Best Area to Stay in Lisbon
Delicious pastéis de nata, charming cobblestone streets, seven hills to explore, and a beautiful sunset by the 25 de Abril Bridge await you on your upcoming trip to Lisbon. But before rushing into booking the first hotel you come across, think about the vibe you expect from your time in Portugal. Each of Lisbon neighborhoods has its own special flavor, and getting stuck in a pistachio area when you are a cookies-and-cream kind of person will be a buzzkill.
Looking for the best area to stay in Lisbon with family? Perhaps you are traveling solo and are looking for some cool nightlife! Or maybe you are simply wondering what are the best neighbourhoods to stay in Lisbon for a first time visit. Let this tiny Portuguese (yeah, that’s me. Hi!👋) give you a hand in exploring Lisbon like a local. This guide will be your cheat sheet to find the perfect hotel and area in Lisbon for you.
Best Hotels in Lisbon: Quick Picks
If you don’t have time right now to read this complete guide and find out the best area to stay in Lisbon for you, and all you want is the name of some awesome hotels where you are guaranteed to have a great time, we’ve got you covered!
Here are three of our all-around favorites and some of the best hotels to stay in Lisbon:
If these options are a bit over your budget, you are looking for a hotel in a specific area, or you want some more useful tips about this city, keep scrolling down. We will break down the best area to stay in Lisbon, tell you the nearby attractions, and give you alternative accommodation suggestions, catering to your budget and needs.
Best Areas to Stay in Lisbon
Finding out the best area to stay in Lisbon for you is key to truly experiencing the essence of the city. Lisbon's charm lies in its vibrant blend of history, showcased by the endless bright facades facing the river, and a modern energy that pulses through its trendy stores and bars with the coolest concepts. To ensure your decision suits your needs and you don’t feel overwhelmed (because ain’t nobody got time for that!), let's explore the best areas to stay in Lisbon.
Best Neighbourhoods To Stay In Lisbon in a Nutshell
Chiado: Elegant & Central | Best area to stay in Lisbon for first time visitors.
Alfama: Soulful & Historic | Best area to stay for an authentic old Lisbon feel.
Bairro Alto: Quaint & Bohemian | Best area to stay in Lisbon for nightlife.
Príncipe Real: Bohemian Chic | Best area to stay in Lisbon for an upscale bohemian scene.
Avenida da Liberdade: High-End & Well-Connected | Best area in Lisbon for a luxury stay.
Belém: Culture & Pastries | Best area to stay in Lisbon for the culture and history fans.
Chiado
Main attractions in Chiado: Santa Justa Lift; Carmo Convent; Livraria Bertrand (oldest bookstore in the world); The National Museum of Contemporary Art; A Brasileira; Praça Luís de Camões.
Chiado might just be the best area to stay in Lisbon for first time visitors who want to be in the center of it all. Perched on a hill, this neighborhood has a trendy vibe, with old-school bookshops, great restaurants, and some remnants of the pre-earthquake Lisbon. This was one of the most affected areas by the 1755 earthquake and underwent significant restoration.
Sandwiched between the neighborhoods of Bairro Alto, Principe Real, Cais do Sodré and Baixa, you are within walking distance of many major sights and transportation options that can connect you to most of Lisbon.
Both the Blue and Green metro lines have a stop here, which is Baixa-Chiado.
Things to consider before looking for Chiado hotels: This is considered the center of Lisbon for tourists, so expect some noise from the crowds during the day and busy streets. If you have mobility concerns, the hill terrain might be a bit of a challenge.
Best Chiado Hotels - Our Top Recommendations
Baixa is usually paired with Chiado as one of the best neighborhoods to stay in Lisbon. While we love window shopping on Rua Augusta and strolling along the iconic squares of Praça do Comércio and Rossio, we would personally not stay here. The packed streets, tourist-trap type of restaurants, and street vendors selling counterfeit goods and dodgy substances unfortunately take away some of the charm of this central location.
Alfama
Main attractions in Alfama: São Jorge Castle; Sé – Lisbon’s Cathedral; National Pantheon; Miradouro de Santa Luzia; Miradouro das Portas do Sol; São Vicente da Fora Monastery; Tram 28; Feira da Ladra (flea market); Fado House (enjoy dinner at a Fado house, such as Parreirinha de Alfama).
Alfama is the best area in to stay Lisbon for hopeless romantics and those who enjoy a good stroll down a city’s memory lane. Winding narrow cobbled streets, colorful houses, fantastic viewpoints over the city and Tagus river, and the melancholic tunes of Fado music wafting from a restaurant window are only part of the charm you will encounter in picturesque Alfama, the oldest district in Lisbon.
Tram 28 used to be a daily mode of transportation for locals, but nowadays it is also a famous tourist attraction. It provides a fantastic scenic ride, though it gets very crowded. Try to board at the first stop to secure a seat, or purchase a ticket for the Hills Red Tram tour*,which follows the same route with fewer people. If you choose to do so, we suggest you get a combined ticket with other buses and tours, as it is better value for money.
Things to consider before looking for hotels in Alfama: This area in Lisbon is not the most accessible area due to the uphill climbs and limited public transportation options. Even taxis struggle to reach certain areas. Nevertheless, if you are ok with walking a bit, you will love it here!
Best Hotels in Alfama Lisbon - Our Top Recommendations
If it is not your first time in Lisbon, consider staying in Graça, one of the most charming Lisbon neighborhoods, offering stunning views of the city. Graça is close to Alfama, but even more uphill. However, it is not the most practical area to stay at if you plan to explore all of Lisbon in a few days. If you are looking for a place to stay in Graça, we really like Dona Graça*.
