Lisbon is a city renowned for the diversity of its local neighbourhoods. There’s artsy Chiado, modern Baixa, romantic Alfama, gritty Bairro Alto, chic Avenida, and the local’s Principe Real. The challenge though is choosing which of these areas best suits your travel style, because for the first-time visitor to Lisbon, deciphering all that info is time-consuming.
I want to make your decision on where to stay in Lisbon much easier by matching your travel style to each of the city’s different areas, as well as giving you the best options in each neighbourhood for budget, mid-range and luxury accommodation.
So whether you’re a couple looking for a romantic escape, a night owl looking to party, a first-time visitor who prioritises convenience and a central location, a budget traveller looking for a killer deal, or a culture vulture, my Chaido vs Alfama vs Baixa vs Bairro Alto vs Avenida vs Principe Real Battle Royale will settle the debate once and for all! Let’s get to it…
CHIADO vs ALFAMA vs BAIRRO ALTO vs AVENIDA vs PRINCIPE REAL
LISBON'S DIFFERENT NEIGHBOURHOODS
Before I get into my recommendations for the best hotels in each of Lisbon’s main districts, in case you’ve never visited before, I think it’s important to first give a quick introduction to each one. Below, you’ll also find a handy map (you know I love a good map) with each area’s approximate boundaries highlighted, which also helps you to visualise where you’ll be staying in relation to the rest of the city.
In this post I’m covering Chiado, Baixa, Alfama, Bairro Alto, Avenida da Liberdade and Principe Real. This is because all of these areas are central, safe, popular, and have the largest number of accommodation options to suit different budgets.
1) Chiado
The good: 1) filled with cool cafes, bookshops, museums and other things that you mostly don’t do at home, but think you should ‘cos you’re on a city break; 2) very central, and within easy walking distance to all the other districts listed here (Baixa, Alfama, Bairro Alto, Avenida and Principe Real); 3) probably Lisbon’s best ‘hood for people-watching.
The bad: 1) pretty hilly so some may find that tiring after a while, especially if you’re gonna be hauling luggage around the often non-existent ‘pavements’; 2) Chiado does have its quiet corners, but it’s mostly very touristy. It can thus feel a lot less ‘local’; 3) accommodation is typically more expensive in Chiado.
Best for: people with Instagram accounts or just those who love the buzz of city life. Chiado is hip, chic and has loads of little places that seem to go in and out ‘viral’ status, so if you’re that way inclined, it’s the place to be seen.
2) Baixa
The good: 1) right in the heart of the city so close to most attractions; 2) its grid-patterned streets make Baixa super easy to navigate, and hard to get lost in; 3) its the flattest part of Lisbon so arguably the best area to stay for those with limited mobility; 4) great for shopping.
The bad: 1) very busy and touristy, so not ideal if you prefer to avoid the crowds.
Best for: Baixa is the best choice for first-time visitors to Lisbon and older travellers, who want everything easily accessible, flat and close by.
3) Alfama
The good: Lisbon’s oldest district, which makes Alfama great for history buffs; 2) there are loads of winding narrow alleys to get lost in (in a good way); 3) if you’re accommodation is located in the upper part of the area, you’re likely to have some lovely elevated views over the Tagus river; 4) just has a magical vibe.
The bad: Awful for people with mobility issues as it’s even hillier and steeper than the rest of the city; 2) gets very busy with tourists, especially in peak tourist season; 3) looks a little dog-eared and rough around the edges in some parts.
Best for: younger mobile couples looking for a romantic hotel stay in old world Lisbon, with salty air and dulcet tones drifting in on sea breezes. I am a big fan of Alfama.
4) Bairro Alto
The good: 1) packed with bars, restaurants, & live-music venues; 2) has a distinctly bohemian* and cool feel to it, without the gentrification.
The bad: 1) *if you’re already too old for ‘bohemian’ you may want to focus your search elsewhere; 2) can stay loud ’til late with noise from local revelers, so ensure your accommodation has good soundproofing.
Best for: Night owls and a younger crowd who want to be within crawling distance to their beds after a night out.
5) Avenida da Liberdade
The good: 1) being lined with lovely mosaic pavements and stately trees makes Avenida a great place to sit with a coffee and do nothing; 2) has a host of boutique hotels and luxury shops along its entire length, which makes it Lisbon’s mecca for posh living and high-end shopping.
