Where to Stay in Lisbon - A Local’s Neighborhood Guide
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Lisbon is one of Europe’s great cities and its popularity, which has exploded in recent years, fully reflects that.
The Portuguese capital is one of the oldest cities in Europe, and although much of it was destroyed during an earthquake in 1755, some neighborhoods (like Alfama) survived the destruction and remain beautifully preserved. Other areas were rebuilt and have been continuously modernized over the centuries, which gives Lisbon an eclectic neighborhood make-up.
Millions of international visitors come to Lisbon each year, and in high season, the crowds can be overwhelming. Prices shoot up, availability for everything drops, and the streets become filled with vacationers. Certain neighborhoods are genuinely on the brink of being sacrificed to mass tourism.
Despite all of this, Lisbon has maintained its authentic Portuguese charm, and it continues to captivate both visitors and locals alike with breathtaking sunsets, lovely architecture, pleasant streets, leafy squares, colorfully tiled buildings, and great cuisine.
Keeping in mind the potential crowds as well as the drastically varying neighborhood atmospheres, it’s important to choose a good base in the city that maximizes your sightseeing time and aligns with the character and ambiance that you’re looking for.
To help you figure out the right neighborhood for your trip, I’ve put together an overview of some of my favorite Lisbon neighborhoods along with with hotel recommendations in each of them.
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Table of contents
My 5 recommended neighborhoods
Príncipe Real
Baixa & Chiado
Avenidas Novas
Bairro Alto
Alfama & Mouraria
Other neighborhoods to consider
Graça
Alcântara, Estrela & Madragoa
Belém
Tours of Lisbon with Ana Sofia
If you’re looking to explore Lisbon with a local, reach out to local guide Ana Sofia!
Ana is a Lisbon native and she’s been running walking tours, food tours, and day trips to places like Sintra, Évora, and Óbidos for over a decade.
A fully licensed guide with years of university study under her belt, Ana has the knowledge to keep history buffs happy, but what we especially appreciate is that she still always makes her tours light, entertaining, and fun.
Quick overview of my 5 recommended neighborhoods
Lisbon is definitely a city of neighborhoods, and there are very distinct boundaries and widely varying feels from one to the next. Which area is right for you will depend on your goals for your visit.
Lisbon has also started to succumb to over-tourism in recent years, so certain central neighborhoods which would have once been great places to stay in, aren’t always ideal any longer if you’re looking for an authentic experience.
Of course, choosing a central base, or one that’s well connected to Lisbon’s extensive public transport network, is still essential. You don’t want to lose hours every day just trying to get between your accommodation and the sights, and buses, trams, and the metro will move you quickly around the city.
With a focus on first-time visitors, I’ve mostly selected neighborhoods that I think make sense if you’re planning to a do a lot of touristic sightseeing, but have made sure to include a nice mix of more residential, local areas as well.
Below, I share quick overview of my 5 recommended neighborhoods. Further into the article I provide detailed information on each, including pros and cons and specific hotel recommendations.
*If you just a want a quick and easy answer to this question, I think that Príncipe Real is the ideal neighborhood.
Príncipe Real
Just north of Bairro Alto and the city center, this is one of Lisbon’s wealthiest neighborhoods. It borders Lisbon’s downtown and business district, but is itself almost entirely residential. There are no major tourist attractions in the neighborhood, but it’s well connected by the metro, so moving about is easy.
Populated mostly by well-heeled locals, there is great shopping on its main tree-lined boulevards and the wide sidewalks are pleasant for taking walks. It’s also very green and filled with good restaurants, cafes, and bars. You’ll find plenty of good mid-range and boutique hotels, but very little budget accommodation and no big, chain hotels.
2. Baixa & Chiado
These two neighborhoods are adjacent to each other and I don’t think differentiating between them is terribly important. Extremely central and with excellent public transport connections to the rest of the city (and the rest of Portugal), the area is a very convenient base for sightseeing, especially for those with limited time.
Historically this was Lisbon’s main commercial area and it remains so today, although the local shops have largely been replaced by big international brands. The architecture, from the late 1700s, is pleasant and you’ll find lots of cobbled streets, elegant squares, and many monuments. The downside of staying here is that although very busy, it feels a bit empty.
Almost no locals live here, so it’s very touristy.
A bit removed from the more touristy center, this area is a mix of commercial and residential. One of Lisbon’s most modern neighborhoods, it has multiple subway stops, many larger hotels, and wide, easy-to-navigate streets.
