Best Areas to Stay in Lisbon & Top Hotels

In this guide, I break down the best areas to stay in Lisbon. Alfama, Bairro Alto, Chiado, and beyond – each neighborhood comes with its own flavor, from hilltop views and tiled facades to buzzing nightlife and trendy cafes. You’ll also get hotel recommendations for every price point, so you’re not stuck doom-scrolling..

As a former Lisbon resident and someone who knows the city like a local, including hidden gems, I’ve got you covered with the best neighborhoods and hotel picks, from cheap and charming to Portuguese luxury.

What to know before booking a place to stay in Lisbon

A few Lisbon-specific tips. Try to stay close to a metro or tram line. Lisbon is walkable, yes, but those hills *will* humble you. Public transport is decent, especially for getting across neighborhoods like Baixa, and even trains out to Belém without frying your calves.

How soon should I book my accommodation and sights?

From April to October, Lisbon gets busy fast, especially with boutique hotels and apartments in central areas like Chiado or Principe Real. Book 2–3 months ahead if you want the good stuff. In winter (except for New Year’s and public holidays), you’ll find better rates and way more availability.

How long to stay in Lisbon?

3 to 4 full days is ideal. That gives you time to explore Alfama’s backstreets, hit the viewpoints, ride Tram 28, feast in Time Out Market, and maybe even sneak in a day trip to Sintra, Cascais or to some nice Atlantic beach.

Best areas to stay in Lisbon

Lisbon isn’t one of those copy-paste cities where every neighborhood looks the same. One minute you’re sipping coffee on a quiet square in Alfama, the next you’re in Bairro Alto dodging midnight drinkers and listening to live fado spill out of a tucked-away bar. It’s compact, but packed with contrast.

Whether you’re a first-timer or coming back for round three, whether you’re after local charm, views, or the food scene, I’m sure you’ll find the best base for your version of Lisbon.

Where to stay in Baixa & Chiado

Starting with the Lisbon you’ve seen in photos, postcards and videos. Baixa and Chiado are the top areas visited by tourists in Lisbon. While sitting right next to each other and even sharing the same metro stop, there are some slight differences to them.

Baixa is Lisbon’s downtown grid—neat, grand, and designed to impress. Wide boulevards, big plazas, and tiled façades give it that classic postcard look. You’re steps from major sights, the metro is everywhere, and there’s always a pastel de nata within arm’s reach. But once the stores shut, it goes quiet fast.

Chiado, just uphill, is the artsy, slightly posh cousin. It adds a layer of charm with theaters, bookstores, and historic cafés. It’s got more personality and stays lively into the evening, but expect higher prices and plenty of company, after all it’s no secret spot.

✅ Stay in Baixa/Chiado if: you’re a first-time visitor, and/or simply want zero hassle getting around. If your priority is walkability, public transport, and access to all the big sights, this is where you start.

Hotels in Baixa & Chiado

Luxury ✨ Montebelo Vista Alegre Chiado ★★★★★

Value for money – Pousada de Lisboa ★★★★★

Budget – Memoria Lisboa FLH Hotels ★★★

Where to stay in Príncipe Real

Príncipe Real is Lisbon’s hip bohemian side. Stylish but laid-back, residential but full of life. It’s packed with leafy squares, artisan shops, concept cafés, and some of the best brunches in the city. You’re in walking distance to the action in Bairro Alto and Chiado, but tucked away just enough to breathe.

Still, it’s not all flat whites and sunshine. The area’s very hilly, some streets are narrow and a pain with luggage, and hotel options can be pricey. It’s also popular with expats, which means a bit less local vibes, a bit more avocado toast.

✅ Príncipe Real is the best area to stay for hip couples, or visitors who want a mix of local charm, quiet nights, and stylish everything.

Hotels in Príncipe Real

Luxury ✨ Memmo Príncipe Real ★★★★★

Value for money – Montecarmo12 – Design Boutique Hotel

Where to stay in Alfama

Unpopular opinion: I do not recommend staying in Alfama. Sure, it’s photogenic, beautiful on the surface and definitely deserving a visit, but the logistics are not logisting in this part of the city. It’s overrun with short-term rentals (ALs), the public transport is poor, and there’s too many hills and too few local food scene spots. Also, good luck getting an Uber through those medieval alleys.

That said, if you’re a first-time visitor who care more about the atmosphere than convenience and you’re staying for a night or two, Alfama may be an option for you.

✅ Alfama is the best area to stay in Lisbon for romantics chasing that dreamy, old-Lisbon feel, photographers or short-stay travelers (1–2 nights max) who don’t mind the stairs or tourist traps, and just want to soak in the aesthetics.

Hotels in Alfama

Luxury ✨ Hotel Memmo Alfama ★★★★

Value for money – Hotel Convento do Salvador ★★★

Where to stay in Avenidas Novas

Avenidas Novas is where Lisbon gets more serious. Broad avenues, modern buildings, and a more cosmopolitan vibe than the twisty, tiled chaos down below. There are malls, offices, and big-name hotels, with metro access that makes zipping around the city easy.

