Choosing where to stay in Lisbon can be as exciting as it is daunting. This vibrant city, sprawling across seven hills, offers a diverse range of neighborhoods, each with its own unique character and charm.
Whether you’re visiting for the first time or returning to explore deeper, finding the right base is crucial to experience the city’s rich history, lively culture, and culinary delights, while being conveniently located near transport and attractions.
Last year, I had the amazing chance to explore Lisbon for a week with my Portuguese friend Pedro guiding me. We didn’t just wander around; we delved deep into the city like true locals. Pedro’s insider knowledge was invaluable!
Best Places To Stay in Lisbon
Together, we evaluated Lisbon’s best areas, discussing their pros and cons based on various travel preferences, budgets, and lengths of stay.
Additionally, we’ve selected the best hotels and apartments in each area to help you make the perfect choice.
I’m not shy to admit it, Lisbon’s accommodations can be considered a steal. The city generously caters to those on a shoestring budget, especially within its central districts.
That said, Lisbon’s popularity means the early bird catches the worm. To snag a beautiful, budget-friendly lodging in the city centre, you’ll need to book in advance.
Choose to reside away from the city centre and your wallet will thank you. A few extra minutes spent commuting on the metro or other public transport options can translate into significant savings.
1. Baixa, best area to stay in Lisbon for tourists and first-timers
Baixa is the heart of Lisbon, a historic district rebuilt after the 1755 earthquake with grand squares, symmetrical streets, and elegant “Pombaline” architecture. Nestled between the hills of Alfama and Chiado, it stretches from Rossio Square to the riverfront Praça do Comércio, making it the perfect base for first-time visitors.
✅ Staying here means being within walking distance of Lisbon’s top attractions, such as the majestic Praça do Comércio, the lively Rua Augusta, and the famous Elevador de Santa Justa. The area is well-connected by metro, trams, and buses, making it easy to explore the rest of the city. Many historic buildings have been converted into chic hotels and affordable hostels, offering a range of accommodation options. Whether you want to shop in Chiado, experience Bairro Alto’s nightlife, or simply stroll along the elegant streets, Baixa puts you in the center of it all.
❌ As one of Lisbon’s most popular tourist areas, Baixa can get crowded, especially in peak season. Some streets feel more commercial, with banks and businesses alongside cafes and shops. While generally safe, pickpockets target busy areas, so it’s important to stay alert. Hotels fill up quickly, so booking in advance is highly recommended.
Best Hotels in Baixa
2. Chiado, best place to stay in Lisbon for food lovers
Chiado is Lisbon’s most elegant neighborhood, known for its historic charm, literary cafés, and a vibrant mix of shopping, culture, and fine dining. Located between Baixa and Bairro Alto, it offers a refined atmosphere with a blend of old-world architecture and modern sophistication.
✅ Staying in Chiado means easy access to iconic landmarks like the Santa Justa Lift, the ruins of Convento do Carmo, and the National Museum of Contemporary Art. The area is a paradise for food lovers, with everything from gourmet street food at Mercado da Ribeira to Michelin-starred restaurants like Belcanto and Alma. Shopping enthusiasts will find a mix of international brands and unique boutiques, while culture seekers can visit the historic Bertrand Bookstore or enjoy live Fado performances. With the Baixa-Chiado metro station nearby, exploring the rest of Lisbon is effortless.
❌ Chiado’s charm comes at a price—accommodations here tend to be more expensive. The neighborhood’s steep hills and narrow streets can also be challenging, especially if you’re carrying luggage. While Chiado itself is peaceful at night, its proximity to Bairro Alto means some streets can be noisy, particularly on weekends.
Best Hotels in Chiado
3. Bairro Alto, best area to stay in Lisbon for nightlife
Bairro Alto is Lisbon’s nightlife capital, a historic district with narrow streets, colorful facades, and a bohemian atmosphere. Perched on a hill next to Chiado and Baixa, its name literally meaning “Upper Town,” it’s famous for its lively bars, traditional Fado houses, and alternative shops.