It’s good value and one of the few good options for travelers who need to park a car. I think it’s an excellent choice for families traveling with young children or older travelers who are comfortable using the metro and/or plan to take the occasional taxi.
4. Bairro Alto
Libon’s main nightlife center, Bairro Alto is also one of the city’s most popular neighborhoods for expats and digital nomads taking advantage of the recent changes to Portugal’s immigration laws.
There are few specific sights in the neighborhood, but it’s very central and excellent for eating and shopping at the many boutiques and independent stores by day and partying by night. While fun for young people, I don’t recommend it as a base for families with kids or older visitors.
5. Alfama (and Mouraria)
These two neighborhoods are adjacent to each other but very different.
Alfama, Lisbon’s most historic neighborhood, is beautiful and iconic, but extremely touristy. If you can put up with constant crowds and don’t mind being surrounded mostly by other tourists, the views, sunsets, and charming maze of streets and alleyways are atmospheric and lovely.
Mouraria, while gentrifying rapidly, is a heavily immigrant neighborhood with budget accommodations. It’s very interesting for a wander (and a meal!), but isn’t somewhere I usually recommend as a base.
I wouldn’t personally stay in Alfama because of how touristy it has become, but I understand its appeal.
1. Príncipe Real
I rate Príncipe Real as probably the best neighborhood of Lisbon to stay in for anyone with 2 or more days in the city and who is looking for somewhere central and convenient, but not overrun by tourism.
You won’t even see it listed on most “where to stay” guides (largely written by other tourists…), which is a good thing for you because that just means that you’ll have fewer other tourists around and lower prices for hotels!
The neighborhood lies to the northwest of Bairro Alto, centered around the city’s Botanical Garden, with Avenida da Liberdade forming its western border. The tree-lined streets are busy, but calm and the atmosphere throughout is pleasant. There are plenty of tourists about, but it is still a mostly local area.
There are 3 subway stations in the neighborhood (Rato, Avenida, and Restauradores), so no matter which part of it you choose to stay in, you’ll still always be well connected to the rest of Lisbon. If staying near Avenida da Liberdade (where most hotels are concentrated), you’re also only a 15 minute walk into the heart of Baixa and Chiado, so still easy walking distance.
More about Principe Real
All around Avenida da Liberdade and its side streets you have loads of good boutiques, nice local clothing stores, restaurants, and bars, the majority of which cater to Lisbon locals. Cafes spill out onto the sidewalk in the shade of leafy trees, and the many neighborhood squares and gardens are a great place to unwind after a workday, a shopping spree, or a long day of sightseeing.
It’s also a haven for the LGBTQ+ community who head here to party at legendary clubs like Trumps or Finalmente.
Weekends around here kick off with a drink at the local kiosk, followed by a visit to the farmer’s market, the Mercado Biológico. Even if they don’t live in the district, many people head here just to get their organic fruit and vegetables.
Among its rows of elegant buildings is the Embaixada, a 19th-century palace now converted into a shopping gallery where local creatives show off their work. I always recommend popping in for a look.
If you opt to stay here, I would recommending choosing a hotel west of the Botanical Garden, somewhere near to Praça da Alegria.
Pros
Local and residential feel. Very green. Good access to transit (metro and bus). Easy access by car. Removed from the center, but still close. Good shopping and dining. LGBTQ nightlife.
Cons
For me, basically none. No tourist sights in the neighborhood. Must take the metro to get into the center. Somewhat expensive. Not ideal for those with just 1 or 2 days.
Where to stay
Memmo Príncipe Real - Located near the neighborhood gardens, this five-star hotel offers modern rooms, an outdoor pool, and a cocktail bar with panoramic city views. $450 USD.
The Vintage — Elegant and intimate rooms, with exquisite design, in a 5-star hotel that also offers a bistro and a great rooftop overlooking the city. $200-400 USD.
Alegria Boutique Hotel - Overlooking the wonderful Praça da Alegria square and just a minute or two from great shopping on Avenida da Liberdade (and the Avenida metro stop), this boutique hotel is good value. The vibe mixes rustic-chic, old world, and modern, and the result is quite nice. $200-250 USD.
1869 Principe Real - This B&B just south of the Botanical Gardens stands out with its red tile facade. It offers nine lovely rooms and suites that are big and bright, some with private balconies. $175-250 USD (2 night minimum).
Marino Boutique Guesthouse - A block away from Praça da Alegria square, this little guesthouse has newly renovated and immaculately clean rooms. $100-200 USD.
