Where To Stay In Lisbon: Top 6 Areas & Where To Avoid

We felt compelled to write this article about where to stay in Lisbon after reading so many other articles on the topic that weren’t quite adequate. 

And we want you, our lovely reader, to have the best possible experience in this magical city.

After living in this city for an entire month (as nomads) and visiting 5x times over the years (as tourists), we’re taking upon ourselves to write this post on the best places to stay in Lisbon.

We walked around the city, spending weeks exploring each neighborhood ourselves. And we came to the realization: each area has its own character and appeal for every type of traveler.

Whether you’re looking to experience the historical side of the city, partying with friends over the weekend or have a romantic getaway to the city, Lisbon has a ton of fun neighborhoods to stay in.

Keep reading for our Lisbon neighborhood guide on the best places to stay including affordable accommodation to explore the city without breaking the bank.

Top Picks: Lisbon‘s Best Neighborhoods For Everyone

Lisbon is divided into many neighborhoods scattered across the city. Each area has their own style, personality, and unique things to do, see or eat. 

Whether it’s culture, food, nightlife or history, there’s a spot for everyone. There’s places that are perfect for foodies excited to try the local cuisine like Bacalhau. Or there’s an area to experience the vibrant nightlife.

Some areas have similar vibes so you’ll see us recommend 2 areas, at times. Here are the best neighborhoods in Lisbon we’d recommend you stay in on your visit:

You can see – there’s a lot of options. Don’t be overwhelmed! We will help you figure out which one is the right neighborhood for your travel goals to Lisbon. 

Where We’ve Stayed In Lisbon

Before we start this complete guide, we want to share our personal experience of staying in different areas in Lisbon. 

We’ve visited Lisbon 5 times throughout the years – some were short visits (1-5 days) and we also had a longer stint living as digital nomads for an entire month.

Our most recent trip to Lisbon was only 2 days. I was struggling to find a good hotel in the center because we only had 48 hours and just when I was about to give up – I found it! Even with a tight budget, we stayed at this modern, affordable hotel near Rossio which is centrally located and easy to access public transport. 

For our month-long stay, we lived in a coliving space close to Baixa and Mouraria. However, we can’t recommend it in good faith. As we explored the neighborhoods in Lisbon, we found Principe Real to be our dream area to live for long-term in Lisbon as digital nomads.

After our multiple stays visiting Lisbon and exploring each neighborhood, we’re happy to say we’ve narrowed down the list of the best (and worst) areas to stay in Lisbon.

Quick tips: How to pick accommodation in Lisbon

Before we get into the specific neighborhoods and areas, we want to give you a few tips on how to choose accommodation in Lisbon so your trip is as comfortable as possible:

• Book early! If you want the best prices, book well in advance. Lisbon is super popular, the best value for money hotels sell out first. If you book too late, it’s expensive and the hotels aren’t worth the price tag.
• Look for accommodation with air-conditioning in the summer. Lisbon gets HOT. Don’t stay in Airbnbs if this is important to you (it’s unreliable and less likely Airbnbs have AC). Hotels are a better option but always double-check before booking.
• Stay within walking distance to the city. If you stay in the central areas, you can walk everywhere but if you venture further – you’ll want to be close to key public transport options to save you time.
• Consider the infamous hills of Lisbon. Some areas are more hilly than others and most streets are cobblestone. If you struggle with the inclination, choose neighborhoods that are mostly flat.

Now, let’s get on with it!

Where To Stay In Lisbon: Neighborhood Guide

From its charming cobblestones streets and trendy specialty coffee shops to its challenging hills – Lisbon is a European destination full of character and adventure.

This neighborhood guide is focused on sharing the top areas (and areas to avoid), the best hotel and hostel options focused on two things: location and purpose.

To determine where to stay in Lisbon, we think it’s helpful to ask yourself these questions:

• What activities do I plan to do? Are they centrally located or further out of the city?
• Do I want to be within walking distance? Would public transport bother me?
• What’s my accommodation budget? Am I willing to spend more for a central hotel?

The answers to these questions help determine which area you’ll spend most of your time.

Having lived in the city for a while, these are the best neighborhoods in Lisbon we recommend you stay in — the top places based on a blend of reviews and our own firsthand experience.

