Where to stay in Lisbon: Best hotels for all budgets

A Tapestry of Charm, Culture, and Culinary Delights

Where to stay in Lisbon. Perched on the edge of the Atlantic, Lisbon is a city that captivates from the moment you set foot on its cobblestone streets. This vibrant Portuguese capital is a feast for the senses, blending centuries-old traditions with a modern, cosmopolitan vibe. From the moment the sun rises over the Tagus River, painting the city’s iconic seven hills in a golden hue, to the last notes of fado drifting from a dimly lit tavern at night, Lisbon never fails to enchant.

Why visit Lisbon? The question should really be, why wouldn’t you? This city offers a perfect mix of history, culture, and gastronomy that’s hard to resist. Wander through narrow streets lined with azulejo-tiled buildings, hop on a vintage tram for a ride through time, or savour a warm pastel de nata while people-watching in a sunny plaza. Lisbon’s laid-back charm, coupled with its rich maritime history, stunning architecture, and mouth-watering cuisine, makes it a must-visit destination for any traveller worth their salt.

In this blog post, I’m diving deep into the heart of Lisbon to help you find the perfect place to rest your head. Whether you’re a budget backpacker or a luxury seeker, I’ve got you covered. We’ll explore the best neighbourhoods to stay in, from the bustling Baixa to the trendy Principe Real, and everything in between. So let’s embark on a journey to discover where to stay in Lisbon: the best hotels for all budgets.

Looking for a complete guide to Lisbon and everything you should see and do? Check out my detailed itinerary here. Or why not take a look at my guide to the best bars and clubs in Lisbon or the best seafood restaurants.

What neighbourhood should I pick to stay in?

1. Baixa/Chiado: The Heart of Historic Lisbon

Pros:

• Central location with easy access to public transportation
• Walking distance to major attractions like Rossio Square and Elevador de Santa Justa
• Great place to sample the bustling shopping scene with a mix of high-street brands and traditional shops
• Home to some of the best restaurants in Lisbon, including the famous Mercado da Ribeira
• Best area for first-time visitors wanting to be in the thick of the action

Cons:

• Can be crowded and noisy, especially during peak tourist season
• Accommodation tends to be pricier due to the prime location
• Some areas might feel a bit too commercial for those seeking an authentic experience

Baixa/Chiado is the beating heart of Lisbon, where history meets modernity in a delightful urban tapestry. This area is a shopper’s paradise, with everything from designer boutiques to quirky vintage stores. Foodies, rejoice! The Mercado da Ribeira is a culinary wonderland where you can sample dishes from some of Lisbon’s top chefs. Don’t miss the chance to ride the iconic Elevador de Santa Justa for spectacular views of the city. With its central location and excellent transport links, Baixa/Chiado is perfect for those who want to experience Lisbon’s blend of old and new, with convenience at their doorstep.

2. Alfama: A Journey Through Time

Pros:

• Oldest district in Lisbon, oozing charm and history
• Stunning views of the Tagus River from its hilly streets
• Home to major attractions like Castelo de São Jorge and the Lisbon Cathedral
• Authentic local atmosphere with traditional fado houses
• Quiet and romantic, perfect for couples

Cons:

• Hilly terrain can be challenging for those with mobility issues
• Limited public transportation options within the neighbourhood
• Fewer modern amenities and chain hotels
• Can be a bit of a maze for first-time visitors

Alfama is like stepping into a time machine. This enchanting neighbourhood, with its narrow winding streets and ancient buildings, is the soul of old Lisbon. It’s the kind of place where you might stumble upon a hidden miradouro (viewpoint) offering breathtaking vistas of the Tagus River, or find yourself in a tiny bar listening to heart-wrenching fado. Don’t be surprised if you get lost – it’s all part of the charm! While Alfama might not be for everyone (those hills are no joke), it’s an unbeatable choice for romantics and history buffs who don’t mind trading some modern conveniences for an authentic slice of Lisbon life.

