Lisbon is easily one of the most exciting cities in Europe. With its winding streets, historic trams, colorful tiles and lively squares, the Portuguese capital has a charm that’s hard to resist. But where to stay in Lisbon? The best area completely depends on your travel style. Do you want to stay in the heart of the city, within walking distance of the main sights? Or would you rather choose a charming neighborhood filled with local restaurants and hidden gems? We’ve visited Lisbon multiple times and stayed in different neighborhoods across the city. In this guide, we’ll help you decide where to stay in Lisbon based on your type of traveler, so you can find the perfect base for your trip.
What is the best neighborhood to stay in Lisbon?
We’ve stayed in several areas across the city and quickly noticed how different the atmosphere can be from one neighborhood to another. Some areas are perfect for a first-time city break, while others are better suited for a romantic weekend in Lisbon or a budget-friendly stay. Below, you’ll find a clear overview of the best areas to stay in Lisbon by type of traveler, so you can easily choose the neighborhood that fits your trip.
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Type of traveler
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Best neighborhood in Lisbon
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Why stay here?
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Less suitable if you...
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First time in Lisbon
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Baixa / Chiado
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Super central, close to highlights, good public transport connections |
seek authentic, local atmosphere
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Authentic atmosphere
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Alfama
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Historic narrow streets, fado, viewpoints and authentic charm |
have mobility issues
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Lively atmosphere and nightlife |
Bairro Alto
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Bars, live music and vibrant nightlife
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want to sleep peacefully
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Peace and culture
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Belém
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Monuments, museums and beautiful spots along the Tagus |
would like to be right in the city center
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Traveling with children
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Baixa
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Relatively flat, easy to navigate and practical
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seek an authentic neighborhood experience
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Luxury city break Lisbon |
Belém
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Stylish hotels with river views
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would like to have many restaurants around
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Budget/ cheap stays |
Alfama/ Anjos/ Arroios
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More affordable guesthouses and small hotels |
want to stay right in the heart of the historic city center |
1. Baixa: best area to stay in Lisbon with a central location
Visiting Lisbon for the first time and want to stay right in the heart of the bustling city? Then Baixa is the perfect neighborhood for you. This central district is the beating heart of Lisbon, full of grand squares, wide boulevards, historic landmarks, and fascinating museums. Some of the iconic highlights here include Praça do Comércio, Rossio, Praça da Figueira, and the Santa Justa Lift.
Baixa was completely rebuilt after the devastating 1755 earthquake, which you can still see in its wide streets and symmetrical buildings. Unlike the hilly neighborhoods of Alfama and Bairro Alto, Baixa is almost entirely flat — a big plus if you’re visiting Lisbon with small children. You’ll also find plenty of cozy cafés, charming shops, and great restaurants where you can enjoy traditional Portuguese cuisine. Curious about the best spots to eat and drink? Discover the best restaurants, bars and coffee shops in Lisbon!
Our recommended place to stay in Baixa
If you’re looking for a central place to stay in Lisbon, Baixa is an excellent choice. You’ll be within walking distance of the main sights, with historic trams and the metro just around the corner. During our girls’ trip to Lisbon, we stayed at the lovely Apartamento do Carmo, just 200 meters from Rossio and 300 meters from Chiado.
2. Chiado: stylish and central stay in Lisbon
Right next to the Baixa district, you’ll find Chiado. This neighborhood is the elegant and artistic heart of Lisbon, where history meets modern flair. Located on higher ground, it’s known for its chic boutiques, historic cafés, and impressive architecture. Wander through its charming streets, discover unique shops, and soak up the lively culture of the city.
One of the most extraordinary sights in Chiado is the Carmo Monastery (Convento da Ordem do Carmo). This Gothic monastery was badly damaged by the 1755 earthquake, but its imposing arches and columns are still standing. An impressive piece of history in the middle of the city.
Don’t feel like walking up the hill? Take the iconic Santa Justa Lift, which takes you directly from Baixa to Chiado. Or try this: step into a shop on Rua Áurea and you’ll find a hidden elevator that brings you up into Chiado, giving you a unique way to reach the higher streets of the neighborhood.
Our personal hotel tip in Chiado
Chiado is a great place to stay if you’re looking for a central base in Lisbon. You’ll also find several boutique hotels that perfectly match the neighborhood’s chic and artistic vibe. Here, you can enjoy the charm of the old town, but with a bit more calm than in Baixa. One accommodation we highly recommend in Chiado is Feeling Chiado 15, set in a 19th-century building on the picturesque Largo do Carmo square.
3. Alfama: authentic hotels and B&B's in the oldest part of Lisbon
Want to experience the real, historic Lisbon? Then Alfama is one of the most atmospheric neighborhoods to stay in. Alfama is Lisbon’s oldest district and offers an unparalleled journey back in time. Here, you can truly feel the soul of the city: winding streets, narrow alleys full of history, and an atmosphere steeped in the famous Fado music.
Stroll through the old fishing quarter and discover its charming staircases and narrow alleys, where time seems to stand still. Located above the Tagus River, the district offers breathtaking views, especially from the iconic Castelo de São Jorge, which is not only a historic fortress but also offers one of the best vantage points over the city. The famous streetcar 28 also winds through the streets here, adding character to the district.
On Tuesdays and Saturdays, you'll also find the famous Feira da Ladra, a cozy flea market where you can browse among vintage finds and antiques.