Independente Príncipe Real - Set in a 19th-century building, this stylish hostel offers a mix of dorms and suites. There are two restaurants on-site, including one on the rooftop overlooking the castle. $150 USD for private rooms..
Best for: Upscale residential feel, shopping, foodies, LGBTQ+ community
2. Baixa & Chiado
Best for: Visitors short on time who want to stay close to the action
It doesn't get any more central than Baixa and Chiado and 95% of guides you read will tell you this is the best place to stay in Lisbon. Clearly I don’t agree, but I do think it is a good base for many visitors.
The neighborhoods blend together, so they’re mostly referred to jointly, and they are certainly Lisbon’s most convenient for sightseeing. With Alfama to the west, Bairro Alto to the north, the river to the south, and the Estrela to the east, this is prime central Lisbon.
There are dozens of hotels and apartments to choose from and many of Lisbon’s iconic sights, monuments, and attractions are directly in the neighborhood, so you can do most of your sightseeing on foot.
You also have excellent access to public transit with multiple metro stops, the Rossio train station, trams, and even some buses. There is good reason to stay here.
That said, very few locals live in either neighborhood these days, with most apartments having been converted into tourism/rental properties. So, while extremely convenient for sightseeing, the area does feel distinctly touristy. It’s not a place that will give you much local flavor and if you’re looking to stay somewhere where you can step out the door and and feel immersed in Portuguese life, this is not the neighborhood for you.
More about Baixa and Chiado
The reason that Baixa and Chiado are so convenient and accessible is oddly largely due to a rather catastrophic disaster from the 18th century.
When the 1755 earthquake hit Lisbon, this was one of the most affected areas. Most of the neighborhood was rebuilt following a plan by the Portuguese statesman Marquês de Pombal, who transformed it into a commercial zone.
In part because of that, not many people live here.
Indeed, this remains mostly a shopping area, where you’ll find your ubiquitous Zara’s and H&Ms, as well as luxury brands like Gucci and Louis Vuitton. Sadly, rising rents and increased competition from international brands have forced many of the traditional Portuguese stores that you used to find here to close down in last few years.
For now, you can still find a few though, like the Luvaria Ulisses, which specializes in custom-made gloves, the Bijou haberdashery, or the Livraria Bertrand, one of the oldest bookshops in the world.
You’ll find that Chiado in particular has deep literary roots, and its fair share of bookstores. This is the area where writers like Fernando Pessoa used to hang around in cafés like A Brasileira, which is now packed with tourists (it’s still pretty pleasant though). Of the two, Chiado feels a bit more residential whereas Baixa is more commercial.
There are lots of other attractions here apart from shopping, such as the monumental square of Terreiro do Paço, where most walking tours depart from. The stunning gothic-style railway station of Rossio is also here, and you should absolutely check it out, even if you’re not taking a train.
Just about everything that you’re likely to want to see in Lisbon is within walking distance, and because of the train stations, the neighborhood is also perfectly located for taking day trips to Sintra, Cascais, and beyond.
If you’re interested in fine dining, there are at least three Michelin-star restaurants in the neighborhood (see below for specifics). And for a bit of culture, you can head to one of the many neighborhood theaters or cinemas.
I’m especially keen on the local film festivals, like Indie Lisboa and Monstra, so if you like cinema, be sure to check out whether those are happening during your visit.
Pros
Location is as central and convenient as it gets. Fairly flat and very walkable. Excellent access to public transport (metro, tram, bus, and train).
Cons
Somewhat commercial and very touristy, staying here does not always feel like being in a real neighborhood. It’s also expensive.
Where to stay
The One Palácio da Anunciada — This luxury hotel feels like an oasis in the city, with its French-style gardens, large swimming pool, and a spa. $500 USD.
Montebelo Vista Alegre Lisboa Chiado Hotel - 58 rooms are spread over three wings, each with its own unique features, such as floral motifs, the scent of rosemary, or porcelain pieces from the renowned producer, Vista Alegre. $250-350 USD.
Casa do Barão - Fantastic boutique hotel with really excellent decor and a small, but lovely pool. $200-300 USD
Hotel do Chiado - Designed by award-winning architect Siza Vieira, this hotel is only a few steps from Chiado's main shopping streets. Many rooms offer castle and river views $200-350 USD.
Vincci Baixa - Yet another excellent hotel from the Vincci group. Great location, small but well appointed rooms, decent breakfast, and good value. $200-300 USD.
