The capital of Portugal is gaining popularity as an affordable European destination. Lisbon is a colorful seaside city, with the perfect mix of culture, cuisine and scenery, all in an affordable destination. As Lisbon travel and tourism increases, more Lisbon accommodation options become available.
Before deciding where to stay in Lisbon Portugal, you should first decide what to do in Lisbon, so you can choose your Lisbon hotel in proximity to the attractions you want to see. The city centre is relatively small, so it’s easy to walk around Lisbon city and see the attractions, but it’s also quite hilly, so be prepared for that.
We will cover off all types of Lisbon accommodation options from Hostels to luxury Lisbon hotels as well as how to decide where to stay in Lisbon 2023, the best Lisbon hotels, best places in Lisbon to visit, the best places to stay in Lisbon, hotels near Lisbon attractions, neighborhoods Lisbon guide and many more.
Below are 7 of the best neighbourhoods to stay in Lisbon to help you make the right decision when trying to work out best areas to stay in Lisbon for you. We have tried to make the guide as easy to follow as possible.
We have also included some things to do or places to visit as well as some eatery suggestions of either our favourite places or some funky places to eat at within the areas in Lisbon so you can use this as a go to guide to pick the best accommodation in Lisbon for you.
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Baixa – Where to stay in Lisbon with family
Baixa is the main tourist area of Lisbon, and is the most central area of Lisbon. Thanks to an 18th century earthquake, much of this area has been rebuilt and is considered “modern.”
As with any tourist district, Baixa Lisbon has restaurants, stores, entertainment, attractions and hotels, making it one of the best places to stay in Lisbon.
If you are deciding best neighborhoods in Lisbon to stay with family, Baixa is an excellent option, thanks to proximity to the tourist attractions. Public transit in Lisbon is excellent and easy to use, but if you are visiting Lisbon with children, it may be easier to walk most of the time.
Baixa Lisbon is the perfect place for families to stay while travelling to Lisbon with small kids. Commerce and Rossio Squares are great places to explore with their wide open spaces and plenty of entertainment options.
Bustling pedestrianized streets like Rua Augusta offer plenty of shopping, dining, and sightseeing opportunities.
The National Museum of Contemporary Art, Santa Justa Lift, and Lisbon Cathedral all provide a glimpse into Portugal’s rich culture and history. From the cobblestone streets to the vibrant parks, Baixa Lisbon offers an unforgettable experience for visitors of all ages.
Best places to stay in Baixa
Cheapest Backpacking Hostels in Baixa
Budget accommodation in Baixa
Mid range accommodation in Baixa
- Browns Downtown Hotel
- Ferraria XVI FLH Hotels Lisboa
- Madalena by The Beautique Hotels
- Eurostars Lisboa Baixa
Family Friendly accommodation in Baixa
- Casas do Bairro Conqvistador
- Lisbon Serviced Apartments – Baixa Castelo
- Browns Central Hotel
- Lisbon Art Stay Apartments Baixa
Affordable Luxury accommodation in Baixa
Chiado – Where to stay in Lisbon first time
Atop the hill adjacent to Baixa is Chiado, Lisbon’s upscale and artistic neighborhood. Some of the best hotels in Lisbon can be found in Chiado.
This is where you’ll find upscale shopping, as well as Lisbon’s theatre district. Like Baixa, Chiado is well suited for tourists, with many Lisbon hotels, cafes, fine dining restaurants, museums and shops. Don’t miss the Chiado museum, with works by Rodin on display.
Chiado Lisbon is a bustling neighborhood in the center of the Portuguese capital. There’s plenty for visitors to see and do, but first-time travellers may be wondering where to stay during their trip.
Luckily, Chiado Lisbon has a wide range of accommodation options that cater to all budgets and preferences. Whether you’re looking for a luxurious five-star hotel or a cozy boutique hostel, there’s something to suit everyone’s needs.
Praça do Comércio, Praça Luís de Camões, Arco da Rua Augusta, and pink street are all popular spots for tourists looking for a place to stay while exploring the city.
These areas offer an array of accommodation options including traditional guesthouses with terraces, chic apartments with stunning views, modern hotels with great amenities, and much more.
What makes them special is that they are close to some of the most iconic landmarks in the city such as São Roque Church and Carmo Convent. This means you can easily explore Chiado Lisbon’s historical sites during your stay without having to commute far from your base.
