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Where to Stay in Lisbon, Portugal: Editor’s Picks

Where to Stay in Lisbon – The Best Hotels in Lisbon for Every Budget

Lisbon doesn’t have just one downtown, so we’ve compiled a list of ‘where to stay in Lisbon’ options that represent the city’s most popular areas to stay in Lisbon for tourists. These include the Bairro Alto neighborhood, the Belém neighborhood, and the Costa da Caparica beach area and of course the iconic Alfama neighborhood.

Here are our favorite areas in Lisbon and our favorite Hotels – and the best part? If you use our booking engine to look for hotels, it will tell you where to find the best deal, comparing several booking sites like, Expedia, and many others. That way you can be sure to get a great rate.

Lisbon holidays

Where to stay in Lisbon – Alfama

Best Place to Stay in Lisbon: Neighborhood Guide


Imagine this: Narrow cobblestone streets lined with pastel-colored houses perked up on steep hills. Alfama is the heart of old Lisbon, where you’ll find grandma’s sheets and underwear drying on the clotheslines between the windows. Small restaurants and cafés will serve you authentic dishes. You won’t find any large or luxurious hotels here, but quaint and simple Bed and Breakfast, small hotels and apartment rentals. Click here to find a place to stay in Alfama.


The “Downtown” of Lisbon and a great place to stay in Lisbon for tourists who want to be close to the main sights like the Praça do Comércio and explore Lisbon’s city center. It is also the neighborhood with the most hotels, so you have plenty of options. Take a look here for the best hotels in the Baixa neighborhood of Lisbon.

Barrio Alto

This neighborhood is great if you are looking for buzzing nightlife and a young and hip crowd. If you want a quiet place, this is NOT it. If you want to be in the heart of the party, you will find it perfect. This neighborhood has hotels in any price class. Click here to find hotels in Barrio Alto.


Just west of the city center, you will find Belém. This neighborhood is home to probably the most iconic sight of Lisbon: Torre de Belém – Belém Tower. Other attractions include the Jerónimo Monastery and the Padrão dos Descobrimentos monument honoring the famous Portuguese explorers like Vasco da Gama and Ferdinand Megallan. Find a hotel in Belém here.

tower of Belem in Lisbon at sunset with stunning purple sky in the background

Torre de Belém – Belém Tower


If you have shopping and culture on your itinerary, Chiado is the perfect place to stay in Lisbon. Luxury boutiques, the theater district, fancy cafés, and the best restaurants in Lisbon are located in this neighborhood. You will also find some of the top luxury hotels in Lisbon here.

Principe Real/Sao Mamede

If you are looking for a less touristy, but cenrally located area to stay in Lisbon, Principe Real will fit the bill. This residential neighborhood is easily accessible on foot and by public transport and most sights are just a short metro ride away. Take a look at some of the hotels in this Lisbon neighborhood. 

Costa da Caparica

If you are looking to combine a beach vacation with your city trip to Lisbon, then Costa da Caparica is the perfect spot for you. Just 7 miles from Lisbon’s city center, this beach town offers neverending sandy beaches and turquoise waters galore. Find your Lisbon beach hotel here.

Birds eye view over costa da caparica near Lisbon, showing turquoise and blue water and yellow sand beaches.

Costa da Caparica – Lisbon’s Beach Neighborhood

Best Hotels in Lisbon For Every Budget

We’ve also given special attention to hotels that offer free wireless internet. When deciding where to stay, it helps to know that hotels tend to be cheaper in Lisbon than in other European cities. Our best places to stay in Lisbon options are organized by star rating, beginning with 5-star hotels and ending with budget accommodations. B&Bs are prevalent in Lisbon, and a special section has been dedicated to B&Bs.

5-Star Hotels in Lisbon

Olissippo Lapa Palace Located in the Lapa neighborhood between Bairro Alto and Belém, this hotel is not only one of the best hotels in Lisbon but one of the best hotels in the world.

It is private and ideal for travelers looking to relax. Once a 19th century palace, this hotel offers the greatest of Old World charms, from antique luxury furnishings to beautiful subtropical gardens on the grounds.

Amenities include a sauna, Turkish bath, fitness center, spa, indoor swimming pool, two restaurants, and the Rio Tejo Bar. The Palace Deluxe Rooms feature classic décor while the Villa and Garden wings are more modern. WiFi is available in all rooms for a charge. For the best views of Lisbon and the Tagus River, stay on the higher floors. Expect a 30-minute walk to the city center.

Sofitel Lisbon Liberdade
This 5-star hotel is located closer to the Bairro Alto city center and walking distance to  the St. George Castle, the cathedral, and many of the area’s restaurants, shops, and entertainment venues.

The Sofitel Lisbon Liberdade’s atmosphere is purely modern. Each of the contemporary rooms features complimentary WiFi, a Bose sound system, L’Occitane toiletries, and MyBed beds. The staff is particularly friendly and efficient with the comfort of each guest a high priority.

Amenities include a fitness center with a jacuzzi, the chic Intra-Muros bar, which features a library for your perusal, and the AdLib restaurant, which features French-Portugese Fusion cuisine.On-site parking is also offered.

4-Star Hotels in Lisbon

Clarion Suites
Located near Praça Marquês de Pombal square, this hotel is just a short walk from many sights and the Caparica beach area. The rooms are quite large and include kitchenettes, making this hotel a great value for those who want to prepare a few meals in.

All of the 57 rooms come with individualized climate control, desks, hairdryers, WiFi (for a charge), and mini bars. The hotel is short on amenities but does have an outdoor pool. A continental breakfast is also offered. If you plan on cooking in the room, make sure the kitchenette has everything you’ll need before signing off on it.

