Lisbon is an incredible city. It has stunning scenery, a rich history, vibrant nightlife and delectable food – and all of it comes at a super affordable price.

But it’s a large city and choosing the best neighbourhood in Lisbon to stay in can be downright overwhelming.

That’s why we put together this guide for where to stay in Lisbon.

In this Lisbon neighbourhood guide, we’ll breakdown the five best areas of the city to stay in. We’ve organised them by interest so you’ll know exactly where to stay based on what you want to do.

So whether you’re looking to sightsee, party, or simply find the cheapest bed in town, we’ve got everything you need to know from luxury hotels to hostels– and more! – to plan an unforgettable vacay.

Let’s jump right into where to stay in Lisbon, Portugal.

Where to Stay in Lisbon

Looking for a specific place to stay? These are our highest recommendations for places to stay in Lisbon.

Best Airbnb in Lisbon: Renovated 18th century flat

If you’re not sure where to stay when you first visit Lisbon, you should check out this Airbnb in a stunning historic building. It’s right in the heart of Lisbon’s city centre close to the Santa Justa Elevator and public transport connections. The modern rooms are beautifully furnished and it’s got all the amenities you’d ever need!

You can truly call this place home! The main metro station is only a short walk away, so ideal for your Lisbon day trips. Cute cafes, local restaurants and attractions are right around the corner too.

Best Hostel in Lisbon: GSpot Party Hostel

GSpot Party Hostel is one of the best hostels in Lisbon because of its fantastic location in Lisbon city centre. This fun and social hostel hosts a variety of events including nightly pub crawls and free hangover breakfasts and caters to party animals of all ages.

Best Hotel in Lisbon: The 7 Hotel

The 7 Hotel is the best boutique hotel in Lisbon. It is situated in Baixa in central Lisbon and you’ll find plenty of landmarks, attractions, eateries, bars and a metro station nearby. The rooms of this three-star modern hotel have been recently refurbished, the tastefully decorated rooms are packed with modern amenities and essentials such as air conditioning. You’ll just love this luxurious hotel!

Lisbon Neighbourhood Guide

Lisbon Neighbourhood Guide
FIRST TIME IN LISBON
Baixa, Lisbon
FIRST TIME IN LISBON

Baixa

At the heart of Lisbon is the Baixa neighbourhood. A lively and vibrant district, Baixa is comprised of weaving lanes, meandering alleys and countless plazas.

ON A BUDGET
Principe Real Lisbon
ON A BUDGET

Principe Real

Principe Real is a small neighbourhood set north of the city centre. It’s one of the trendiest neighbourhoods in the city thanks to its vivacious nightlife scene, hip eateries, trendy shops and mouthwatering restaurants.

NIGHTLIFE
Bairro Alto, Lisbon
NIGHTLIFE

Bairro Alto

Nestled between popular Baixa and trendy Principe Real is Bairro Alto. One of the most vibrant neighbourhoods in Lisbon, Bairro Alto is the centre for nightlife in the capital. Here you’ll find streets packed with everything from small bars and cosy cafes to upmarket restaurants and rooftop terraces.

COOLEST PLACE TO STAY
Cais do Sodre, Lisbon
COOLEST PLACE TO STAY

Cais do Sodre

If you’re someone who likes to stay where the cool kids are, look no further than Cais do Sodre. This cool yet understated neighbourhood was once one of the more rundown areas of the city.

FOR FAMILIES
Parque das Nacoes, Lisbon
FOR FAMILIES

Parque das Nacoes

Set on the eastern edge of Lisbon is the Parque das Nacoes neighbourhood. Once an industrial area, Parque das Nacoes underwent a massive revamp ahead of Expo 98 and is today one of the most modern neighbourhoods in the city.

Lisbon is one of the oldest and coolest capitals in Europe. The largest city and the best city to stay in Portugal, Lisbon has a rich and varied history, it boasts a unique culture, and offers some of the most delicious food and wine on the continent.

A labyrinth of narrow cobblestone streets and alleys, Lisbon captures the hearts of travellers with its charming architecture, bohemian atmosphere and welcoming spirit.

The city is home to more than 500,000 people and is built on seven hills. It covers an area of 100 square kilometres and is divided into several clearly distinguishable neighbourhoods.

