Where to Stay in Lisbon: Best Areas & Hotels for First-Time Visitors

Brimming with history, culture, and picturesque landscapes, Lisbon is the vibrant capital of Portugal and a must-visit destination. Perched on the edge of the Atlantic Ocean, Lisbon enchants with its pastel buildings, stunning viewpoints, and charming cobbled streets. With a mix of tradition and modernity, this city has an energy that’s hard to resist for visitors. This post will tell you all about the best areas to stay in Lisbon.

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Lisbon’s rich history is evident in its iconic landmarks and attractions. Wander through the winding streets of Alfama, visit the historic Belém Tower, or marvel at the impressive Jerónimos Monastery. The city also hosts several world-class museums and galleries, catering to art enthusiasts and history buffs. Lisbon’s thriving tourism industry means the city offers diverse accommodation choices – from luxurious boutique hotels to quaint guesthouses and budget-friendly hostels.

The city’s atmosphere is a delightful fusion of historical charm and contemporary chic. Whether exploring its many neighborhoods or indulging in local cuisine at trendy eateries and bustling markets, there’s always something to capture your imagination.

If you’re looking for the best areas to stay in Lisbon and want to uncover everything this fascinating city offers, continue reading our comprehensive accommodation guide. We’ll introduce you to Lisbon’s top attractions and provide helpful advice on selecting the perfect place for your stay.

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Accommodation Options in Lisbon

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What’s the Best Area to Stay in Lisbon?

The best area to stay in Lisbon is the Old Town, especially if you’re a first-time visitor to the city. Comprising Lisbon’s oldest and centermost neighborhoods, the Old Town has many attractions, including the Cathedral, Praça do Comercio, and the Santa Justa Lift. This district is also where some of the best-rated hotels in Lisbon are located.

Find available accommodation in Lisbon’s Old Town.

Best Hotels in Lisbon’s Old Town

• Best 5-star hotel: Browns Avenue Hotel
• Best 4-star hotel: Hotel da Baixa
• Best 3-star hotel: Blue Liberdade Hotel
• Best budget hotel: Mouraria Lisboa Hotel
• Best B&B: Casa dell’Arte Club House
• Best hostel: Yes Lisbon Hostel
• Best tourist apartments: Look Living, Lisbon Design Apartments

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Where to Stay in Lisbon for Sightseeing, Nightlife & Business Travelers

As mentioned above, Lisbon’s City Center is the best location for tourists in the Portuguese capital. That said, Lisbon’s centermost neighborhoods have a distinct atmosphere and different attractions. These are some of the nicest districts to stay in Lisbon:

• Alfama is one of Lisbon’s oldest and most picturesque neighborhoods. It is known for its narrow winding streets and historic buildings such as the Cathedral, the National Pantheon, and the São Vicente de Fora Monastery. Our favorite hotels in the area include the Browns Central Hotel and the aforementioned Blue Liberdade.
• Belém is a historic neighborhood located on the outskirts of Lisbon, known for its impressive landmarks, such as the Belém Tower, the Jerónimos Monastery, and the Discoveries Monument. Our favorite property here is the Altis Belem Hotel & Spa.
• Baixa & Chiado are two of Lisbon’s most vibrant and popular neighborhoods. Baixa is the city’s heart and is known for its grand plazas, narrow streets, and distinctive architecture. Conversely, Chiado is more upscale and bohemian, with trendy boutiques, art galleries, and cafes lining its streets. Top hotels in these neighborhoods include the 3-star boutique Browns Downtown Hotel and the Lisboa Carmo Hotel.
• Centrally located, Santo Antonio is a historic and picturesque neighborhood known for its charming streets and luxury shopping. It is also a popular spot for dining and nightlife. The Príncipe Real Garden is a must-see attraction in Lisbon. The Alegria A Lisbon Boutique Hotel and Browns Avenue Hotel are fabulous properties to stay in this area.
• Avenidas Novas is a modern neighborhood popular with business travelers. The area is known for its luxury shops, international restaurants, and chic hotels like Sublime Lisboa.

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The Best Areas for Tourists in Lisbon: District by District

1. Baixa & Chiado: Best Location in Lisbon for First-Time Travelers

Baixa and Chiado are two famous districts in Lisbon known for their architecture, cafes, shopping, and nightlife.

