Where To Stay in Lisbon, Portugal - Guide of Best Areas and Hotels

Lisbon is the capital and the largest city of Portugal with an estimated population of a little over half a million. It is Europe's westernmost capital city and the only one along the Atlantic coast. Lisbon lies in the western Iberian Peninsula on the Atlantic Ocean and the River Tagus. Lisbon is one of the oldest cities in the world and in Western Europe and it was named a municipium by none other than Julius Caesar.

Lisbon ([ˈlɪzbən], Portuguese: Lisboa, [liʒˈboa]) has a distinct atmosphere, quite different from other western cities and has that old European charm which is being lost in many other EU states. You will be entranced by this city’s distinctive architecture, multicolored tiles, lush green spaces and traditional music. Foodies would enjoy the world famous Portuguese bakeries and always fish and seafood dishes.

Lisbon is an averagely sized city, divided in several distinct neighborhoods. Each one shows you a different side of the city, displaying its history and treasures.

Note: Most rentals in Lisbon are located in old, historical buildings. Therefore, in most of them you will have to deal with staircases. Besides, many rentals have an uphill location and / or to reach them you’d have to walk some cobblestone streets. Make sure to check whether the accommodation option you’d like to book corresponds to your needs.

Table of Content

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Part 1. A quick glance at Lisbon’s recommended neighbourhoods

Baixa & Chiado - the central downtown area with accommodation for any wallet

Alfama, Castelo & Mouraria - a traditional neighborhood with cozy guest houses and apartments

Principe Real - an upscale residential LGBTQ friendly area, with high class and budget options available

Avenida de Liberdade - an exclusive shopping area with the chicest hotels

Bairro Alto & Cais de Sodré - Lisbon’s main nightlife district with much affordable accommodation

Campo de Ourique - a residential and relaxed area removed from the tourist crowds

Parque das Nações - most modern part of town by the ocean with lots to do

Alcântara - an area of artists and young professionals, with an active and happening vibe

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Part 2. Recommended neighbourhoods and hotels to stay in Lisbon

Baixa & Chiado

Pronounced: [‘bajʃa:], [ʃɪ’a:du:]

- Overview

This is the beating heart of Lisbon, the central, downtown neighborhood. It is the flattest area of this otherwise mountainous region. The atmosphere in Baixa and Chiado is as you would expect it to be in a global capital - bustling streets with many cafes, restaurants and luxury shopping boutiques. And as Baixa and Chiado is a pending candidate to become a World Heritage Site (at the time this article was written), be sure that the architecture will impress and inspire. Chiado alone is considered the artistic quarter and its streets are full with art nouveau shop fronts and buildings.

Renting in this neighborhood is perfect if you’re coming for a short visit, as you will be in the center of the action, as well as well connected to all other parts of the city by public transport. Baixa and Chiado is very walkable and thus easy to navigate for the elderly or families with children. Price wise, this neighborhood offers a truly great variety of hotels so even those travelling on a budget can make this central location their temporary Lisbon home.

- Main Attractions

* Restauradores Square
* Carmo Convent (Museu Arqueológico do Carmo, must see)
* Igreja de São Roque (must see)
* Chafariz do Carmo
* Santa Justa Lift
* Church of Sao Domingos
* Figueira Square
* Igreja da Conceição Velha
* Rossio Square (must see)
* Mude- Design and Fashion Museum (must see)
* Praca do Comercio
* Chiado Museum

- Recommended Walks

Discovering some of the main attractions and making the most out of shopping and entertainment will be easier if you follow these guides:

* City Orientation Walking Tour, Lisbon
* Alfama & Baixa Souvenir Shops, Lisbon
* Central Lisbon Nightlife
* Baixa Shopping Walk, Lisbon

- Pros of Staying Here

- Central location - all other areas of the city are easily accessible
- Flat - easy to navigate for anyone

- Cons of Staying Here

- Busy

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Alfama, Castelo & Mouraria

Pronounced: [al’fæmæ], [,kaʃ’tɛlu], [‘mɔ:rærɪa]

- Overview

Most of Lisbon was destroyed in the 1755 earthquake and subsequently rebuilt, however this area remained unharmed. This is one of the more authentic areas of Lisbon where life continues on as it did for centuries. You will be swept away by the historic charm and colorful azulejos - Portuguese tiles. This is also the birthplace of traditional Portuguese Fado music, which can be heard from numerous cafes all around - making it the perfect soundtrack to your roaming the romantic narrow streets.

If you make this area your home during your stay in Lisbon, you will dive into the most timeless Portuguese vibe you can get in a city. An important thing to consider though is that this area is really steep, so choose it only if you’re up for a good daily work out as going up the steep hills is inevitable. Most of the hotels located here are averagely priced and there are plenty of apartments you can rent from the locals.