Our personal hotel recommendation in Alfama
Looking for accommodation in Lisbon that really exudes the atmosphere of the city? In Alfama you will find cozy boutique hotels and traditional B&Bs that will make you feel like you are in the middle of local life. We recommend Lisbon Lounge Suites to as a place to stay in Lisbon.
4. Bairro Alto: best area to stay in Lisbon for nightlife and entertainment
Bairro Alto is one of Lisbon’s liveliest and most distinctive neighborhoods. The area is almost entirely car-free, making it perfect for a carefree stroll through its narrow streets and stairways. As the name suggests, Bairro Alto literally means ‘High District,’ so be prepared for some steep streets and stairs as you explore the area. But the views are absolutely worth it!
Bairro Alto really comes alive at night. The neighborhood is famous for its cozy bars and cafés, where you can enjoy live music. From Fado and jazz to the latest local hits, you’ll find it all in Bairro Alto’s vibrant nightlife.
Our top recommendation in Bairro Alto
Looking for a central yet cozy place to stay in Lisbon? In Bairro Alto, you’ll find both stylish hotels and charming apartments that reflect the neighborhood’s lively and creative spirit. A great option in Bairro Alto is JJ Apartments, a wonderful place to stay in Lisbon!
5. Belém: quiet and stylish stay in a historic district of Lisbon
Looking for a quieter stay in Lisbon, but still surrounded by history? Then Belém is the perfect neighborhood for you. Located just outside the bustling city center, this area is known for its impressive monuments, wide avenues, and stunning views of the Tagus River. It was here that Portugal’s famous explorers set off on their voyages across the seas, so history truly fills the streets.
The Jerónimos Monastery and the Torre de Belém are just a few of the impressive sights you can explore here, and every corner of Belém reveals a piece of the city’s rich history. After a day of sightseeing, treat yourself to the famous pastéis de Belém, the iconic puff pastry tarts filled with creamy custard. Are you curious about more of the best sights in Belém? We’ve written a detailed guide with the best hotspots and insider tips to help you make the most of your visit.
Our personal hotel tip in Belém
Besides its impressive history, Belém also offers breathtaking views over the Tagus River. You’ll find some of Lisbon’s most scenic hotels here, such as the Altis Belem Hotel & Spa. Belém is a wonderful neighborhood for those who want to soak up history while also enjoying the unique charm of this area. Whether you’re looking for family-friendly hotels in Lisbon or a romantic stay in the city, this neighborhood has excellent options.
Where to stay cheaply in Lisbon?
Looking for a budget-friendly stay in Lisbon without compromising on atmosphere or location? Fortunately, you don’t have to go far from the city center. While neighborhoods like Baixa and Chiado are popular, prices tend to be higher there. For an affordable hotel in Lisbon, consider the neighborhoods of Alfama, Anjos, and Arroios. These areas offer a great balance of price, accessibility, and local charm.
Arroios: affordable and practically located (personal tip)
Arroios is a nice, affordable neighborhood just outside the busiest part of downtown. Here you stay among the locals, with good subway connections and lower hotel prices than in the historic heart of the city.
We stayed at Arroios during a stopover in Lisbon on our way for a trip to Brazil. Since we had to go to the airport early the next day, we looked for an affordable accommodation with a good connection, and this turned out to be an ideal choice. Highly recommended here is Hygge House: a nice, bright hotel with spacious rooms, a quiet atmosphere and a good value for money. Moreover, you are conveniently located here towards the Lisbon airport, making it a good option for a short city break or a stopover.
Anjos: upcoming and affordable
Located just outside Lisbon’s main tourist areas, the Anjos neighborhood has been booming in recent years. Here you’ll find trendy coffee shops, international restaurants, and a mix of locals and digital nomads. Hotel prices in Anjos are often lower than in the historic city center.
Daily flights to Lisbon
Looking for the best flight to Lisbon? Check the latest flight deals to Lisbon via Skyscanner. You’ll find a wide range of direct and connecting flights from major international airports, making Lisbon an easy destination for a city break or the perfect starting point for a Portugal road trip.
Living and working as a digital nomad in Lisbon
Planning to stay in Lisbon a little longer and combine travel with remote work? Then other factors come into play, such as quieter neighborhoods, great coffee spots, coworking spaces, and a healthy balance between city life and relaxation. In our article about living and working in Lisbon as a digital nomad, we explain why this city is so popular among remote workers and share practical tips to help you get started.
More inspiration for your trip to Portugal
Are you planning a city break to Lisbon? Then also check out our comprehensive guide for a Lisbon city break, with the best sights, activities and restaurants.
And why limit your trip to Lisbon? How about an unforgettable road trip through Portugal? Combine your Lisbon city break with charming Porto, famous for its delicious wines. And discover the peaceful and picturesque Alentejo region in Portugal.
In the Alentejo region, you’ll discover vast vineyards, whitewashed villages, and historic cities such as Évora. Curious about what not to miss? Be sure to read our guide on what to do in Évora, packed with sightseeing tips, hotspots, and insider recommendations for this charming city. And with our hotel tips for Alentejo, you’ll easily find the most beautiful places to stay in the region.
From charming towns and impressive landmarks to culinary highlights, turn your trip into an unforgettable holiday in Portugal. Ready for your adventure through Portugal? As your personal travel advisors, we’d love to help you create a tailor-made journey through Portugal.