Why is this the best area to stay in Lisbon:
• Heart of the city
• Great area for sightseeing
• Near the main attractions of the city
• Pedestrian-friendly
• Great nightlife
• Santa Justa Elevator
• Museums and art centers
• Praça do Comércio
• Connected by metro
• Luxury and boutique hotels

Located in the heart of Lisbon, Baixa & Chiado offer a perfect blend of historical charm and modern energy. These vibrant neighborhoods are a must-visit destination for those seeking an authentic Lisbon experience, particularly first-time travelers.

What makes this area unique is its architecture. Thoughtfully designed by the Marquês de Pombal after the devastating 1755 earthquake, the neighborhood features magnificent plazas, grand buildings, and charming cobblestone streets.

One of the main attractions in Baixa is Praça do Comércio, a stunning square facing the Tagus River. The scenic views and striking architecture make it the perfect spot for a leisurely stroll or a photo op.

Another top attraction is the Santa Justa Elevator, an iconic piece of Lisbon’s urban landscape. After a quick ride to the top, you’ll enjoy panoramic views of the entire city.

Baixa & Chiado’s ambiance is a mix of elegance and liveliness. It’s the perfect place to experience local culture, cuisine, and nightlife. The neighborhood is filled with trendy restaurants, cafes, and bars, offering visitors an authentic taste of Lisbon’s culinary scene.

Overall, Baixa and Chiado truly capture Lisbon’s unique spirit and charm. They’re a must-visit for anyone traveling to the city.

Getting around is easy with the area’s many metro lines and stations. There are four main stations: Baixa-Chiado, Rossio, Restauradores, and Cais do Sodré, making it convenient to explore other parts of Lisbon.

Baixa and Chiado are home to some of Lisbon’s best attractions and some of the city’s best boutique hotels.

Best Hotels in Baixa & Chiado, Lisbon

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2. Alfama: Best Location in Lisbon for Sightseeing

Santa Maria Maior, home to the famous Alfama neighborhood, is known for its narrow, steep streets and medieval attractions.

Why is this the best area to stay in Lisbon:
• Oldest district in the city
• Best area for sightseeing
• Several iconic lookouts
• Connected by tram
• Lisbon Cathedral
• Castelo de São Jorge
• Museums and art centres
• Lively atmosphere

Alfama, located in the heart of Lisbon, is the oldest and most historic neighborhood in Lisbon. The maze-like narrow streets of Alfama are lined with charming, sometimes centuries-old houses. The neighborhood is famous for its unique charm, vibrant atmosphere, and traditional fado music.

Alfama sits atop a hill, so visitors can enjoy spectacular views of the Tagus River and the city from its winding streets and alleys. The Castelo de São Jorge, a medieval Moorish castle, adds to the neighborhood’s historical significance and is a must-see attraction in Lisbon.

Another must-see attraction in Alfama is Lisbon’s Cathedral. Built in the 12th century in Romanesque style, it is one of Portugal’s oldest and most significant. Visitors are immediately struck by the imposing facade, which features two bell towers and a rose window. Inside, the cathedral boasts Gothic influences, with intricate stained glass windows and soaring vaulted ceilings.

Nearby, the National Pantheon is the final resting place of notable Portuguese figures like Vasco da Gama and Amália Rodrigues. The neighborhood is also home to the famous Feira da Ladra, a flea market that takes place every Tuesday and Saturday.

The general ambiance of Alfama is very lively, with the sound of fado music spilling out into the streets from quaint little bars and restaurants. Visitors can take a ride on the historic Tram 28, which passes through Alfama and offers a unique way to see the sights while feeling like a local.

Overall, Alfama is an essential destination for anyone visiting Lisbon and a great district to stay in for those interested in the city’s rich history and unique culture.

Best Hotels in Alfama, Lisbon

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3. Santo António & Príncipe Real: Best Location for Shopping & Luxury Hotels

Santo António and Príncipe Real are two upscale districts known for their luxury shopping, trendy cafes, shops, and attractions.

Why is this the best area to stay in Lisbon:
• Very central area
• Avenida da Liberdade
• Luxury shopping
• Pedestrian-friendly
• Upscale hotels
• Jardim do Príncipe Real
• Boutique hotels
• Connected by metro

The Santo António and Príncipe Real districts boast a rich history and unique character. Located near the city center and crossed by the elegant Avenida da Liberdade, these neighborhoods are widely considered some of the most upscale areas of Lisbon.