In this guide, we’ll take a look at the best areas to stay in Lisbon organised by interest.

If you are looking for the best area of Lisbon to stay then check out Baixa. Baixa is located in central Lisbon. It is the best neighbourhood to stay in Lisbon for sightseeing because it’s where you’ll find some of the most vibrant, popular and historic attractions like St George’s Castle.

Travel north from here and you’ll pass through Bairro Alto and Principe Real. Two of the coolest places to stay in Lisbon, these neighbourhoods are famous for their hip hangouts, world-class restaurants, cosy cafes, and their energetic nightlife options.

South of the city centre is Cais do Sodre. An up-and-coming neighbourhood, Cais do Sodre is the best area in Lisbon to stay in if you like to eat, drink, dance and explore.

And finally, east of the city centre is the modern neighbourhood of Parque das Nacoes. Built for the ’98 Expo, this neighbourhood is packed with activities and attractions the whole family will love.

Still not sure which of Lisbon’s best neighbourhoods to stay in? Don’t worry, we’ve got you covered!

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Lisbon’s 5 Best Neighbourhoods to Stay in

Now, let’s take a look in more detail at the best places in Lisbon to stay. Each is a little different from the last so be sure to read each section carefully and pick the best neighbourhood for your interests and needs because there are so many epic places to visit in Lisbon, you’ll want to be close to the action!

#1 Baixa -Best Neighbourhood in Lisbon for Your First Time

At the heart of Lisbon city centre is the Baixa neighbourhood. A lively and vibrant district, Baixa is comprised of narrow cobbled lanes, meandering alleys and countless plazas. It’s where you’ll find the vast majority of Lisbon’s most famous historic and cultural tourist attractions such as St George’s Castle and the Santa Justa Elevator.

The Baixa neighbourhood is a must for all visitors – but especially history buffs. Simply walk throughout this charming district and you’ll feel enveloped in the history of the city. From incredible museums to outstanding architecture, this is one of the best places to immerse yourself in the city. Baxia may even be the very best neighbourhood to stay in Lisbon Portugal, especiall if you’re looking for boutique hotels.

Baixa, Lisbon

Things to See and Do in Baixa

– Dine on delicious Portuguese fare at Populi Restaurant.

– Enjoy a tasty meal with a great view at Ministerium.

– Take a stroll through Praça do Comércio, one of the biggest squares in Europe.

– Ride the Elevador Santa Justa and take in views of St George’s Castle

– Marvel at the incredible Arch of Rua Augusta.

– Stand in vibrant Rossio Square, the heart of Lisbon.

– Shop at Livraria Bertrand, one of the oldest bookstores in the world.

– Eat incredible local cuisine at Fabulas.

– Indulge in a Pastel de Nata at Café a Brasileria.

Best Airbnb in Baixa: Renovated 18th century flat

If you’re not sure where to stay on your first Lisbon visit, you should check out this Airbnb. The apartment is beautifully furnished, in the best location possible and has all of the amenities you’ll need. You can truly call this place a home from home! The main metro station is only a short walk away as are cute cafes, local restaurants and heaps of attractions.

Best Hostel in Baixa: Home Lisbon Hostel

This hostel is one of the best places to stay in Lisbon if you’re on a budget. It is located within walking distance of popular tourist attractions and is close to bars, restaurants, shops and cafes. This hostel offers comfortable rooms, private lockers, and each night guests can enjoy a home-cooked meal.

Best Hotel in Baixa: The 7 Hotel

The 7 Hotel is situated in the best neighbourhood to stay in Lisbon for sightseeing. You’ll find plenty of landmarks and attractions nearby this boutique hotel, as well as eateries, bistros and bars down the beautiful narrow streets. This three-star hotel’s rooms have been recently refurbished and each is packed with modern amenities and air conditioning whilst still being set in a beautiful historic building.

Best Hotel in Baixa: 9 Hotel Mercy

This modern hotel is located at the heart of Baixa, Lisbon’s best neighbourhood for first-time visitors. It allows for easy access to popular tourist attractions and is a short walk from great bars, clubs, restaurants and shops. This hotel offers four-star accommodation, a sun-soaked terrace and a stylish lounge bar.