- Main Attractions

* Santo Antonio Church (must see)
* Castle of Saint George (must see)
* Monastery of Sao Vicente de Fora (must see)
* Decorative Arts Museum
* The Roman Theater Museum
* Fado Museum
* Lisbon Cathedral (must see)
* Casa dos Bicos (must see)
* Military Museum (must see)

- Recommended Walks

As a romantic area, this neighbourhood has a lot to offer to the eyes of the beholder:

* Alfama Walking Tour, Lisbon
* Self-Guided Tour of Lisbon Museums
* Alfama Quarter Walk, Lisbon

- Pros of Staying Here

- One of the most authentic areas
- Beautiful views
- Plenty of cafes with traditional music

- Cons of Staying Here

- Very steep
- Almost impossible to drive

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Principe Real

Pronounced: [‘prɪnsɪp ‘rɪ,al]

- Overview

Principe Real - which means Royal Prince, is a charming and trendy part of Lisbon. It is a residential neighborhood with a noticeably different vibe. It is more relaxed and quiet, with plenty of delightful green spaces, designer shops, cafes and restaurants. This is also Lisbon’s most LGBTQ friendly neighborhood. Principe Real is centrally located and within walking distance from many neighboring landmarks. It is also well connected via metro and buses to the whole city.

This area can be the perfect place to stay if you want to spend your time in Lisbon in a more comfortable and communal atmosphere, yet remain close to all the main attractions. If you choose Principe Real, you can spend your days strolling down its streets and have your pick at various cafes and bars. Although considered somewhat upscale, there are great budget friendly options available. Be sure to book in advance to avoid disappointment.

- Main Attractions

* Carvalho & Gil Antiguidades

- Recommended Walks

Follow these guides to feel the true allurement of the area:

* Principe real Walking Tour, Lisbon
* Escola Politécnica and São Bento Antiques Hunting, Lisbon

- Pros of Staying Here

- Calm area, away from tourist crowds
- LGBTQ friendly
- Many cafes and restaurants

- Cons of Staying Here

- Not as many luxury hotels

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Avenida de Liberdade

Pronounced: [ʌv’nɪdʌ dʌ ,lɪber’dʌd]

- Overview

Although not a neighborhood in its own right, this area deserves a mention. It runs down the palm tree lined boulevard with the same name. This mile-long area is home to Lisbon’s most expensive real estate, elite designer shops and foreign embassies. The vibe of this place is smart, upscale and refined. The city’s largest park is located in this area. Its lush vegetation is similar to a surreal jungle and is perfect when you want to beat the heat and unwind.

If you are looking for a 5-star experience - Avenida de Liberdade should be your pick. Some of Lisbon’s best hotels are situated here, as well as exclusive shopping and dining. It is central enough so you can easily walk to the heart of the city, yet it is quieter and much less crowded. Upscale accommodation can be found on Avenida de Liberdade itself, however there are plenty of more modestly priced hotels down the side streets.

- Main Attractions

* Marquis of Pombal

- Pros of Staying Here

- Best for designer shopping
- Best hotels are found here
- Gorgeous park

- Cons of Staying Here

- Not as many budget friendly hotels

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Bairro Alto & Cais do Sodré

Pronounced: [‘bʌɪru ‘ʌltu], [‘kʌɪʃ ,dɔ ,sɔd’rɛ]

- Overview

Bairro Alto and Cais do Sodré are both well known as the nightlife hubs of Lisbon. Their streets are lined with cafes, pubs, rooftop bars, jazz clubs, theatres and galleries. The vibe here is fun, cultured and warm. Each evening this area fills up with socializing locals and tourists. There is something for any taste and wallet.

If you want your trip to be fun and spontaneous, then consider renting in this bohemian neighborhood. Hop around local bars, mingle with the locals and let fate dictate the rest. Those who want to be in bed early or whose sleep is easily distracted by noise are best to avoid this area since it gets quite loud in the evenings as most people hang out in the streets. Cost of rent in this area is average, which makes it perfect for young people wanting to experience the party side of Lisbon.

