Lisbon is a city renowned for the diversity of its local neighbourhoods. From artsy Chiado, classical Baixa, romantic Alfama, gritty Bairro Alto, and chic Avenida – deciding where to stay in Lisbon is probably the most important decision you’ll make.
Each district will appeal to different types of traveler, be that couples looking for a romantic escape, night owls looking to experience the city after dark, or culture vultures who just wanna be right in the heart of everything. This then, is my guide to the best places to stay in Lisbon, broken down by neighbourhood into an Alfama vs Chiado vs Baixa vs Bairro Alto vs Avenida battle royale!
I focus on the standout boutique and small hotels in these areas, which combine independent design traits, fantastic hospitality, and most importantly, authentic Portuguese flavour. Let’s get to it…
WHERE TO STAY IN LISBON?
Before I get into my recommendations for the best small hotels in Lisbon, for those of you that have never visited before, this is a city with a multifaceted personality due to its distinctly unique neighbourhoods. I want to help you find your special place, whether that’s the bohemian vibe of Bairro Alto, the artsy cool of Chiado, the practicality of downtown Baixa, the old-world charm of Alfama, or the sophisticated charm of Avenida da Liberdades!
Here’s a quick guide to each district for the uninitiated…
A quick introduction to each district...
Baixa/Chiado
The heart of the city, Chiado and Baixa are both ideal for first-time visitors. Expect elegant shopping streets, bustling squares, cool cafes, boutique shops, and easy access to major attractions. Perhaps not the best choice if you just wanna escape it all though.
Alfama
Lisbon’s oldest district. Winding narrow alleys and great views over the Tagus river. Great for history buffs and people who just like to get lost in new places. Crap for people with mobility issues as it’s even hillier than the rest of the city here in Alfama.
Bairro Alto
Perfect for night owls and food lovers who like everything close by. This lively area is packed with bars, restaurants, live-music venues and it has a distinctly bohemian feel to it (note: if you’re already too old for ‘bohemian/grungy’ you may want to focus your search elsewhere). Can stay quite loud until late with noise from local revelers, so make sure your accommodation has decent soundproofing.
Avenida
Avenida da Liberdade is Lisbon’s most refined thoroughfare – lined with mosaic pavements, stately trees, and a mix of old-world architecture and modern luxury shops. It’s where embassies sit next to flagship fashion houses. At its northern end you’re a little further out from the center though, so you’ll need to master the metro system (it’s easy – no worries).
HOTELS NEAR CHIADO
Chiado is the sophisticated core of Lisbon, and is its cultural and intellectual hub. Once the haunt of poets, philosophers, and rebels, it’s now more of an upscale mix of cafés, historic theaters, bookshops, and boutiques. With much of it rebuilt after a devastating fire in the ’80s, Chiado is both polished and soulful – a neighborhood that wears its past with style.
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.
Cheaper 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 for you 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 the antique soul side of things. It definitely won’t 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 accommodation in Chiado
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.
The Ivens Hotel is a 5-star boutique hotel, named after colonial explorer Roberto Ivens. It offers 87 rooms, including 10 suites and a 150 m² penthouse. Expect views of either the city or the Tagus River, neutral tones, natural materials like wood and rattan, and all the usual 5* toiletries, bells, and whistles. To eat there’s Rocco, an Italian restaurant, a seafood-focused Crudo Bar, and an awesome cocktail-driven Gastrobar.
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 a serene spa and fitness studio by Susanne Kaufmann (who?!).
Chiado Hotels Map
As always, I think it’s always smart to get a helicopter view of where your accommodation will be in relation to everywhere else, so here’s one I made earlier! I’ve also included both tram stops and metro stations, to give you an idea of how well connected each hotel is to Lisbon’s public transport system.
HOTELS IN BAIXA
Baixa is flat, so if you have any mobility issues then you’ll want to stay here over any of Lisbon’s other districts. This is Lisbon’s polished grid, and the city’s elegant comeback after the 1755 earthquake leveled everything. Rebuilt with Enlightenment logic and wide boulevards, it’s all tiled facades, and iron balconies. Baixa is 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 touristy.
Mid-range accommodation in Baixa
All of my hotel recommendations in Baixa are mid-range at around the $250 mark in peak season, so expect much cheaper prices in the off-season.
Dare Lisbon House is a small, 23 room apartment complex, which is also pet-friendly. It’s lauded for its high level of service and amenities, which includes luxury bedding, welcome drinks, expert tour & restaurant recommendations, as well as fresh breakfast items delivered daily. These little homes away from home, which often include small kitchenettes for use, all have an undeniably boutique feel to them.
