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Prepare for an adventure exploring quaint meandering city streets, dark fado music bars, as well as a range of aromas and tastes all found in the lively neighborhoods of Lisbon!
Lisbon’s heart and soul can be found among the steep hillside alleyways which offer guests a showcase of Portuguese culture. From the tranquil coastline to the hottest parties in Europe, Lisbon has a new adventure awaiting you behind every corner!
With so many vibrant neighborhoods in Lisbon, it can be difficult to settle on just one to stay in.
In order to make choosing your perfect hotel easy, we compiled a list of the best neighborhoods in Lisbon!
Written by our team of well-seasoned travelers, we have put together a comprehensive guide explaining the best hotels and districts Lisbon has to offer.
After reading this article YOU will be the expert on which districts are located in the thick of the party and which are in the heart of the old city.
These are our best picks for where to stay in Lisbon.
Table of Contents
Looking for a specific place to stay? These are our highest recommendations for places to stay in Lisbon.
It doesn’t matter if you are a wandering backpacker or visiting Lisbon on a relaxing vacation, Nomad 64 will make sure you have everything you need to have a perfect holiday. Regardless if you stay in the dormitory or a single room, Nomad 64 ensures you will have a relaxing stay, be given the best of service, and wake up every morning with a delicious continental breakfast.
This quirky hotel fits right in with Cais do Sodré, the hippest neighborhood in town. Castilho House Cais is a beautifully decorated art hotel which offers its guests great fun, comfortable rooms, and excellent service.
Other than its outstanding breakfast served every morning, Castilho ensures its guests are comfortable with a flat-screen TV, dryer and free WIFI in all of the rooms.
Your dream vacation starts as soon as you enter the doors of Valverde Hotel. This 19th-century mansion’s luxurious rooms masterfully blend classy antiques with modern charm.
Valverde Hotel further pampers its guests with its heated pool located in a secluded garden overlooking the city and sea. Just when you thought it couldn’t get any better with its many restaurants, bars, live music and DJs, this hotel further surprises it’s visitors with tours on their very own yacht, giving you a holiday to remember for a lifetime!
The capital city of Lisbon, also known as the” City of Seven Hills” is a densely populated city situated on the steep hillside overlooking the crashing waves of the Atlantic Ocean. This vibrant city is a sprawling labyrinth with each alleyway being more beautiful than the next. With hole-in-the-wall bars and hidden gems galore, excitement is never too far away!
Downtown Lisbon is a densely populated, highly centralized area, with many neighborhoods seamlessly fading into each other. Although it may be hard at first to differentiate between two adjacent districts in Lisbon, you will soon realize that each area has its own distinct flavor and atmosphere.
Alfama & Graça gives the best of everything Lisbon has to offer. Stunning views of the city, some of the best bars and restaurants in Portugal, as well as some of the most historic buildings in the city!
Just West of Alfama & Graça are the neighborhoods of Baixa and Chiado. Although often associated together, each area has its own unique culture and is geared to a different kind of traveler.
Baixa is the main tourist hub of the city, here you can find the largest selection of hotels and the best museums in town.
Chiado, on the other hand, is known for being frequented by big spenders and high-end shoppers, making it one of the fanciest districts in Lisbon.
Cais do Sodré and Bairro Alto boasts the best nightlife in all of Lisbon but in two very different ways.
Cais do Sodre offers hip bars and trendy cafes, attracting an artsier cool crowd. Bairro Alto is the place where you can experience the most intense parties which will leave you with nights to remember for the rest of your life!
You may be a little overwhelmed now, but after viewing our guide you are sure to find the best neighborhood in Lisbon for you!
Now let’s take a look, in greater detail, at the best neighborhoods to stay in Lisbon. Each is a little different from the last so be sure to check out which is right for you!
Alfama & Graça is our pick for where to stay in Lisbon on your first time.
When first staying in Lisbon you want to be sure to experience the true heart and soul of the city. To truly see the spirit of Lisbon, look no further than Alfama & Graca.
These winding narrow streets create a maze in downtown Lisbon, immersing all those who wander its alleyways a taste of authentic Portuguese culture.
In Alfama and Graca, getting lost has never sounded more appealing. As you wander down the labyrinth of streets with clothes lines hanging overhead, you will be tempted with an array of smells whisking by from the nearby eateries.
The steep alleyways carryon upwards with soothing fado music reverberating from the passing taverns. At the peak of Graca, tourists will enter the historic Saint Georges Castle, offering the most breathtaking views of all of Lisbon!
Located by one of the most gorgeous viewpoints in all of Lisbon, Johnie’s never fails to impress. Guests are literally sleeping on a piece of history when staying in this 17th-century building.
The beds may be simple, but with a down-to-earth atmosphere and stunning views of the city, Johnie’s is sure to be one of your favorite parts of your trip to Lisbon.
Feel right at home when staying at Alma Moura Residences. These apartments offer all the comforts you could possibly need such as bathrobes, fridge, coffee maker, and free WIFI. The hotel can even assist you in getting around town with their car rentals.