3. Bairro Alto: Lisbon’s Nocturnal Playground

Pros:

• Vibrant nightlife scene with numerous bars, clubs, and restaurants
• Bohemian atmosphere with a mix of traditional and alternative vibes
• Top pick for foodies, with a wide range of dining options
• Close to the trendy Chiado shopping district
• Excellent public transportation connections

Cons:

• Can be very noisy at night, especially on weekends
• Not ideal for families or light sleepers
• Hilly terrain might be challenging for some
• Limited parking options

Bairro Alto is where Lisbon comes alive after dark. By day, it’s a quaint neighbourhood with narrow streets and traditional buildings. But as the sun sets, it transforms into the city’s hottest nightlife district. Whether you fancy sipping cocktails in a rooftop bar with panoramic views or dancing the night away in a grungy club, Bairro Alto has got you covered. Foodies will be in heaven with the sheer variety of restaurants, from traditional tascas to trendy fusion spots. Just remember, if you’re planning on getting a good night’s sleep, you might want to pack some earplugs!

4. Avenida da Liberdade: Luxury on Lisbon’s Champs-Élysées

Pros:

• Upscale area with luxury hotels and high-end shopping
• Wide, tree-lined boulevard perfect for leisurely strolls
• Excellent public transportation links
• Close to Parque Eduardo VII, the city’s largest park
• Quieter than more touristy areas, but still central

Cons:

• Can be quite expensive, especially for accommodation and shopping
• Lacks the traditional charm of older neighbourhoods
• Fewer budget-friendly options
• Not as lively in the evenings compared to other areas

Avenida da Liberdade is Lisbon’s answer to the Champs-Élysées. This grand boulevard, lined with designer shops and luxury hotels, is where Lisbon’s elite come to see and be seen. It’s a breath of fresh air in the bustling city, with its wide pavements and leafy trees providing a perfect backdrop for a afternoon stroll. While it might not be the best choice for budget travellers, it’s ideal for those who want to indulge in a bit of luxury. And let’s be honest, even if you can’t afford to shop here, window shopping never hurt anyone!

5. Principe Real: Trendy and Chic

Pros:

• Hip neighbourhood with a great mix of traditional and modern vibes
• Excellent dining scene with trendy restaurants and cafes
• Beautiful 19th-century mansions and leafy squares
• Close to the Botanical Gardens
• Good choice for those wanting something less touristy than other central areas

Cons:

• Slightly removed from the main tourist attractions
• Can be hilly in parts
• Limited budget accommodation options
• Fewer nightlife options compared to Bairro Alto

Principe Real is the cool kid on Lisbon’s block. This trendy neighbourhood is where you’ll find Lisbon’s creative crowd, sipping flat whites in artisanal coffee shops or browsing concept stores housed in stunning 19th-century buildings. It’s a feast for the eyes, with colourful mansions, leafy squares, and quirky street art around every corner. Foodies will be in their element here, with an eclectic mix of restaurants serving everything from traditional Portuguese cuisine to innovative fusion dishes. While it might not be right in the heart of the tourist action, it’s perfect for those who want to experience Lisbon like a local – albeit a very stylish one!

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I have chosen Baixa/Chiado where should I stay?

Budget-Friendly Hotels

Rossio Garden Hotel

• Rating: 8.1
• This modern hotel offers bright and comfortable rooms with essential amenities. Its prime location near Rossio Square makes it an ideal base for exploring Lisbon’s historic sites. Guests appreciate the clean rooms and helpful staff, noting that it provides excellent value for money given its central position.
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Hotel Lis Baixa

• Rating: 8.6
• Nestled in a traditional building, this hotel combines modern comforts with classic charm. It offers well-appointed rooms with soundproofing, ensuring a peaceful stay despite being in the heart of the bustling Baixa district. Guests frequently commend the friendly staff and the delicious breakfast, making it a popular choice for budget-conscious travellers.
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TURIM Terreiro do Paço Hotel