Bairro Alto
Main attractions near Bairro Alto: Miradouro de São Pedro de Alcântara; Miradouro de Santa Catarina; São Roque Church; Bica Funicular; Glória Funicular; Cardaes Convent.
The vibrant Bairro Alto is the best area to stay in Lisbon for nightlife enthusiasts. By day, it's a charming maze of narrow streets with street art and enchanting quaint buildings, cute cafes, and irreverent designer stores. But come nightfall (mainly on Fridays and Saturdays), this place transforms into an endless hub of small bars. When the weather is inviting, people buy a drink and come outside, where the streets get completely packed with people talking and dancing the night away.
Rua da Atalaia and Rua do Diário de Notícias are the two main streets where gatherings outside of bars are common. So bear that in mind when looking for a place to stay in Bairro Alto.
If you are looking for a bohemian and alternative vibe in the center of the bustling nightlife scene, but still want to have plenty of Lisbon’s highlights within walking distance, Bairro Alto is the place for you.
In Bairro Alto you will also find plenty of traditional fado houses, which are absolutely worth a visit. Have dinner while enjoying a live performance that will show you the other side of Lisbon’s nightlife.
Things to consider before booking your Bairro Alto hotel: This peaceful neighborhood during the day can be quite noisy at night, especially if you are staying in older buildings with very thin walls. Nevertheless, there are quite a few quiet and lovely accommodations – you just need to know your way around Bairro Alto (good news for you: we know our way around it). Due to the nightlife tag, expect a younger crowd in this area. Also, bear in mind that some streets are only accessible by foot or taxi.
Where to Stay in Bairro Alto, Lisbon – Our Top Recommendations
As an alternative to Bairro Alto, you have Cais do Sodré, famous for its Pink Street. This is a great area for nightlife, with clubs, cool bars, trendy restaurants, and the Mercado da Ribeira food hall. If you are looking for a place to stay in Cais do Sodré, we suggest Look Living Apartments*.
Príncipe Real
Main attractions near Príncipe Real: Príncipe Real Garden; EmbaiXada; National Museum of Science & Natural History; Botanical Garden of Lisbon; Praça das Flores; Reservatório da Mãe d'Água das Amoreiras.
This trendy neighborhood is by far one of our favorite neighbourhoods in Lisbon for its calm environment. With streets lined with 19th-century mansions, the lovely Príncipe Real garden, cool concept stores, art galleries, and a wide selection of restaurants, this is a fantastic place to lay your head after a long day exploring the city.
This gem of a place manages to remain without big tourist crowds and keep its laid-back atmosphere, while having great public transportation alternatives to get you anywhere in the city. Príncipe Real is not only where you will find dreamy castle hotels in Lisbon, but also one of the best areas to stay in Lisbon for the LGBTQ+ community, having been for years a safe place where to celebrate the night away, in a fun and vibrant scene within some of the most well known clubs in Lisbon.
Things to consider before booking your Príncipe Real hotel: Príncipe Real might not be ideal if you are on a tight budget, it is one of the most upscale Lisbon areas.
Where to Stay in Príncipe Real, Lisbon – Our Top Recommendations
Avenida da Liberdade
Main attractions near Avenida da Liberdade: Casa do Alentejo; Glória Funicular; Parque Eduardo VII.
Avenida da Liberdade is the best area to stay in Lisbon for those who are looking for a luxurious stay in the heart of the city. A wide tree-lined avenue adorned with cute cafes once newspaper kiosks, surrounded by high-end boutiques and embassy buildings. This elegant area that connects the Baixa to Marquês do Pombal has not only a handful of delightful restaurants, and the most iconic speakeasy bar in Lisbon, but is also extremely well connected by all types of public transportation. You will definitely find the most luxurious and unique hotels in Lisbon in this area.
Things to consider before booking your Avenida da Liberdade hotel: As you can imagine, if you are wondering the best area to stay in Lisbon on a budget, this is not the place. This area of the city doesn’t provide a local, lived-in vibe at all.
Best Hotels in in Avenida da Liberdade, Lisbon – Our Top Recommendations
The nearby area of Avenidas Novas is not as glamorous, with mainly big hotel chains and offices, but offers more affordable accommodation, and convenient public transportation (which you will need as it is not so easy to walk from here to most Lisbon must-visit spots), making it a nice choice when central areas are full or pricey. Just like Avenida da Liberdade, this is one of the best areas in Lisbon for families with strollers due to its flat terrain.
Belém
Main attractions near Belém: Belém Tower; Jerónimos Monastery; Padrão dos Descobrimentos; Belém Palace; Pastéis de Belém; MAAT; Tropical Botanical Garden; CCB (Centro Cultural de Belém); National Coach Museum; Quake.
Belém is the best area to stay in Lisbon if you want to wake up somewhere beautiful and full of history, and you don’t mind being outside the city center. This charming and historical district has several iconic landmarks, amazing museums, and the absolute best pastries in the world – Pastéis de Belém (yeah they have the award to prove it). Can this turn very fast into a problem? Yes! Will it be worth it? Absolutely!
This is one of the best neighborhoods in Lisbon for families who are not in a rush to visit all the city attractions. Spend some quality time with the kids renting some electric scooters to explore the riverside, and take a day trip to Cascais for ice cream and a dip in the ocean. Belém is well connected with Lisbon’s city center by public transportation, but expect around a 30 minutes journey to get there.
Things to consider before booking your Belém hotel: Belém lies in the city outskirts, so you will need to regularly use public transportation to reach the center of the action. We don’t suggest you stay here if your time in Lisbon is reduced, unless the main purpose of your stay is to explore Belém exclusively. In the evenings Belém is very quiet.
Where to Stay in Belém, Lisbon – Our Top Recommendations
Planning Time
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