Where to Stay in Lisbon 🇵🇹: Guide to the Best Areas & Hotels in Lisbon

I’ve written a comprehensive guide to the best places to stay in Lisbon to help you choose the perfect place to suit your travels.

Our Pick of the Best Hotels in Lisbon 🏩

We have visited this city a dozen times and always chose different neighborhoods to live in Lisbon, we know the city very well and therefore I can give you recommendations on finding the best neighborhood in Lisbon, the capital of Portugal.

There are 24 neighborhoods in Lisbon and not every one of them is comfortable and safe to live in.

Choosing where to live in Lisbon depends on what kind of experience you are looking for: nightlife, sightseeing, shopping. Let’s break down which place to stay in Lisbon is best for you!

Looking for a quick answer to the question of where is the best place to stay in Lisbon? Here are my top picks:

Quick Guide to the Best Areas to Stay in Lisbon, Portugal 📋

1. Baixa – Historical Сenter 🏛

📍 Center of it all: The Baixa neighborhood, located in the heart of the city, allows you to get anywhere on foot.

Baixa, Lisbon
Baixa, Lisbon
Baixa, Lisbon
Baixa, Lisbon
Baixa, Lisbon
Baixa, Lisbon

🚏 Easy transport: It is a great place for those who want to be in the center of things and have easy access to other parts of Lisbon. From Baixa-Chiado metro station you can reach any other place in the city.

🏛️ Historic sights: Apart from its good location, there is a lot to do in the Baixa neighborhood. Some of the city’s famous sights can be explored here:

  • Santa Jushta Lift – A historic funicular built in 1902 to connect the lower streets to Carmou Square.
  • Streetcar 28 – historic streetcar route, offers passengers the opportunity to enjoy panoramic views and sights of the city.

Also not to be missed is Praça do Comércio, a central square surrounded by beautiful architecture, statues and cafes, serving as the historical and social center of the city.

🛍️ Shopper’s paradise: The Baixa district is also a shopping center. Avenida da Liberdade is the main shopping street of the neighborhood and all of Lisbon. However, you can also visit Rua Augusta and Rua da Prata streets. Some of the stores in this neighborhood have as much history as the city itself.

💰 Pricey: The main disadvantage of living in a prominent neighborhood like Baixa is that it is very popular with tourists. In summers, during the peak season, the accommodation prices break all records.

All hotels in Baixa →

Where to Stay in Baixa?

Luxury hotels:

  • Pousada de Lisboa – a luxury hotel in a historic building with modern facilities and a spa.
  • Altis Avenida – an elegant hotel with a rooftop restaurant and beautiful views of the city.

Medium price range:

  • Hotel Santa Justa – a comfortable hotel with a good location and reasonable prices.
  • My Story Hotel Rossio – a hotel with modern design and convenient location in the center of Baixa.
  • Hotel Mundial – a hotel with traditional design and good facilities including a rooftop restaurant.

Inexpensive hotels:

2. Chiado – Best Place to Stay at the Center of the Action 🔥

🔥 Must-see: As one of the most well-known neighborhoods in the city, Chiado makes for an ideal home base to explore many of Lisbon’s top attractions.

🧭 The Chiado is conveniently located just west of the Baixa district right in the city center. Many major sights like the São Jorge Castle, the National Pantheon, and the grand Praça do Comércio square are within walking distance or a short metro, tram, or tuk tuk ride away.

🎨 Artsy vibe: Once an intellectual and cultural hub frequented by poets and writers of the Portuguese Renaissance, the Chiado still retains much of that eclectic, artistic atmosphere.

🏙 Some top things for visitors to do in the Chiado area include:

  • Browsing the shops and boutiques along Rua do Carmo and Rua Garrett
  • Stopping at one of the district’s many outdoor cafes for a bica (espresso) or pasteis de nata egg custard tarts
  • Taking in panoramic views of the city from Miradouro de São Pedro de Alcântara

Also check out contemporary art at the Chiado Museum, which features works from the 19th and 20th centuries.

🚉 Well connected: With convenient metro stations like Baixa-Chiado and Restauradores connecting the district to the rest of the city’s public transportation, it’s easy to explore the Chiado area and beyond.

National Theater of St. Charles in Chiado
National Theater of St. Charles in Chiado
National Theater of St. Charles in Chiado
National Theater of St. Charles in Chiado

🛏 Charming hotels: Chiado is home to some of the most beautiful boutique hotels. Many of them are surprisingly affordable. But you can also find a luxury hotel if that’s what you prefer.

All hotels in Chiado →

Where to Stay in Chiado?