The Príncipe Real neighborhood, in particular, is a must-visit area. This neighborhood is known for its beautiful gardens, including the famous Jardim do Príncipe Real and the Botanical Gardens. Visitors can stroll through the picturesque greenery or relax and enjoy the stunning views.

Of course, the neighborhood offers much more than just its gardens. It also boasts local shops, boutiques, restaurants, and historic architecture. The area was once home to famous writers, artists, and political figures.

Those looking for a taste of luxury will be right at home in Santo António. Avenida da Liberdade is known for its high-end shops and hotels.

Santo António is accessible by several transportation options, such as the blue and yellow metro lines with the Marquês de Pombal and Avenida stations, respectively.

From boutique hotels to grandiose palaces, there’s something for everyone. With its stunning architecture, unique character, and easy accessibility, Santo António is the perfect destination for a stay in Lisbon.

Best Hotels in Príncipe Real & Santo Antonio

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4. Bairro Alto: Best Location in Lisbon for Nightlife & LGBT+ Travelers

Located atop a hill, Bairro Alto is a lively and vibrant neighborhood known for its many bars, restaurants, and nightlife.

Why is this the best area to stay in Lisbon:
• Very central area
• Incredible lookouts
• Lisbon’s gay district
• Lively nightlife
• Boutique hotels
• Connected by tram and metro
• Great restaurants

Bairro Alto is a neighborhood with unique charm and a lively and diverse atmosphere.

The name “Bairro Alto” translates to “Upper Neighborhood.” This moniker originated due to the neighborhood’s location on a hill overlooking Lisbon. During the 16th century, Bairro Alto was known for its artisanal shops and small businesses. Today, the neighborhood is a hub for Lisbon’s trendy youth culture.

Beyond its quaint streets, Bairro Alto offers several attractions, including the Miradouro de São Pedro de Alcântara, the Igreja de São Roque, and the Museu da Farmácia.

Bairro Alto’s vibrant LGBTQ+ community is a vital part of the neighborhood’s charm. It has been Lisbon’s gay neighborhood for decades and is home to queer institutions like The Late Birds Lisbon, a stylish gay hotel and bar, and TR3S Lisboa, a popular queer nightclub.

There is no shortage of accommodation options in Bairro Alto. From budget-friendly hostels to upscale boutique hotels, there is an option for every traveler’s needs.

Bairro Alto is serviced by multiple bus and tram lines, including the famous Tram 28. The nearby Baixa-Chiado metro station also serves the Green and Blue lines and is the perfect connection point for travelers exploring Lisbon’s many neighborhoods.

Best Hotels in Bairro Alto, Lisbon

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5. Alcântara: Best Location for Hipsters & Young Travelers

Alcântara is one of the trendiest districts in Lisbon. It is known for its contemporary art galleries, creative restaurants, and cool bars.

Why is this the best area to stay in Lisbon:
• Relatively central district
• Impressive views
• LX Factory
• Great bars & restaurants
• 25 de Abril Bridge
• Museo da Carris
• Connected by metro and commuter trains
• All kinds of hotels

Alcântara is located west of the city center along the Tagus River.

This area offers visitors breathtaking views of the city’s skyline and the iconic 25 de Abril Bridge.

The neighborhood’s history dates back to the 16th century when it was primarily a fishing village. Over the centuries, it has become a bustling industry and commerce hub.

One of the main attractions in Alcântara is the LX Factory, a converted industrial complex that now houses trendy shops, restaurants, and galleries. The ambiance here is eclectic and vibrant, with locals and tourists enjoying the lively atmosphere and cool vibes.

Other attractions in the area include the Museu do Oriente and the Museu da Carris transport museum.

Alcântara is also home to the Centro de Congressos de Lisboa (CCL), making it a great area to stay in Lisbon for business travelers.

The Alcântara district is well-connected to the rest of Lisbon via bus and tram lines. Alcântara-Mar (yellow metro line and commuter services to Cascais) is the nearest metro station providing access to the center. Meanwhile, Alcântara-Terra provides commuter services on the Azambuja line.