Dear Lisbon - Bordalo House — This 19th-century house has been renovated to offer nine modern and comfortable suites while preserving the original ceilings, classic furniture, and some of the old paintings. $175 USD.
Hotel Lis Baixa - Small hotel offering simple, but nice rooms in a central Baixa location. $150 USD.
3. Avenidas Novas
Best for: Families and couples looking for a quieter atmosphere
Moving away from the center, Avenidas Novas is a pleasant neighborhood renowned for its wide boulevards, well-kept parks, and Neoclassical architecture. It’s one of the newest districts in Lisbon, so don’t expect to find many historical sites here though. This is a “functional” neighborhood, and it’s mostly filled with homes and offices.
During the week, the streets are bustling with people heading to and from work, and during lunchtime, the restaurants fill up with workers on their lunch breaks.
Aside from the Marques de Pombal square and park and the Gulbenkian museum, there are no attractions in the area. It’s not very atmospheric, and you’ll probably find yourself doing little here other than sleeping.
So, why have I recommended it?
First of all, it’s flat. For anyone with mobility issues, little children, or in not great shape, this will come as a major relief. Next, it’s well-connected with public transport; you have 4 metro stations in the neighborhood, and you can get to both the city center and the airport in just around 20 minutes, with no connections necessary.
And finally, you have a lot of hotels, most of them large, modern, and reasonably priced. Hotel prices in Lisbon can go through the roof from April to November, so if you don’t have a huge budget and are ok with staying somewhere that is pleasant, but not historic, it’s a very good option.
Avenidas Novas is not an obvious choice for first-time visitors, but it’s an excellent alternative to some of the more popular and central neighborhoods, especially if you don’t love being surrounded by crowds every time you step out the door.
More about Avenidas Novas
As I mentioned before, Avenidas Novas doesn’t have any major attraction, but it’s a pleasant area to stay in. The restaurants and cafes are mostly for locals, you’ll see businesspeople on their way to work and locals going about their daily lives, and you have everything you need nearby (transit, grocery stores, shops, etc.).
Come the weekend, you’ll find mostly families and couples who come to check out the exhibits at the Calouste Gulbenkian’s art museums or wander through its charming gardens, which are home to turtles and ducks. I cannot stress enough how fantastic the museum is, even if you don’t care about seeing any of the art inside it.
Another popular attraction is the semi-tropical greenhouse, Estufa Fria.
Beyond the neighborhood’s greenery, you can shop for high-end brands at the El Corte Inglés department store, pick up the latest indie mag at Under the Cover, or grab a pastry at the century-old Pastelaria Versailles, a must-visit if you’re in the area.
Pros
Lots of large, modern, and good value hotels. Area is totally flat. Good access to transit (metro and bus) and easy to park a car and/or call taxis.
Cons
Almost no historic architecture. Somewhat far from the city center. Very little to do in the neighborhood itself.
Where to stay
Sublime Lisboa - This former palace, which once housed the restaurant of Simone de Oliveira, a well-known Portuguese actress and singer, offers 15 rooms, each unique and elegantly decorated. $200-400 USD.
EPIC SANA Lisboa Hotel - A five-star hotel near Parque Eduardo VII featuring a rooftop pool, a spa, and a gym. $300 USD.
H10 Duque de Loulé — Occupying an 18th-century building a block from Marque de Pombal square, this hotel stands out with its blue-and-white tile accents. Many of the bright and airy rooms offer lovely city views. It’s very good value. $175-250 USD.
PortoBay Marques - At the far southern end of the neighborhood, this small hotel has all the hallmarks of the PortoBay group. It’s modern, functional, comfortable, and a bit corporate, but with some well-done boutique touches. The location next to Praça Marques de Pombal means you are adjacent to not one, but two metro lines. $150-250 USD.
Hotel White Lisboa — For those who enjoy a more minimalist atmosphere, this hotel offers spacious, well-lit rooms and an outdoor pool, all adjacent to a metro stop. $100-150 USD.
Turim Saldanha Hotel - The vibe here is pretty businesslike, but the rooms are quite pleasant and very modern and the price is tough to beat. The Saldanha metro stop is just outside your front tour. $125 USD.
ibis Lisboa José Malhoa — One of the cheapest alternatives in the area, like every ibis, you get basic and modern rooms that are clean and functional. There’s also a restaurant and a bar. Pets are allowed upon request. $100 USD.
4. Bairro Alto
Best for: Night owls and young-spirited visitors
Bairro Alto is just north of Chiado and slightly south of Principe Real. Its name means “high neighborhood” and true to this, it is a hilly neighborhood with some great viewpoints, pretty architecture, and charming cobblestone streets.
