Are you visiting Lisbon for the first time and don’t know where to stay? Perfect! We’re here to help. Lisbon has several distinct neighborhoods, with different architecture, restaurants, nightlife, activities and overall vibe. We’ll explain the differences of each neighborhood and give you a few hotel recommendations for each neighborhood.
Overview of Lisbon Neighborhoods
Lisbon sits on the very wide Tagus River, which runs onward to the Atlantic Ocean. It’s one of the oldest cities in the world with buildings dating back to the 8th century. The neighborhoods are built upon each other in a unique hodgepodge of architectural styles.
A majority of tourist attractions are located in the city center. There are four main neighborhoods in the city center: Barrio Alto, Chiado, Baixa, and Alfama. All of these neighborhoods are great for first time visitors as all of the major attractions are within walking distance. Speaking of walking, the city center neighborhoods in Lisbon are incredibly hilly. So while walk times may be short-ish, it doesn’t necessarily mean your walk will be easy.
The Belém/Alcântara neighborhood is also popular with tourists as there are several popular attractions in that neighborhood as well. However, for first time visitors, we recommend avoiding this farther afield neighborhood as it will increase your reliance on transportation.
Hotel or Home Rental?
Normally, we like to stay in home or apartment rentals. They tend to be cheaper and give you more of a local feel. That is not the case in Portugal. Due to the booming tourist industry and the lack of infrastructure to support the number of tourists, home rentals are expensive, generic and not well cared for, in our experience. Hotels and Apartment-Hotels, however, are charming, well managed, detailed and clean. They have to be to keep up in the competitive Lisbon market. Therefore, we’ll be recommending only fully managed hotel-like properties in this post.
Central Neighborhoods
Bairro Alto – For Active Folks
Bairro Alto is one of the most central neighborhoods in Lisbon. It is a popular shopping and entertainment area with a hopping nightlife. It was destroyed during the 1755 earthquake but was rebuilt in a similar style to the former neighborhood.
Pros of Bairro Alto
- Lisbon specific charm
- Lots of bars and restaurants
- Lots to do
Cons of Bairro Alto
- Loud
- Lots of lights on late into the night
We stayed here during our first stay in Lisbon. We chose a hotel tucked just around a corner from a main square. While the square was loud and rambunctious at all times of day, the hotel was quiet and relaxing. Be aware of the businesses around your hotel (and their operating hours) when you choose a hotel. Also, we liked that there were people around all the time – it made us feel safe when walking at night.
Here are our Bairro Alto recommendations:
- Budget – Inn Bairro Alto – we stayed here and it was fantastic
- Mid-range – Solar dos Poetas – between Bairro Alto and Chiado on a popular square
- Luxury – Bairro Alto Hotel – one of the most highly rated hotels in Lisbon
Chiado – For First Timers
Chiado is a mix of old and new. Lots of older buildings still remain standing in the Chiado area. However, there was a massive fire in the 1980s that destroyed a few buildings so you’ll also find some of the newest buildings in the district. This is a very central neighborhood that has lots of local shops and eateries. It is THE most central district and is often considered the best place to stay in Lisbon for first time visitors.
Pros of Chiado
- Very Central location
- Charming location with lots of public squares and nice views
- Lots of good restaurants
Cons of Chiado
- There aren’t actually many attractions in this neighborhood
- Shops and restaurants are open pretty late, meaning lots of light and noise
Check out our recommendations for Chiado:
- Budget – Hotel Borges Chiado – on a very popular shopping street with lots to do
- Mid-range – Le Consulat – great location on a popular square
- Luxury – Montebelo Vista Alegre Lisboa – great view, near Rossio Square
Baixa – For Tourists
The Baixa neighborhood was almost completely destroyed by the 1755 earthquake. It was rebuilt in a more modern European style. Visitors will recognize grid pattern streets, larger sidewalks and grand building faces. This neighborhood sits along the Tagus River, which means you may get a nice view but it also means you’ll be walking uphill to most attractions.
