Lisbon has one of the most exciting hotel scenes in Europe — a city where historic palaces and convents have been transformed into extraordinary boutique hotels, and where even mid-range properties often have rooftop terraces with views over the terracotta rooftops and the Tagus estuary. This guide covers the best hotels in Lisbon for 2026.
Best Luxury Hotels in Lisbon
Bairro Alto Hotel (5-star) — A beautifully restored 18th-century palace in the Chiado neighbourhood, with a rooftop terrace bar offering some of the best views in Lisbon. The rooms are elegantly designed, the restaurant is excellent, and the service is impeccable. Rates from £250–£500 per night.\n\nPalácio do Governador (5-star) — A former governor's palace in Belém, converted into a stunning boutique hotel with a beautiful courtyard garden. One of the most atmospheric hotels in Lisbon. Rates from £200–£400 per night.\n\nMemmo Alfama (5-star) — A design hotel carved into the hillside of the Alfama, with a spectacular infinity pool and terrace overlooking the Tagus. The views are extraordinary. Rates from £180–£380 per night.\n\nThe Lumiares (5-star) — A converted 18th-century palace in Bairro Alto, with spacious suites, a rooftop pool, and a restaurant by chef Nuno Mendes. Rates from £220–£450 per night.
Best Boutique Hotels in Lisbon
Solar dos Mouros (boutique) — A small, art-filled hotel in the Alfama with just 13 rooms, each decorated with original artwork. The rooftop terrace has views over the castle and the river. Rates from £150–£280 per night.\n\nLisbon Story Guesthouse (boutique) — A beautifully restored townhouse on Largo de São Domingos, with rooms themed around Lisbon's history and culture. Excellent value for the location. Rates from £100–£180 per night.\n\nCasa Balthazar (boutique) — A restored 19th-century mansion in Bairro Alto with a beautiful courtyard pool. One of the most stylish boutique hotels in Lisbon. Rates from £160–£300 per night.
Best Mid-Range Hotels in Lisbon
Hotel do Chiado (4-star) — A well-located hotel in the Chiado neighbourhood, with comfortable rooms and a rooftop terrace with views over the city. Rates from £120–£220 per night.\n\nInspira Santa Marta (4-star) — A sustainable design hotel in the Avenida area, with good facilities and a central location. Rates from £100–£190 per night.\n\nMy Story Hotel Rossio (4-star) — A reliable mid-range hotel on the Rossio square, in the heart of the Baixa. Excellent location for exploring the city on foot. Rates from £90–£170 per night.
Best Budget Hotels in Lisbon
Lisbon is one of the more affordable European capitals for accommodation, with good budget options available.\n\nThe Independente Hostel & Suites (budget/boutique) — A beautifully designed hostel in a former Swiss Embassy building in Bairro Alto, with private rooms available. One of the best budget options in Lisbon. Private rooms from £55–£100 per night.\n\nGoodnight Hostel (budget) — A well-run hostel in the Baixa, with private rooms and a friendly atmosphere. Rates from £45–£85 per night.\n\nStaying in Mouraria or Intendente — These neighbourhoods north of the Alfama are cheaper than the Chiado and Baixa, while still being central and well-connected.
Best Areas to Stay in Lisbon
Chiado and Bairro Alto — The most fashionable and central neighbourhoods, with excellent restaurants, bars, and shops. The best area for first-time visitors who want to be in the heart of Lisbon's cultural life.\n\nAlfama — Lisbon's oldest and most atmospheric neighbourhood, with narrow streets, tiled buildings, and fado music. Hilly and cobbled — not ideal if you have mobility issues, but magical for those who don't mind the climb.\n\nBaixa — The flat, grid-plan lower city, rebuilt after the 1755 earthquake. Very central and convenient, but less atmospheric than Chiado or Alfama. Good mid-range hotel options.\n\nBelém — A quieter, more residential area west of the centre, with the Jerónimos Monastery and the Tower of Belém. Good for those who want to escape the tourist crowds, with excellent transport links to the centre.
