rooms on the higher floors have a great view of the city.

MID-RANGE: Hotel da Baixa. This brilliantly green-tiled building is located on Rua de Santa Justa, just a short walk from the Santa Justa Elevator. Rooms range in size from small double rooms to spacious, elegant suites that can accommodate a family of four. This is a gorgeous, mid-range hotel in the heart of Lisbon.

BUDGET: Home Lisbon Hotel. This hostel is located just a few minutes walk from Praça da Comércio and the Alfama neighborhood, giving it a prime location in Lisbon. It is one of the top reviewed budget properties in Lisbon, making this one of our top picks for budget travelers. Rooms range from dormitory-style rooms to private twin and double rooms.

BUDGET: Yes Lisbon Hostel. This hostel also gets wonderful reviews. It is just steps away from Arco da Rua Augusta, one of Lisbon’s most famous landmarks. There is a communal kitchen and all rooms have air conditioning.

Chiado

Charming Neighborhood with a Great Central Location

Chiado sits just to the west of Baixa. It is also centrally located, making it another prime location to stay in Lisbon. With its older buildings and winding streets, Chiado has more charm than Baixa.

This is consistently rated as one of the top locations to stay in Lisbon for first time visitors.

Top Attractions in Chiado: Carmo Convent, Largo do Carmo, Belcanto (amazing 2-star Michelin restaurant), Santa Justa Elevator (the views from the upper level are some of the best in Lisbon)

Pros of Staying in Chiado: If you want to stay in a central location, but in a neighborhood that has a little more charm than Baixa, look no further. Some hotels in this area have rooms that have jaw-dropping views of Lisbon.

Cons of Staying in Chiado: Chiado isn’t home to many of Lisbon’s top atttractions for tourists, but it is however within walking distance of many of them.

View from the top of the Santa Justa Lift

Carmo Convent

Best Hotels in Chiado

UPSCALE: Casa Balthazar. One of the perks of staying in Chiado are the views of Lisbon. Not only does this hotel get near perfect reviews but some rooms have an outdoor terrace with panoramic views of Lisbon. Rooms are spacious, there is an onsite pool, and from here it is a quick walk to the train station and many sites in Lisbon. Children are not allowed.

MID-RANGE: Lost Lisbon :: Chiado House. Tucked away in the center of Chiado is this historic house that has been converted into a hotel. It gets fantastic reviews but be aware that not all rooms have a private bathroom and children are not allowed. However, it is a good pick for travelers on a budget who want a central location in Lisbon.

BUDGET: Lost Inn Lisbon Hotel. This hostel is located on the southern end of Chiado, not far from Cais do Sodre. There are dormitory-style rooms as well as double rooms with a shared bathroom.

Bairro Alto

Best for its Nightlife and Restaurants

Bairro Alto is one of the prettiest neighborhoods we visited. Colorful, tile-covered buildings sit along winding, cobblestoned streets. Bairro Alto is fun to explore and fun to photograph.

On our first visit to Lisbon, we spent many nights in Lisbon in the Bairro Alto neighborhood. This picturesque area is home to some of the best restaurants and bars in Lisbon. If you are a foodie and want to be within walking distance of some fantastic restaurants, this is the place to stay.

On our second visit to Lisbon, we stayed in the Bairro Alto neighborhood. When choosing to stay here, we were a little concerned about the potential noise from the bars and restaurants, but that was not an issue at all, in our experience. It just may have been our hotel location, so I recommend checking the reviews for hotels you are considering, if you are a light sleeper.

Bairro Alto may not have a long list of attractions to visit (the restaurants here are the main attractions) but you can easily walk to Praça do Comércio, Time Out Market, Carmo Convent, and the Baixa and Chiado neighborhoods.

Top Attractions in Bairro Alto: Miradouro de Sao Pedro de Alcantara, Igreja de Sao Roque, Los Dos Manos (excellent Japanese Mexican fusion restaurant), O Barrigas (another great spot for dinner), Lumi Rooftop (rooftop restaurant with a great view of Lisbon), Leve Leve (tapas bar), Eleven Bar Lisboa

Pros of Staying in Bairro Alto: Many fantastic restaurants will be on your doorstep, as well as bars and nightclubs. Perfect for those who plan to party the night away in Lisbon.