Luxury hotels:

Medium price range:

Inexpensive hotels:

3. Alfama – Best Views of the City 🌆

💃 Cultural hub: Alfama is a very Portuguese neighborhood. Here you can enjoy Fado, a genre of Portuguese popular music, visit the Feira da Ladra, the Fado Museum and the Sé Cathedral. There are also observation decks in the neighborhood that offer great views of the city, especially at sunset.

🏛️ Historic charm: As one of Lisbon’s oldest neighborhoods, this area is steeped in history. Alfama is conveniently located to famous historical landmarks such as:

  • São Jorge Castle
  • Lisbon Cathedral
  • National Pantheon

📸 Picturesque streets: Even if you are not visiting a particular attraction, the streets of Alfama are simply beautiful wherever you go.

The narrow cobblestone streets can take you to one of the many scenic points in the neighborhood. For example, Miradouro de Santa Luzia and Miradouro das Portas do Sol. These points offer a great view of Lisbon.

If you stay in Alfama, you’ll probably take photos at every turn.

🦞 Seafood heaven: When you’re done taking in the historical sights and stunning views, head to one of Alfama’s delicious restaurants. There is plenty of choice here, but the seafood selection at Parreirinha de Alfama is incomparable.

All hotels in Alfama →

Where to Stay in Alfama?

Luxury hotels:

  • Santiago de Alfama – a boutique hotel with upscale service and sophisticated interiors.
  • Solar Do Castelo – a comfortable hotel in a historic building with a good location.

Medium price range:

Inexpensive hotels:

4. Bairro Alto – Best Place to Stay in Lisbon for Nightlife 🍸

Bairro Alto is a neighborhood that changes depending on the time of day.

☀️ Deceptively quiet: When the sun is out, Bairroo Altu is a deceptively quiet place with quaint cafes, delicious food and a cozy atmosphere. But as the sun goes down on the weekends, partygoers and youngsters flock to the Bairro Altu neighborhood to immerse themselves in its nightlife.

🍻 Bar hopper’s paradise: If you’re the kind of person who likes to go from bar to bar in the evenings, this Lisbon neighborhood is for you. Just walking down the streets will take you to all sorts of bars and clubs such as:

  • Cheers Irish Pub – a lively pub with a karaoke room and sports broadcasts
  • Pavilhão Chinês – a bar with a great cocktail list
  • Jam Club – a retro-style venue with live concerts and top-notch beer.

And Páginas Tantas hosts top-notch jazz concerts.

🔊 Noisy nights: The only downside to the lively night parties in Bairro Alto is that they are accompanied by quite a lot of noise. Therefore, it is not the best place to stay in Lisbon for those who want complete silence in the evenings.

All hotels in Bairro Alto →

Where to Stay in Bairro Alto?

Expensive hotels:

Medium price range:

Budget hotels:

5. Principe Real – Where to Stay for Luxury and Fashion Trends 💎

💅 Trendy hub: Principe Real is Lisbon’s most exclusive and fashionable neighborhood. If you choose to stay here, you’ll find luxury stores, cool restaurants, cafes and art galleries in addition to the cool streets.

🌳 Leafy escapes: One of my favorite things about Principe Real are its public parks, such as:

  • Lisbon Botanical Garden, which features plants from all over the world
  • the quiet urban park Praça da Alegria

And of course the Principe Real garden, named after the neighborhood.

😌 Urban oasis: Exploring such a popular Lisbon neighborhood can be a bit tiring, so it’s always nice to have nature nearby.

💎 Picturesque charm: While most of Portugal is incredibly clean and beautiful, this neighborhood has a special charm. Perhaps this is due to its location on the hillside, which offers a wonderful view of the whole of Lisbon.

Príncipe Real
Príncipe Real
Príncipe Real
Príncipe Real
Príncipe Real

🏨 Luxury stays: Principe Real offers a variety of accommodation options. You can book either a luxury hotel or a boutique hotel. If you stay in this neighborhood, you are sure to live in luxury.

However, for all this glitz and glamor, you will have to pay more than in other neighborhoods of Lisbon. You should also keep in mind that Principe Real has some of the steepest streets in the city. Therefore, every time you leave the house, you will be exercising.

All hotels in Principe Real →

Where to Stay in Principe Real?

Expensive hotels:

  • The Vintage Hotel & Spa Lisbon – a luxury boutique hotel with exquisite interior design, spa and restaurant overlooking the city.
  • Memmo Príncipe Real – stylish design hotel with panoramic views of Lisbon, excellent location and personalized service.
  • Sofitel Lisbon Liberdade – a fashionable Sofitel hotel with elegant rooms located on Lisbon’s prestigious street.