Best Hotels in ALcântara

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6. Belém: Best Location for Travelers with a Sweet Tooth

While it isn’t as central as other districts on this list of the top areas to stay in Lisbon, Belém sure packs a punch when it comes to attractions.

Why is this the best area to stay in Lisbon:
• 15 minutes from the city center
• Belém Tower
• Great area for sightseeing
• Excellent river views
• Jerónimos Monastery
• Museums and cultural centers
• Connected by tram and train
• Museums and art centers

Belém is one of Lisbon’s most famous neighborhoods. It’s located about 6 km (3.7 miles) west of the city center and is famed for its historical attractions and landmarks.

One of the most visited attractions in Belém is the Jerónimos Monastery, a UNESCO World Heritage Site. The monastery dates back to the 16th century and is a magnificent example of Manueline architecture. Visitors can tour the monastery’s chapel, cloisters, and other buildings, which feature intricate stone carvings and decorative details.

Other important attractions in Belém are the Torre de Belém, a 16th-century tower that served as a fortress and ceremonial gateway to the city of Lisbon; the Padrão dos Descobrimentos, a monument that pays tribute to Portugal’s explorers and their voyages of discovery; the Planetarium, which offers fascinating shows about space and the universe; and the Naval Museum, which features exhibits on Portugal’s maritime history.

Belém is also home to the Centro Cultural de Belém, a cultural center that hosts various events and exhibitions throughout the year.

Other than its impressive sights, Belém is very famous for its pastéis de nata, or custard tarts, which are a must-try for any visitor to Lisbon. These delicious pastries have a crispy, flaky crust and a creamy, sweet custard filling. The most famous place to try pasties de nata in Belém is the iconic Pastéis de Belém bakery.

While the district is by no means central, transportation in Belém is relatively easy. Bus, train, and tram stations are dotted throughout the neighborhood. If you’re traveling to the city center, it’s just a short ride on the 15E tram or the 714 bus.

Best Hotels in Belém

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7. Cais do Sodré: Best Location in Lisbon for Foodies

Home to a thriving culinary and market scene, Cais do Soldré is one of the hippest neighborhoods in Lisbon.

Why is this the best area to stay in Lisbon:
• Fairly central location
• Great area for backpackers
• Near the main attractions of the city
• Pedestrian-friendly
• Time Out Market
• Pink Street
• Lovely views

Cais do Sodré, located 2 kilometers west of Lisbon’s city center, has a unique vibe thanks to its rich history, trendy bars and restaurants, and its unbeatable location along the Tejo River.

Like Alcântara, Cais do Sodré used to be a bustling port and fishing village. Today, the area is a hub of activity and a melting pot of cultures where you can explore narrow streets and steep alleys lined with colorful buildings and historical landmarks.

One of the most important landmarks is the Time Out Market Lisboa. This former food market has been transformed into a vibrant culinary destination with dozens of food stalls and restaurants.

Other must-see attractions in Cais do Sodre include the famous Pink Street, a hidden gem that comes alive at night with its eclectic mix of bars and clubs. In the past, Cais do Sodré was a major hub for maritime trade and commerce, but also crime and prostitution. The name “Pink Street” comes from the bright pink color of its pavement, which was chosen to give the street a unique visual identity during its process of urban regeneration not too long ago. The project aimed to renew Cais do Sodré’s image and attract tourists and locals to this once ill-famed area.

Cais do Sodré is also home to Mercado da Ribeira, the city’s biggest fresh food market, which is located just across the street from the Time Out Market.

Getting around Cais do Sodré and the rest of Lisbon is easy, thanks to the neighborhood’s excellent transportation links. Visitors can take the metro’s green line to Cais do Sodré station, which is just a few steps away from the markets and the riverfront, or catch one of the many buses and trams that stop there. The 19th-century Elevador da Bica also provides convenient access from the riverfront to the upper parts of the city.

Best Hotels in Cais do Sodré, Lisbon

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8. Avenidas Novas: Best Location in Lisbon for Business Travelers

Avenidas Novas is one of central Lisbon’s most modern and upscale districts.

Why is this the best area to stay in Lisbon:
• Fairly central location
• Best area for business travelers
• Modern architecture
• Eduardo VII Park
• Gulbenkian Museum and Foundation
• Luxury business-style accommodation
• Well-connected by metro

Avenidas Novas is a neighborhood in the city of Lisbon, Portugal. It is located about 5 kilometers (3 miles) north of Commerce Square. Avenidas Novas offers modern developments and traditional architecture.