The bad: 1) at its northern end you’re quite far out from the center, so you’ll probably need to master the metro system (it’s easy though, no worries); 2) hotels along Avenida da Liberdade can be pretty expensive.
Best for: those searching for some of Lisbon’s nicest boutique hotels; as well as people who want to be a little further away from the ultra-touristy areas of Baixa and Chiado. Also not a bad choice for people with poor mobility, as this long stretch of road is only very gently inclined.
6) Principe Real
The good: 1) very authentic vibe which helps you to feel more like a local rather than a tourist; 2) lots of green squares and places to sit and people watch; 3) great restaurants and cafes; 4) very stylish, leafy and peaceful neighbourhood.
The bad: 1) it’s a little further out so you’ll be putting your calves to the test with some more hill walking; 2) equally, it doesn’t have the most central metro access either, so you’re more likely to walking a little further to get to one; 3) because of this it’s also not great for older travellers or anyone allergic to other forms of public transport (i.e buses & trams).
Best for: those who value design and style, as well as peace and quiet above all else. Principe Real is also a great choice for anyone who wants to feel what it’s like to actually ‘live’ in Lisbon, as the ratio of tourists to locals here is way less than the others areas I’m talking about.
CHIADO HOTELS
Chiado is the sophisticated core of Lisbon, and is its cultural and intellectual hub. Once the haunt of poets, philosophers, and rebels, and with much of it rebuilt after a devastating fire in the ’80s, it’s now more of an upscale mix of cafés, historic theaters, bookshops, and boutiques.
Chiado is particularly good for first-time visitors as it’s right in the heart of the action close to many restaurants, shops and hotels.
Budget accommodation in Chiado
Dream Chiado Apartments are your minimalist option in Chiado. These bright, fully equipped studios – renovated in 2017 – feature kitchenettes, air conditioning, and small balconies with city views. Super close to the Santa Justa Elevator and Baixa-Chiado metro station, this accommodation is completely immersed in Chiado’s theater, café, and boutique shop scene.
Another cheaper option is the quirky Casinha das Flores Guesthouse. This is old school Lisbon, with faded tiles, creaky wooden stairs, and sunlight filtering in through lace curtains. Tucked between Chiado and Bairro Alto, in an 18th-century building with 21 rooms, this place leans in heavily to Lisbon’s antique soul. It may be for everyone, but it has an atmospheric old library and lots of well-used communal areas that could tell some stories too. Breakfast is quite the experience too, with a short stroll over to a 400-year-old palace with live piano and croissants. No elevator, no frills, just unfiltered Lisbon.
Mid-range
Palácio das Especiarias is housed in a restored 16th-century palace. The hotel offers 41 rooms and suites, and guests can enjoy amenities such as the Tágides do Tejo Wellness & Spa, live Fado performances during dinner, and musical breakfasts featuring piano and violin. Additional experiences include vintage car tours and Portuguese wine tastings.
Casa do Barão is a boutique B&B on the border between Chiado and Barrio Alto. Expect great breakfast, complimentary cakes throughout the day, an eclectic selection of art, peaceful gardens, and an outdoor pool.
We next have Hotel do Chiado, set inside the iconic Armazéns do Chiado building. This hotel offers 38 rooms with some brilliant views of São Jorge Castle, the Tagus River, and the city’s buzzing streets below. The rooftop bar, Entretanto, is a local favorite – getting tipsy with a cocktail while soaking in panoramic cityscapes – yes please!
Casa Balthazar, owned by a famous local patisserie family, has an on-site spa and pool, as well as private jacuzzis in some rooms. This a hotel which puts great emphasis on relaxation after a day of walking Lisbon’s 7 hills. Expect different cakes served in the communal areas each day, as well as impeccable service, and a distinctly personal B&B feel.
5* Hotels in Chiado
Corpo Santo Historical Hotel is located just around the corner from Praca do Comercio, a couple of streets back from the Tagus river. Strictly speaking, this hotel is actually located in Cais do Sodre, just to the south of Chiado. Expect an in-house museum (what?!), free walking tours, and wine tastings with canapes. I haven’t yet had the pleasure of staying here myself, but its reviews are exceptional across the board.