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#2 Principe Real – Best Place to Stay in Lisbon on a Budget

Principe Real is the best location to stay in Lisbon on a budget. It’s a small neighbourhood set north of the city centre. It’s one of the trendiest neighbourhoods in the city thanks to its vivacious nightlife scene, hip eateries, trendy shops and mouthwatering restaurants. Here you can shop for antiques, indulge in local delicacies or simply take in the sweeping views of this incredible city. You can also visit one of the most expensive shopping streets in Europe: Avenida Da Liberdade!

This is also our top pick for where to stay on a budget because it boasts a high concentration of hostels and boutique hotels. Lots of people backpacking in Lisbon end up crashing here! No matter your budget, this neighbourhood is brimming with fantastic options to fit travellers of all ages and styles.

Principe Real Lisbon

Things to See and Do in Principe Real

– Enjoy sweeping views of Lisbon from the Lost in Esplanada Bar.

– Shop for handicrafts and souvenirs at the Principe Real market.

– Window shop on the expensive Avenida Da Liberdade

– Snap the perfect pic for the ‘gram from the Miradouro Sao Pedro de Alcantara.

– Sip unique cocktails at the Pavilhao Chines.

– Sit under the ‘umbrella’ tree in Jardim Do Principe Real.

– Marvel at the architecture and design of the Embaixada Mall.

– Try a variety of cocktails at Gin Lovers.

– Take a relaxing stroll through the Botanical Garden of Lisbon.

– Feast on fresh and delicious dishes at the Café de Sao Bento.

– Excite your sense with local tapas at Cantinho Lusitano.

Wondering how to spend 3 days in Lisbon? Head over to our insider’s Weekend in Lisbon guide!

Best Airbnb in Principe Real: Apartment with massive rooftop

An entire apartment with a massive rooftop terrace and an incredible view for such little money? Yup, you heard right. This Airbnb offers privacy, quality amenities and a great location for people who travel on a budget. It’s very affordable, yet spacious and beautifully designed. The apartment is on the 4th floor – but don’t worry – there’s an elevator to make your life a lot easier. It’s close to Avenida Da Liberdade and has sweeping views over to São Jorge Castle (St George’s Castle).

Best Hostel in Principe Real: GSpot Party Hostel

GSpot Party Hostel is one of the best hostels in Lisbon because of its fantastic location in Principe Real close to Avenida Da Liberdade and a metro station. Catering to party animals of all ages and sizes, this fun and social hostel hosts a variety of events including nightly pub crawls and free hangover breakfasts.

Best Guest House in Principe Real: The Loft – Boutique Hostel Lisbon

This excellent property is situated in one of Lisbon’s best neighbourhoods. Not only is it close to Principe Real’s top tourist attractions, but it’s within walking distance of the best nightlife, sightseeing and dining options in Lisbon. This guesthouse is comprised of 18 stylish rooms with contemporary amenities.

Best Hotel in Principe Real: Milanesa

This charming hotel has eight bright and comfortable rooms with large beds and modern facilities. This Lisbon accommodation offers a cosy atmosphere at the heart of the city and is close to great options for sightseeing, dining, nightlife and window shopping on Avenida Da Liberdade. Guests can enjoy free wifi access as well as a laundry service and there’s a metro station super close.

#3 Bairro Alto – Where to Stay in Lisbon for Nightlife

Nestled between popular Baixa and trendy Principe Real is Bairro Alto. One of the most vibrant neighbourhoods in Lisbon, Bairro Alto is the centre for nightlife in the capital. Here you’ll find streets packed with everything from small bars and cosy cafes to upmarket restaurants and rooftop terraces.

Weekends are a particularly fun time to explore Bairro Alto as tourists and locals flock to the area. You’ll find the neighbourhoods narrow cobblestone streets filled with people eating, drinking and enjoying life in the capital. This is possibly the best area to stay in Lisbon for sightseeing. There are also some great Lisbon Airbnbs here.

Bairro Alto, Lisbon

Things to See and Do in Bairro Alto

– Sip cocktails and enjoy the view at Park Bar.

Dine on delicious Portuguese food at Cantinho do Bem Estar.

– Indulge at Belcanto, a two Michelin star restaurant.

– Eat fresh and unique fare at Estrela da Bica.