1. Chiado & Baixa Neighborhood ✔️First-Timers  ✔️Central

Chiado is the neighborhood we recommend you stay in if it’s your first time visiting Lisbon or if you’re staying less than 5 days. 

We love this area because you are within walking distance (5-20 minutes) to other key areas like Bairro Alto, Cais do Sodre, Baixa, Alfama and Rossio. When staying here, you don’t need to use public transport – a big plus for us!

You can easily explore key monuments like the Praça do Comércio, Santa Justa Lift, Castelo de São Jorge, Tram 28 stop and more. Most of the shopping is based in Chiado, including trendy restaurants and bars that will satisfy all the foodies. 

Baixa is in the absolute center of all the action! This makes Baixa perfect for first-timers as well or if you’re short on time (less days >3 days). It’s extremely walkable to key areas like Chiado and Alfama. However, we felt Baixa is very crowded and overwhelming at times. 

Both are great areas for you to stay but if we had to choose between Chiado vs Baixa – Chiado wins! It’s the best neighborhood to stay in because you are close to all the action but you can escape to your hotel at the end of the day.

Best hotel in Chiado: Feeling Chiado 15

This charming hotel is consistently sold out for a reason! The private rooms are spacious, stylish and some even get a balcony view of the city. The staff are incredibly friendly, great with recommendations and the daily breakfast included is actually worth it – pastries, fresh fruit and coffee to start the day!

But why is Feeling Chiado 15 so popular? You can’t beat the value for money. The hotel’s location is in the heart of the historic Chiado district which is just steps away from attractions, activities and restaurants. For this (very) affordable price, we think this is the best deal we’ve seen!

The downside of this hotel? There’s no elevators – if your room is on a higher floor, it can be quite the climb. Overall, if you’re looking for a private, comfortable and welcoming stay while exploring Lisbon, you’ve got to check out this hotel.

We highly recommend booking in advance, at least 2-3 months before your trip. If you plan on visiting during the high season (July to August), be quick because they book out fast!

Best budget hotel in Chiado: Casinha Das Flores

Casinha das Flores is a quirky hotel decorated with vintage flair and fun common areas to lounge around. This hotel is in a great location in the Chiado district – it’s next door to a popular restaurant, Taberna da Rua das Flores, which you must try (just go early because wait times are longgg).

When staying at this hotel, your room price has an exceptional daily breakfast included. The breakfast buffet has a good variety of food and is often accompanied by live piano music to start your day. It’s a whole vibe!

Like a lot of hotels in Lisbon, there’s no elevator access. Please take that into account if you have big suitcases or simply don’t want to climb the stairs.

They have different rooms available – double room, twin room, deluxe room with balcony, suite, superior double, junior suite with balcony and more. If you want the cheaper rooms, you have to book well in advance! They are the first to go and the price is relatively low compared to the market in Lisbon.

Best hotel in Baixa: My Story Hotel Figuera

Every single time we’re in Lisbon, we pass by My Story Hotel Figuera without fail  – that shows just how central it is! Located in front of the Praça da Figueira, this hotel is within walking distance (5-10mins) to areas like Chiado, Rossio, Martim Moniz and public transport right on your doorstep.

The breakfast included is a highlight of your stay and the on-site restaurant, La Squadra, is pretty popular. Some rooms are a bit small but they are clean, modern and well-designed! The staff go above and beyond to make your stay memorable which is always a nice touch.

Light sleepers may hear some street noise at times but it’s the tradeoff for being so central. We think this hotel is a great choice if you want to be within walking distance to most attractions, have public transport options and a comfortable, stylish room.

You are still 15 minutes walking from the city center (if you’re quick on the hills :P) but after a day of touring, you can come home to a peaceful neighborhood.

2. Rossio Neighborhood ✔️On a budget

Traveling on a tight budget?

Rossio is the most affordable neighborhood to stay in Lisbon. We think it’s best for anyone to get more value for money. This area has decent hotels, hostels and Airbnbs options for budget travelers looking to save extra money. 

Rossio’s access to public transport is unmatched – you can take the tram, bus or train to most places in the city. 

Praça do Rossio is a lively town square where people gather to socialize, relax, catch public transport and even enjoy the festive Christmas market during the holidays! 

Our favorite place to grab a bifana is nearby at Solar da Madalena – a small family-owned cafe serving delicious local cuisine for a cheap, quick lunch or breakfast. You have to try it!!