• Rating: 7.9
• Located near the iconic Praça do Comércio, this hotel offers sleek and simple rooms with all the necessary amenities. Its central location makes it easy to explore the nearby attractions on foot. Visitors highlight the convenience of its location and the comfortable beds as key features.
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Mid-Range Hotels

Lisboa Pessoa Hotel

• Rating: 9.0
• Inspired by the poet Fernando Pessoa, this hotel offers a literary-themed stay with elegant rooms and a rooftop bar boasting panoramic city views. Guests rave about the stylish decor, excellent service, and the relaxing atmosphere of the spa. The central location near Chiado’s shops and cafes adds to its appeal.
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My Story Hotel Figueira

• Rating: 9.0
• This charming boutique hotel is praised for its elegant design and superb location on Figueira Square. Rooms are modern with a touch of classic Portuguese style. Guests particularly enjoy the attentive service, the comfortable beds, and the delicious on-site restaurant, making it a standout in the mid-range category.
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Hotel Santa Justa

• Rating: 9.1
• Situated near the famous Santa Justa Lift, this hotel offers spacious and modern rooms with luxurious touches. Guests appreciate the top-notch service, with many noting the thoughtful details such as welcome drinks and complimentary mini-bars. The hotel’s central location makes it easy to explore the nearby historical landmarks.
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Luxury Hotels

Corpo Santo Lisbon Historical Hotel

• Rating: 9.4
• This luxurious hotel blends modern elegance with historical charm, featuring original 14th-century walls in its design. Rooms are spacious and beautifully appointed with high-end amenities. Guests consistently praise the exceptional service, including thoughtful touches like nightly turndown service with Portuguese sweets. The on-site restaurant is also highly regarded, offering a fine dining experience that complements the hotel’s overall excellence.
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Pousada de Lisboa – Small Luxury Hotels Of The World

• Rating: 9.0
• Located in a historic building with stunning views of Praça do Comércio, this hotel offers a blend of luxury and history. Rooms are exquisitely decorated with classic furnishings and modern conveniences. The spa and indoor pool provide a relaxing retreat, while the restaurant offers a gourmet dining experience. Guests often highlight the impeccable service and the hotel’s unique historical ambiance as key reasons for their high ratings.
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Altis Avenida Hotel

• Rating: 9.2
• This luxury hotel is known for its Art Deco-inspired design and prime location overlooking Rossio Square. The rooftop terrace and restaurant are major draws, offering stunning views of Lisbon’s skyline. Rooms are elegantly decorated with a blend of vintage and contemporary styles, and guests often mention the excellent service and luxurious touches, such as plush bedding and high-end toiletries.
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I have chosen Alfama where should i stay?

Budget-Friendly Hotels

Alma Moura Residences

• Rating: 8.4
• This guesthouse provides a peaceful retreat in Alfama with charming rooms featuring traditional Portuguese tiles and modern amenities. Guests appreciate the serene courtyard garden, where breakfast is served. The location is central yet quiet, allowing easy access to the district’s historic sites.
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Hotel Convento do Salvador

• Rating: 8.9
• Set in a former convent, this hotel offers simple, clean, and modern rooms. Guests frequently praise the unique atmosphere, combining historical elements with contemporary design. The staff is known for being friendly and helpful, and the location near the São Jorge Castle makes it a great base for sightseeing.
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Mid-Range Hotels

Solar dos Mouros

• Rating: 9.1
• This hotel is known for its art-inspired decor, with each room featuring unique works by local artists. Guests enjoy the stunning views of the city and river from the large windows and balconies. The location near São Jorge Castle is a big plus, with many attractions within walking distance.
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Tandem Palacio Alfama Suites

• Rating: 8.7
• Offering modern, self-catering suites with stylish decor, this hotel is located in the heart of Alfama. Guests love the location, which is perfect for exploring the neighbourhood’s famous narrow streets and Fado houses. The comfortable beds and well-equipped kitchens make it an excellent value for money.
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Casa do Castelo

