Best Hotels in Lisbon, Portugal – Where to Stay by Budget & Area

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This guide to the best hotels in Lisbon, Portugal is based on our honest picks by budget, location, and real travel experience.

Choosing where to stay can completely shape your trip when planning travel to Lisbon, Portugal. For this reason, picking the right neighborhood matters more than many travelers expect.

When we first visited Portugal in October 2019, we spent nearly two weeks exploring the country. We stayed several nights in Lisbon at both the beginning and the end of our journey. During this trip, we traveled through Fátima, Coimbra, Talasnal, Porto, Marvão, Sintra, and the Algarve before returning to Lisbon and flying back to Montreal on October 20.

Because of this, we experienced Lisbon both as first-time visitors and returning travelers. As a result, we quickly understood which neighborhoods work best and which hotels offer the best value.

In this guide, we share the best hotels in Lisbon, Portugal, organized by budget, area, and travel style. We also include practical tips to help you choose the right place to stay.


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Table of Contents

Where to Stay in Lisbon – Our Quick Guide & Tips by Area

Lisbon is an incredible city to explore. Like many European capitals, it blends historic neighborhoods with more modern districts, each offering a very different travel experience.

However, Lisbon is also known as the city of seven hills. Because of this, getting around can be more challenging than expected, especially if you have limited time or prefer not to walk long distances.

For this reason, choosing the right area to stay in Lisbon can make a huge difference in how much you’re able to see and enjoy during your trip. It’s also important to consider how many days you have in the city and what kind of experience you’re looking for.

Based on our five days exploring Lisbon, here’s a quick guide to the best areas to stay, along with insights from our own accommodations:

  • Baixa & Rossio – best for first-time visitors, flat and very convenient
  • Chiado & Bairro Alto – central, lively, and walkable (Santa Catarina nearby offers a quieter feel while staying close to these areas)
  • Alfama – historic, authentic, and ideal for a romantic stay
  • Avenida da Liberdade – upscale, well connected, and home to luxury hotels (great location, but some buildings can be lively at night)
  • Parque das Nações – modern, spacious, and convenient for the airport

From our own experience: we stayed in both Santa Catarina (Misericórdia) and near Avenida da Liberdade. While we loved the central location of Avenida da Liberdade, the calm and quiet atmosphere of Santa Catarina made a big difference for restful nights.

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    LX Factory – Special Mention

    If you enjoy creative spaces, restaurants, bars, and nightlife, LX Factory is also worth considering.

    The area has a hostel on-site named LX Hostel and a unique, energetic vibe. Staying here for one night can be a fun experience, especially if food spots and social scenes are part of your travel style.


    Want to See Lisbon Before Booking?

    If you prefer to explore Lisbon visually before choosing where to stay, you can also check out our videos and travel experiences:

    • One Day in Lisbon
    • First Arrival Tips in Lisbon
    • Belém District Guide
    • LX Factory Visit

    👉 Our full Portugal travel playlist is embedded below, featuring Lisbon and other destinations we explored during our trip.

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    Our Top Hotel Picks in Lisbon by Budget & Style

    Now that you have a clearer idea of where to stay in Lisbon, let’s move on to the hotels themselves.

    Below, we’ve organized the best hotels in Lisbon, Portugal by budget and location, based on our experience, traveler reviews, and practical factors like walkability, noise levels, and overall comfort.

    To make things easier, we’ve also added “quiet” and “lively” labels to help you quickly choose a hotel that matches your travel style.

    Important note: The hotel recommendations below are based on extensive research using Booking.com, Hotels.com, traveler reviews, location demand, and search trends. While we didn’t personally stay in every hotel listed, each option was selected for its reputation, location, and overall value for travellers visiting Lisbon.


    Where We Stayed in Lisbon, Portugal

    Photo: by @discoveringdestinations

    We stayed at this apartment during the first part of our Lisbon trip, from October 7 to October 10, 2019, and overall it was a very comfortable and practical base for exploring the city.