Pros of Baixa
- Central location
- Lots of top restaurants
- Close to transit stops
Cons of Baixa
- Feel generically European – Lisbon charm is missing
- Uphill walk most places
Here are some of the best rated Baxia hotels:
- Budget – Behotelisboa – modern hotel on a popular street
- Mid-range – Hotel de Baixa – highly recommended by past guests
- Luxury – Avenida Palace – old school palace vibes
Alfama – For Romance
Alfama is the oldest neighborhood in Lisbon. Most of it survived the 1755 earthquake so the buildings you see are likely built in the 18th century or earlier. Today it is a popular tourist district with many historic sites and lots of fado bars and restaurants making up a quiet yet vibrant nightlife.
Pros of Alfama
- LOTS of popular things to do. Staying here means you may be able to beat some crowds by starting early or staying out later.
- Extra, extra Lisbon charm and culture
- Historical buildings
Cons of Alfama
- Harder to get around – winding and tight streets mean you’ll have to do more walking. Transit and taxis likely won’t take you close to your door
- Very hilly
Here are some romantic and charming Alfama hotels:
- Budget – Dalma Old Town Suites – small but close to everything
- Mid-range – Hotel Convento do Salvador – modern hotel on popular street
- Luxury – Santiago de Alfama – old architecture with modern furnishings
Other Neighborhoods
Principe Real – For Real Life
The Principe Real is a bit north of the main attractions. However, this neighborhood is newer with modern and trendy vibes. There aren’t many things to do here but this is more representative of everyday Lisbon life.
Pros of Principe Real
- Quieter
- Relaxing attractions like gardens, shops and cafes
- Trendy local restaurants
Cons of Principe Real
- Far from attractions
- Hilly
Here are some amazing modern spaces in Principe Real:
- Budget – Hotel Lisboa – cheap and well luxurious for the price
- Mid-range – Hotel Principe Real – a great location close to central Lisbon
- Luxury – Memmo Principe Real – modern opulence with great views
Avenida Liberdade – For Shopping
The Avenida Liberdade is one of the most expensive streets in Europe, which is saying something. This street is lined with designer shops and chain restaurants. The north end of the street has a lot of business offices as well. However, it is just a few blocks north of the central neighborhoods making it easy to get to main attractions. While the main avenue is busy, the side streets are quiet and residential.
Pros of Avenida Liberdade
- If you’re looking for luxury, you’ll find it here
- Quiet
- Lots of places come with free parking (if you have a car – don’t have a car!)
Cons of Avenida Liberdade
- Longer walk/ride to attractions
Here are some great places to stay near the Avenida Liberdade:
- Budget – HF Fenix Lisboa – far from attractions but spacious
- Mid-range – PortoBay Liberdade – modern hotel with a rooftop bar
- Luxury – Valverde Lisboa Hotel – feels like a private oasis
Belém/Alcântara – For Longer Stays
Belém and Alcântara are to the west of the central neighborhoods. They are quieter neighborhoods with a more lived-in feel. They have plenty of public transportation that connects them to the central neighborhoods for sightseeing. However, you will spend extra time waiting in lines and navigating transportation if you choose to stay here.
Pros of western neighborhoods
- Quieter neighborhoods
- Lots to do for families – lots of museums and cultural attractions
- More spacious hotels
Cons of western neighborhoods
- Far from main attractions
Here are some great family friendly stays in Belem:
- Budget – Famous Crows Lisbon Suites – full apartments for the whole family
- Mid-range – Geronimo Guest House – beautifully decorated apartments
- Luxury – Pestana Palace – yup, a palace, maybe not the best for small children
Other Other Neighborhoods
If it’s not listed above, we wouldn’t stay there, especially on your first visit to Lisbon. Lisbon is a city for walkers and if you stay farther out, you loose that ability and have to factor in lots of transit time. You may find a discount outside of these neighborhoods, but know you’ll be trading cost for time.
We hope this has helped you to find the perfect place to stay in Lisbon. We enjoyed our stay in Lisbon and our short walking time and comfy hotel really helped to shape that positive experience. If you have any questions about places to stay in Lisbon, please leave any questions you have in the comments section below. Additionally, if you’re looking for more Portugal and Lisbon travel advice, check out our posts below.
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