It is densely populated and very popular with expats. While many locals have left, it’s still much less tourist-heavy than places like Alfama, Baixa, and Chiado.
There are no specific tourist sights in the neighborhood, but it’s only a few minutes walk to Baixa, Chiado, and Alfama, so you can get into town for sightseeing and exploring quite quickly and easily.
Before considering the neighborhood it’s important to know that this is one of Lisbon’s major nightlife areas, and the streets are packed with little bars that are lively every night of the week. A night out in Bairro Alto is a rite of passage for anyone who has grown up in Lisbon.
Many houses in this area have thin walls, so don’t expect to get a quiet night’s sleep if you stay near a bar, especially during the weekend. With that said, the neighborhood is pretty quiet in the mornings and it can be perfectly fine so long as you find a place a little removed from the action.
It’s not an area that I recommend for everyone, but if you’re looking to stay somewhere pretty, want to partake in at least some nightlife, and are ok with occasionally walking up and down hills (or taking a cab), it can be quite pleasant.
More about Bairro Alto
But it’s not just about nightlife - during the day, you can also visit many of the independent boutique shops or art ateliers that have set up shop here. I really like Oficina Marques, with their infamous repurposed woodwork. And for a snack, you have countless hip cafes and restaurants. If at some point you feel like having a cheeky pastel de nata, there’s no better place than Manteigaria.
If you stay here (or just visit), you should start an evening in the neighborhood by watching the sunset at one of the local viewpoints — a must-do while in Lisbon. One of my favorites is Miradouro de São Pedro de Alcântara. Then grab dinner somewhere nearby before hitting the bars. There are plenty of dining options to choose from, ranging from traditional Portuguese restaurants to Mexican and Korean.
When you go for drinks, know that Bairro Alto is all about bar-hopping; grabbing a shot at one place and a cheap cocktail from the next. The bars are tiny, so everyone spills onto the streets, clutching their glasses as they push through the crowd. There are people of all ages, but the nightlife here is especially popular with students and the occasional bachelor party.
Pros
Central location, great viewpoints, good restaurants and cafes, excellent nightlife. Not overly touristy.
Cons
Very hilly. Very loud at night. No metro stop. Not much to do in the area during the day.
Where to stay
Bairro Alto Hotel - Facing Praça Luís de Camões, this hotel sits between Chiado and Bairro Alto. It offers spacious rooms inspired by Lisbon's colorful surroundings ($350-500).
The Lumiares Hotel & Spa - Suites and apartments come with equipped kitchens at this five-star hotel, complete with a rooftop bar, restaurant and a spa ($300-500).
Palácio Ludovice Wine Experience Hotel - Classic meets contemporary in this 18th-century palace that was once the home of João Federico Ludovice, architect to King João V. It has luxurious rooms that seamlessly blend modern and historic aesthetics, like original ceilings and tiles. There’s also a spa and a restaurant and bar. $250-400 USD.
Almaria Edificio Oficina Real - Lovely little guesthouse with bright, modern, and airy rooms in a central Bairro Alto location. Lower down in the neighborhood, it limits how many hills you’ll have to climb to get home. $200 USD.
LX Hotel - Technically in Cais do Sodre and not Bairro Alto, it’s right on the border. You’re close to all the nightlife in these two neighborhoods, but far enough removed to not have to listen to it. The hotel is the result of the renovation of a previous century-old hotel and it now offers cozy rooms, some with a good view over the river. $125-200 USD.
Bairro House Charming Suites - Right in the heart of Bairro Alto, this guesthouse puts you in prime position to explore the area’s pleasant side streets. Rooms are across multiple floors and there’s no elevator, so be prepared to climb some stairs. $125-150 USD.
Selina Secret Garden & Coworking - An ideal spot for young travelers working remotely, Selina offers a co-working space and events throughout the week like yoga and DJ sets. $100 USD for private rooms with a shared bathroom or $150 with an ensuite.
Spend a half-day wandering Lisbon's maze of twisting alleys while also trying all the city's best local treats with our favorite guide, Ana Sofia!
5. Alfama (and Mouraria)
Best for: History lovers and those looking for a postcard view of Lisbon
Alfama features either in first or second place on most “where to stay in Lisbon” guides so I understand that it may be both surprising and a bit disappointing that I’ve listed it so late in mine. But I’m a local and I’ve tried to be honest with my recommendations.
