Where To Stay In Lisbon: The Ultimate Neighborhood Guide

Are you planning a trip to Lisbon? Do you have places like Castelo de São Jorge or Parque Eduardo VII on your list? Many people say when visiting Lisbon you want to stay within a mile or so of Praca do Comercio. The Baixa (also called the heart of the city!) and Alto Alfama neighborhoods are also excellent places to explore and stay. They can be a bit pricey though, so if you are on a budget you will want to find a neighborhood a little further out.

The neighborhoods that are in or near the city center are some of the more popular places to find accommodation in Lisbon, but does this mean they are the best? Depending on why you are visiting Lisbon and who is traveling with you, you may find different areas better suit your needs.

Some of the neighborhoods that are further from downtown Lisbon are just a short metro ride from the central area. If you stay in a neighborhood that is uphill, you can have unobstructed views of the area. If you are staying in one of these hilly neighborhoods, take advantage of the tram or funicular services offered in Lisbon.  

Finding where to stay in Lisbon is not a hard thing when you have a better understanding of the neighborhoods in the city. First, locate a Lisbon luggage storage service nearby to keep your things safe and sound while you explore and choose your accommodation. Deciding where to stay in Lisbon is half the fun!

Where to stay in central Lisbon near Avenida da Liberdade

Located in central Lisbon, the Avenida da Liberdade is actually an avenue and the surrounding area along that avenue. This ten-lane divided road has gardens and pedestrian lanes where you can stroll and check out the different shops, restaurants, and landmarks. The avenue connects Marquis of Pombal Square and Restauradores Square.

The pavement of Avenida da Liberdade is covered in black and white mosaics and is simply breathtaking, making it one of the prettiest areas in Lisbon. Bring your camera to snap some social-media-worthy photos of the avenue and gardens.

Plan to stay at the Inspira Liberdade Boutique Hotel, a 4-star hotel that is eco-friendly and has fantastic amenities. If you are looking for a more historic hotel, you may want to check out the Heritage Avenida or maybe the Valverde Hotel which has an outdoor pool and patio where you can relax after exploring the city. Both have stylish rooms near Lisbon's main square.

A more upscale hotel in the Avenida da Liberdade neighborhood is the Torel Palace, and is actually two 19th century mansions with spacious rooms and converted into a luxury hotel. There are several well-manicured gardens and swimming pools plus several great amenities including a Mediterranean restaurant on-site. This renovated building is an absolute must-see.

Where to stay in Chiado

The Chiado neighborhood is one of the best areas to stay in Lisbon when you are looking for some of the best shopping in the city. This sophisticated neighborhood has been compared to Oxford Street and Fifth Avenue with its collection of international and high-end shops and boutiques on several shopping streets.

Located at the top of one of the biggest hills in Lisbon, you do not have to fight walking up a large hill to go anywhere in Chiado. It is a fabulous neighborhood to hang out in and enjoy a little retail therapy and then kick back and relax at one of the luxurious cafes. Stroll through the narrow cobbled lanes checking out the boutique shops.

The oldest bookstore in the world is located in this neighborhood, Bertrand Bookstore. It was founded in 1732 by two French brothers and according to the Guinness Book of World Records, it is indeed the oldest operating bookstore in the world.

Chiado has many restaurants and is also home to some of the fanciest restaurants in Lisbon so make your reservations, put on your formal wear, and dine in one of the fine dining establishments near the theater district, which is also located in Chiado.  

When staying in Chiado, you will want to make reservations at the Lisbon Pessoa Hotel. This 4-star hotel has a rooftop bar, underground parking, and an on-site restaurant. Casa Balthazar boasts a garden with a small pool and a balcony hot tub where you can relax and look out over Lisbon. For a budget-friendly option, check out the Bed and Breakfast Teatro.

Where to stay in Baixa

The Baixa Pombalina neighborhood is commonly called Baixa and is located in the historic center of Lisbon. It is the most central neighborhood in the city and was completely destroyed during the 1755 earthquake. The Marquis of Pombal rebuilt the entire neighborhood and it was renamed after him.

This historic area is centrally located and can be found between Chiado, Cais do Sodre, and Alfama along the Tagus River. The Rossio Train Station is located at the northern edge of Baixa. It is considered to be one of the most touristy neighborhoods in Lisbon.

The avenues in Baixa are lined with breathtaking houses that are covered in the typical Lisbon tiles. There are several amazing stores to check out when you are visiting Baixa and it is near the major sights. The neighborhood includes several historic squares including Praca dos Restauradores or Restauradores Square and Praca Marques de Pombal or Marquis of Pombal Square.

It is easy to catch the famous tram, Tram 28, which is a historic tram that will take you throughout the city to most of the major landmarks and tourist attractions. Other public transportation options are also easily accessible from this neighborhood and there are plenty of places to stay including apartments, luxury hotels, and more budget-friendly hotels in a fantastic location.

