Choosing where to stay in Lisbon as a first timer can seem challenging with so many options, this is where I can help! Having been to Lisbon six times, I am going to share some travel tips as I outline the best areas, their pros and cons and some wonderful hotel options for all budgets. By the end of this read you will have found the perfect spot for your first visit to Lisbon.
Perched on the edge of the Atlantic, Lisbon is a city that hooks you in the moment you set foot on its cobblestone streets. The vibrant Portuguese capital has it all, blending centuries-old architecture with a modern, cosmopolitan vibe. If you are after amazing food, cocktails on a rooftop, premier sightseeing or day trips to somwehre more remote, Lisbon will deliver.
The area you choose to stay will have a big impact on how you enjoy this magnificent city, so read on for my complete guide on where to stay when visiting Lisbon, based on what’s most important to you and your travel partners!
Table of Contents
Best area to stay in Lisbon for tourists
1. Baixa/Chiado: The Heart of Historic Lisbon
Pros:
- The centre of Lisbon with easy access to the Rossio train station, if you plan on heading further afield during your stay in Portugal.
- 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
Top tourist things not to miss in Baixa/Chiado
- Santa Justa Lift
This neo-Gothic elevator offers a unique way to climb one of Lisbon’s many hills and provides panoramic views of the city from its observation deck.
- Rua Augusta Arch
A grand arch at the end of Rua Augusta, climb to the top for stunning views, and photographs, of Baixa and the Tagus River.
- Livraria Bertrand
The world’s oldest operating bookstore, it’s a must-visit for literary enthusiasts and history buffs.
TOP TIP! 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.
2. Alfama: An old world feel for first timers
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 transport options within the neighbourhood
- Fewer chain hotels
- Can be a bit of a maze for first-time visitors – Google maps will be your friend!
Top tourist things not to miss in Alfama
- São Jorge Castle
Explore this ancient fortress with breathtaking views of Lisbon’s red rooftops and the river.
- Fado Houses
Experience traditional Portuguese Fado music in one of the atmospheric restaurants scattered through Alfama.
- Miradouro da Senhora do Monte
A viewpoint offering some of the best vistas in the city, especially at sunset, social media worthy shots free of charge.

3. Bairro Alto: Where to stay in Lisbon for nightlife
Pros:
- Vibrant nightlife that travel guides rave about, 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
- Excellent public transport connections
Cons:
- Can be very noisy at night, especially on weekends
- Not ideal for families or light sleepers – I highly recommend earplugs if you stay here and go to bed early
- Hilly terrain might be challenging for some
- Limited parking options if you have a rental car
Top tourist things not to miss in Bairro Alto
- Miradouro de São Pedro de Alcântara
A charming garden viewpoint with sweeping views over Lisbon and the castle.
- Lively Nightlife
Known for its bars and clubs, Bairro Alto comes alive at night with a mix of music and vibrant crowds. Most nightlife doesn’t get going properly until 11pm.
- Church of São Roque
Admire the simple exterior and the opulent, gold-filled interior of this Jesuit church.
4. Avenida da Liberdade: Best area to stay in Lisbon with family
Pros:
- Upscale area with luxury hotels and high-end shopping
- Wide, tree-lined boulevard perfect for walks
- 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 dining and shopping
- Lacks the traditional charm of older neighbourhoods
- Fewer budget-friendly options
- Not as lively in the evenings compared to other areas
Top tourist things not to miss in Avenida da Liberdade
- Designer Shops
Lisbon’s most luxurious avenue, lined with high-end boutiques and cafés.
- Eduardo VII Park
A large, peaceful park offering great views of Avenida da Liberdade and the city beyond. They also have Padel and tennis courts if you are feeling active
- Cinemateca Portuguesa
Explore Portugal’s rich film heritage at this cinema museum.
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
Top tourist things not to miss in Principe Real
- Jardim do Príncipe Real
A garden with exotic trees, a small café, and a weekend farmers’ market.
- Embaixada
A unique concept store in a Moorish palace, showcasing Portuguese design, perfect to pick up some gifts or holiday memories
- Botanical Garden of Lisbon
The most famous garden in Lisbon, filled with exotic plants and multiple walking paths.
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Map of good areas to stay in Lisbon
The best hotels in Baixa
Budget-Friendly Hotels in Baixa
Rossio Garden Hotel

- Rating: 8.2
- 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: 8.0
- 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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Baixa area Mid-Range Hotels
Lisboa Pessoa Hotel

- Rating: 9.1
- 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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The best Luxury Hotels in Baixa
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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The best hotels in Alfama for first time visitors
Budget-Friendly Hotels in Alfama
Alma Moura Residences

- Rating: 8.5
- 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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Alfama 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: 9.3
- 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: 9.1
- 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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The best Luxury Hotels in Alfama
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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Hotels in Bairro Alto
Bairro Alto 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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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 in Bairro Alto
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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Perfect Luxury Hotels in Bairro Alto
Bairro Alto Hotel

- Rating: 9.1
- 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: 9.1
- 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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Beautiful hotels in Avenida da Liberdade
Budget-Friendly Hotels in Avenida da Liberdade
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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Avenida da Liberdade 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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The best Luxury Avenida da Liberdade 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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Where to stay in Principe Real
Budget-Friendly Principe Real Hotels
Casa Oliver Boutique B&B

- Rating: 8.1
- 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: 7.0
- 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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Principe Real Mid-Range Hotels
Memmo Príncipe Real – Design Hotels

- Rating: 9.0
- 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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TOP TIP! If you don’t like these options or are struggling to find availability, click here for more options in the area
Luxury Hotels in Principe Real
Hotel das Amoreiras

- Rating: 9.4
- 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: 9.0
- 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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FAQ about where is the best place to stay in Lisbon
Which district is best to stay in Lisbon for first timers?
- Baixa/Chiado is often recommended for first-time visitors. It’s centrally located, making it easy to explore the city’s main attractions.
- In my personal opinion, it is between Baixa and Alfama. I have stayed in Baixa twice, Alfama three times and Bairro Alto once. Alfama is always my favourite as I love the old world feel and I’m happy to get Uber’s rather than public transport if it’s late or i’ve done enough walking for the day!
Where is the centre of Lisbon for tourists?
- The Baixa district is considered the heart of Lisbon for tourists. It includes major squares like Praça do Comércio and Rossio Square, and is close to many key attractions, shops, and restaurants.
Where to stay in Lisbon for one night?
- For a short stay, consider Alfama for its historic charm, or Baixa/Chiado for convenience. Some recommended places include Memmo Alfama Hotel in Alfama and Hotel Santa Justa in Baixa.
Where to go out at night in Lisbon?
- Bairro Alto is famous for its nightlife, with numerous bars and clubs. Cais do Sodré is another popular area, known for its vibrant atmosphere and the famous Pink Street.
Is Lisbon safe for solo and female travellers?
- Yes, Lisbon is generally safe for solo and female travellers. It’s one of the safest cities in Europe, though it’s always wise to stay vigilant, especially in crowded areas to avoid pickpocketing.
What is the best time of year to visit Lisbon?
- The best times to visit Lisbon are during the spring (March to May) and fall (September to October). These periods offer pleasant weather, fewer crowds, and more affordable prices compared to the peak summer months, the weather also tends to be a lot nicer than most of northern Europe
Final thoughts on the best places to stay in Lisbon
There you have it – a whirlwind tour of where to stay in Lisbon first time travelling. 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, the best area of Lisbon to stay in is very much a matter of personal preferencte. 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 or a delicious pastel de nata.
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