✅ Staying in Bairro Alto means being in the heart of Lisbon’s nightlife scene, with countless bars, clubs, and live music venues just steps away. The area is also home to cultural gems like Igreja de São Roque, one of Lisbon’s most ornate churches, and Miradouro de São Pedro de Alcântara, which offers stunning panoramic views of the city. Food lovers will find hidden gems like A Nossa Casa for authentic Portuguese cuisine and Garrafeira Alfaia for exceptional local wines. Bairro Alto is surprisingly quiet during the day, making it a great base for exploring the nearby neighborhoods. To avoid the steep climb to Bairro Alto, the Glória Funicular, a historic tram from 1885, is a fun attraction. Ride it once for the experience and photos, then take a cab for convenience.
❌ Bairro Alto is not ideal for light sleepers. The neighborhood comes alive at night, and the streets remain lively until the early morning hours, especially on weekends. Some accommodations struggle with noise insulation, so it’s important to check hotel reviews and look at nearby buildings on the map before booking to avoid staying too close to a bar or club. The area’s steep hills and cobbled streets can also be challenging to navigate. While generally safe, pickpockets operate in crowded areas.
Best Hotels in Bairro Alto
4. Alfama, best area to stay in Lisbon for couples
Alfama is Lisbon’s oldest and most picturesque district, a maze of narrow streets, hidden courtyards, and breathtaking viewpoints. Sitting on a hillside near Baixa, it offers an intimate and romantic atmosphere, making it a great choice for couples.
✅ Staying in Alfama means immersing yourself in Lisbon’s rich history and culture. The area is famous for its soulful Fado music, best experienced in traditional restaurants like Mesa De Frades. Highlights include the medieval Castelo de São Jorge, offering sweeping city views, and the charming Tram 28, which winds through Alfama’s steep, cobbled streets, giving visitors a nostalgic journey through the heart of old Lisbon. The Miradouro de Santa Luzia viewpoint is a perfect spot to take in the scenery.
❌ Alfama’s hilly terrain and narrow alleyways can be challenging, especially with luggage. Public transport is limited, as there is no metro station, making other districts more convenient for getting around. While the area is generally safe, some of the quieter streets feel isolated at night, so it’s best to stay aware of your surroundings.
Best Hotels in Alfama
5. Príncipe Real, my favorite area in Lisbon
Príncipe Real is one of Lisbon’s most stylish and cosmopolitan neighborhoods, located northwest of Bairro Alto. While it has fewer tourist attractions than other parts of the city, it offers a glimpse into authentic Portuguese life, with its charming streets, historic buildings, and a strong sense of community. Known for its elegant architecture, lush gardens, and vibrant cultural scene, it has become a favorite among both locals and expats.
✅ Start your day with a coffee from Dramático, a local favorite, before exploring the area’s trendy restaurants, cafes, boutique shops, and art galleries. The Botanical Garden, established in the 1850s, offers a peaceful escape with a vast collection of plants. The Embaixada shopping gallery, housed in a 19th-century palace, is a must-visit for unique finds. Príncipe Real is also one of Lisbon’s most LGBTQ+ friendly neighborhoods. Speaking of which, you can enjoy a relaxed drink at TR3S, a cozy bar known for its friendly atmosphere, or experience the lively energy of Finalmente Club with heartwarming people and cheap drinks. The area is lively both day and night, making it a great choice for those who enjoy an active city atmosphere.
❌ Accommodation prices are high, and many buildings are older, often without elevators. The neighborhood is hilly with narrow sidewalks, making walking more challenging. It is a popular area, meaning more tourists and foot traffic. Parking is limited, but there are three metro stations on the borders of the neighborhood that can help explore the city.
Best Hotels in Príncipe Real
- (€€€) Memmo Príncipe Real
- (€€€) 1869 Príncipe Real House
- (€€) Casa do Jasmim by Shiadu
6. Avenidas Novas, a quiet area for families and older couples
Avenidas Novas is a spacious and modern neighborhood located north of Marques de Pombal and Parque Eduardo VII. Unlike Lisbon’s older districts, it features wide avenues, larger sidewalks, and a flatter terrain, making it ideal for those who prefer an easier walking experience. While it lacks historic landmarks, it offers a mix of traditional charm and modern convenience, providing a comfortable and practical lifestyle.