Medium price category:

  • Hotel Botanico – a cozy boutique hotel in Lisbon’s green district, offering comfortable rooms and attentive service.
  • Alegria A Lisbon Boutique Hotel – a charming small hotel with a personalized touch and a terrace.
  • Casa do Principe – a welcoming hotel in a historic mansion with an authentic atmosphere and a homely feel.

Budget hotels:

  • Hola Lisbon Suites – apartments with all amenities and affordable prices, ideal for longer stays.
  • Príncipe Real Guest House – a guest house with simple but cozy rooms and friendly staff at a reasonable price.
  • The Postcard Lisbon – a reasonably priced mini-hotel with an original design, located in the heart of Lisbon.

6. Belém – Best Neighborhood to Stay in Lisbon with Family 👪

🏙 Less crowded: Lisbon has a reputation for being a very crowded city. Belém does not live up to this reputation. Therefore, those wondering where to stay in Lisbon with children should head to Belém.

🚉 Well connected: Due to its strategic location, Belém is just a short drive west of Lisbon city center. Convenient streetcar, bus and even boat connections make it easy to reach Belém.

🏛 History hub: Belém is a treasure trove of attractions. Below is a short guide for your exploration:

  • Belém Tower – start your journey at this riverside fortress, a marvel of medieval military architecture
  • Monument to Discovery – experience Portugal’s era of exploration with a visit to this iconic monument
  • Jerónimos Monastery – immerse yourself in the history and architecture of this UNESCO gem, where every detail tells a story

Thanks to the compact layout of the area, you can easily move from one attraction to the next.

Belém Tower
Belém Kulesi
Monument to Discovery
Keşif Anıtı
Jerónimos Monastery
Jerónimos Manastırı
Museu de Marinha
Belém Palace
Belém Sarayı
Belem Lighthouse
Belem Deniz Feneri
Jardim da Torre de Belém

🧁 Famous treats: No visit to Belém would be complete without sampling the world-famous pastilla de Nata. Indulge your taste buds with custard at the famous Pastéis de Belém bakery, a tradition that dates back to 1837.

All hotels in Belém →

Where to Stay in Belém?

Expensive hotels:

Medium price range:

Budget hotels:

7. Avenida da Liberdade – Best Lisbon Neighborhood for Shopping 👛

🌃 Famous avenue: The Avenida da Liberdade is one of the most famous avenues in Lisbon, renowned for its gorgeous landmarks, high-end shopping, and charming outdoor cafés. Stretching over a mile long, this tree-lined boulevard serves as the gateway connecting Lisbon’s historic center to the newer districts.

📍 With its central location, the Avenida da Liberdade puts you within walking distance to many top attractions: to the south lies the grand Praça dos Restauradores and Praça Dom Pedro IV. Most major metro lines stop at the avenue’s various stations, making it easy to explore the rest of the city.

👀 Some highlights of the Avenida da Liberdade include:

  • The Marquês de Pombal Roundabout with a towering column honoring the Prime Minister who rebuilt Lisbon after the 1755 earthquake
  • Edward VII Park with ponds, sculptures, and city views from its hilltop location

And of course, Praça da Figueira, a beautiful historic square surrounded by beautiful Portuguese Renaissance buildings.

🛍️ Shop & relax: Pop into the occasional museum between browsing luxury boutiques featuring brands like Louis Vuitton and Armani. When your feet grow tired, relax at one of over two dozen sidewalk cafés under shade trees.

This is by far the best neighborhood to live in Lisbon if you don’t care about the cost of living.

All hotels in Avenida da Liberdade →

Where to Stay in Avenida da Liberdade?

Expensive hotels:

Medium price range:

Budget hotels:

8. Cais do Sodré – Best Party Areas & Bars 💃🏻

Along the picturesque Tagus River lies the vibrant Cais do Sodré neighborhood, known for its bustling nightlife and convenient location.

Cais do Sodré
Praça de São Paulo
Praça de São Paulo
Praça de São Paulo

🌆 Lively locale: Situated just a short walk from attractions like the Rua Augusta Arch, Praça do Comércio, and the Lisbon Cathedral, Cais do Sodré puts you right in the middle of the action.

🍸 Hip hotspot: Once an unsavory red light district, Cais do Sodré has transformed in recent years into one of Lisbon’s trendiest areas, especially once the sun goes down. The neighborhood explodes with youthful energy and alluring nightlife options running the gamut from pulsing dance clubs to quirky bard-style bars. Some can’t miss evening activities include:

  • Sipping creative cocktails along the lively Pink Street corridor
  • Enjoying delicious seafood at one of the many riverfront restaurants
  • Bar-hopping between venues pulsing with DJs and live music

Also be sure to experience authentic Portuguese Fado performances at intimate venues.