Best places to stay in Chiado
Cheapest Backpacking Hostels in Chiado
Budget accommodation in Chiado
Mid range accommodation in Chiado
- Palácio das Especiarias
- Casas na Portuguesa – Bica Chiado
- WHome | Luxury Chiado Prime Apartment
- Lisboa Pessoa Hotel
Family Friendly accommodation in Chiado
- Baixa Charming Apt. | Rosa 59
- Palácio Camões – Lisbon Serviced Apartments
- Lisboa Carmo Hotel
- Chiado Arty Flats
Affordable Luxury accommodation in Chiado
- Raw Culture Art & Lofts Bairro Alto
- The Ivens Autograph Collection
- Martinhal Lisbon Chiado
- Bairro Alto Hotel
Bairro Alto – Where to stay in Lisbon for nightlife
The best area to stay in Lisbon for nightlife or the the nighttime alternative to Chiado is Bairro Alto. Just a minute walk or so uphill from Chiado, Bairro Alto is thought to have the best nightlife in Lisbon.
In warmer months, revelers line the cobblestone streets as they make their way from one pub to the next. Given the plethora of low-cost carriers into Portugal, Lisbon is a popular stag do destination, so keep that in mind when visiting on weekends.
There are not many tourist activities located directly in Bairro Alto, but they’re not difficult to access via the Metro Station or by walking. Bairro Alto is not known as a quiet neighborhood, so it’s really the best option for night owls and party animals.
This is also home to one of Lisbon’s main train stations such as Rossio train station, so if you plan on several day trips from Lisbon, this is a good area to stay.
Best places to stay in Bairro Alto
Cheapest Backpacking Hostels in Bairro Alto
Budget accommodation in Bairro Alto
- Heart of Bairro Alto-Live like a Local
- Lisboa 1912 – Alojamento de Charme
- Stay at Home in Lisbon
Mid range accommodation in Bairro Alto
- Lisbon Colours Bairro Alto Apartments
- Piso Azul Premium Apartments in Bairro Alto
- Dear Lisbon – Bordalo Palace Chiado
- My Suite Lisbon Guest House – Principe Real
Family Friendly accommodation in Bairro Alto
- Apartments Center Bairro Alto
- Casa das Janelas com Vista
- Solar dos Poetas
- Yellow Tiles in City Center
Affordable Luxury accommodation in Bairro Alto
Avenida da Liberdade – Where to stay in Lisbon for shopping
Another upscale area of Portugal, the small strip along the Avenida da Liberdade is a great place to stay. Some of the finest hotels in Lisbon Portugal, such as the Four Seasons, can be found along the Avenida de Liberdade.
It’s been called the “Champs Elysees of Lisbon” as it’s design was heavily influenced by Parisian boulevards. For more luxury shopping from brands like Prada and Gucci, this is the neighborhood to visit.
Avenida da Liberdade is a great place to stay for those who love shopping. This vibrant avenue is lined with stylish shops, boutiques and department stores, making it the perfect destination for shopaholics.
On the avenue you’ll find all sorts of luxury brands and unique items, including designer clothes, shoes, accessories and more. There are also plenty of cafes nearby where you can rest your feet after a long day of shopping, or enjoy some delicious Portuguese cuisine.
Whether you’re looking to splurge or just browse around, Avenida da Liberdade is an ideal place to spend your vacation if shopping is your priority!
Best places to stay in Avenida de Liberdade
Cheapest Backpacking Hostels in Avenida de Liberdade
- room007 Lisboa Hostel
- Goodmorning Solo Traveller Hostel
- The Gateway – Lisbon Eco Hostel
- Safestay Lisbon Bairro Alto
Budget accommodation in Avenida de Liberdade
Mid range accommodation in Avenida de Liberdade
Family Friendly accommodation in Avenida de Liberdade
- Rossio Garden Hotel
- BessaHotel Liberdade
- Residencial Florescente
- Avani Avenida Liberdade Lisbon Hotel
Affordable Luxury accommodation in Avenida de Liberdade
- Tivoli Avenida Liberdade Lisboa
- The One Palácio da Anunciada
- TURIM Boulevard Hotel
- Sofitel Lisbon Liberdade
Graça – Best place to stay in Lisbon
Along with Alfama, Graça is one of Lisbon’s oldest neighborhoods. These are neighborhoods where the locals live.
Graça is on a hilltop near the São Jorge castle, while Alfama follows the hill downward. It’s one of the steepest areas of Lisbon, so get your lungs used to the climb if you decide to day in Graça or Alfama.
Graça Lisbon is the perfect spot for travelers planning a stay in Lisbon. Centrally located, it’s within walking distance to some of the city’s major attractions such as São Jorge castle. This 12th-century fortress offers breathtaking views of the city and its harbor.
The castle dates back to Moorish times and is one of Portugal’s most recognizable landmarks. Not only is Graça Lisbon close to this history-filled attraction, but it also boasts modern conveniences such as restaurants, shops, and bars right in its vicinity.