Despite its rather misleading name, the Bairro Alto Hotel is a luxurious 5-star boutique hotel, overlooking Praça Luís de Camões in the heart of Chiado. Highlights include the rooftop BAHR restaurant, a pastelaria (bakery), and its own spa and fitness studio.
Interactive Chiado Hotels Map
For those of you that have decided that Chiado is the best place to stay for you, you can also search for your own hotel using the interactive map below. Just input your travel dates and how many people and the results will give you the best prices form the cheapest providers so you can then book directly while there’s still availability. But be especially quick in Chiado as it’s so popular!
ACCOMMODATION IN BAIXA
Baixa is Lisbon’s polished grid, and the city’s elegant comeback after the 1755 earthquake leveled everything. It’s flat, so if you have any mobility issues then you’ll almost certainly want to stay here over anywhere else.
Rebuilt with Enlightenment logic and wide boulevards, Baixa is all tiled facades, and iron balconies. It’s also the bustling downtown area, with grand architecture, wide shopping avenues, and iconic squares like Praça do Comércio and Rossio, so as you’d expect, it’s busy!
Budget
A solid budget choice in Baixa is Bacalhoeiros 125 Hotel on the border with Alfama, just one minute from Praca do Comercio. If a central location on a tight budget is all important for you, then this a great option.
Mid-range Apartments
Dare Lisbon House is a small, 23 room apartment complex, with rooms designed by various local artists. If you’re looking for a home away from home, these apartments achieve that with their amenities (kitchenettes etc.), while also showcasing an undeniably boutique feel.
Villa Baixa is a boutique aparthotel located just steps from the Santa Justa Elevator and Rossio Square. Another restored 18th-century building, it offers 14 individual apartments blending traditional Portuguese tilework with modern design. Apartments feature fully equipped kitchenettes, marble bathrooms, air conditioning, soundproofing, and flat-screen TVs. Some units even offer views of São Jorge Castle or the Tagus River.
Mid-range Hotels
The extravagantly named 25 room Ferraria XVI FLH Hotels Lisboa is a 4* boutique hotel, which integrates original 16th-century stonework from an old blacksmith’s forge into its common areas, adding historic depth to its minimalist design.
Brown’s Central Hotel is a stylish 84 room 4-star boutique hotel, offering a daily breakfast buffet and lunch at Brown’s Brasserie, and a very fancy cocktail bar.
Splurge
Hotel da Baixa is perhaps Lisbon’s most beloved boutique hotel. From its welcoming Pastel de Nata, to walking tours with its knowledgeable staff, this is a hotel that prizes the personal touch. Expect live music at the hotel bar, a free mini bar in your room, and an absolute legend by the name of Pedro as head of guest services.
The boldly decorated and rather unapologetic Art Legacy Hotel has a colourful interior design, free in-room mini bar and snacks, guided tours, exceptional service, and stylish touches throughout. This relatively new 5 star hotel in Lisbon will appeal to many.
Baixa Hotels Map
WHERE TO STAY IN ALFAMA
Alfama is the oldest, and in my opinion, by far the most atmospheric district in Lisbon. It’s a maze of narrow, winding streets, hidden courtyards, and old buildings. It’s also the birthplace of Fado music, and you’ll often hear its whiny melancholic tunes drifting in from local windows and squares.
Alfama’s charm lies in its timelessness, as here, life just moves at a slower pace. Expect locals chatting from their balconies, with colorful laundry and their undies swaying in the breeze. Popular local landmarks include São Jorge Castle (great views of the city), and Lisbon Cathedral.
Budget
For a cool budget apartment in Alfama, check out Terraço do Tejo. I say this because it has its own rooftop terrace with views overlooking the Tejo estuary and it’s a large space (especially for two) at 72 m2. It’s also located on the Baixa side of Alfama, so this makes reaching the other main areas of Lisbon way easier on foot.
Also check out Varandas de Lisboa for budget rooms with shared bathrooms, only 5 minutes form Commercial Square.