I would not personally stay in Alfama, but let me preface the rest of my comments by acknowledging that it is gorgeous, historic, and iconic. You can’t help from taking out your camera when wandering around the area. Whether you’re snapping shots of the river views or of the pastel-colored buildings, this is Lisbon’s most picturesque neighborhood.
However, it’s also Lisbon’s most touristy. Almost no locals remain in the area and the restaurants, cafes, and bars now cater solely to tourists. No matter the time of day, you’ll find crowds of visitors here, lining up for things like the packed Tram 28 or selfies at the Miradouro Santa Luzia. While unmistakably a beautiful neighborhood, the feeling of mass tourism is a bit inescapable.
Now, those downsides shouldn’t necessarily dissuade you from staying here. The neighborhood is beautiful, and getting lost in the labyrinth of narrow streets is a delight. Forget directions: just start walking aimlessly and admire your surroundings.
If you stay here rather than just visiting during the day, you’ll get the chance to enjoy the neighborhood early in the mornings before the crowds have arrived or late in the evenings after they’ve left. I’d just recommend you go elsewhere for most of the day.
Moreover, Alfama is home to some of Lisbon’s major sights: the Castelo de São Jorge, the Panteão Nacional, and the Sé Cathedral. You also have numerous great viewpoints and you’re close to Baixa and Chiado as well as the charming and very local neighborhood of Graça.
More about Alfama
Most of Alfama’s charm comes from being the oldest district in the city, having survived the earthquake of 1755. This means that unlike many of Lisbon’s other neighborhoods that have wide streets and clear city blocks, Alfama is a maze of winding alleys and tumbling staircases.
A hardscrabble and working class neighborhood for almost all of its history, many residents have lived here for decades or generations. This is the birthplace of Fado music, sung by the wives of the neighborhood’s sailors as they waited for them to return from sea. However, with the current tourism boom, landlords have begun turning their homes into short-term rentals, forcing out many of the longtime residents and the character has changed dramatically.
Locals who remain get by by selling ginjinha (sour cherry liqueur) shots from their windows or running the few traditional cafés that haven’t yet been squeezed out by stylish brunch spots.
In June, the entire neighborhood smells like sardines as locals come together to celebrate the Santo António festivities with a big outdoor barbecue. There’s music all night long during the festival, so keep that in mind if you plan on staying here (or even living here) in the summer.
Attached to Alfama is Mouraria, a multicultural neighborhood where Indian spice shops, Chinese restaurants, and African grocers stand side by side. This is where we locals go when we’re in the mood for a curry or want to pick up ingredients to cook one at home. You’ll also find a mix of long-standing Portuguese restaurants, such as Zé da Mouraria, and up-and-coming spots like O Velho Eurico.
It’s not nearly as pretty as Alfama and I don’t think it’s a great choice for most visitors, but if you want to stay near Alfama on a budget, it’s your only option.
Pros
Historic, beautiful, and iconic. Near to many of the city’s major sights and attractions.
Cons
Extremely touristy, poor public transit (tram only), no car access. Narrow and hilly streets are challenging for those with mobility issues. Expensive.
Where to stay
Santiago de Alfama - Just minutes from São Jorge Castle, this 5-star hotel occupies a 15th-century building and offers elegant rooms with a privileged view over Alfama. $250-350 USD.
Memmo Alfama - Tucked away in a small alley, this modern hotel offers rooms with breathtaking views of the river and the Panteão Nacional. The swimming pool is a treat for those hot summer days. $250-350 USD.
Solar do Castelo - Located inside the castle grounds, this four-star hotel oozes character with exposed stone walls, wooden ceilings, and antique furniture. Peacocks occasionally wander outside the building. $250-350.
Pousada de Alfama — Located just opposite the Miradouro das Portas do Sol, this 4-star hotel offers rooms with fantastic views and pleasant accents. In the entrance courtyard, a huge work by local artist Bordalo II welcomes guests. $150-250 USD.
Alfama Lisbon Lounge Suites — Around the corner from Castelo de São Jorge, these modern apartments are spacious and offer basic amenities, including a kitchenette to prepare your meals. $100-150 USD.
Mouraria Lisboa Hotel - Small and simple but charming, the rooms here are bright and there’s a pleasant communal patio. The location, at the beginning of Mouraria and just outside of Aflama, is only a a 10 minute walk to the Rossio train station. $100 USD.
Other neighborhoods to consider
I think the above 5 neighborhoods are the right choices for most people. However, if you’re looking for more options, here are 3 other parts of the city that I think could be good choices.