With comfortable and tastefully decorated rooms as well as a relaxing patio, Alma Moura guests are sure to have a good nights sleep, and be ready for the rest of their Lisbon adventure!
Memmo Alfama makes up for its small size with its breathtaking rooftop views of the Tagus River, a pool, and even a wine bar. Memmo Alfama puts its guests in the heart of Fado music in Lisbon, you can’t go a few steps out of the hotel without being lured into one of the nearby music clubs.
The rooms at the Memmo Alfama boast all the latest luxuries you could ever want from a flat-screen TV, i-pod docking station, free WIFI and the most comfortable beds you could imagine.
At one time Baixia was like much of the rest of central Lisbon, meandering alleyways and narrow streets. In 1775 a massive earthquake and tsunami destroyed much of the district, leaving the heart of Lisbon in rubble.
Since being rebuilt, Baixia has adopted a grid pattern and has become the tourist and historical center of Lisbon.
It is Baixia where downtown Lisbon meets the turquoise sea and is considered the tourist hub of the entire city. Grand Plazas, ancient Roman ruins, and the most high-end shops can all be found in this neighborhood.
Although Baixa is home to the most high-end shops and fancy restaurants in Lisbon, this district still has a number of choices for budget accommodation. With so many hotels in the area, prices are competitive thus keeping prices down.
When staying in Baixa you get the best of both worlds by having reasonable choices for accommodation and being based out of Lisbon’s bustling downtown!
Located in the heart of the most historic district in all of Lisbon, Home Lisbon Hostel offers its guests top grade accommodation with low prices. This immaculate hostel has free WIFI, fully equipped kitchen, and even a bar on site to ensure that guests have all that they need.
For those wanting to relax in the lounge, meet new people, and be based out of a central location in Lisbon, look no further than Home Lisbon Hostel.
This trendy and youthful hotel is located right smack between some of the best restaurants, cafes, and boutiques in all of Lisbon. Each of the private rooms is complete with a desk, safe, flat-screen TV, free WIFI, coffee-tea maker, and some even include a balcony. If the decor does not win you over, the staff are willing to answer questions and help any guests 24/7.
Pousada de Lisboa keeps its guests in a hotel full of the most luxurious delights imaginable while still being on the footsteps of some of the most iconic sights in Lisbon, such as the Terreiro de Paço Square.
Pousada de Lisboa pampers its guests with a sauna, wellness center, gym, restaurants, bars, and even car rentals. Each room is complete with sound-proofing, mini-bar, free WIFI, and some of the most gorgeous rooms in all of Lisbon.
Portugal is amazing! You can see more of it with these great day trips from Porto!
For those looking to party hard, the winding streets of Bairro Alto are calling your name! By day you may not notice this neighborhood being any different than historic areas of Alfama or Graca. As soon as night falls on Bairro Alto, the whole district turns into one huge dance club!
The graffitied streets of Bairro Alto has some of the oldest landmarks most vogue boutiques, and best panoramic views of the city in all of Lisbon. With the neighborhoods many restaurants, churches, and shops, tourists are sure to be as entertained during the day as during the night.
For those wanting to avoid noise and crowds, be sure to clear out of Bairro Alto before dusk. As soon as night settles, locals and tourists alike all descend on Bairro Alto for its many bars and clubs.
For those looking to create nights that you will remember for a lifetime, look no further than Bairro Alto!
This welcoming and homey hostel is located in the heart of all nightlife in Lisbon: Bairro Alto. After a night of partying, return to your comfortable bed complete with reading lamp, socket, locker, and free WIFI.
Start every morning right as the staff prepares a hearty breakfast, getting you ready to start the next day. The hostel also offers walking tours, pub crawls, and surf lessons to all of their guests!
This guesthouse treats its guests with some of the warmest and comfortable accommodation in Lisbon. Each room has gorgeous wooden floors, soft beds, and beautiful furnishings.
In the communal room, breakfast is served promptly every morning and the wine flows every evening. Feel like one of the family when you stay at A Casa das Janelas com Vista.
This 5-star resort nestled in the center of all of the madness of Bairro Alto is your oasis for whenever you decided you need a breather from the endless party on the streets.
At Lumiares every room is designed to make you say “wow” each time you enter the room. From anything from luxury suites to stylish studios, each room has a kitchen, flat-screen TV, and free WIFI. To truly feel like royalty, relax at the spa, have a coffee at the restaurant, and then have a drink at the rooftop bar as you watch the sunset on another perfect day.
Cais do Sodré is our pick for the coolest place to stay in Lisbon
Once an enclave for drunken sailors and prostitutes, the then dilapidated district of Cais do Sodre has seen a major facelift. The run-down buildings are now bursting with color and are attracting young entrepreneurs, chefs, and artists from around the country.
Cais do Sodre has a lively nightlife that even rivals the famous Bairro Alto district. Rather than being located on the steep hillside, this neighborhood is located right on the scenic waterfront.