Cons of Staying in Bairro Alto: A neighborhood known for its nightlife is going to be loud at night. There can be a hotel or two tucked away on a quieter street, so if you want to get a good night’s sleep, carefully check the reviews of the hotels in this neighborhood.

Miradouro do Sao Pedro de Alcantara

Praça de Luís de Camões (photo taken from the Bairro Alto Hotel)

Best Hotels in Bairro Alto

LUXURY: Bairro Alto Hotel. This is where we stayed in Bairro Alto. The Bairro Alto Hotel is a boutique hotel that is located on Praça de Luís de Camões, a picturesque square and great spot to watch Tram 28 run through the city. The service is impeccable, the rooms are well decorated and spacious, and we had no issues with noise (even in one of our rooms that overlooked the square). There is a rooftop bar and restaurant, and this is where breakfast is served, as well as lunch and dinner. We would stay here again on another visit to Lisbon.

Bairro Alto Hotel

Bairro Alto Hotel

LUXURY: Palácio Ludovice Wine Experience Hotel. This gorgeous hotel is located on Rua da Misericordia, just steps away from Miradouro de Sao Pedro de Alcantara, one of the best viewpoints in Lisbon. It’s also located within a block of one of our favorite Lisbon restaurants, Los Dos Manos. This historic hotel was once the former private residence of Joao Federico Ludovice, the architect to King Joao V. Rooms are beautifully decorated and onsite is a wine bar, spa, and restaurant.

UPSCALE: Lisbon Rentals Chiado. This property is located in Bairro Alto (even though it says Chiado in its name), sitting right on Rua da Misericordia, very close to Chiado. Take your pick from one, two, and three-bedroom apartments, all of them elegantly decorated and equipped with a kitchen and washing machine. This is a great choice for families and for groups of friends traveling through Lisbon.

MID-RANGE: Solar dos Poetas. This highly rated hotel sits on Camões Square. Some rooms have a balcony with a beautiful view overlooking the square. From this location, you are just steps away from the Bica funicular and tram 28. It’s a fantastic central location in Lisbon.

MID-RANGE: Soriano Place. Soriano Place offers a long list of spacious apartments that come equipped with a kitchen, washing machine, and air conditioning. Some rooms have a small balcony or terrace with a city view. The apartments are nothing fancy but they do tick all the boxes for families or small groups who want space, a washing machine, a great location in Lisbon, all in a place that gets wonderful reviews. It is located on the west side of Bairro Alto, removed from the noise of the nightclubs.

BUDGET: Independente Principe Real. This hostel gets excellent reviews for its location, cleanliness, and comfort. Decorated in an Art Deco style, it is one of the prettiest hostels we’ve seen. Take your pick from dormitory-style rooms or private suites with a view of the city. Onsite is a communal kitchen, laundry facility, and restaurant.

Alfama

Lisbon’s Oldest Neighborhood

Alfama is Lisbon’s oldest neighborhood. This maze of windy, hilly streets was relatively untouched by the 1755 earthquake. It is one of the top places to visit for first timers in Lisbon and home to some of Lisbon’s most famous sights.

This area is extremely touristy. It also can be one of the most difficult to get to and around. Since the streets are so windy and narrow, it’s difficult to get around by car. You’ll do a lot more walking here and it can be more challenging to hire and Uber or Bolt to get you around the city.

Top Attractions in Alfama: Lisbon Cathedral, Miradoura de Santa Luzia, Miradouro das Portas do Sol, Church of Saint Antonio, São Jorge Castle, Monastery of Sao Vicente de Fora. Tram 28 runs through Alfama.

Pros of Staying in Alfama: Within walking distance of quite a few of Lisbon’s top sights. Good, central location in Lisbon. One of the most charming neighborhoods in Lisbon, with its historic streets and buildings. You will spend a half to a full day here on a visit to Lisbon, so staying here puts you in the heart of the action.