– Enjoy a glass of local wine at BA Wine Bar do Bairro Alto.

– Drink refreshing cocktails in a cosy setting at Maria Caxuxa.

– Try incredible cocktails at the Bali bar.

– Pique your curiosity at Clube da Esquina.

– Spend a fun night out at Majong.

– Dance the night away at Incognito.

– Choose from red, white and everything in between at The Old Pharmacy Wine Bar.

Best Airbnb in Bairro Alto: Bright and spacious loft

This loft isn’t just beautifully furnished, it’s also located in the best area to enjoy Portuguese nightlife. You’ll instantly feel comfortable in this spacious and bright space. It’s the perfect place to spend the day after a night out. Keep in mind that the loft is on the 4th floor, which can be challenging since there’s no elevator. However, once you conquered the stairs, you’ll find all the amenities you might need for a great time.

Best Hostel in Bairro Alto: Lookout Lisbon! Hostel

This hostel is situated in one of the best areas to stay in Lisbon for nightlife. It is close to some of the liveliest bars, pubs, restaurants and clubs in the city. This hostel offers comfortable beds and a delicious and satisfying breakfast – and they claim to have the friendliest staff in town!

Best Hotel in Bairro Alto: TURIM Restauradores Hotel

This modern three-star hotel is set in the best neighbourhood in Lisbon for nightlife. It is surrounded by vibrant bars, bistros and clubs and is within walking distance of Lisbon’s most famous landmarks and attractions. Rooms are spacious and well-equipped, making this a great choice for where to stay in Lisbon for one night.

Best Hotel in Bairro Alto: VIP Executive Eden Aparthotel

Thanks to its spacious rooms and central location, this is one of the best places to stay in Lisbon. Not only does it offer modern, comfortable and well-equipped rooms, but it boasts a rooftop terrace swimming pool and more. You’ll also find plenty of options for dining, nightlife and shopping on its doorstep.

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#4 Cais do Sodre – Coolest Place to Stay in Lisbon

If you’re someone who likes to stay where the cool kids are (i.e a hipster!), look no further than Cais do Sodre. This cool yet understated neighbourhood was once one of the more rundown areas of the city. Thanks to a major transformation in recent years, Cais do Sodre is one of the coolest places to stay in Lisbon, and should definitely be added to your Lisbon itinerary. Tucked throughout its cobblestone street you’ll find a variety of trendy boutiques, lively bars and innovative restaurants, as well as stunning waterfront views.

Looking to let your hair down? Head to Pink Street. This colourful and decorated street is home to energetic bars and bustling clubs where you can drink, dance and party the night away.

Cais do Sodre, Lisbon
Wondering where to stay in Lisbon?

Things to See and Do in Cais do Sodre

– Snack and sample your way through the Mercado da Ribeira.

– Eat traditional Portuguese dishes at Pap’Acorda.

– Dance the night away at Musicbox.

– Sip a glass of Portuguese wine at the Pink Wine Point.

– Spend a night at the lively, vibrant and hard to find Pensao Amor.

– Excite your sense with a selection of tapas at Sol e Pesca.

– Drink great cocktails at Espumantaria do Cais.

– Try the incredible cocktails at 4 Caravelas Cocktail Bar.

– Enjoy an afternoon of people watching in Praca de Sao Paulo.

– Sit on the terrace and enjoy panoramic views and great food at Vestigius.

Best Airbnb in Cais do Sodre: Modern riverside apartment

This modern apartment is a dream for travellers who enjoy a bit of privacy and luxury. Located on the riverside of Cais do Sodre, the Airbnb is in a very busy area, with lots of shopping opportunities around. There are many bars, restaurants and attractions right outside your doorstep too. Don’t worry though, the apartment was built with soundproof glass, so you can be sure that you’ll sleep peacefully.

Best Hostel in Cais do Sodre: Lost in Lisbon

This is one of the coolest places to stay in Lisbon when you’re on a budget. The property is centrally located and is close to the best bars, restaurants and cafes Cais do Sodre has to offer. This hostel offers a range of rooms as well as a variety of essential amenities.