✅ Avenidas Novas is well-known for its wide, walkable streets and green spaces like Parque Eduardo VII, the city’s largest park, which features scenic views, a botanical greenhouse, and well-manicured gardens. The area has a great selection of museums, such as the Calouste Gulbenkian Museum, and is home to El Corte Inglés, Lisbon’s most famous shopping mall, where you can find everything from groceries to luxury goods. Food options are diverse, with international cuisines like Japanese, Indian, and Italian, as well as local Portuguese spots. The neighborhood is also very well-connected, with multiple metro stations on the blue, yellow, and red lines, making it easy to explore the rest of Lisbon. Buses, bike lanes, and the Entrecampos train station also add to the excellent transport links.
❌ Accommodation prices are still on the budget side but they’re rising as the area becomes more desirable. While it’s quieter than the city center, plane noise can be an issue in some parts due to its proximity to the airport. Although there are some bars and restaurants, nightlife is limited, making it less appealing for those looking for an active social scene.
Best Hotels in Avenidas Novas
7. Parque das Nações, best for families and business travelers
Parque das Nações is Lisbon’s most modern district, built for the 1998 World Expo. With contemporary architecture, a waterfront setting, and excellent transport links, it’s a top choice for families and business travelers.
✅ Staying in Parque das Nações means easy access to modern conveniences, including large shopping centers, restaurants, and entertainment venues. The area’s highlights include the Lisbon Oceanarium, one of the largest in Europe, and the striking Oriente Station, a transport hub designed by Santiago Calatrava. The Vasco da Gama Bridge adds to the futuristic feel of the neighborhood. Well-connected by metro, it offers a quick trip to the airport and easy access to the rest of Lisbon.
❌ This district lacks the historic charm of Lisbon’s older neighborhoods, making it feel more like a modern business hub than a cultural destination. While it has great dining and shopping, it doesn’t offer the same vibrant street life as central Lisbon. If you’re looking for traditional architecture or a lively nightlife scene, other areas might be a better fit.
Best Hotels in Parque das Nações
8. Belém: Lisbon's crown jewel of culture
Belém is Lisbon’s cultural hub, home to some of the city’s most iconic landmarks and museums. Located along the Tagus River on the western edge of Lisbon, it’s a must-visit area filled with history, grand architecture, and world-famous pastries. It’s a spot you’ll undoubtedly be drawn to, dedicating at least a day of your itinerary to explore its treasures.
✅ Staying in Belém means easy access to top attractions like the majestic Jerónimos Monastery, the historic Belém Tower, and the modern MAAT Museum. The area also boasts the National Coach Museum, the Navy Museum, and several renowned art galleries. Well-connected by tram and bus, it offers a peaceful retreat after a day of sightseeing. If you love culture and history, Belém is a great choice. Plus, you’ll be right next to Pastéis de Belém, the birthplace of Lisbon’s famous custard tarts.
❌ Belém is far from Lisbon’s nightlife and lacks metro access, making trips to the city center more time-consuming. While bustling with tourists during the day, the neighborhood becomes much quieter in the evening. If you’re looking for a lively atmosphere after dark, other districts might suit you better.
Best Hotels in Belém
- (€€€) NAU Palacio do Governador
- (€€) Hotel Jeronimos 8
- (€) Setubalense
9. Lapa, a serene sanctuary in the city
Lapa is one of Lisbon’s most elegant and tranquil neighborhoods, known for its historic mansions, embassies, and peaceful atmosphere. Located between Baixa, Bairro Alto, and Belém, it offers a serene escape from the city’s busier districts.
✅ Staying in Lapa means experiencing a quieter, more residential side of Lisbon while still being well-connected to the city center. The area is home to architectural gems like the stunning Basilica da Estrela and the lush Jardim da Estrela, a perfect spot to relax. Nearby, the charming neighborhoods of São Bento and Campo de Ourique offer antique shops, bookstores, and excellent local restaurants. Lapa is also close to Cais do Sodré, where you’ll find trendy bars and a different nightlife scene from Bairro Alto. Accommodation options include boutique hotels and stylish rental apartments, making it a great choice for a peaceful yet convenient stay.
❌ Lapa lacks a metro station, so getting around requires trams, buses, or taxis. While it’s well-connected, reaching some areas may take longer compared to staying in more central districts. The neighborhood is also more residential, with fewer tourist attractions and nightlife options, so it’s better suited for those looking for a calm retreat rather than a lively city experience.
