Panoramic view of Lisbon’s Alfama district with red-tiled rooftops, pastel buildings, and a historic church overlooking the Tagus River under a cloudy sky.

Where Should You Stay in Lisbon, Portugal?

6 min read

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Lisbon is an amazing city, and there is a lot to do there. Every neighborhood is a bit different, but they all have a combination of history and modernity.

Traveler Liz with curly brown hair in a black jacket looking out over the red rooftops and historic buildings of Lisbon from a high viewpoint on a cloudy day.

Deciding where to stay was a bit tough since the city is super spread out, but there are some key areas.

I spent way too much time comparing different neighborhoods, and trying to figure out how close I needed to be to the main sights without feeling stuck in the middle of the crowds.

Let me break down the areas and the best hotels so you can skip all that indecision and get straight to planning the fun parts of your trip.


How to decide where to stay in Lisbon

When I visited Lisbon, trying to figure out where to stay was tough because I wanted to be close to downtown, but not quite in the middle of the action.

The most popular area to stay in Lisbon is the Bairro Alto and Chiado area, which is super downtown. The public transport in this area is incredible, so it makes getting around anywhere much easier. Bairro Alto and Chiado are touristy, but they are near a lot of the attractions and incredibly pretty.

If you want to stay a bit more out of the city, then you might prefer being near the LX factory or out further near Belem. 


How to get around Lisbon

The public transportation system is incredibly good in Lisbon. There is a metro line, tram lines, bus lines, and trains if you’re going a bit further outside the city.

You should get a transit pass if you plan to take the public transport more than 3 times in 24 hours. It’s super convenient and very affordable. 

Traveler Liz playfully posing with one leg lifted beside Lisbon’s iconic yellow tram on a cobblestone street.

Lisbon is also close to Sintra, which makes a great day trip. Sintra is also easily accessible by public transport. Most places are no more than 10 minutes walk from public transportation.

If you plan to do some travel outside of Lisbon, like the Algarve, renting a car makes a lot of sense too. I’d suggest renting a car from DiscoverCars for the best deals!


Best hotels to stay at in Lisbon

It’s really easy to find some not-so-good accommodation in the city. I ran into some issues when I was staying out near the LX factory, so you should make sure that you trust the reviews, and try to book something that is at least 3.5 stars.

Luckily, I stayed at a few places during my trip, so that made up for my less favorable spots.


If you’re looking for a super unique & moderately priced hotel…

Traveler Liz leaning out from a slanted rooftop window, smiling while overlooking the colorful buildings and tiled roofs of Lisbon under a bright, cloudy sky.

The Inspira Santos Boutique Hotel is a great choice to stay during your trip to Lisbon, especially for digital nomads. The hotel has tons of little quirks and all the rooms are different, plus they thought of things that I never would’ve considered.

During my stay, I did a lot of work in the lobby which had tons of outlets and coffee included in my stay.

They had indoor and outdoor seating which was perfect for breakfast, getting work done, and catching up with a friend. 

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The breakfast was one of the best hotel breakfasts that I’ve had before too. There were tons of choices, and a little bit of everything including fresh fruit and delicious crispy bacon. Plus of course coffee, from espressos to cappuccinos.

All of the rooms are incredibly unique, and a few of them have private balconies. The top floor is the coolest, since there is a balcony that gives you a view of all of Lisbon and a gorgeous street. Plus, there is a gym too, which is a huge plus for all hotels.

If you’re looking for a more luxury stay…

This hotel is perfect if you want to splurge and be right down town. The Bairro Alto Hotel is a five-star boutique property right on the edge of Chiado and Bairro Alto. It has beautiful rooms, great service, and one of the best rooftop terraces in Lisbon. 

The location is unbeatable for walking to restaurants, viewpoints, and major attractions, so it’s perfect if you want a luxurious stay that still feels connected to everything happening in the city.

If you’re looking for a budget stay…

Selina Secret Garden Lisbon is both a budget stay and a more moderate one if you want a private room, especially for digital nomads and solo travelers. It has a mix of dorms and private rooms, a coworking space, a rooftop terrace, and a social atmosphere. 

The location in the Cais do Sodré area makes it easy to walk to cafés, riverfront paths, and tons of nightlife, while still being close to public transportation. It’s a great option if you want something affordable, social, and comfortable.

If you want to a really incredible hotel a bit further outside of the city…

Further from the city, it’ll be a little quieter, and if you want something really special, the Pestana Palace Lisboa is an amazing pick. It’s set inside a restored 19th-century palace with gardens, elegant rooms, and a peaceful atmosphere that feels worlds away from downtown Lisbon. 

Even though it’s outside the city center, you can easily reach Belém and several major attractions, and it’s perfect if you want a relaxing, luxurious escape without being too far from everything.


Final thoughts

Traveler Liz smiling and playfully holding her braided hair in front of the colorful exterior of Pena Palace in Sintra, Portugal.

Once you decide where to stay in the city, you’ll be all set for the perfect adventure. You’re going to love Lisbon.

No matter which neighborhood you choose, the city is incredibly easy to navigate, filled with great food, and full of little surprises around every corner. 

Give yourself time to explore, see all the beautiful views, and hop between the trams and cafés. Lisbon has a way of feeling both lively and laid-back, which makes it such an easy city to fall in love with.

If you have any questions about where to stay in Lisbon, leave a comment below or DM me on Instagram at @LizsGreatPerhaps.


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