🛏 Stylish stays: Accommodation options abound as well, with chic renovated buildings and design-focused boutique hotels sitting alongside historic properties. Budget travelers will also be able to find accommodations they can afford.

All hotels in Cais do Sodré →

Best hotels in Cais do Sodré?

Expensive hotels:

Medium price range:

Budget hotels:

  • Hall Chiado – a hostel with minimalist design and all basic amenities near the historic center.
  • Sunset Destination Hostel – a hostel with thoughtful interior design and a convenient location.
  • Boho Guesthouse – a guesthouse with a homelike atmosphere and a variety of accommodation options.

9. Parque das Nações – Most Modern Area 🌃

🚇 Well-connected: The Parque das Nações sits along the Tagus River, a 20-minute drive from downtown Lisbon. Several bus and metro lines connect the neighborhood to the historic heart of the city, making it easy to travel between the two areas.

🏙️ Futuristic vibes: Upon arriving, visitors will immediately notice the futuristic architecture with unique curved designs dominating the landscape.

🌳 Pleasant park: The spacious park itself offers pleasant walking trails dotted with funky art installations. The Vasco da Gama Tower soars above the trees, providing spectacular panoramic views from the top. On the riverfront, the Oceanário de Lisboa aquarium contains over 450 marine species.

🎰 Other highlights include:

  • Lisbon Casino – Try your luck at roulette, blackjack, and slot machines within this elegant casino housed in a circa-1940s building.
  • Meo Arena – Catch spectacular concerts and shows at this state-of-the-art performance venue able to seat 20,000 guests.

🎼 Lively nights: The Parque das Nações also hosts frequent events at outdoor venues throughout the year like the NOS Alive music festival held each July. The neighborhood truly comes alive at night with theaters, trendy bars, and lively restaurants.

Parque das Nações
Oceanário de Lisboa
Oceanário de Lisboa
Lisbon Casino
Lizbon Kumarhanesi

🅿️ Parking available: This area is also a very good option if you are looking for hotels in Lisbon with parking.

All hotels in Parque das Nações →

Where to Stay in Parque das Nações?

Expensive hotels:

Medium price category:

Budget hotels:

Top Tips for Your Lisbon Trip 🔝

Here are 4 tips to help make your trip to Lisbon comfortable and safe:

1. Mind curbs and cobblestones. ⚠ The picturesque streets do mean uneven footing. Watch your step, especially when navigating hills, as Lisbon is a very hilly city.

2. Try transit cards. 💳 Many metro stations and buses are mobile-ticket friendly now. Consider getting a Viva Viagem card which works across all forms of transportation.

3. Keep your wallet in front pockets. 👛 As in any big city, be alert in crowded areas for pickpockets targeting backpacks and back pockets in particular.

4. Stay hydrated. 🧴 Whether enjoying outdoor cafes or museums and cathedrals, sightseeing means walking. Carry a water bottle and don’t forget to drink it! The hills add extra effort.

Best Neighborhoods in Lisbon on a Map 🗺

FAQ: Lisbon City for Tourists ❔

Which part of Lisbon is best to stay?

Choosing where to stay in Lisbon depends on your preferences and interests. While the city center is a popular choice for its vibrant atmosphere and convenient access to major attractions, other neighborhoods offer unique experiences.

Is Lisbon city centre a good place to stay?

If you enjoy the hustle and bustle of a lively city, the Lisbon city center is an excellent option. Staying in areas like Baixa or Chiado puts you in the heart of the action, with easy access to historical sites, shopping, and a variety of restaurants.

Where to avoid staying in Lisbon?

While Lisbon is generally a safe city, some neighborhoods may have higher crime rates or lack the charm of other areas. It’s advisable to avoid certain parts of the Intendente and Martim Moniz neighborhoods, especially late at night.

What is the most walkable part of Lisbon?

For those who enjoy exploring on foot, Baixa and Chiado are among the most walkable parts of Lisbon. The flat terrain and well-maintained sidewalks make it easy to navigate, allowing you to leisurely stroll through historic streets, visit landmarks, and enjoy the local culture.

What is the most beautiful area of Lisbon?

Regarding beauty, opinions may vary, but Alfama stands out for its picturesque alleys, colorful buildings, and historic architecture. The authentic charm of this district, with its Fado music and panoramic views from São Jorge Castle, adds a unique  to your stay.