- Main Attractions

* Miradouro de Santa Catarina
* Miradouro de São Pedro de Alcântara (must see)

- Recommended Walks

Take the pleasure in discovering this youthful and fun area with the following self guided walking tours:

* Bairro Alto and Chiado Walking Tour
* Cais do Sodré Walking Tour, Lisbon

- Pros of Staying Here

- Lots to do in the evening
- Very affordable accommodation

- Cons of Staying Here

- Gets pretty loud in the evening - not suitable for elderly or families with children

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Campo do Ourique

Pronounced: [‘kʌmp ,dɪ ,o:’ri:k]

- Overview

Campo do Ourique is a relaxed and residential area with a homey vibe. It is marked by several lush green spaces, plenty of quality bakeries and restaurants. This area is a bit removed from the center, lacks the tourist crowds and showcases life in Lisbon as it is for locals. Renting here may be suitable for a longer stay, if you’re travelling with children or prefer to be based in a more relaxed and quiet area. If you rent in Campo do Ourique, you will experience life as a local. There are plenty of cute and cozy restaurants and bakeries that cater to the local community. The more relaxed pace of life in this part of town will help you feel the true vibe of the city, minus the tourist crowds. Price wise, you can find several averagely priced hotels as well as a few cheaper hostels.

Bear in mind that it is farther from the center so if you plan to daily visit the central areas perhaps you will be best suited to rent in a different neighborhood.

- Main Attractions

* Mercado de Campo do Ourique
* Amoreiras 360 Panoramic View
* Cemitério Dos Prazeres

- Pros of Staying Here

- Removed from tourist crowds
- Many traditional shops and restaurants
- Lush green spaces
- You can feel like a local

- Cons of Staying Here

- Not much going on in terms of nightlife
- Farther from the center - requires commuting

Besides the main central neighbourhoods recommended above, there are two more truly interesting areas well worth considering for your stay in Lisbon. Both neighbourhoods described below are a bit remote from downtown, but are the modern parts of the city with plenty of things to do and see and good accomodation options.

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Parque das Nações

Pronounced: [‘pʌrkɪ ,dʌz ,nʌ’sɔɪs]

- Overview

Parque das Nações is an ultra-modern area, built to accommodate the World Fair Expo ’98. It extends over a five-kilometer strip along the waterfront offering beautiful views of the ocean. This area is the most northeastern part of the city, yet remains well connected to the city center. The vibe here is amazing - on one side you have impressive contemporary architecture and on the other side you’ve got the ever-changing water. You are immersed in a spectacular display of man-made and nature-made beauty. If you rent here, you will benefit from being close to the waterfront - which is a treasure in itself. You can enjoy daily strolls along the very popular boardwalk, which is great for romantic walks, time spent with children or just a great day out. There are plenty of restaurants, cafes and the most impressive aquarium. This beautiful area offers a selection of hotels - from five star ones to youth hostels.

- Main Attractions

* Vasco da Gama Bridge (must see)
* Vasco da Gama Tower (must see)
* Pavilhao do Conhecimento- Science Museum (must see)
* MEO Arena
* The Oceanarium (must see)
* Portugal Pavilion
* Gare do Oriente

- Recommended Walks

Even though the area is a bit remote, there is plenty to discover, and here is how to do it best:

* Parque das Nações Walking Tour, Lisbon

- Pros of Staying Here

- Located by the waterfront
- Varied rentals
- Family-friendly with lots to do and see

- Cons of Staying Here

- Farther from the center

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Alcântara

Pronounced: [əl’kæntæræ]

- Overview

Alcântara is an area alive with creativity and entrepreneurial spirit. Several years ago it exploded and transformed from being a working class neighborhood into the up and coming hub for artists, fashionistas and young professionals. The vibe here is modern, fast and inclusive. There is much to do, see and get inspired by. There are many concept stores, factories turned bars and galleries. If you identify as a creative type, renting in this area may mean extra inspiration in an already breathtaking city, and probable encounters with local artists and entrepreneurs. If you are a digital nomad then you may want to consider this area as it offers several great co-working spaces and coffee shops, which you can work from. Price of rent here is average comparing to the rest of the city, with a good selection of hotels and guest houses.

- Main Attractions

* Observatório Astronómico de Lisboa
* Museu Da Carris

- Pros of Staying Here

- Plenty of cafes and restaurants
- The place for creative types

- Cons of Staying Here

- Farther from the center

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Part 3. Getting from the airport to your hotel

Lisbon is Portugal’s biggest city, home to more than half a million people. On top of that, more than 3 million tourists visit this gorgeous city yearly to admire its majesty in person. The transportation of both locals and visitors is assured by trams, trains, buses, taxis and ferries. Even though Humberto Delgado Airport is located within the city limits just about 5 miles away from the city center, not all types of transport are available from the airport. Here are some of the main tips you need to know to get from the airport to downtown or to your hotel.

Travel Card

To use public transport in Lisbon in a more efficient way, you might be willing to acquire the so called Viva Viagem card. This is a rechargeable magnetic card. The card itself will cost you about US $0.60, and you can charge / recharge it with the amount you need to make your way around the city. The disadvantage is that the card is for one person only, so if you are traveling with a group of friends or family, each of you will need to have his or her own card.