Mid-range/Splurge
Santiago de Alfama - Boutique Hotel
Remodelled from the 15th century Palacio dos Castros, the 5 star Santiago de Alfama Boutique Hotel has sweeping views over neighbourhood rooftops down to the sea, an in-house masseuse, great bar and restaurant, attentive staff, and even the odd live music performance on the patio adjoining the hotel – this is exactly what an independent ’boutique’ hotel should be.
Vincci Alfama
The 4 star Vincci Alfama is tucked away in the heart of Alfama. This is a hotel that values classic touches of hospitality, like hand-written notes to its guests, welcome drinks, and a level of service which its guests clearly appreciate.
Solar do Castelo Inn
Right at the top of Alfama within the shadow of São Jorge Castle in an 18th-century building, Solar do Catelo Inn is loved for its peace and tranquility, its amazing breakfast (served until midday), and its in-house peacocks, which roam the hotel grounds. Free extras include airport transfers and Port wine – I’m sold.
Palacete Chafariz D'el Rei
A classically styled, somewhat quirky late 19th century hotel in lower Alfama, Palacete Chafariz del Rei has great views over the Tagus river, plenty of free cakes and snacks for guests, as well as luxuriously high ceilings and ever so grand meeting rooms and corridors. This is where Wes Anderson (and all nostalgia lovers) would/should stay in Lisbon.
Alfama Hotels Map
WHERE TO STAY IN BAIRRO ALTO?
Bairro Alto is the night owl’s dream, with bars, clubs, restaurants and a lively atmosphere that lasts long into the early hours. By day, this hilly district offers a bohemian charm with narrow, cobblestone streets, colorful buildings, and a few quirky shops.
It’s great if you want plenty of bars and live music spots, but if not don’t panic, as despite its lively rep, Bairro Alto has its fair share of quieter corners and breathtaking views, particularly from the Miradouro de São Pedro de Alcântara.
Budget
Correio Velho Hotel, slap bang in the middle of Bairro Alto, is a decent budget option if you wanna be surrounded by the neighbourhood’s countless bars and restaurants. Rooms are often ‘compact’, but its reviews are top and you’ll probably be comatose by the time you eventually get your head down anyway!
Mid-range
Funky, modern loft spaces, hotel rooms and apartments abound here at Raw Culture Art Lofts Barrio Alto. With its own in-house art gallery on the ground floor, rooms and communal areas are also adorned with retro furniture and original artwork that collectively rage against the corporate machine. Keep an eye out for the retro motorbikes on display in the hotel lobby too. Brilliant cocktails, breakfast and service make this is a much beloved mid-range option in Bairro Alto.
Luxury Hotels in Bairro Alto
The Lumiares Hotel & Spa
The 5* Lumiares Hotel and Spa is located right in the heart of Bairro Alto. Choose between whole apartments, studios and even penthouse style accommodation, and benefit from rooftop terrace views over Lisbon. For wellness enthusiasts, there’s a small in-house spa and access to a 24 hour gym.
Palácio Ludovice Wine Experience Hotel
With classically appointed rooms and suites, the Palácio Ludovice Wine Experience Hotel, at the northern end of Bairro Alto, is a 5 star luxury joint with free (and highly educational) wine tastings for guests, servings of local port, cakes and pastries, and the usual 5 star bells and whistles that you’d expect a this price point.
Bairro Alto Accommodation Map
HOTELS ON AVENIDA DA LIBERDADE
Avenida da Liberdade is Lisbon’s grandest boulevard, stretching 1.1 km from Praça dos Restauradores in the south to Marquês de Pombal Square in the north. Built between 1879 and 1886, and modeled after Paris’s Champs-Élysées, it is lined with luxury boutiques (think Gucci, Prada, and Cartier), shady jacaranda trees, and old-school kiosks serving espresso and ginja.
You’ll also find plenty of fountains, historic monuments, theaters and cultural venues. This is where locals and travelers stroll, shop, or just show off. With its fair share of elegant hotels, prices here are higher compared with other parts of Lisbon.
Avenida da Liberdade is also really well-connected by public transport, with three metro stations along its length: Restauradores, Avenida, and Marquês de Pombal.
Budget/mid-range
I stayed in the HF Fenix Garden Hotel, just off Marquis de Pombal Square at the top of Avenida da Liberdade. My room overlooked Edward VII Park, and cost just €73 per night in the off-season. The room was excellent, with a gigantic bed and great views over the park.