As Janelas Verdes
This boutique hotel has the feel of a B&B, and its funky personality isn’t for travelers who prefer cookie-cutter hotels. It is located next to the National Art Museum, and the Bairro Alto city center is about 10 minutes by foot.

Each of the 29 rooms comes with complimentary WiFi, complimentary Port wine, and individualized climate control. Some of the rooms are on the small side. There’s a library with a terrace that serves complimentary tea.

The hotel is located in a charming neighborhood filled with restaurants, shops, and wine bars. The staff is relaxed and goes out of its way to help you get the most of your visit. Breakfast is served in a sheltered garden.

Britania Hotel
From cork floors to the marble staircases, this boutique hotel is chic and inviting, and it comes at a terrific value. It is surrounded by shopping and dining options and the Bairro Alto city center is a 20-minute walk away.

All of the 33 rooms feature complimentary WiFi, complimentary Port wine, Molton Brown amenities, marble bathrooms, and individualized climate control. The rooms are individually decorated and quite large. The staff is very friendly. Note: the WiFi connection gets weaker on the higher floors.

3-Star Hotels in Lisbon

HF Fenix Garden
This hotel is all about location. Located on Praça Marquês de Pombal square, the hotel is within walking distance of most sights. There are metro and bus stops nearby, and the bus to the Belém Tower stops right outside the door.

For its central location, this hotel is quiet and quite peaceful. The 94 rooms are clean and functional and offer complimentary WiFi. The continental breakfast is quite good.

Dom Carlos Liberty Lisboa
This hotel’s rooms are a bit on the small side, but it is centrally located—the Bairro Alto neighborhood is about a 10-minute walk—and comes at a good price.

Each of the 59 rooms features complimentary broadband internet, a mini bar, and reading lights. Rooms are clean and the staff is professional.

Amenities include a fitness center and 24-hour reception. The Dom Carlos Lounge provides a relaxing area where guests can read complimentary newspapers, use complimentary WiFi, or read a book from the hotel library. The continental breakfast features only cold dishes, but the selection is vast.

Pensao Residencial Portuense
This hotel keeps it simple, offering clean rooms, friendly staff, and a central location for a good price. Rooms come in a number of sizes, from singles to rooms that can accommodate up to four adults. The quadruples are dorm-style. Each room comes with air conditioning and satellite TV.

Amenities include 24-hour reception and 24-hour room service. WiFi and high speed cable internet are provided in the lobby and on the ground floor free of charge. It is near the Terminal do Rossio train station.

B&Bs in Lisbon

Lisbon Dreams Guesthouse
Located near the Praça do Marques de Pombal square, this B&B is hipper than most, featuring trendy décor. It has a luxurious side too, and all guests get bathrobes and slippers and the staff goes out of its way to provide everything needed.

Every room shares a common bathroom, and each room has complimentary WiFi. Rooms are singles, doubles, twins, and triples. Breakfast features freshly baked pastries. Note that this B&B is a little hard to find, so make sure you have good directions.

Family Macedos Bed & Breakfast Lisbon
This B&B excels at providing a family atmosphere and spotlessly clean rooms furnished with antique Portugese furniture. You’ll feel as though you stumbled upon a side of Portugal that few tourists see.

The location is a bit out of the way, but the city center can be reached by metro in five minutes or by walking in thirty minutes. All rooms share bathrooms, and there are 2 bathrooms on each floor: one men’s and one women’s. Some of the apartments can accommodate up to 12 adults. The grounds include a garden and children’s pool. Note that this B&B is also hard to find, so make sure you have good directions.

Budget Hotels in Lisbon

Royal Lisbon Hostel
The Royal Lisbon Hostel offers modern amenities in every guestroom and superb service, all in a very convenient location. Located  on the eastern face of Praça de Camões, the Royal Lisbon overlooks the epic poet’s statue surrounded by a vibrant crowd of locals and urban travelers.

The Hostel has 5 bedrooms 1 for 2 people; 3 for 8 people and 1 for 12 people. Accommodation include 24hr room service, elevator, bar/pub, laundry,  business center and free breakfasts. This hotel is characterized by a combination of modern comfort and tradition.

Lisboa Central Hostel
This hostel is located near Praça do Marques de Pombal square and features rooms for two to ten people. It is clean, has a party-friendly atmosphere, and the staff is uniquely outgoing. There are three common rooms replete with video games and a fully equipped kitchen.

Breakfast is included in the price and prepared daily by a resident chef. Complimentary WiFi throughout and 24-hour reception. If you arrive on a Milkshake Monday, make sure to grab one of the free shakes that the hostel gives to guests.

Lisbon is a fascinating city with a lot of things to do. No matter for which area in Lisbon you fall, you will have an amazing time.

And don’t forget to read our perfect Portugal Itinerary with recommendations from a local.

Where to Stay in Lisbon was written by Mattie Bamman for

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Friday 8th of June 2012

Hi. You should try Madeira Island in Portugal. The Madeira nature is unique in the world. Its Climat is very pleasant and pleasant temperature (14 º to 22 º).

Fantastic Levada Walks throught natural beauty and its majestic sceneries. Madeira Food, is probably one of the best places in the world for a good meat and a faboulus fish. The famous honey cake (you can keep it during one year). The "Bolo do Caco" in butter with garlic. The meat speciality "Espetada" and the Fish especiality "Espada Fillet With banana Flambé.

The Madeira wine and Madeira Poncha are very famous world wide.

You can swimming on the sea all around the year (water 18 º to 22 º) Some great events like Carnival Event, The Flower Festival, The Festival of the Atlantic (June every weekend), Religious festivities in every villages (May to September), Wine Festival (September), Christmas and the New Year's Eve (December 31).

In the see you can do boat trips to see the tartules, the doulfins and whales all year but specialy fromMay to November.

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