Lisbon spreads over seven hills above the River Tagus, with yellow trams rattling up cobbled streets, tiled houses, viewpoints over terracotta rooftops and some of Europe's best-value food and wine, under three hours' flight from the UK. Each neighbourhood has its own character, and the hills mean that where you stay really matters.
This guide explains the best areas to stay in Lisbon for first-timers, couples, nightlife, families and budget stays, with hotel picks and links to compare prices in each area.
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The best areas to stay in Lisbon at a glance
| If you want… | Stay in | Why | |
|---|---|---|---|
| First-timers | Baixa and Chiado | Flat, central and close to everything | See hotels |
| Couples & old Lisbon | Alfama | Winding lanes, fado and castle views | See hotels |
| Nightlife | Bairro Alto | Bars that spill into the streets | See hotels |
| Boutique stays | Príncipe Real | Gardens, galleries and smart shops | See hotels |
| Grand hotels & shopping | Avenida da Liberdade | Tree-lined boulevard of designer stores | See hotels |
| Families & monuments | Belém | Riverside sights and green space | See hotels |
Hotels in Lisbon worth a look
Memmo Alfama
A design hotel tucked into the lanes of Alfama, with a terrace, a small outdoor pool and views over the rooftops to the river. São Jorge Castle is a five-minute walk.
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Bairro Alto Hotel
A five-star hotel on Praça Luís de Camões, between Chiado and Bairro Alto, with a spa and a terrace with city views.
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Lisboa Pessoa Hotel
A hotel in the heart of the old town, near Chiado, with a restaurant with panoramic views, a spa and a library.
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Hotel Avenida Palace
A grand, historic hotel at the foot of Avenida da Liberdade, steps from Rossio and the metro, known for its breakfast.
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Pestana Palace Lisboa
A 19th-century palace hotel and national monument in Alcântara, with gardens, two pools and a wellness centre, between the centre and Belém.
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Lost Inn Lisbon Hostel
A hostel in the historic Chiado area with private rooms and dorms, about ten minutes' walk from Bairro Alto's nightlife.
Check pricesWhich part of Lisbon?
Lisbon's centre sits in a valley by the River Tagus, with the flat, grid-like Baixa in the middle. Chiado and Bairro Alto climb the hill to the west, with Príncipe Real beyond them, while Alfama climbs the hill to the east up to São Jorge Castle. The Avenida da Liberdade runs north from the Baixa, and Belém lies a few miles west along the river. Lisbon is very hilly, so trams, funiculars and comfortable shoes help.
Where to stay in the centre
Baixa and Chiado
The flat, grand heart of the city, rebuilt after the 1755 earthquake, runs from Rossio down to the riverside Praça do Comércio. Chiado, on the hill above, is elegant, with historic cafés, theatres and shops. Everything is within walking distance, with excellent transport links.
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Alfama
Lisbon's oldest neighbourhood, a maze of steep, narrow lanes winding up to São Jorge Castle, with viewpoints over the river and fado houses. It's full of character, but expect hills and steps.
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Bairro Alto
A grid of narrow streets on the hill above Chiado that's quiet by day and fills up at night, when crowds spill out of its many small bars. It's fun, but light sleepers may find it noisy.
Compare pricesWhere to stay beyond the centre
Príncipe Real
A smart, leafy neighbourhood above Bairro Alto, centred on its garden square, with concept stores, galleries and boutique hotels. It's quieter, but still a short walk from the centre.
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Avenida da Liberdade
Lisbon's tree-lined main boulevard, running north from Restauradores, is lined with designer stores and many of the city's grandest hotels, with good metro links.
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Belém
A riverside district a few miles west of the centre, home to the Belém Tower, the Jerónimos Monastery and the original pastéis de Belém bakery. It's calmer, with more green space, and trams and trains to the centre.
Compare pricesLisbon holiday packages
Booking your flight and hotel together can work out cheaper, especially in the school holidays, and city breaks with flights from UK travel companies are ATOL protected.
Arriving in Lisbon and getting around
Flights from the UK to Lisbon (LIS) take around two and a half to three hours. The airport is close to the city, and the metro (red line) links it to the centre, with a change for the Baixa. Taxis and ride-hailing take around 20 to 30 minutes, depending on traffic.
Lisbon is best explored on foot, by tram, by funicular and by metro, but it's very hilly, so wear comfortable shoes. You won't need a car in the city, but one is handy for day trips to Sintra, Cascais or the Algarve.
Car hire in Lisbon
When to visit Lisbon
Lisbon is one of Europe's sunniest capitals. Summers are warm to hot, while winters are mild, which makes it a good choice for winter sun on a city break. Spring and autumn are especially pleasant for sightseeing on foot. For more ideas for your trip, see 3 unforgettable experiences in Lisbon.
Things to do in Lisbon
- Sintra, Cabo da Roca and Cascais: palaces, coast and a seaside town in a day.
- Tram 28 and Alfama: a walking tour with custard tarts.
- Food and wine walking tour: taste your way around the city.
- Fado show: Portugal's soulful music, with wine.
- Sunset sailing on the Tagus: with a drink as the sun goes down.
- Tuk-tuk tour: the city's viewpoints without the hills.
Travel insurance for Lisbon
Book your cover as soon as you've paid for your trip, so you're protected if you need to cancel. Lisbon is in Portugal, so take your GHIC too, but it isn't a substitute for travel insurance. Pickpocketing can happen on busy trams, such as the 28, so check your policy's cover for belongings.
Cover for any tripCoverwiseGet a quote
Flexible coverExplorerGet a quote
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Which is the best area to stay in Lisbon for first-timers?
Where should couples stay in Lisbon?
Is Bairro Alto a good place to stay?
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