Inspira Liberdade Boutique Hotel is a calm, eco-conscious stay just off Lisbon’s Avenida da Liberdade. With a Feng Shui-inspired design, a spa, and a Mediterranean restaurant, it’s a modern, low-key alternative to the city’s grander hotels.
Mid-range
Hotel Britania Art Deco located a couple of minutes walk from the Avenida metro station, was built in 1944 and designed in traditional art-deco style. Expect large rooms, afternoon tea, impeccable staff and outstanding hot and cold breakfasts.
At the bottom end of the boulevard, on Restauradores square, you’ll find the 3 star Blue Liberdade Hotel. Its 3 star rating seems to be doing it an injustice, however, as while the rooms are often described as ‘cosy’, its central location and the much lauded attention to detail of its staff means this is a hotel that punches well above its weight.
Luxury Avenida da Liberdade Hotels
The unashamedly Belle Epoque Avenida Palace Hotel is a classically styled 5 star hotel located next to Restauradores metro. Everything about this place screams old world elegance and charm, including its classic bar & dining room, its huge crystal chandeliers, and the grand piano being played in the hotel lounge. If you fancy stepping into a time machine and going back a century, then stay here. It’s also surprisingly good value!
Avenida da Liberdade Hotels Map
ACCOMMODATION IN PRINCIPE REAL
Principe Real’s biggest selling point is its authenticity as a local neighbourhood full of Portuguese people, rather than mostly tourists. Here, you’re far more likely to see a young mum drinking a coffee after a morning yoga class, or an old man reading the newspaper in one its leafy parks, than you are a bright pink Tuk Tuk full of rich Emiratis with selfie sticks. Sound like bliss doesn’t it? I reckon so…
Budget
Hotel Safira is a really great value hotel, close to Avenida da Liberdade on the eastern side of the district. Not gonna lie, it did have a few basic tells which indicate its budget status (no elevator, horrible strip lights in the stairways, and some rather inexplicable ‘police line caution tape’ running the skirting boards), but otherwise it was a great choice.
Expect just a 3 minute walk to Avenida station, a clean room with TV and a small balcony, as well as a private bathroom with shower. Thoroughly recommended for those who prefer to spend their hard-earned money on experiences rather than fancy pillows.
Mid-range
For a calm, somewhat off-beaten-track hotel in the heart of Principe Real, check out Casa do Jasmim by Shiadu. or the very highly-rated 1869 Príncipe Real House located right next to the district’s main gardens.
Luxury
Palácio Príncipe Real is a wonderful little boutique hotel with a tranquil garden, pool, massages, afternoon teas, and highly personalised service afforded to its guests. Of all the places I’ve researched and stayed at in preparing this article, this is where I’m most keen to stay myself, and the next time I visit Lisbon, I will! Additionally, this is the only Portuguese hotel to be featured in the Telegraph’s 50 best hotels in the world.
Principe Real Hotels Map
When to Visit for the Best Value Accommodation?
Lisbon’s peak season is spring and summer. If you’re flexible in terms of when to visit, you’ll bag a way better deal on your accommodation by visiting during the off-season (November to February), as hotels often lower their prices dramatically. I’ve written extensively about this in another post, so check that out if you’re interested in why winter might be the best time to visit Lisbon.
WHERE TO STAY IN LISBON: OUTRO
Hopefully I’ve helped you to resolve the Chaido vs Alfama, or the Baixa vs Bairro Alto debates by now! But if you’re still ‘umming’ and ‘ahhing’ then just go with your gut! Wherever you choose to base yourselves though, I think Lisbon’s smaller, independent boutique hotels are the only way to match this amazing city’s energy.
My favourite neighbourhoods in Lisbon are Alfama and Principe Real. The reason for this is because I value authenticity over everything else. I loved Principe Real’s calm and local vibes, while Alfama’s other worldly atmosphere by the sea blew me away and took me to another place in time altogether. Also, while I’m still young and mobile I could easily manage both area’s hills on foot, which is always my preferred way to explore.
I wish you luck in making your choice, and just hope that this may have helped. For more on Lisbon, including what to eat and some recommendations for local food tours and cooking classes, read my article about Portuguese food.
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