• Rating: 9.0
• This luxury guesthouse offers a more intimate experience with just a few beautifully appointed rooms. Located near São Jorge Castle, it features stunning views over Lisbon and the river. The decor blends traditional Portuguese elements with modern comforts, and guests often praise the warm hospitality and the personalized service they receive during their stay.
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Luxury Hotels

Memmo Alfama – Design Hotels

• Rating: 9.1
• A stylish boutique hotel, Memmo Alfama offers rooms with minimalist design and panoramic views of the Tagus River. Guests rave about the rooftop terrace, where you can enjoy a drink while taking in the stunning views. The hotel’s wine bar and outdoor pool are also popular features, providing a chic yet relaxed atmosphere in the heart of Alfama.
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Santiago de Alfama – Boutique Hotel

• Rating: 9.4
• Housed in a beautifully restored 15th-century palace, this boutique hotel offers spacious rooms with a mix of antique and modern furnishings. Guests highlight the excellent service, noting the attentive staff and personalized touches. The on-site restaurant is highly recommended, serving gourmet Portuguese cuisine with a contemporary twist.
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i have chosen Bairro Alto where should i stay?

Budget-Friendly Hotels

Selina Secret Garden Lisbon

• Rating: 8.0
• Selina offers a trendy, budget-friendly option with a mix of private rooms and dorms, catering to both solo travellers and groups. The hotel features a rooftop terrace, a swimming pool, and a lively bar, making it a social hub. Guests appreciate the vibrant atmosphere, creative design, and the hotel’s location in the heart of Bairro Alto’s nightlife scene.
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The Independente Hostel & Suites

• Rating: 8.6
• Located in a restored 19th-century palace, The Independente offers a unique blend of hostel and boutique hotel accommodations. Rooms are stylishly decorated with vintage touches. The on-site restaurant, The Decadente, is popular with guests and locals alike. The hostel’s central location is perfect for exploring the lively Bairro Alto area, with many bars and restaurants just steps away.
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Inn Bairro Alto Bed & Breakfast

• Rating: 8.3
• This cozy bed & breakfast offers simple, clean rooms with a homely atmosphere. Guests enjoy the personal touch of the staff and the homemade breakfast. The location is excellent, right in the middle of Bairro Alto, making it easy to explore Lisbon’s vibrant nightlife and cultural attractions.
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Mid-Range Hotels

Monte Belvedere Hotel by Shiadu

• Rating: 9.1
• This boutique hotel offers well-appointed rooms with a mix of modern and traditional Portuguese decor. The highlight is the rooftop terrace, offering stunning views of the Tagus River and the city. Guests praise the friendly service and the delicious breakfast served with a view. Its location at the edge of Bairro Alto makes it a peaceful retreat while still being close to the action.
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Palácio das Especiarias

• Rating: 9.4
• Housed in a historic building, this hotel offers a charming blend of antique furniture and modern amenities. Rooms are spacious and elegantly decorated, and the hotel features a lovely garden where breakfast is served. Guests frequently mention the warm hospitality and the unique ambiance that reflects the history of the area.
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Hotel Anjo Azul

• Rating: 9.3
• This small, family-run hotel is known for its welcoming atmosphere and excellent service. Rooms are bright, modern, and impeccably clean, with many offering views over the city. Guests appreciate the central location, close to both Bairro Alto’s lively streets and the more serene areas of the city.
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9Hotel Mercy

• Rating: 8.2
• This boutique hotel offers sleek, modern rooms with luxurious amenities. The design is stylish and understated, with dark tones and elegant finishes. Guests enjoy the comfortable beds, the central location, and the rooftop bar, which offers a great spot to unwind with views over the historic centre. The attentive service and attention to detail also receive high praise.
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Luxury Hotels

Bairro Alto Hotel

• Rating: 9.2
• A member of the Leading Hotels of the World, Bairro Alto Hotel is a five-star luxury property that combines classic elegance with contemporary design. The rooms are lavishly decorated with high-end furnishings and offer views of the city or the river. Guests often highlight the rooftop bar, which offers panoramic views and a relaxed atmosphere. The hotel’s restaurant, BAHR, is also a top dining destination, serving modern Portuguese cuisine in a stylish setting.
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The Lumiares Hotel & Spa – Small Luxury Hotels Of The World

