Lisbon neighborhoods each have their own personality, making it a city that feels like several in one. For example, Baixa, the modern downtown, is laid out in a neat grid and feels cosmopolitan and structured. Just a short walk away, Alfama is a maze of cobblestone streets, where you’ll feel like you’ve stepped back in time. Then there’s Chiado, a charming blend of old and new with plenty of shopping, dining, and historic landmarks to explore. Bairro Alto, on the other hand, transforms from a quiet area during the day to Lisbon’s nightlife epicenter after dark. These contrasting vibes make Lisbon endlessly fascinating.
Understanding history of Lisbon helps explain these differences. After the devastating earthquake in 1755, architects from various places were brought in to rebuild the city. This global influence led to neighborhoods with vastly different styles, from grand Parisian-like boulevards to medieval alleyways reminiscent of ancient Rome.
We know choosing where to stay can be tricky, so we’ve put together a detailed guide to help you decide. Whether you’re looking for charm, affordability, nightlife, or convenience, there’s a neighborhood that’s perfect for you. We’ve explored all these areas and stayed in a variety of accommodations, so we can give you firsthand recommendations.
Where to Stay in Lisbon
Our favorite place to stay is Chiado, which strikes a great balance between location, charm, and accessibility. However, other areas like Baixa, Alfama, and Bairro Alto each offer something unique. Let’s take a closer look at these neighborhoods and their highlights.
1. Chiado
Chiado is as central as it gets. Located on a hill, it’s home to shopping streets, historic landmarks like the Convento do Carmo, and plenty of great restaurants. The neighborhood has a mix of old-world charm and modern sophistication. Staying here means you’re close to everything, but keep in mind that walking around involves dealing with hills. On our second trip to Lisbon, we stayed in this area, and it became our favorite.
For a lovely boutique experience in Chiado, check out Casa do Barao, a charming 19th-century building with just 12 rooms. It has a cozy library, a rooftop pool, and breakfast served in a beautiful garden. If you’re on a mid-range budget, Feeling Chiado 15 offers spacious rooms in an amazing location near the Convento do Carmo. Another great option is Chiado 44, which combines modern design with personalized service. Some rooms have river views, and the guesthouse has a peaceful garden.
2. Baixa
While Chiado is our top choice, Baixa also has its appeal. Baixa is flat, centrally located, and well connected to public transportation. It’s near Rossio Station, making it a great base for day trips to Sintra. The neighborhood’s grid layout and grand squares were part of 18th-century reconstruction of Lisbon. Though Baixa is touristy and lacks some of the charm of other areas, it’s incredibly convenient.
We stayed at Porta do Mar Apartments during our first visit, which had a great location near the metro and modern amenities. Another standout is My Story Hotel Figueira, a stylish boutique hotel on a lovely square. For those needing more space, Casas da Baixa – Jules & Madeleine offers serviced apartments with kitchens, perfect for families or longer stays.
3. Alfama
If romance and history are what you’re after, Alfama is the neighborhood for you. With its narrow streets, hidden courtyards, and stunning viewpoints, it’s easily the most atmospheric part of Lisbon. We spent many evenings here, enjoying fado music and watching the sunset from Miradouro das Portas do Sol.
Staying in Alfama, however, requires some trade-offs. It’s hilly, hard to navigate by car, and public transit options are limited. But if you’re okay with walking, the charm is worth it. A unique place to stay is Hotel Convento do Salvador, built in a former convent. The hotel’s modern design blends seamlessly with its historic setting, and it’s just steps away from some of best viewpoints of Alfama.
4. Bairro Alto
For those who enjoy vibrant nightlife, Bairro Alto is the place to be. By day, it’s quiet and unassuming, but once the sun sets, the streets come alive with people enjoying drinks, music, and late-night fun. Bairro Alto has a mix of bars, wine spots, and clubs to suit every taste.
While we love visiting this area in the evening, staying here isn’t for everyone. It’s noisy and busy, which can make it difficult to get a good night’s sleep. If you’re up for the energy, consider staying at Casa das Janelas com Vista, a stylish boutique hotel tucked away on a quieter street. Another great option is The Independente Hostel and Suites, which blends budget-friendly prices with a trendy vibe.
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