The beautiful train station ‘Lisboa Rossio’ is the best way to get from Lisbon to Sintra – a popular town tourists visit to see magical castles and learn the history (must-visit). 

From Rossio to popular areas like Chiado, Baixa, Bairro Alto and Alfama, it’s only a 5-25 minute walk – giving you the best of both worlds!

Here’s the thing: Rossio isn’t the most beautiful neighborhood. Some say it’s grungy and dirty. If you don’t mind that, Rossio is a great option for budget-friendly accommodation with a lower price tag (without compromising location).

Best hotel in Rossio: Nicola Rossio Hotel

This boutique hotel is focused on offering guests a memorable stay with a modern aesthetic. With views of Rossio and the Castelo de Sao Jorge, you can’t help but fall in love with Lisbon’s charm and bustling city life right from your bedroom window. 

The best part about the Nicola Rossio Hotel is the location. It’s right in the middle of 5 neighborhoods most tourists visit. You can walk everywhere from this hotel! But what’s unique about this hotel is that they offer a welcome drink upon your arrival – the staff go above and beyond to make it a great stay for you!

We think this is a great option if you’ve only got a few days in Lisbon and don’t want to miss out. You can hit up most neighborhoods from this hotel, visiting the vibrant restaurants, cafes, pubs and more from here.

Best budget hotel in Rossio (Where We Stayed): Liberator Rossio

We loved our 2-night stay at Liberator Rossio. It was everything we could ask for — from the affordable price to the central location, the rooms are modern and spacious making us feel right at home. 

We like when a hotel has a self check-in option because we can arrive at any time of the day or night. Liberator doesn’t have a 24/7 reception but they have clear instructions on the building code, room key and access.

When we first entered the room, we were shocked by how clean and spacious it is! We got a room with a window overlooking the plaza, Praca do Rossio. The bathroom is surprisingly big with modern facilities and there’s enough space for both our medium-sized Away suitcases.

Finally, a hotel with an elevator! You have to walk up one set of stairs to get to it but it’s easy from there. There’s plenty of common areas to work, lounge and relax with vending machines that have snacks.

If you want a modern, comfortable and budget-friendly stay that’s still centrally located – we highly recommend Liberator Rossio!

3. Bairro Alto ✔️Foodies ✔️Nightlife

Excited to party in Lisbon?

Bairro Alto is the best place to stay in Lisbon for nightlife. The atmosphere is fun, vibrant and a great place for anyone to dance the night away!

There’s plenty of clubs and bars to hop around with friends within walking distance like Cinco Lounge and A Capela. For more chill vibes, we loved going to Park Rooftop for a few drinks and panoramic views of the city.

You can find affordable accommodation in Bairro Alto too. There’s hotel and hostel options depending on your budget.

The biggest downside of Bairro Alto? It’s noisy! With partying around most corners, there’s going to be a lot of street noise. Unfortunately, the housing/hotels aren’t well insulated so that noise easily travels.

If you’re a light sleeper, Bairro Alto won’t be the best place to get a good night’s sleep.

Other than nightlife, some of the best Portuguese restaurants are located in Bairro Alto. A Tasco do Chico is a popular restaurant that has live Fado songs (soul, folk music) and serves rustic local cuisine. A great way to spend the evening in Bairro Alto!

Our favorite pastel de nata shop (an egg custard tart) has a branch in this neighborhood – a must try pastry in Portugal!

Best hotel in Bairro Alto: Solar dos Poetas

This hotel puts you right in the heart of Lisbon’s vibrant Bairro Alto neighborhood. Located on the footsteps of Praça Luis de Camoes, you’re surrounded by history, iconic yellow trams and some of the best cafes/restaurants in the city.

The unbeatable location means you’ll have some street noise, nothing too crazy but worth noting. Daily breakfast is included in your stay at their common areas and it’s often accompanied by live piano music — the perfect way to start your day exploring Lisbon.

The hotel isn’t cheap itself but if you book in advance, you can find availability for the cheaper rooms. 

Best budget hotel in Bairro Alto: Bairro House Lisbon Charming Suites

This guesthouse provides comfortable rooms, relaxing patios and a friendly team ready to help you. The location in Bairro Alto is unbeatable — very close to the metro which can take you to Sintra or Cascais and walking distance to most attractions like Elevador de Bica and TimeOut Market.