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.
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.
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.
Baixa Hotels Map
WHERE TO STAY IN ALFAMA
Alfama is the oldest and in my opinion 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 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 undies swaying in the breeze. Popular local landmarks include São Jorge Castle (great views of the city), and Lisbon Cathedral.
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 occasional live music on the patio adjoining the hotel – this is exactly what an independent ’boutique’ hotel should be.
São Vicente Alfama
The 4 star São Vicente 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
Located at the top of Alfama within the shadow of São Jorge Castle in an 18th-century building where the Royal Palace’s kitchens once stood, Solar do Catelo Inn is highly prized 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 to enjoy for its guests.
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 quirky shops.
It’s great if you want plenty of bars and live music spots, but if not, also don’t panic, as despite its lively rep, Bairro Alto has its fair share of quiet corners and breathtaking views, particularly from the Miradouro de São Pedro de Alcântara. All of the following are priced around the mid-range category ($200-300 per night in peak season, cheaper in off-season).
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.
Raw Culture Art & Lofts Bairro Alto
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 defiantly rage against the corporate machine, proudly declaring its independence spirit from every corner. 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 choice.
Palácio Ludovice Wine Experience Hotel
Beautifully appointed rooms and suites, the Palácio Ludovice Wine Experience Hotel, located at the northern end of Bairro Alto, is a 5 star luxury boutique hotel which offers free (and highly educational) wine tastings to guests, as well as local Port, cakes and pastries, and the usual 5 star bells and whistles. Can get a bit noisy due the proximity of local bars though.
Palácio Príncipe Real
While located a little further east from Bairro Alto, Palácio Príncipe Real is a unique boutique hotel with its tranquil garden, pool, massages, afternoon teas, and the highly personalized service afforded to its guests. Of all the places I’ve researched in writing this article, this is where I’m most keen to stay myself, and the next time I visit Lisbon, I will!
Bairro Alto Hotels Map
HOTELS ON AVENIDA LIBERDADE LISBON
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, 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 to mid-range
I stayed in the HF Fenix Garden Hotel, just off Marquis de Pombal Square at the top of Avenida de Liberdades. My room overlooked Edward VII Park in December cost just €219 or (€73 per night). The room was excellent, with a gigantic bed and great views over the park.
The 3 star Blue Libertade Hotel is located right on Restauradores square, within a minute from the metro station. The 3 star rating though, seems to be doing it an injustice, as while the rooms are ‘cosy’, its central location and the attention to detail of its staff means this is a hotel that punches well above its weight.
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 to 5* Avenida da Liberdade Hotels
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.
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!
Heritage Avenida Liberdade is a study in restraint and quiet detail. Set in a restored 18th-century townhouse, it combines original stonework, Pombaline tiles, and tall shutters beside clean-lined furniture and muted tones. It’s not really trying to be classy, it just is.
Avenida da Liberdade Hotels Map
How to get the best hotel deals in Lisbon?
Finding the perfect boutique hotel in Lisbon doesn’t have to break the bank. With a bit of research and some flexibility at your end, you can score fantastic deals without compromising on quality or style. Here’s what to consider:
- Hotel websites: Many boutique hotels offer exclusive deals, discounts for early bookings, or perks like free breakfast when you book directly through their website. This is almost always better for them too, as they don’t lose commissions to the giant hotel aggregators.
- Booking platforms: Most of these hotels are also listed on popular booking platforms like Booking.com, Expedia, and Hotels.com. With ‘genius’ discounts or whatever other loyalty schemes, you can usually get some pretty good deals, or at least earn points to redeem later on.
- Off-season travel: Lisbon’s peak season is spring and summer. For better rates, consider visiting during the off-season (November to February) when hotels often lower their prices. 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.
I hope that by using these tools you can enjoy one of Lisbon’s best boutique hotels at a price that you feel good about.
WHERE TO STAY IN LISBON: OUTRO
I think Lisbon’s smaller, independent boutique hotels are the only way to match this amazing city’s energy. So choose a district, and then a hotel to match your travel style, and you’re already half way to having a great stay in the Portuguese capital.
If I had to choose where to stay again between Bairro Alto, Baixa, Chiado, Avenida or Alfama (last time I stayed on Avenida da Liberdade), I’d go for Alfama. While I’m still young and mobile I can easily manage its hills, and I absolutely loved it’s calm, other worldly atmosphere by the sea.
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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