    The apartment was clean, well equipped, and located in a quiet building, which made a big difference for us after long days of walking. Even though it’s not right in the middle of Baixa, the location worked very well. We could walk to cafés, restaurants, bars, and several attractions, and being close to the Bica Funicular made it much easier to reach Chiado without climbing uphill every time.

    One thing worth knowing in advance is that key pickup is at a different location, which can be inconvenient if you arrive with luggage. That said, once settled in, the stay itself was calm and comfortable — exactly what we were looking for at that point in the trip.


    Photo: by @discoveringdestinations

    We stayed here for one night on October 19, 2019, mainly because of the excellent central location and easy access to the metro and main avenues.

    The room itself was clean, nicely decorated, and well located, and the self check-in system was convenient. The host was responsive, and the concept works well if you’re spending most of your time out exploring the city.

    However, we feel it’s important to be fully transparent: the building has a restaurant on the ground floor, and on the night we stayed there was a party downstairs. Despite contacting the property, the noise continued until around 1am, making it very difficult to sleep — especially challenging since we had an early flight the next morning.

    Because of this, we would recommend this place only if location is your top priority and you’re not a light sleeper. We also strongly suggest reading recent reviews before booking, as other guests reported similar issues.

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    Budget-Friendly Hotels in Lisbon Travellers Are Looking For (Good Value & Central)

    Photo: booking.com

    Set in Lisbon’s historic Baixa district, this hostel is just steps from Praça do Comércio, Rua Augusta, and Baixa-Chiado metro station. It offers shared dorms and private rooms, all with air conditioning and access to shared or private bathrooms. Guests enjoy a daily breakfast, a fully equipped communal kitchen, and a lively lounge area. Its central location makes exploring Lisbon easy on foot.


    Photo: booking.com

    Located near Cais do Sodré, this social hotel-hostel hybrid features a leafy garden, coworking spaces, and a relaxed atmosphere. Accommodation ranges from shared dorms to private rooms, all with modern décor. The surrounding area is known for nightlife, restaurants, and riverfront walks, making it a popular choice for younger travelers and remote workers.

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    Mid-Range Hotels in Lisbon: Comfort Meets Location

    Photo: booking.com

    Located near Marquês de Pombal, this hotel offers excellent metro connections and quick access to Avenida da Liberdade. Rooms are modern, soundproofed, and air-conditioned, making it a reliable option for travelers seeking comfort at a reasonable price.


    Photo: booking.com

    Just off Avenida da Liberdade, this traditional hotel offers a calm atmosphere while remaining central. Rooms are classically decorated and well maintained, with modern amenities. A good option for travellers who want a quieter stay close to shopping and public transport.


    Photo: booking.com

    Situated near Praça do Comércio, this hotel places guests within walking distance of Lisbon’s main attractions. Rooms are contemporary and well soundproofed, offering a comfortable base after busy sightseeing days.


    Photo: booking.com

    Overlooking Rossio Square, this centrally located hotel offers modern rooms in one of Lisbon’s liveliest areas. With metro access nearby and major attractions within walking distance, it’s ideal for travelers focused on exploring the city.


    Photo: booking.com

    This boutique hotel near Avenida da Liberdade combines elegant interiors with modern comfort. Guests appreciate the rooftop terrace and quieter surroundings while still being close to Lisbon’s main areas.


    Photo: booking.com

    Located near Rossio Station, this boutique hotel blends historic architecture with contemporary design. Its rooftop bar offers panoramic views, and the central location makes it easy to reach Lisbon’s main neighbourhoods.


    Photo: booking.com

    Set in a restored palace, this hotel offers a peaceful retreat with gardens and city views. The atmosphere is calm and refined, ideal for travelers looking for a more exclusive Lisbon experience.


    Luxury & Historic Hotels in Lisbon

    Photo: booking.com

    One of Lisbon’s most prestigious hotels, offering spacious rooms, refined service, and high-end amenities. Its location provides a quieter setting while still being close to the city center.