A popular place to stay if you love the nightlife with all sorts of bars and clubs nearby. We think it’s a very affordable option in the heart of the city with different room options like deluxe rooms with balconies, studio rooms with kitchens and more. 

4. Principe Real Neighborhood ✔️ Digital Nomads ✔️Long Stays

We believe Principe Real is the best neighborhood for digital nomads staying longer (for 1-3 months) in the city.

This area offers nomads and expats a peaceful home base with beautiful parks, trendy brunch spots and panoramic views overlooking Lisbon. 

There’s plenty of unique cafes and restaurants in the area like our favorite breakfast spot, Seagull Method or the charming wine bar, Magnolia Bistrot.

Principe Real is located northwest of the city center, about 15-20 minutes walk from all the action in Chiado or Bairro Alto – the perfect place to stay in a more quiet, residential neighborhood. This area is notorious for its infamous hills but we found it manageable!

Want a cool fact about Principe Real? Praca das Flores was named the 18th coolest street in the world, according to TimeOut.

During our month living in Lisbon, we gravitated towards this neighborhood – finding ourselves here every weekend. We have fellow nomad friends that prefer to live in this area long-term. Unfortunately, it’s become one of Lisbon’s most exclusive neighborhoods.

Long-term accommodation options in Principe Real are pretty expensive and often difficult to find availability. We tried to book an apartment here for our month in Lisbon but it was way too expensive and whatever apartments were left – it wasn’t great value for money.

For a short stay, you can find decent hotels for a good price…if you book early enough!

Best hotel in Príncipe Real: Casa do Jasmim

Looking for a comfortable stay? You can’t go wrong with Casa do Jasmim. The private rooms are spacious, clean and well-equipped with everything you’d need. The staff are welcoming and eager to help you make the most of your time in Lisbon.

This stylish guesthouse is located in the exclusive district of Principe Real – just up the road from our favorite brunch spot, Seagull Method. The breakfast included is superb, offering guests coffee, orange juice, fruits, pastries and more. 

Principe Real is a much quieter neighborhood so if you’re a light sleeper, this is a great option a bit further from the city center. Some rooms at this hotel offer black out shades for a good night’s rest.

Best budget hotel in Principe Real: Flores Guest House

Flores Guest House is a wonderful mix of modern comfort with traditional Portuguese touches. A unique offering by this hotel is that they deliver a breakfast basket to your room every morning with fruit, orange juice, pastries and more. 

In the area, we recommend grabbing specialty coffee at Copenhagen Coffee and if you’re in the mood for gelato, Nannarela is a great choice! The hotel is located in Principe Real but it’s just a short walk to other areas like Santos, Cais do Sodre and Bairro Alto which have plenty of cafes, restaurants and bars to check out!

Some guests noticed that noise from the stairs and hallway can carry into nearby rooms, just be aware. Like most hotels in Lisbon, there’s no elevator access so you’ll have to walk up stairs. The staff help carry your luggage up to your room though!

5. Avenida da Liberdade & Alfama Neighborhood ✔️ Families

Traveling to Lisbon as a family?

Avenida da Liberdade is the best area for families to stay in Lisbon because there’s beautiful parks, large sidewalks and it feels particularly safe.

This neighborhood is located just north of the city, above areas like Baixa and Rossio. Avenida da Liberdade will require a bit more walking to get into the center but it’s a very nice walk through upscale stores and clean streets. 

While it’s slightly further from the center, it’s easy to catch a Bolt or Uber from Avenida da Liberdade. It’s a very affordable option to get around!

Wide, tree-lined streets make Avendia da Liberdade a fresh change from the busy city center. There’s plenty of green spaces such as Eduardo VII Park which is perfect for kids to run and play. 

With the combination of accessibility, safety and convenience, Avendia da Liberdade is the best place to stay in Lisbon for families exploring the city.

Alfama is the older district in Lisbon with hills around every corner and iconic monuments like the Lisbon Cathedral. We loved visiting this area during our walking tour because of the beautiful viewpoints, rich history and local culture all around.

Best hotel in Avenida da Liberdade: Alegria A Lisbon Boutique Hotel

We think this quaint hotel is a great place for families to base themselves in Lisbon. Located just steps away from a small children’s park and Lagos da Avenida da Liberdade. 