Best Hotel in Cais do Sodre: Lx Boutique Hotel

Lx Boutique Hotel can be found in the best area in Lisbon to stay in for nightlife. This fantastic four-star hotel is just a short walk from popular bars, hip restaurants and trendy clubs. Rooms have modern amenities, free wifi, and private bathrooms. This hotel also boasts great views and offers on-site bike rentals.

Best Hotel in Cais do Sodre: Vintage House Santa Catarina

Thanks to its great location, this is a fantastic option for Lisbon accommodation. It is set at the centre of the city and is within walking distance of popular tourist attractions, historic landmarks, great shops and excellent restaurants. Guests can enjoy comfortable rooms with a range of modern amenities.

#5 Parque das Nacoes – Best Place For Families To Stay in Lisbon

Sat on the eastern edge of Lisbon is the Parque das Nacoes neighbourhood. Once an industrial area, Parque das Nacoes underwent a massive revamp ahead of Expo 98 and is today one of the most modern neighbourhoods in the city. It’s home to a number of interactive activities and attractions, like the Oceanario de Lisboa and the Pavilhao do Conheciment, which is why it’s our top pick for where to stay in Lisbon with kids.

Parque das Nacoes is also a great base for visitors looking to explore outside of Lisbon. Not only is this neighbourhood close to the airport, but it’s well-connected to towns, villages and nature reserves outside of Lisbon thanks to the massive Vasco da Gama Bridge.

Parque das Nacoes, Lisbon

Things to See and Do in Parque das Nacoes

– See more than 8,000 of your favourite sea creatures and aquatic animals at the Oceanario de Lisboa.

– Place a few bets at the Casino de Lisboa.

– Experience the interesting and incredible exhibits at the Pavilhao do Conhecimento.

– Shop until you drop at the Vasco da Gama Shopping Centre.

– Hop on the Telecabine Lisboa cablecar and enjoy a stunning ride along the waterfront.

– Enjoy a relaxing break in the Jardins Garcia d’Orta.

– Dine on tasty and filly pub fare at Irish & Co.

– Grab a slice at Capriccioso Pizzeria.

– Try the bacalhau, a local delicacy at Restaurante D’bacalhau.

Best Airbnb in Parque das Nacoes: Charming family apartment

If you’re looking for a place to stay for you and your family, we’ve found the right one! This apartment is big enough to accommodate a group of 4 people. All amenities are high-quality, the kitchen is very well equipped, and the apartment itself is spacious and stylish. You’re within walking distance of the beautiful park, as well as the main metro lines and other public transport options.

Best Hostel in Parque das Nacoes: Paranaue Hostel

This charming hostel is one of our top picks for where to stay in Lisbon with kids because it offers rooms specially designed for families. They also have a range of features, like airport transfers and laundry facilities, and breakfast is included with each reservation.

Best Apartments in Parque das Nacoes: Lisbon Apartments Rent4Stay

These stylish apartments are in one of the best places in Lisbon to stay for families. Situated in Parque das Nacoes, this property is within walking distance of excellent tourist attractions and activities, as well as restaurants and shops. Each apartment comes complete with free wifi and swimming pool access.

Best Hotel in Parque das Nacoes: Hotel Olissippo Oriente Lisbon

This fantastic hotel is one of our top picks for where to stay in Lisbon for families. Rooms are comfortable and air-conditioned and each includes a private bathroom, flat-screen TV and a minibar. Guests of this hotel can enjoy a range of features, like an on-site restaurant and a stylish lounge bar.

FAQ about Finding a Place to Stay in Lisbon

Here’s what people usually ask us about the areas of Lisbon and where to stay.

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Final Thoughts on Where to Stay in Lisbon

Lisbon is one of the oldest, coolest and most exciting capital cities in Europe. It has a rich history and unique culture and offers a great variety of nightlife, dining, dancing and sightseeing options. So whether you’re travelling alone or with your crew, a trip to delightful Lisbon is always a good idea.

In this guide, we’ve looked at the five best neighbourhoods to stay in Lisbon based on interest. If you’re still not sure which is right for you, here is a quick recap of our favourite hotels and hostels.

GSpot Party Hostel in Principe Real is our favourite hostel because it caters to party animals of all ages and styles, and guests can enjoy free breakfast.

Another excellent option is The 7 Hotel. Located in central Baixa, this hotel is close to popular tourist attractions, great restaurants and plenty of shops and bars.


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