    Photo: booking.com

    This contemporary luxury hotel features a rooftop pool, spa, and sleek design. Rooms are spacious and quiet, making it a popular choice for travellers seeking upscale comfort and relaxation.


    Photo: booking.com

    Housed in a historic palace, this hotel offers a tranquil stay surrounded by gardens. Ideal for travellers who prefer a slower pace while remaining within reach of Lisbon’s attractions.


    Airport Hotel in Lisbon for Quick and Convenient Stays

    Photo: booking.com

    Located minutes from Lisbon International Airport, this hotel offers clean, soundproofed rooms and practical amenities. A convenient option for travellers with early departures or late arrivals.


    Before You Go: Quick Answers for Planning Your Stay in Lisbon

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    We created this FAQ based on our own trip to Lisbon and Portugal in October 2019, when we spent nearly two weeks exploring the country, including several nights in Lisbon. Since then, we’ve also kept up with current travel research and booking trends to make sure this guide stays relevant.

    These questions are the same ones friends and followers often ask us when planning their trip. Our goal is to help you choose the right area, hotel, and travel style so you can enjoy the best possible experience in Lisbon and Portugal.


    ❓ What is the best area to stay in Lisbon for first-time visitors?

    For first-time visitors, Baixa and Chiado we believe are the best areas to stay in Lisbon. They are central, walkable, and close to major attractions, restaurants, and public transport. These neighbourhoods make sightseeing easy without needing taxis or long metro rides.


    ❓ What are the best hotels in Lisbon, Portugal?

    The best hotels in Lisbon, Portugal depend on your budget and travel style.

    Popular choices include boutique hotels near Avenida da Liberdade, central hotels in Baixa and Rossio, and luxury stays like the Four Seasons Hotel Ritz Lisbon. Budget travellers will also find excellent hostels and mid-range hotels across the city.


    ❓ Are hotels in Lisbon expensive?

    Real prices, real search.
    Booking.com comparison made on Jan 27, 2026 shows that staying in central Lisbon can cost the same — or less — than Montreal during summer travel.

    Even though our Portuguese friends have told us that prices in Lisbon are rising, we still believe that hotels in the city are generally more affordable than in many other major European capitals.

    Budget hotels and hostels continue to offer excellent value, while mid-range and boutique hotels provide a comfortable stay at reasonable prices. Even luxury hotels in Lisbon are often more affordable compared to cities like Paris or London.

    Now, at the beginning of 2026, we compared similar hostel-style stays — M Montréal Hostel (which we know well) and Yes Lisbon Hostel — and even during Montreal’s winter, typically a cheaper season, it still came out more expensive than Lisbon.


    ❓ Is it better to stay in Baixa or Bairro Alto?

    Baixa is better for sightseeing, shopping, and easy transportation, especially for first-time visitors. Bairro Alto is livelier at night and better suited for nightlife lovers. If you want quieter nights, Baixa or Chiado are usually better options.


    ❓ Are Lisbon hotels close to public transportation?

    Yes, most hotels in Lisbon are close to metro stations, trams, buses, and funiculars. Areas like Baixa, Rossio, Marquês de Pombal, and Avenida da Liberdade offer excellent public transport connections, making it easy to explore the city.

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    ❓ What are the best budget hotels or hostels in Lisbon?

    Lisbon has a strong reputation for high-quality hostels and affordable hotels. Areas like Baixa, Cais do Sodré, and Marquês de Pombal offer budget-friendly stays that are clean, well located, and popular with solo travellers and backpackers.

    One great option worth checking out is Yes Lisbon Hostel. While we didn’t stay there ourselves, it consistently gets excellent reviews and reminds us a lot of M Montréal Hostel, where we have stayed — clean, social, fun, and secure. If you’re looking for a lively yet comfortable budget stay in a central location, this is a solid pick.