Metro

Lisbon’s metro is the cheapest and fastest way to get to city centre. One ticket will cost you around US $1.70, and you will avoid traffic jams. The station is by Terminal 1, and if you arrive to Terminal 2 there is a free transfer shuttle you can take to get to the metro station. The only option you get here is the red line, from which you can change to any of the other three lines, depending on your final destination.

If you need to get to Baixa & Chiado or Cais do Sodré, you should take the red line from the airport, hop off at the Alameda station and change to the green line. You can get off at the Baixa-Chiado or Cais do Sodré metro stations, respectively.

You can also take the red line till its final station, São Sebastião, and from there get the blue line. It will take you to Marquês de Pombal and Avenida stations (in Avenida de Liberdade), or Restauradores, Baixa-Chiado and Terreiro do Paço stations (in Baixa & Chiado). If you get off the red line at the Saldanha metro station you can change to the yellow metro line. The latter will take you to the Rato station, from where you will most probably be in a walking distance to your hotel if you stay in the Campo de Ourique neighbourhood.

If you chose to rent in Parque das Nações or Alcântara, here is how you can get there by metro. Getting to Parque das Nações is very easy, as all you have to do is get on the red line and get off at the Oriente station, which is just a few stations away from the airport. If you chose Alcântara as your home neighbourhood for your visit to Lisbon, you will need to get off at the same station, Oriente, and change to the train to Alcântara. Similarly, you can stay on the red metro line until the São Sebastião station, and take the bus 742 from there. Be aware though that Alcântara is not the final stop of the 742 bus line. Don’t miss it.

As in any other big city, however, we would recommend to avoid the metro if you are carrying a lot of luggage and arriving during rush hours.

Bus and Aerobús

There are a few bus lines that can take you from the airport to the city centre. If you buy the ticket onboard, it will cost you about US $2.20, and around US $1.70 if you pay with the Viva Viagem card. Keep in mind, though, that luggage larger than 20”x16”x8” is not allowed on the bus, so this transport mean most probably will not be a suitable option for tourists.

Bus line 744 will take you from the airport bus station to the Marquês de Pombal station, at the edge of the Avenida de Liberdade neighbourhood. The bus line 783 might be more convenient if you are renting in Avenida de Liberdade, in Baixa & Chiado or in Alfama, Castelo & Mouraria neighbourhoods.

A much more convenient way to get to Lisbon downtown is the Aerobús. These buses are more spacious, and have luggage racks. Note, that there are two Aerobús lines. Aerobús line 2 will take you to the financial district, not too close to the city centre. Aerobús bus line 1 is the ideal option to take if you are staying in downtown, especially in Baixa & Chiado or Avenida de Liberdade. The one way adult ticket will cost you about US $4.20, but you might also get it cheaper if you buy it online in advance.

Taxis

Usually, the taxi ride from the airport to one of the central neighbourhoods should not cost you more than US $20-$25, including baggage fees. Just take care to remind your driver to turn on the meter when your ride starts. There is also the option to purchase a pre-paid taxi ticket in the taxi rank to make sure you’ll avoid any unpleasant surprises. Before you arrive to Lisbon, try to find some apps that will help you get a taxi. Thus you’d be sure to know the fare in advance and will have a higher chance to get a cleaner taxi with a driver with at least some understanding of English.

Besides a regular taxi, you can get an Uber, which is a bit cheaper. However you should know that, for varied reasons, Uber is not the preferred transportation mean in Lisbon.

Private transfers and car rental

Private transfers are the most expensive way to get to your hotel. If you apply to this service, you’ll be greeted by the driver at the arrivals, and taken care of till you get to your hotel.

Besides, at the airport you’ll find several car rental service representatives, and if you are planning to travel a lot around Lisbon (and not only Lisbon) that option might be worthwhile. Don’t forget to make sure in advance whether your driving license is valid in Portugal.

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Part 4. A Few Tips to Choose the Right Neighbourhood for You

Lisbon is not a very large city, however its distinct neighborhoods have a very individual vibe, which may be suited best for particular people. These quick tips may help you choose where you should rent.

If you’re travelling as a couple and looking for a romantic vacation then consider the hilly Alfama, Castelo & Mouraria or the waterfront Parque das Nações.

Families with children will feel great in Baixa & Chiado, Campo do Ourique and Parque das Nações.

If your idea of a good vacation includes a nightlife to measure, then go for Bairro Alto & Cais de Sodré or Alcântara.

Those searching for a refined experience with a couple of shopping sessions should feel great in Baixa & Chiado, Principe Real and Avenida da Liberdade.

If you want to take it easy and prefer to be away from the noise, Principe Real and Campo do Ourique would be the best option.

Those wishing to dive into the Portuguese culture and history would enjoy Alfama, Castelo & Mouraria and Baixa & Chiado.