Cons of Staying in Alfama: Hilly area, so you will be doing some hill and stair climbs, especially to get up to the castle. Touristy. Can be difficult to get to and from Alfama by car, because of the hilly, narrow streets. If you have plans to have a rental car, choose a different neighborhood (parking here is almost nonexistant).

Lisbon Cathedral

Miradouro de Santa Luzia

The view of Alfama from Miradouro das Portas do Sol

Best Hotels in Alfama

LUXURY: Santiago de Alfama – Boutique Hotel. Located on a hilltop in Alfama, this boutique hotel offers spacious rooms, some with a view of the city and the Tagus River. Onsite is a restaurant and bar.

UPSCALE: ON/SET Alfama – Lisbon Cinema Apartments. This adult only property offers several apartment types, all of which come with air conditioning, a kitchenette, a dining area, daily housekeeping, and a washing machine. It gets near perfect reviews on Booking.com.

MID-RANGE: Castle Inn Lisbon Apartments. Located inside of the castle walls, this small property offers several apartments, ranging from a studio to a one bedroom apartment with a view of the river to a two-bedroom apartment.

MID-RANGE: Alfama Apartments Services. This property is located near the waterfront. These serviced apartments come with air conditioning, a balcony, and some have a small kitchenette. Children are not allowed.

MID-RANGE: Casa da Varanda Simpatica. If you want an apartment with a gorgeous view of the Tagus River, and stay in one of Lisbon’s most charming neighborhoods, click the link above to see photos. This one-bedroom apartment can accommodate up to four guests, has a kitchen, a washing machine, and a view of the city.

Avenida da Liberdade and Marquês de Pombal

Upscale Area Just Outside of the City Center

Avenida da Liberdade is a wide, tree-lined boulevard that runs from Rossio Square (in Baixa) north to Parque Eduardo VII. This lovely street is lined with upscale shops and shopping malls. Branching off of Avenida da Liberdade are smaller, more residential streets.

This area feels quieter and much less touristy than the neighborhoods previously mentioned.

We stayed here on our visit to Lisbon. Since this neighborhood’s location sits north of the city center, it is not the most convenient location. To get to most sites, we either hired a ride share app (like Uber or Bolt) or used the metro. However, if you will have a rental car, this is the easiest area on our list to find a parking space. Some hotels here will also offer parking.

Top Attractions near Avenida da Liberdade: Parque Eduardo VII, Calouste Gulbenkian Museum, the Lisbon Winery (fantastic place to go wine tasting)

Pros of Staying in Avenida da Liberdade: This area is home to many of Lisbon’s top luxury hotels, so if you plan to stay in a 5-star hotel, this is a good place to start your hotel search. Since this area is outside of the city center, it is quieter and has more of a local feel. Great location if you will have a rental car.

Cons of Staying in Avenida da Liberdade: Farther from the main sights in Lisbon, so it will be a long walk or a ride on the metro or Uber to get to the city center.

Overlooking Marquês de Pombal (photo taken from the Four Seasons Ritz)

Best Hotels in Avenida da Liberdade

LUXURY: Four Seasons Hotel Ritz Lisbon. The Four Seasons is one of Lisbon’s most luxurious hotels. We had the pleasure of staying here during our visit to Lisbon. The service is impeccable, rooms are spacious, some with a gorgeous view of the city, and an outdoor track is located on the roof of the hotel. From this spot, you get one of the best views of Lisbon. Also onsite is CURA, a Michelin-starred restaurant, where we had our best meal, ever. For luxury travelers, this is our top pick in Lisbon.

The view from the Four Seasons Ritz

LUXURY: PortoBay Liberdade. This boutique hotel is located just off of Avenida da Liberdade. It is topped by a terrace and rooftop pool and from here you can look across the rooftops of Lisbon.

LUXURY: EPIC SANA Marques Hotel. Located next to Marquês de Pombal Square and Parque Eduardo VII, this luxurious hotel gets wonderful reviews. Onsite are multiple restaurants. The KOJI Bar and Restaurant overlooks Lisbon and serves Japanese cuisine. Rooms are elegantly decorated and some can accommodate up to four people.