Some will find this area boring and void of character. Indeed, the area lacks the romantic visuals and charm Lisbon is famous for and it’s more functional than exactly fun.

✅ Best area if: you like order, comfort and space in your travels. More wide sidewalks and less tourist noise and stag parties. Avenidas Novas is a convenient hub, just don’t expect azulejos on every corner.

Hotels in Avenidas Novas

Luxury ✨ Sublime Hotel ★★★★

Value for money – Evolution Valbom ★★★★

Budget – HF Fenix Music

Where to stay in Cais do Sodré & Santos

Cais do Sodré is Lisbon’s wild child: grimy edges polished just enough to pull in foodies, partiers, and Instagrammers chasing riverside sunsets and espresso martinis. By day, it’s buzzing with people hitting up Time Out Market, cafes, and the riverside area. By night, Pink Street becomes a pre-dawn circus of bar crawls and spilled beer, with music blasting from every doorway. It’s fun, frantic, and functional.

Its neighbor, Santos, on the other hand, is its quieter sibling with leafy streets, concept stores, and a calmer energy overall. This area is a win for design fans, laid-back travelers, and couples who want central location with a slower pace and a bit more soul.

But it’s not all perfect. Cais do Sodré can be chaotic and loud, and if you’re not out drinking, the energy can wear thin fast. Santos, while charming, isn’t postcard-pretty on every block and doesn’t have the same range of hotels or public transport access.

✅ Stay in this area if: you’re a young traveler looking to do some bar hopping during the evening or a foodie looking for some great value-for-money authentic meals. Good pick for anyone who wants energy and convenience levels to a max.

Hotels in Cais do Sodré & Santos

Luxury ✨ As Janelas Verdes Inn ★★★★

Value for money – LX Boutique Hotel

Budget – Independente Bica

Where to stay in Bairro Alto

By day, Bairro Alto is sleepy, charming, and full of old-school character. By night, it flips into party mode—packed bars, live music, and crowds that spill into the streets until the early hours. It’s got views, history, energy, and a location that puts you in walking distance to the main attractions.

The downside? Noise. Lots of it. The cobbled streets echo everything, and unless you’re a heavy sleeper or deep in the side streets, it’s not ideal for early nights. Also, not the most luggage-friendly spot.

✅ Bairro Alto is the best area to stay for night owls, party lovers, and social travelers who want to be right in the thick of the action. If you don’t mind trading silence for buzz, this is it.

Hotels in Bairro Alto

Luxury ✨ Palácio Ludovice Wine Experience Hotel ★★★★★

Value for money – LR Guest House

Other areas to stay in Lisbon

• Belém – Packed with monuments, museums, and pastries, Belém is great choice for culture lovers and slow-paced travelers who don’t mind being a tram ride away from the center.
• Parque das Nações – Modern, flat, and by the river, it’s perfect for families, joggers, and anyone who prefers clean lines over cobblestones. Check hotels in the area.
• Campo de Ourique – Quiet and local, it’s ideal for foodies and anyone wanting to live like a local without tourist crowds.

FAQs

Is Lisbon safe?

Lisbon is a very safe city. As a tourist though, stay alert for your phone and wallet. Pickpocketing happens in crowded spots like Tram 28, Elevador de Santa Justa, and major viewpoints. Avoid hanging bags off chairs at cafés, keep stuff out of back pockets, especially in areas like Intendente at night time.

Which neighborhood is best for families?

For families visiting Lisbon, might be worth to explore Campo de Ourique or Parque das Nações. Campo de Ourique is flat, quiet, and local with great bakeries and playgrounds. Parque das Nações is a modern, super safe area, filled with wide open spaces, bike paths, and kid-friendly attractions like Oceanário.

What are the cheapest areas to stay in Barcelona for those on a tight budget?

If you’re on a budget, the Anjos, Intendente or Alcântara areas tend to have more affordable stays, especially outside peak season, while still offering decent access to public transport and local food spots. The compromise for lower prices is on less postcard charm and some more ran-down zones (but even those are improving these days!).

What is the most walkable part of Lisbon?

Baixa is the most walkable part of Lisbon. It’s central and filled with shops, cafés, and historic sights all within a short stroll. If you want easy access without battling uphill climbs every 10 minutes, this is your best bet. Parque das Nações is also very walkable, but similaries end there. it’s modern, spread out, and feels more like a mini city by the river than old-world Lisbon.

Other reads about Lisbon

• The best Lisbon hidden gems & secrets
• Lisbon Travel Guide
• Day trips from Lisbon
• The best beaches near Lisbon
• Lisbon Itinerary: 3 days

Which area of Lisbon resonates the best with your travel style? Where did you stay for your trip? Share your experience below! 👇