    ❓ What are the best platforms to find great hotel deals in Lisbon?

    When it comes to booking hotels in Lisbon, we usually compare Booking.com and Hotels.com. Both platforms are easy to use, offer a wide selection of accommodations, and often feature competitive prices — especially when booking early or during promotions.

    We personally like Booking.com for its flexible cancellation options and detailed guest reviews, which really help when choosing the right hotel and location.

    At the same time, we also enjoy using Hotels.com, especially because of its rewards program, where you earn a free night after every 10 stays. Since we book hotels often while traveling, this perk has worked well for us over time.

    Our advice? Compare both platforms before booking. Prices and availability can vary, and checking both gives you the best chance of finding a great deal that fits your travel style and budget.


    ❓ Are there good hotels near Lisbon International Airport?

    Yes, there are several hotels near Lisbon International Airport (Humberto Delgado Airport) ideal for early flights or late arrivals. These hotels offer soundproof rooms, quick airport access, and easy metro connections to the city center.


    ❓ Is Lisbon a good destination for families?

    Lisbon can be a family-friendly destination, especially when it comes to accommodation. Many hotels offer family rooms, elevators, and easy access to public transportation. Central areas like Baixa, Avenida da Liberdade, and Parque das Nações tend to be more convenient for families traveling with children.

    That said, it’s important to know that Lisbon is a historic city built on seven hills. This means lots of slopes, stairs, and uneven streets, which can be challenging with strollers or small children — especially during summer.

    We mention this because when we visited Lisbon in October 2019, we experienced unusually high temperatures, close to 30°C (86°F), which made walking uphill feel more demanding than expected.

    The good news? Tuk-tuks are widely available throughout the city and can make getting around much more fun and less tiring for families, while also doubling as a mini sightseeing experience.

    For families looking for a more relaxed, beach-focused destination, we often recommend combining Lisbon with the Algarve, which offers flatter towns, sandy beaches, and a slower pace that works really well with kids.
    👉 You can check out our 2-day Algarve itinerary and our Algarve hotel recommendations for family-friendly ideas.

    Algarve Portugal: Your Personalized Travel Planner Toolkit – Free Digital Planner & Google My Maps Itinerary

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      ❓ When is the best time to book hotels in Lisbon?

      The busiest travel seasons in Lisbon are spring and summer, especially from June to September. During this period, temperatures can get very warm, crowds increase, and hotel prices tend to rise due to European summer holidays and major festivals.

      We visited Portugal starting in Lisbon on October 7, 2019, and even then, we experienced surprisingly warm weather — close to 30°C (86°F). According to locals, however, October has noticeably fewer tourists compared to July through September, which made exploring the city much more enjoyable. For us, it was the perfect balance of great weather and lighter crowds.

      In general, the best time to book hotels in Lisbon is 2 to 4 months in advance, especially if you’re traveling in spring or summer. Booking early gives you better choices in popular neighborhoods and often helps secure more competitive rates before prices climb.


      Final Thoughts on Where to Stay in Lisbon, Portugal

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        Lisbon is one of those cities where choosing the right area and hotel really shapes your experience. Whether you prefer a central and walkable neighborhood, a quiet place to recharge, or a more social stay, Lisbon offers great options for every travel style and budget.

        We hope this guide helps you feel more confident when booking your stay and planning your time in the city. Our recommendations are based on our own experience traveling through Portugal and ongoing research to keep everything up to date and useful.

        👉 For more local tips, itineraries, and honest insights, explore our Portugal travel blogs and watch our Portugal vlogs on YouTube, where we share real experiences, walking tours, and practical advice to help you make the most of your trip.

        Follow along with Discovering Destinations and start planning an unforgettable journey through Lisbon and Portugal 🇵🇹✨

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        Elisandra Buges

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        Hello from Discovering Destinations ! We are a couple, Eli and Serge, that love to travel and share our experiences with those want to discover the world with Great Tips!  CLICK TO KNOW MORE!

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