UPSCALE: Hotel Hotel – Member of Design Hotels. This beautiful hotel is located near the southern end of Avenida da Liberdade, within walking distance of Rossio Square and the Rossio train station. Onsite is a pool, garden, bar, and restaurant.

MID-RANGE: Blue Liberdade Hotel. Located on Praça dos Restauradores, this 3-star hotel gets exceptional reviews. Take your pick from double rooms or a family room that can accommodate up to 4 people, making this a good pick for families who want a central location.

MID-RANGE: Maxime Hotel Lisbon. This hotel was once a cabaret but it has been transformed into a hotel. All rooms are decorated with themes from the cabaret, including a bar room, a Burlesque room, and even a bondage room. The hotel bar still retains the original counter and chandeliers, and this is one of the most unique hotels in Lisbon.

BUDGET: Goodmorning Solo Traveller Hostel. This is the highest rated hostel in Lisbon. It sits on Praça dos Restauradores, at the southern end of Avenida da Liberdade, giving it a fantastic central location in Lisbon. It is within walking distance of the train station and handy metro stations. Click the link above to see photos the rooms and to read prior guest’s glowing reviews.

Where to Stay in Lisbon: By Travel Style

Best Hotels in Lisbon for Mid-Range Travelers

For mid-range travelers, we recommend Hotel da Baixa (beautiful hotel in a great location in Baixa), Blue Liberdade (a highly rated hotel on Praça dos Restauradores, just outside of Baixa), Maxime Hotel (a unique hotel decorated in a Cabaret theme, located along Avenida da Liberdade), Solar dos Poetas (lovely hotel on Camões Square), and Soriano Place (apartments in Bairro Alto).

Best Hotels in Lisbon for Budget Travelers

Goodmorning Solo Traveller Hostel is the highest rated hostel in Lisbon and has a convenient location near the train station. Independente Principe Real in Bairro Alto is one of the prettiest hostels we have seen. Home Lisbon Hotel gets fantastic reviews and has a prime location in Baixa.

Best Hotels in Lisbon for Luxury Travelers

For luxury travelers, the Bairro Alto Hotel is our top pick, with its prime location, beautifully decorated rooms, and rooftop bar and restaurant. Our second pick is the Four Seasons Hotel Ritz. This is another fantastic luxury hotel, and its home to CURA, our favorite restaurant in Lisbon, but its location outside of the city center makes it a bit more challenging to get to the top attractions in Lisbon.

We also recommend Palácio Ludovice Wine Experience Hotel (in Bairro Alto), Art Legacy Hotel (in Baixa), and EPIC SANA Marques Hotel (in Avenida da Liberdade/Marques de Pombal).

Best Hotels in Lisbon for Families

For families, our top picks are Lisbon Rentals Chiado (beautiful apartments in Bairro Alto), Ando Living – Douradades Townhouse (beautiful apartments in Baixa), Castle Inn Lisbon Apartments (budget friendly apartments inside the castle walls), and Hotel da Baixa (in Baixa).

Best Hotels in Lisbon with a View

If you want a room with an extraordinary view, we recommend the Four Seasons Hotel Ritz, Casa Balthazar (in Chiado), and Santiago de Alfama (in Alfama).

If you have any questions about where to stay in Lisbon, let us know in the comment section below.

More Lisbon & Portugal Travel Guides

BEST OF LISBON: Lisbon Bucket List: 40 Amazing Things to Do in Lisbon
LISBON: 2 Days in Lisbon: How to Plan the Perfect Lisbon Itinerary
SINTRA: How to Plan a Sintra Day Trip from Lisbon
CASCAIS: Cascais, Portugal: Best Things to Do & Day Trip Ideas
ÉVORA: Évora, Portugal: How to Plan a Trip to Évora & Is It Worth It?
PORTUGAL ITINERARY: 10 Days in Portugal: 5 Amazing Ideas for Your Trip to Portugal

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