Plus, it has plenty of cozy little spots that allow you to relax and take in all that Lisbon has to offer. With so much to experience nearby, Graça Lisbon provides visitors with an ideal place to stay for their visit to one of Europe’s most beautiful cities.
Best places to stay in Graça
Cheapest Backpacking Hostels in Graça
Budget accommodation in Graça
Mid range accommodation in Graça
Family Friendly accommodation in Graça
- Lisbon Serviced Apartments – Castelo S. Jorge
- Castello Prime Suites
- Sao Jorge Apartments & Suites
- Lisbon Lights Apartments
Affordable Luxury accommodation in Graça
Cais do Sodré – Where to stay in Lisbon on a budget
One of Lisbon’s up-and-coming neighborhoods, Cais do Sodré is a great place to stay in Lisbon if you are seeking a younger, hipper atmosphere.
Cais do Sodré has traditionally been Lisbon’s red light district, and it’s still the place to go late-night when all other nightclubs in the city have closed down.
If you are visiting Lisbon on a budget, you’ll find many bargains here, from dive bars with cheap drinks to hostels with bargain prices. As such, it’s a popular neighborhood for students and digital nomads.
Cais do Sodré Lisbon has gained a reputation for being one of the best areas to stay in Lisbon on a budget. Located in the central part of the city, it boasts an unbeatable combination of proximity to key attractions and affordability.
Additionally, it is renowned for its buzzing nightlife as well as its diverse array of dining restaurants and bars that are sure to please even the most discerning travellers. From romantic bistros to lively pubs, Cais do Sodré Lisbon provides something for everyone.
Furthermore, those seeking a little extra excitement can visit one of the many nightclubs located along its waterfront. With all these options available at such great prices, it’s no wonder why Cais do Sodré Lisbon has become one of the hottest neighbourhoods in Lisbon!
Best places to stay in Cais do Sodré
Cheapest Backpacking Hostels in Cais do Sodré
Budget accommodation in Cais do Sodré
- GuestReady – Time Out 105
- FLH Alecrim Downtown Apartment
- Asul B&B
- Sunny Pink Street Historical Apt, By TimeCooler
Mid range accommodation in Cais do Sodré
- Lx Boutique Hotel
- A Captivating Apartment close to River Tagus in Lisbon
- Almaria – Da Corte Apartments
- Trendy Chic – Checkinhome
Family Friendly accommodation in Cais do Sodré
- Cais Urban Lodge
- 262 Boutique Hotel
- Lisbon Finestay 8 Building Apartments
- Lisbon Five Stars Apartments 8 Building
Affordable Luxury accommodation in Cais do Sodré
Estrela – Where to stay in Lisbon with kids
Another excellent neighborhood for travelers visiting Lisbon with children is Estrela, once a leafy suburb now enclosed by Lisbon.
Named for the Basilica de Estrela, it’s where Portuguese nobility built their mansions and palaces, which are still seen today throughout the area.
The garden of the Basilica is the hub of the neighborhood, and the views of Lisbon from Estrela are some of the best in the area.
Estrela Lisbon is an ideal place to stay for family travellers seeking a memorable experience with their children.
Located close to some of the city’s most renowned museums, including Museu Nacional de Arte Antiga, Museu do Oriente and Museu da Marioneta, Estrela Lisbon offers the perfect combination of family-friendly attractions and comfort.
With its child-friendly amenities such as outdoor playgrounds and spacious suites, Estrela Lisbon is the perfect spot for families looking to explore one of Europe’s most fascinating cities.
Furthermore, Estrela Lisbon provides easy access to many of Portugal’s other popular tourist destinations located in the nearby region like Sintra and Cascais.
Best places to stay in Estrela
Budget accommodation in Estrela
Mid range accommodation in Estrela
- Palacio Ramalhete
- As Janelas Verdes Inn – Lisbon Heritage Collection
Alcântara Sunny Terrace Apt
- Magnificent Lisbon Apartment by LovelyStay
Family Friendly accommodation in Estrela
- York House Lisboa Hotel
- Jardim da Lapa by Shiadu
- The Emerald House Lisbon
- FLH Madragoa Fresh Design Apartment
Affordable Luxury accommodation in Estrela
Top 5 favorites accommodation options for Lisbon
|❤️ Best Area first timers||Chiado Lisbon|
|💸 Best Luxury Hotel||The Lumiares Hotel & Spa|
|👪 Best Hotel for For Families||Browns Central Hotel|
|🏨 Best Mid-Range Hotel||Lisboa Pessoa Hotel|
|🛏️ Best Budget Hotel||Asul B&B|
|✨ Best Hostel||Sunset Destination Hostel|
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