Other than its hip bars, Cais do Sodre maintains a down to earth atmosphere with its many open-air markets and unassuming food courts. Places like the Timeout and Municipal Markets are the perfect place to experience and taste local Portuguese culture.
Being right on the water-front is not only great for its breathtaking views, but Cais do Sodre is also right on top of the city’s ferry terminal making it a snitch to get to other towns around Lisbon!
Take a break from the museums and churches, Cais do Sodre offers historic buildings with a splash of artistic flavor to keep tourists picture snapping for hours!
Sleep in a piece of history while you stay in an 18th-century building which is now turned into one of the best hostels in the area. Lost Inn boasts comfortable beds, large communal lounge areas, a fully equipped kitchen, free WIFI, and bike rentals.
Located right smack between the capital of cool and the beating pulse of the Lisbon club scene, you are sure to never have a boring moment at Lost Inn!
Chiado Prime Suites have some of the best apartments in the city for a reasonable price per night. Every time you pull your curtains be prepared to have your breath taken away with stunning views of the riverside.
Your home away from home will provide you with a free smartphone, free WIFI, sitting area, and a flat-screen TV. Feel like a local while you stay in this cozy apartment and have all of Lisbon within the palm of your hand.
This 5-star hotels history begins in the 14th century. From those foundations the hotel has seen countless face-lifts, but has never lost is grace and ability to attract the attention of all those who pass by. While the building may be old, the interior is decorated in all of the most modern fashions. Every room has a sitting area, flat-screen TV, free WIFI, and also phenomenal views of the river. The restaurant, bar, ice cream shop, cafe, and, above all, the service will create the best 5-star experience of your life.
The CBD is our pick for best neighborhood in Lisbon for families
Chiado is the capital of high-end shopping and chic boutiques for all those want to dress to impress. Other than just being a district frequented by fashion divas and snazzy dressers, Chiado is quiet, safe, and centrally located, making this neighborhood perfect for families!
Even if you are not looking for the most stylish in-season fashions, the entirety of Chiado is made up of buildings dating back to the 18th century. Strolling down the districts clean cobbled streets is like walking through an open-air museum of Portuguese architectural history.
This cosmopolitan neighborhood is also home to many classy theatres, stunning churches, and elaborate museums. Like many other districts around Lisbon, Chiado offers a different angle from its breathtaking viewpoints of the city.
Centrally located, clean, and extremely safe, Chiado is the perfect place to bring your family for your Lisbon getaway!
Surf in Chiado is all about community and making friends. Other than having a beautifully decorated hostel and friendly staff, Surf in Chiado offers their guests, free WIFI, PlayStation in the common room, surfboards and lessons, tablets, city tours, and so much more.
The Surf in Chiado is one of the few places where they say “come as a guest, leave as a friend” and truly mean it.
The elegant decor of Teatro Bed and Breakfast is sure to delight even the most refined of guests. With a perfect blend of old world charm and modern conveniences, Teatro offers its guests flat-screen TVs, mini-bar, fully equipped modern bathroom, and free WIFI.
With excellent service, top class amenities, and central location Teatro’s guests are sure to have a memorable vacation.
Treat yourself to the finer things while you stay at Hotel Avenida Palace. The decor of this hotel is more than enough to make one conjure up images of grand ballrooms and romantic waltzes. The classicly styled rooms are decorated with antique furniture and marble bathrooms, as well as free WIFI and flat-screen TVs. The Palace also offers its guests a spa as well as massage services.
Sometimes it is not enough to walk through the old city, at Hotel Avenida Palace, the guests are staying in a living fairytale.
Lisbon is a maze of a city, wandering through the alleyways and steep streets will bring you to majestic castles, quaint cafes, lively dance parties, and soulful music. This city is a place teeming with life and is just waiting to be explored.
With so many great places to stay in Lisbon, Alfama and Graca are our favorite districts by far. It is in these neighborhoods where tourists can truly get lost in the beauty of Portuguese music and culture.
Hotel Avenida Palace has won us over with its indisputable charm and ability to whisk its guests into a fantasy world of its own creation. Even for a luxury hotel, Avenida Palace is moderately priced. With the sheer beauty of the antiques and architecture of the building, you feel as if you are staying in an actual museum.
Lisbon is a city brimming with life and culture, ranging from its youthful dance parties to its classical foda music. Hiking up the steep cobblestone hills and peering down narrow alleyways will lead tourists to the true soul of Portugal and to memories that will be cherished forever.
Have you worked out your itinerary? Let us help with our top 15 things to do in Lisbon. Plus if you’re planning on seeing more of Europe, our jam-packed guide to the 131 best things to do in Europe is a must read!
Have we missed anything? Let us know in the comments below. Have a safe and exciting journey to Lisbon!
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Gin lover. Coffee addict. Nicola has traveled the world for 7 years and is a staff writer for Hotel Jules. Born in London, Nicola first got the taste of travel studying abroad in Barcelona. Since then she's been hooked - traveling the world non-stop. Passionate about green travel and vegan lifestyle, Nicola spends more of her free time staring at maps wondering where she will head to next!