These neighborhoods, while still mostly convenient for sightseeing, are a bit more off the beaten path, meaning that you’ll get a more local experience in them. There are drawbacks to each though, so think carefully about whether they’ll be a good fit for your trip.
Alcântara, Estrela & Madragoa
Still central, but away from major tourist centers, these 3 neighborhoods are residential and very pleasant. They’re popular with wealthy locals and expats and you’ll find lots of good shops, pleasant cafes, and lovely parks and squares. The vibe is calm, but lively.
I think these areas make for an excellent base for visitors with at least a few days here and who want to be central, but somewhere residential and less touristy.
The main downside is that, aside from one down by the river, there is no metro station in the area.
Graça
Hilltop Graça is becoming more popular with visitors, but it’s still a mostly local neighborhood. Some of Lisbon’s best viewpoint are here and the streets are busy day and night with people going about their lives.
It’s a bit inconvenient for getting around, so not ideal if you’ll only have a day or two in the city, but a nice choice for those with more time and who want to stay somewhere “authentic”.
It’s one of my top choices for returning visitors.
Belém
On the far edge of the city, riverfront Belém is home to some of Lisbon’s most famous monuments. Hotels here tend to be high end and cater to travelers who want their accommodation to be an oasis of calm.
There is a tram line that gets you into the city center fairly quickly, but it’s definitely not Lisbon’s most well connected neighborhood. It is rarely somewhere I recommend for first-time visitors.
Alcântara, Estrela & Madragoa
Best for: Remote workers, foodies, and families with kids
Just west of the neighborhoods of Chiado and Bairro Alto, these three neighborhoods form a kind of triangle, with Alcântara and Madragoa lining the riverfront, and Estrela sitting on the tip of the hill. They come before Belém. Although each their own neighborhood, I list them together because they have a similar vibe.
With trendy cafés, picturesque gardens, and urban art murals, this part of Lisbon offers a more alternative vibe. Traditionally a middle class part of the city, in recent years the area has become very popular with expats, particularly those intending to stay longer in the city or with children. Because of this, the area has an international and cosmopolitan flair, but not really a touristy one. You have some really good restaurants in the area.
Just outside of the center, you are connected to the rest of the city by bus and tram (and one metro stop). All 3 neighborhoods are still close enough to be relatively convenient for sightseeing, but know that if you choose to stay here you’ll probably wind up having to call a Bolt/Uber/Taxi at least a few times.
More about Estrela, Madragoa, and Alcantara
Estrela and Madragoa are packed with design stores and specialty coffee shops where you can grab a coffee and kill a couple of hours people watching or working. Many of Lisbon’s digital nomads and remote workers hang around here, so you’ll see lots of people with their laptops out.
Estrela is also a popular area among expat families, as there are many parks and international schools nearby. A favorite spot is the Jardim da Estrela, a charming garden with a few kiosks and a playground. It’s always a pleasure to wander around here for a drink or to catch the crafts and design market on the first weekend of the month.
In the old port of Alcântara, life still revolves around the docks, with skaters and runners taking over the waterfront and people playing Padel under the 25 de Abril bridge. If you don’t mind heights, you should absolutely head up in the Pilar 7 elevator for outstanding panoramic views.
Alcântara is also home to creative hubs like LX Factory, a former textile factory that now houses a mix of boutique shops and restaurants. It’s here that you’ll find one of Lisbon’s most stunning bookstores, Ler Devagar.
Even if you’re not picking up a book, it’s worth stepping inside and exploring this industrial-style space. Don’t miss the record shop on the top floor too!
Pros
Local, residential feel. Lots of green space and parks. Excellent dining.
Cons
Poor public transport - no metro or tram. Not good for those with just a couple days.
Where to stay
Olissippo Lapa Palace - A luxury hotel housed in a 19th-century palace featuring a spa, two pools, and stunning river views ($600).
York House - This boutique hotel is conveniently located next to the Museu Nacional de Arte Antiga and several cafés ($150-200).
LX Hostel - Located inside the LX Factory, this is an ideal choice for travelers on a budget. Pets are welcome ($40 dorm, $100 private room).
Graça
Best for: Repeat visitors looking for a more local atmosphere
Set on a hill, Graça offers some of the best views in town. This picturesque neighborhood is only a few minutes up from historic Alfama, but it has a very different atmosphere, with cozy wine bars, dog-friendly gardens, and colorful murals that keep popping up on every corner almost daily.
