Portugal’s capital city, Lisbon, enjoys a wonderfully sunny climate, a great seaside location, and some stunning culture, food, and architecture. A holiday to Lisbon is definitely highly recommended, and you can enjoy this city to the full even if you are on a very strict budget as there are lots of fantastically cheap accommodation options here. You can find budget hotels or self catering apartments in Lisbon with ease! Wondering where best to stay when you visit this beautiful region of the Iberian Peninsula?
Lisbon is a lively city lit with fun and stands out among many capitals in Europe. Whatever thrilling experience you need, Lisbon will provide to your satisfaction. Lisbon offers nightlife, romantic adventure and budget friendly places with a great encounter with Portugal’s culture. If you wish to learn about the Lisbon culture, taking a food tour is highly recommended. From the food tour; you will learn how to make the best local dishes, enjoy the view Tagus River and have amazing sight-seeing experience. Alfama district offers the best local knowledge. Baixa is an old neighbourhood in the capital of Portugal. Some of the unique places in Baixa include the Rossio square which dates back to the thirteenth century.
Today, the square is the center for most leisure activities for both locals and visitors. With a little help, you will realize that all your needs when paying a quick visit to Lisbon are taken care of by the city. It doesn’t matter if you are on a budget, there are regions which have consistency in lower budgets. In Rossio, hotels will cost you as little as 50 euro’s per night. This, however, should not be interpreted as the life in other neighbourhoods is expensive. In every locality, there are hotels you can stay even when you are on a tight budget.
When the night comes, the busy corporate world is replaced by mind-blowing night experience. The Cais Do Sodre district stands out for its endless options for fun. By night, this locality will blow your mind by the everlasting options of a good time. Below, the different neighbourhoods of Lisbon are broken down with their specialization.
Contents - Jump to
Where is the Best Place to Stay in Lisbon Portugal?
Best for First Time (Sightseeing): Old Town (Baixa / Chiado) – Avenida da Liberdade area
The old town area, which includes Baixa and Chiado, and the Avenida de Liberdade area are two of the best places to stay in Lisbon for first time visitors. The old town of Baixa is endowed with history. The city is filled with nineteenth-century buildings which best explain the history of Lisbon. There are plenty of tourist attractions like Torreiro Do Paco square and Lisbon Story Centre, a modern-day museum which tells the city’s history. The Santa Justa public lift is a significant tourist attraction aged slightly over one hundred years. At the very top of the elevator is a café, from this café, the view of Lisbon is clear.
1. The Old City Centre (Baixa / Chiado) – Where to Stay in Lisbon for First-timers
This is the city’s main shopping area, and it is right in the very centre of Lisbon!
This is no ordinary shopping experience, though, as this buzzing neighbourhood is situated right on the riverfront.
- Best Hotel: Hotel O Artista
- Best Cheap Hotels / Great Value: Be Poet Baixa Hotel • The 7 Hotel
2. Alfama (Oldest Neighbourhood)
This is Lisbon’s oldest neighbourhood. It is home to sights such as the iconic São Jorge Castle, and is characterised by its quaint and poetic medieval alleyways.
Staying into one of the budget hotels in this part of the city will result in a holiday that will not be forgotten in a hurry.
- Best Accommodation: Alfama Apartment with Balcony
- Best Cheap Hotels: Hotel Convento do Salvador • Alfama – Lisbon Lounge Suites (Aparthotel)
3. Bairro Alto
Often referred to as the most bohemian part of the city, Bairro Alto is also said to really come alive in the night time. If you are looking for a party, seeking accommodation in this neighbourhood in Portugal is a fantastic idea.
There is plenty to see and do here during the day time as well, though, never fear!
- Best Accommodation: Martinhal Lisbon Chiado Family Suites
- Best Cheap/Mid-Range Hotels: Grapes & Bites – Hostel and Wines (Hostel) • Inn Bairro Alto B&B / B.A Sweet (Bed and Breakfast)
4. Principe Real
A lovely leafy and quiet neighbourhood that is nevertheless very well connected for those times when you want to see all of the main sights of Lisbon. A great option for a peaceful stay.
- Best Hotel: Memmo Príncipe Real – Design Hotels
- Best Cheap Hotels / Great Value: 1869 Principe Real (Bed and Breakfast) • Safira (Guest House)
5. Campo de Ourique
One of the more modern neighbourhoods of the city, Campo de Ourique is a largely residential area. Thus, it is very peaceful and great for anyone who wants some down time in their accommodation before heading out to sight see or to party.
Even better, Campo de Ourique is very centrally located so as soon as you step out of the door of your budget hotel in this neighbourhood, you will be just a stone’s throw away from some of the most famous monuments, galleries, and other central landmarks.
- Best Hotel: Hotel da Estrela – Small Luxury Hotels of the World
- Best Cheap/Mid-Range Hotels: The Postcard Lisbon (Bed and Breakfast) • O Bigode Do Rato (Guest House)
