Best Areas and Hotels to Consider for Your Stay in Lisbon in 2023

Best Areas and Hotels to Consider for Your Stay in Lisbon in 2023
Best Areas and Hotels to Consider for Your Stay in Lisbon in 2023

When it comes to cities in Portugal, all of them have their own unique charm and allure. However, when it comes to Lisbon, the capital city, its diverse neighborhoods encompass the best aspects of each city. Choosing where to stay in Lisbon can be a difficult task, as each neighborhood offers its own treasures and attractions. From the traditional narrow streets of Alfama to the grand boulevards of Avenida da Liberdade, Lisbon caters to every type of traveler. In this article, we will take a deep dive into six of the best areas to stay in Lisbon, taking into account factors such as budget, nearby attractions, and overall atmosphere.

Baixa (Downtown Lisbon)

Baixa is the most central neighborhood in Lisbon, stretching out from the waterfront with no hills to navigate. This neighborhood is filled with fancy cafes and restaurants, along with some of the city’s top attractions like the Santa Justa Lift and Praça do Comércio. It is well connected through the Baixa-Chiado metro station and the Rossio train station, making it easy to explore the rest of the city.

For backpackers, Yes! Lisbon Hostel is a popular choice with its social atmosphere and activities. For budget travelers, 262 Baixa Guesthouse offers affordable accommodation in a convenient location. Boutique options include Ferraria XVI FLH Hotels Lisboa, which offers modern rooms in the heart of the action. Luxury options include The Ivens, a stylish boutique hotel with a rich history.

Chiado and Bairro Alto

Chiado is often considered the shopping district of Lisbon, with its charming boutique hotels and proximity to Livraria Bertrand, the world’s oldest bookstore. Café A Brasileira is a great spot to sit and sip coffee, where famous writers once gathered. This neighborhood blends into Bairro Alto, which has a similar vibe but with a livelier bar scene. Both neighborhoods are great options for those who want to be close to the center but desire more character than Baixa.

For backpackers, Lost Inn Lisbon offers a social atmosphere within its clean and comfortable space. Budget options include Lx Center Chiado, which offers affordable rooms in a noisy but comfortable setting. Boutique options include Lx Boutique Hotel, which offers gorgeous views over the city and river. Luxury options include Memmo Principe Real, which features an amazing pool and fantastic views.


Alfama is the oldest neighborhood in Lisbon and has managed to retain its authenticity despite becoming more gentrified and touristy in recent years. This neighborhood is a labyrinth of narrow streets lined with colorful tiled houses, and it is home to some of the best viewpoints in the city. Attractions like Castelo de São Jorge, Lisbon Cathedral, and the National Pantheon can be found in Alfama.

In terms of accommodation, Pousada Alfama offers elegantly-designed rooms with views across the river. Hotel Convento do Salvador, set in a former convent, offers a vibrant and fun atmosphere.


Graça is a neighborhood that is similar to Alfama but less crowded and further up the hill. It is known for its local pastelerias (bakeries) where you can indulge in delicious treats like pastel de natas and pastel de feijão. The viewpoints in Graça offer spectacular views over the city and the Tejo River, making it worth the extra effort to reach.

In terms of accommodation, Graça offers a range of affordable options for those seeking authenticity and wanting to soak up the local culture. The narrow cobbled streets and laid-back atmosphere make it an attractive neighborhood for travelers.


When it comes to choosing where to stay in Lisbon, there are plenty of options to suit every type of traveler and budget. From the bustling streets of Baixa to the charming neighborhoods of Chiado and Bairro Alto, there is something for everyone. If you’re looking for a more authentic experience, Alfama and Graça offer a glimpse into the historic and cultural aspects of Lisbon. Ultimately, choosing the right neighborhood to stay in will depend on personal preferences and what you hope to experience during your visit to Lisbon.