Lisbon Hotel Baixa is a 4-star hotel with large rooms and great amenities. When looking for elegantly appointed suites, the Dear Lisbon Palace Guest House is the place to go. You may also want to try the Alma Lusa located in Municipio Square for a relaxing stay. If you are planning to stay in Lisbon for a while, there are several great apartment options.

Where to stay in Alfama

Alfama and Graca are Lisbon's oldest districts and are filled with narrow, winding streets that are full of charm. While there really are not many good places to stay in Graca, Alfama does have several great options including the Memmo Alfama, a smaller 4-star hotel with an amazing rooftop terrace.

The Convento Hotel Salvador, a 3-star hotel, offers great amenities, comfortable rooms, a fitness center, and tastefully decorated rooms. There are several AirBnBs available, as well as suites and apartments through the Lisbon Lounge Suite for those traveling with large parties or visitors planning to stay awhile.

The charm of Alfama will entice you, and as you stroll through the narrow streets you will see laundry flapping in the wind out of apartment windows. Listen to the locals as they sit outside and chat about their day, and enjoy the ambiance of small-town living right in the heart of bustling Lisbon. You will want to use public transportation to get here as there are very few parking spots in the area. To learn how to get around in Lisbon, use our handy guide!

The Graca neighborhood is actually the upper part of Alfama and surrounds the São Jorge Castle. Alfama has some amazing restaurants where you will find traditional Portuguese cuisine in a relaxing setting. The sights and smells of this neighborhood will draw you in and make you want to experience more and more.

Where to stay in Bairro Alto

Bairro Alto translates to Upper City and it actually sits higher than Chiado. Bairro Alto is the place to be when searching for the best nightlife in Lisbon. Filled with hundreds of bars, nightclubs, and restaurants, this neighborhood can quickly become very noisy, especially on the weekends.

You will not want to head to bed early when you stay here, instead, you will want to be right in the middle of all the action. Check out the various places to listen to fado music and enjoy a signature cocktail or craft beer. Maybe dancing the night away while listening to a DJ spin all night long is more what you are searching for!

This vibrant neighborhood is close enough to the touristy attractions and landmarks without being a super touristy place itself. With the Cais do Sodre station nearby you can easily head out of Bairro Alto for the day and be back in plenty of time to hit the clubs for an exciting night out on the town.

During the day, Bairro Alto is a very unassuming neighborhood and you would never guess that it is the most raucous area in Lisbon. Stick around when the sun goes down, though, and watch the streets literally come to life and people flock to the clubs, restaurants, and bars. Watch as street performers entertain the crowds.

If you are looking to stay near the best nightlife in Lisbon, check out the Casa Das Janelas Com Vista, or the House of the Windows with Views, and yes, the views from every window here are simply breathtaking. This modern hotel is a must-visit. You can also stay in a 400-year-old house that has been fully restored. But book early, the Palacio das Especiarias fills up quickly.

If you would like to sit on your balcony and overlook the river, book a room at the Monte Belvedere. Then again, the luxurious hotel Verride Palacio Santa Catharina has a rooftop pool and on-site restaurant that is to die for, plus air conditioning in the rooms.

Where to stay in Principe Real

Principe Real is within walking distance of Bairro Alto, but it has a completely different vibe than its loud and sometimes obnoxious neighbor. This quieter street boasts several green spaces and a decidedly residential atmosphere. You can get out and explore Lisbon when staying here.

There are several quaint cafes, an amazing Michelin-starred restaurant, and fantastic boutiques here. The Museum of Natural History and Science as well as the Botanic Gardens can be found in the Principe Real area. Drop by the Jardim do Principe Real, an adorable tree-lined park with great picnic spots. The metro station and public transport are within walking distance of Principe Real.

Spend time exploring Miradouro de Sao Pedro de Alcantara for some of the best panoramic views of Lisbon. There are several cafes and street vendors selling souvenirs, wine, and food. Many of the best restaurants in Lisbon can be found in this quieter area in Principe Real.

There are several lodging options such as the Memmo Principe Real, or Prince’s House, a bed and breakfast offering a real royal experience. The Casa do Jasmim by Shiadu is on a quiet street and sits just behind the Principe Real Park. You may prefer one of the guest houses, the Flores Guest House is in a more residential area boasting peace and quiet and charming amenities.

See Lisbon, Portugal through the boutique hotels and contemporary rooms

Lisbon is a fantastic place to visit, filled with so much history but with modern conveniences at every turn. Is a boutique hotel, historic building or holiday apartment your dream accommodation? Perhaps an indoor pool is a must for you. If the neighborhood is of importance like the castle district or Baixa district, add that to your must-have list. No matter where you stay in this marvelous city, every neighborhood has something special within easy walking distance. You really can't go wrong!