This is one of my favorite areas in Lisbon, and although the neighborhood has changed significantly in the last 10 years, it retains much of its down-to-earth charm.
The traditional restaurants and shops are still here, but the area has become much trendier in recent years, which is evident from the many brunch spots and natural wine bars.
If you’ve visited Lisbon before and have already covered most of the monuments, or if you just like staying in pleasant local areas, this is a great place to soak in the atmosphere and see local life. Some people like the area so much that they rarely leave the neighborhood.
Now, the downside of staying in Graça is that it’s very poorly connected to the rest of the city. You have no metro stops and will be entirely reliant on trams and/or taxis. For this reason, despite the fact that I personally really like Graça I rarely recommend it to first time visitors and never to anyone with just 2 or 3 days in the city.
More about Graça
There’s plenty to do right in the neighborhood, from thrift shopping at Humana, to watching the sunset at Miradouro da Senhora do Monte, or catching an open-mic session at Camones.
What makes Graça special, however, are the little villas like Vila Berta and Estrela d'Ouro. Originally built as an area for workers, these are like a neighborhood within a neighborhood, with cute terraced houses and tiled facades.
Pros
Local, residential feel. Picturesque and historic architecture. Great dining. Great views. Very good choice for returning visitors.
Cons
No metro stop (tram only). Inconvenient for sightseeing. Not a good choice for first-time visitors with limited time.
Where to stay
Santa Clara 1728 - With only six suites, this upscale hotel is ideal for a romantic getaway. It’s located between Alfama and Graça.
Albergaria Senhora do Monte - Just a few steps from the Miradouro da Senhora do Monte, this three-star hotel offers rooms with incredible city views ($180).
Tings Lisbon - An affordable B&B featuring 16 rooms and a cozy outdoor patio ($120).
Belém
Best for: Urban explorers, history lovers, and families
Hugged by the Tejo river, Belém lies on the waterfront on the western edge of central Lisbon.
Although it’s removed from the city center, this is where you’ll find most of Lisbon’s museums and many old landmarks and monutment that are connected to the country’s maritime roots. Because of this, it’s always full of visitors.
You'll see people queuing up to visit the Gothic-style Mosteiro dos Jerónimos monastery, or to taste the original custard tart (pastel de nata) from the Antiga Confeitaria de Belém. Although the shop has become quite touristy, locals also like to grab a pastel de nata from there whenever passing through the neighborhood.
There are only a few hotels in this area, and most are pretty high-end, so unless you plan on splurging during your stay, you won’t find many options. If you do have a big budget, some of the hotels are grand oases of calm with verdant gardens, elegant architecture, and big pools.
The biggest perks of staying in Belém are that you can get to the monuments very early (before the crowds) and it’s a bit closer to the Cascais coastline than the city center (20-minute train ride).
There is no metro stop, but you do have tram and bus access.
Belém may appeal to well-heeled visitors who want their hotel to be an oasis of calm or to urban adventurers who like staying away from city centers, but for the vast majority of visitors it’s advisable to stay somewhere else and just come here for a visit.
More about Belém
The neighborhood’s most recent attraction is MAAT, a contemporary museum dedicated to the intersection between art and technology. The art exhibits here are quite interesting, but the even bigger draw is watching the sunset from the museum’s wavy rooftop (which is free to access).
From the museum, you can walk along the riverfront promenade or even cycle to the city center, which is a few miles east about 30 minutes away.
Although full of tourists in the daytime, almost everyone visiting merely comes by to see the Monastery, tower, and monuments, leaving the neighborhood behind by the evening. That means that in the evenings the actual neighborhood returns to being a mostly local place and if you stay here you’ll be able to grab dinner or drinks in small little restaurants mostly catering to residents.
Pros
Very calm area. Some excellent high end hotels. Close to some of Lisbon’s most important monuments.
Cons
Far from the center. No metro stop (tram only). Feels a bit empty. Limited dining options. Packed with thousands of visitors during the day.
Where to stay
Altis Belém - Facing the river, this luxury hotel features a Michelin-star restaurant, swimming pools and a spa ($350).
NAU Palácio do Governador - Set in a 17th-century mansion, this hotel is a short walk from Torre de Belém. Facilities include a restaurant, bar, outdoor pool, gym and spa ($275).
Jerónimos 8 - An affordable option right next to the Mosteiro dos Jerónimos offering modest rooms ($150).
*For any readers coming from Germany or Austria, you might also check out this very helpful post on things to do in Lisbon all written in Deutsch!
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