• Rating: 9.0
• Located in a restored 18th-century palace, The Lumiares offers luxurious apartments with fully equipped kitchens and chic, contemporary decor. The hotel features a spa, a rooftop bar with breath-taking views, and a well-regarded restaurant. Guests frequently mention the spaciousness of the suites, the quality of the spa treatments, and the excellent service as standout features.
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i have chosen Avenida da Liberdade where should i stay?

Budget-Friendly Hotels

TURIM Av. Liberdade Hotel

• Rating: 7.6
• This hotel offers modern, well-equipped rooms with a minimalist design. It’s located directly on Avenida da Liberdade, providing easy access to Lisbon’s luxury shopping district. Guests appreciate the comfortable beds and the convenience of the location, making it a solid budget choice in this upscale area.
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Hotel Dom Sancho I

• Rating: 7.8
• A simple and affordable option, this hotel offers classic decor and basic amenities. Located on Avenida da Liberdade, it’s within walking distance of many of Lisbon’s top attractions. Guests often praise the friendly staff and the cleanliness of the rooms, noting it as a good value for money given the prime location.
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Hotel Expo Astoria

• Rating: 7.8
• Known for its unique art-deco style, Hotel Expo Astoria offers quirky, colourful rooms that stand out from more traditional accommodations. It’s situated near Marquês de Pombal Square, making it a great base for exploring the city. Guests enjoy the vibrant atmosphere, helpful staff, and the artistic ambiance of the hotel.
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Mid-Range Hotels

PortoBay Marquês

• Rating: 8.9
• This boutique hotel features elegant rooms with a contemporary design and a rooftop terrace with a small pool. The on-site restaurant serves a mix of Portuguese and international cuisine. Guests particularly enjoy the comfort of the beds, the quality of the breakfast, and the attentive service, which all contribute to a pleasant stay.
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HF Fenix Music

• Rating: 8.8
• A fun, music-themed hotel with modern, soundproofed rooms, each inspired by different musical genres. The rooftop swimming pool and bar are highlights, offering stunning views over the city. Guests often mention the lively atmosphere, the themed decor, and the central location as reasons to stay here.
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BessaHotel Liberdade

• Rating: 9.1
• Combining luxury with a mid-range price point, BessaHotel offers spacious, elegantly decorated rooms with modern amenities. The hotel features a wellness centre with a sauna, indoor pool, and fitness facilities. Guests frequently praise the location, the quality of the rooms, and the excellent service, making it a top choice for travellers looking for a bit more comfort without breaking the bank.
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Luxury Hotels

Valverde Hotel – Relais & Chateaux

• Rating: 8.8
• This luxury boutique hotel offers an intimate and sophisticated atmosphere, with rooms and suites decorated in a stylish, classic-contemporary mix. Guests adore the tranquil courtyard with a swimming pool and the top-notch service that includes personalized touches like breakfast in bed and evening turn-down service. The on-site restaurant, Sítio Valverde, is also highly rated for its fine dining experience.
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Tivoli Avenida Liberdade Lisboa – A Leading Hotel of the World

• Rating: 8.6
• A landmark of Lisbon’s luxury hospitality, Tivoli Avenida Liberdade offers a blend of historic elegance and modern luxury. The rooms are beautifully designed with high-end furnishings, and the rooftop Sky Bar provides breath-taking views over Lisbon. Guests frequently highlight the exceptional service, the lush gardens, and the luxurious spa as key features that justify its premium status.
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Sofitel Lisbon Liberdade

• Rating: 8.5
• Located on the prestigious Avenida da Liberdade, Sofitel Lisbon offers a blend of French elegance and Portuguese hospitality. The rooms are plush and comfortable, featuring Sofitel’s signature MyBed, which guests often rave about. The hotel’s AdLib restaurant serves gourmet cuisine, and the service is consistently praised for being attentive and professional, ensuring a luxurious experience.
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i have chosen Principe Real where should i stay?