The friendly, courteous staff is happy to help with directions, attractions and anything you may need during your stay. Avenida da Liberdade is a quiet neighborhood so you’ll get a peaceful night’s sleep here.

While slightly further from other areas, it’s easy enough to get to key attractions from here with a Bolt/Uber, public transport or a longer walk through beautiful tree-lined streets.

Best budget hotel in Avenida da Liberdade: HF Fenix Lisboa

This comfortable hotel is an affordable option that’s clean, spacious and modern. Located right in front of the scenic park, Parque Eduardo VII — it’s a great option for families visiting Lisbon.

You can easily get to the airport from this hotel and other major attractions with a metro station only 1 minute away. The staff are lovely and very helpful to give tips on where to go or hidden gems!

6. Graça Neighborhood ✔️ Local experience

Graça is a vibrant residential neighborhood located on the hills of Lisbon, filled with historic architecture, bustling restaurants and fun wine bars. You won’t find many tourists visiting Graça but rather locals going about their daily lives.

We visited Graça during our last week in Lisbon, after hearing about it from our friends Eddie and Francesca. After spending a night exploring this neighborhood, we’re convinced this is a hidden gem.

The atmosphere in Graça is unlike others – there’s such a fun, exciting, relaxed vibe. We had dinner at the amazing Italian restaurant, La Matte Pizzeria. Located in a small alley, it’s just oozing with charm! 

Next door you’ll see Vino Vero, a charming indoor/outdoor natural wine bar with small tapas to order. Both spots are very busy, try to make a reservation or arrive early to secure seats!

Matthew and I regret not visiting Graça sooner. We think it’s a fun, trendy neighborhood that’s more local and hidden. If you stay long-term in Lisbon, Graça is a great option!

For short stays or if it’s your first time in Lisbon, Graça is not the best neighborhood. It’s located high above the hills of Lisbon – above Castelo do Sao Jorge. It’s not the easiest area to get to other popular attractions. 

I will say – if you want the local experience, Graça is the best place to feel what it’s like to live in Lisbon. If you’re a couple like us or digital nomads, you might just fall in love with Graça!

Best hotel in Graça: Tings Lisbon

Tings Lisbon is the best hotel option in the residential neighborhood of Graça. This hotel is close to the cute alleyway, Rua da Senhora do Monte and the hidden gem of a viewpoint, Miradouro da Senhora do Monte where you can catch the sun setting over the city. We absolutely loved this view! Our favorite pizzeria, La Matta, is only a few blocks away from this hotel.

As this area is more residential, it’s very quiet and easy to get a restful night’s sleep. However, Tings is located on the top of a hill — you will have to hike up to get back to the hotel or you can take a Bolt/Uber if you don’t feel like it.

Where Not To Stay In Lisbon?

The 3 areas you should avoid staying in Lisbon are Anjos, Mouraria and Indendente. These areas are a little further from the city area and are prone to more petty crimes. The kind of crimes you may experience in these areas is theft or scams!

Lisbon is one of the safest cities in Europe but it’s certainly not 100% safe. Just like anywhere else in the world, some neighborhoods aren’t safe for tourists to walk around with their valuable.

If you are a solo female traveler, it might be a good idea to avoid these areas for long periods of time or at night time. I have been in these areas during the day by myself (without Matthew) and they are still very safe! I had zero issues but I guess it’s just those odd times and unlucky moments in these areas that can catch people out.

So, Where To Stay In Lisbon in 2025?

Lisbon, Portugal has become a top travel destination in Europe and it only continues to grow in popularity. You have tourists on holiday, digital nomads working remotely, expats living in Lisbon and the wonderful locals who make up the city.

Figuring out where to stay in Lisbon is the first part of planning an amazing trip!

There are a lot of cool neighborhoods worth checking out based on the kind of travel you are doing. These are our favorite 3 neighborhoods in Lisbon:

• Chiado
• Rossio
• Principe Real

You can’t go wrong with any of these areas because they have a great balance between touristy and local vibes. They are pretty central to the city center without being too close to all the action and crowds!

It’s a big melting pot of culture, history and beautiful architecture. Each neighborhood in Lisbon has its own unique character, charm and flair to it. Depending on the kind of experience you’re looking for, you can find the right area for you!