Historically, Avenidas Novas was developed as an upper-middle-class residential area during the late 19th and early 20th centuries. The neighborhood features several cultural sites, such as the Gulbenkian Museum and Foundation and the Palace of the Marquises of Praia e Monforte.

Some other attractions in Avenidas Novas include the Campo Pequeno bullring, a Moorish-style structure that now functions as an event venue; the Egreja de São Sebastião da Pedreira, a beautiful baroque-style church; and Parque Eduardo VII, a lovely park that sits atop a hill overlooking the famous Marquês de Pombal Square and the city center.

The general ambiance in Avenidas Novas is elegant, offering tree-lined streets, parks, and charming squares.

Transportation options in Avenidas Novas include Lisbon metro’s blue line (stations São Sebastião and Saldanha), while the yellow line stops at Campo Pequeno and Saldanha. Several bus lines also serve the area.

Best Hotels in Avenidas Novas

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9. Parque das Nações: A Modern Area with Great Transportation Near the Airport

Home to the city’s most important train station, Parque das Nações is one of the most modern districts in Lisbon.

Why is this the best area to stay in Lisbon:
• Close to the airport
• Great area for business travelers and families
• Modern architecture
• Estação do Oriente
• Oceanário de Lisboa
• Modern accommodation
• Well-connected by metro

Parque das Nações (Park of Nations) is a modern neighborhood in Lisbon, Portugal. It lies 10 km (6 mi) northeast of the city center and 3.8 km (2.4 mi) from Humberto Delgado Airport (LIS).

Parque das Nações is unique as it was developed for the 1998 Lisbon World Exposition. Formerly an industrial area, the district was totally redesigned and dotted with modern architecture and art installations.

One of the main attractions in Parque das Nações is Estação do Oriente, a train and metro station designed by the famous Spanish architect Santiago Calatrava. Some other sights include the Oceanário de Lisboa, a large aquarium that showcases diverse marine life; Pavilhão do Conhecimento, an interactive science museum; and Ponte Vasco da Gama, Europe’s longest bridge, which spans 17.2 km (10.7 miles) over the River Tagus.

The general ambiance of the neighborhood is contemporary and vibrant, with wide boulevards, green spaces, and stunning waterfront views. Many restaurants, bars, and shopping centers are also located in this area.

For transportation options, the Lisbon metro’s red line serves several Parque das Nações stations, such as Oriente Station and Moscavide Station. This line connects the neighborhood to the city center and other parts of Lisbon.

Best Hotels in Parque das Nações, Lisbon

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Where to Look for Accommodation in Lisbon: Useful Info

Lisbon, the city of Discovery, is beautiful, attractive, and untamed. Its rich history and its theatrical location among capricious hills make it one of the most enchanting capitals of Europe.

Its location makes it the westernmost capital in Europe. Lisbon sits where the waters of the Tagus River meet the Atlantic Ocean. It is located on several hills, making the views from many city points truly incredible.

Lisbon tourist attractions are open and available throughout the year, and almost all of the city center can be walked on foot, by tram, metro, train, or funicular. There’s always something going on in Lisbon throughout the day, and the central neighborhoods are very lively at night.

Lisbon has a hot and dry summer season, during which many visitors come from all over the world in search of its great beaches and lively nightlife. Winters are mild in temperature but unpredictable in terms of rainfall. The low winter season is the best time to enjoy a quieter, more relaxed side of the city.

The city sports a constant mix between tradition and modernity, residents and visitors, cultural sights, and nightlife.

Being one of the least visited capitals of Europe, Lisbon is very budget-friendly in terms of accommodation costs; from hotels to holiday apartments, an average night rate in the low season can be as low as €45. It is essential to remember that in high season, rates climb to match those of many other capitals in Europe.

As for the best area to stay in Lisbon, the Lisbon City Centre will always be the best area to stay due to its proximity to the city’s attractions. See hotels in Central Lisbon.

If you are looking for lower prices but at the same time being close to the metro, then the area around Praça Marquês de Pombal in Avenidas Novas is the place to stay. See hotels around Praça Marquês de Pombal.

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