Budget-Friendly Hotels

Casa Oliver Boutique B&B

• Rating: 8.0
• Housed in a charming 19th-century building, Casa Oliver offers stylish rooms with a mix of modern and vintage decor. The atmosphere is cosy and intimate, with personalized service that guests frequently mention in their reviews. Located in the heart of Principe Real, it’s just a short walk from the neighbourhood’s trendy cafes and shops.
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Pensao Londres

• Rating: 7.1
• A simple, no-frills guesthouse that offers clean and comfortable rooms with traditional Portuguese decor. Located near Miradouro de São Pedro de Alcântara, it provides stunning views over Lisbon. Guests appreciate the budget-friendly rates, the helpful staff, and the proximity to both Principe Real and Bairro Alto.
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Hotel Botanico

• Rating: 8.5
• This budget friendly hotel offers a cozy, traditional experience with comfortable rooms and a welcoming atmosphere. It’s located near the Botanical Garden, providing a quiet yet central location. Guests appreciate the friendly staff, the ample breakfast, and the cleanliness of the hotel, making it a great value for the price.
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Mid-Range Hotels

Memmo Príncipe Real – Design Hotels

• Rating: 9.2
• A modern boutique hotel that perfectly blends contemporary design with the neighborhood’s historical charm. Rooms are stylishly decorated, many offering panoramic views over Lisbon. The rooftop pool and terrace are standout features, offering a relaxing spot to unwind with a cocktail. Guests often highlight the exceptional service and the chic, luxurious ambiance as reasons for their high ratings.
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The Late Birds Lisbon – Gay Urban Resort

• Rating: 9.2
• This boutique guesthouse is particularly popular within the LGBTQ+ community, offering a welcoming environment and chic, minimalist rooms. The outdoor swimming pool and garden area provide a serene escape within the city. Guests consistently praise the warm hospitality, the beautiful design, and the relaxed, inclusive atmosphere.
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Luxury Hotels

Hotel das Amoreiras

• Rating: 9.5
• This luxury boutique hotel offers an elegant and serene escape in Principe Real. With just a handful of rooms, it provides a personalized experience with meticulous attention to detail. The decor is refined, blending classic and modern elements, and the service is consistently rated as outstanding. Guests love the peaceful garden, the beautifully appointed rooms, and the overall ambiance of exclusivity and comfort.
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The Vintage Hotel & Spa – Lisbon

• Rating: 9.1
• A modern luxury hotel with a retro vibe, The Vintage Hotel & Spa offers spacious rooms with sleek, stylish decor. The hotel’s spa, with its extensive menu of treatments, is a major draw, as is the rooftop bar with panoramic views of the city. Guests frequently praise the luxurious feel of the hotel, the comfort of the rooms, and the quality of the spa and dining experiences.
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Conclusion

There you have it – a whirlwind tour of Lisbon’s best neighbourhoods for your next stay. Whether you’re after the historic charm of Alfama, the nightlife of Bairro Alto, the luxury of Avenida da Liberdade, the trendy vibes of Principe Real, or the central buzz of Baixa/Chiado, Lisbon has a spot that’s perfect for you.

Find my full guide on how to plan all your activities in Lisbon here or the best bars and clubs in Lisbon

Remember, there’s no one-size-fits-all when it comes to choosing where to stay. It all depends on your budget, what you want to see and do, and the kind of atmosphere you’re after. The beauty of Lisbon is that, no matter where you end up, you’re never far from a stunning view, a delicious pastéis de nata, or a friendly local ready to share a story.

So, pack your comfiest shoes, bring your sense of adventure, and get ready to fall in love with Lisbon. This enchanting city, with its blend of old-world charm and modern energy, is ready to welcome you with open arms. Até logo, and happy travels!