Where to Stay in Lisbon for the First Time: A Complete Guide

Where to Stay in Lisbon for the First Time: A Complete Guide

(First-Hand Travel Experience & Price Comparison)

This guide is part of our main page where you can compare all hostels in Lisbon. Instantly find the best-rated hostels and real-time prices from Hostelworld and Booking.com. Compare prices side-by-side and save money every time. Learn how we compare prices.

You know that electric jolt of excitement you get when a tram rattles past and a pastel de nata aroma drifts your way? That was my first hour in Lisbon—on three separate trips.

Each visit, I learned a new trick about where to drop my backpack so I could soak up the city without hiking miles of cobblestones at 2 a.m.

This guide pulls together those lessons, so your first stay feels effortless.

We’ll map out the best neighborhoods, share my top ten “wish-I-knew-before” notes, and wrap up with why hostels make life easier here.

Land in the right zip code, and Lisbon turns from maze to playground.

Top Picks: The Best Hostels in Lisbon

Hostel Price Statistics & Key Numbers in Lisbon

Total number of hostels 69
Typical dorm bed prices in Lisbon $10
Private room costs in Lisbon $76
Cheapest hostel in LisbonMy Hostel for only $10
Popular Party Hostel in LisbonLiving Lounge Hostel
(37 hostels for partying in total)
Where to stay in Lisbon on a budget? Santa Maria Maior, Misericordia, Arroios

Top Neighborhoods to Stay in Lisbon

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Baixa & Chiado

Downtown Lisbon is a checkerboard of wide boulevards, neoclassical facades, and café terraces made for people-watching. The central grid means fewer hills and plenty of late-night kiosks when cravings strike at midnight.

Elevador de Santa Justa whisks you from street level to rooftop views, and you’re never more than a five-minute walk from the metro. Walk two blocks, and you’ll hit the river; walk two more, and you’re in a bar sipping ginjinha.

Best for: first-time visitors who want every postcard sight on their doorstep and flat streets under tired feet.

Grab a coffee on Rua Garrett at 08:00 before the crowds show up; the city hums quietly, and you feel like you own it for a few golden minutes.

Alfama

Lisbon’s oldest quarter is a living labyrinth of alleys, azulejo-clad homes, and fado melodies floating through open windows. Here, laundry doubles as street dĂ©cor, and every corner offers a miradouro you didn’t notice yesterday.

Accommodation in Alfama Lisbon style means character over polish—think 18th-century beams, tiny balconies, and a resident cat that might adopt you for the weekend.

Best for: culture lovers, photographers, and travelers who treat steep staircases as the day’s cardio.

I once timed the hike from my guesthouse to the castle at twelve minutes—add two more if you stop for a ginginha shot at a hole-in-the-wall taverna on the way.

Bairro Alto

By daylight, it’s a sleepy grid of vintage stores and street art. After dark Bairro Alto Lisbon accommodation transforms the area into one buzzing living room. Music spills out of every doorway, and strangers become brunch buddies by sunrise.

The lanes are narrow, the drinks cheap, and the party migrates from bar to bar like a friendly swarm of bees.

Best for: night owls, social butterflies, and budget travelers who can snooze through a 3 a.m. serenade.

Pro tip: book a bed uphill from Rua da Atalaia—close enough to join the fun, far enough to crash peacefully when your voice goes hoarse.

Cais do Sodré

Once a gritty port area, Cais do SodrĂ© reinvented itself without losing its salty charm. You’ve got ferry links, the Time-Out Market, live-music dives, and the green line metro to whisk you inland.

River sunsets paint the sky sherbet orange, and day-trippers gather here for the train to Cascais.

Best for: solo travelers planning day trips, or anyone who measures happiness in waterfront views.

I start mornings with a jog along the Tagus, then reward myself with a €3 bifana at the market—all before the cruise-ship crowds pour in.

PrĂ­ncipe Real

This leafy hilltop neighborhood feels like Lisbon’s cool, laid-back cousin. Indie boutiques sell locally crafted sneakers, and Saturday’s bio market feeds your picnic habit.

Evenings revolve around natural-wine bars and pastel-painted mansions turned plant-filled cafés.

Best for: digital nomads, LGBTQ+ travelers, and foodies chasing craft beer one minute and vegan pastel de nata the next.

Grab a blanket and head to Jardim do Príncipe Real; you’ll end up sharing sourdough sandwiches with locals while a street musician covers old fado on an electric guitar.

Belém

Monasteries, museums, and a riverside cycle path live here. Staying in BelĂ©m Lisbon edition feels almost resort-like—wide promenades, sea air, and pastel pink sunsets.

The 15E tram connects you to the center, but you’ll be tempted to linger for the world-class galleries and the legendary custard tarts.

Best for: history buffs, runners, and travelers happy to swap nightlife proximity for morning jogs past JerĂłnimos Monastery.

I book Belém when I crave dawn pastry runs at Pastéis de Belém without the queue snaking halfway to Porto.

Graça

Perched high above downtown, Graça offers sweeping cityscapes from two of Lisbon’s best viewpoints. The vibe is equal parts old-school and artsy, with traditional taverns rubbing shoulders with co-working cafĂ©s.

It’s slightly quieter than nearby Alfama, yet just a ten-minute downhill wander away.

Best for: sunset photographers, remote workers, and travelers who appreciate a local vibe minus the tourist rush.

My last stay involved daily espresso at Miradouro da Graça, chatting with elderly locals who insisted my Portuguese was “not terrible” while topping up my cup.

Mouraria

Birthplace of fado and one of Lisbon’s most multicultural corners, Mouraria serves endless street art and a dizzying mix of global eateries. Rent is friendlier here, which translates to budget-friendly beds.

The uphill alleys deter big tour groups, so you’ll often have entire staircases lined with murals to yourself.

Best for: backpackers on a tight budget, food-hunters tracking down Mozambican curry, and anyone keen on gritty authenticity.

One night I joined a pop-up fado jam in a tiny square; two hours later I was dancing kizomba with strangers while clutching a €1.20 beer. Zero regrets.

Campo de Ourique

West of the tourist radar, Campo de Ourique feels like Lisbon in slow motion. Think corner bakeries, local produce markets, and parquet-floored apartments dressed in mid-century furniture.

The Tram 25 rumbles through, connecting you to downtown without the crowds of its famous cousin 28.

Best for: long-stay travelers, families, and solo travelers who want everyday Lisbon life outside the Instagram frame.

I rented a room here to finish a freelance project; the neighborhood’s calm rhythm meant my deadlines and gelato breaks co-existed peacefully.

Parque das NaçÔes

Built for Expo ’98, this modern riverside stretch swaps medieval alleys for glass architecture and rollerblade lanes. Accommodation here Lisbon-style often means apartment hotels with river balconies.

It’s on the red metro line, giving you a straight shot to the airport and downtown without swapping trains.

Best for: travelers catching crack-of-dawn flights, families looking for stroller-friendly promenades, and conference goers.

I chilled under the Vasco da Gama Bridge with takeaway sushi, watching locals paddleboard past neon-lit fountains—city views, zero hills.

Short and crisp: The Best Hostels in Lisbon

  1. Lisbon Lounge Hostel - best for Family-Friendly Hostel, Female Solo Traveller, Solo Traveller
  2. Lisbon Poets Inn - best for Family-Friendly Hostel, Solo Traveller, Youth Hostel
  3. Oasis Backpackers' Hostel Lisbon - best for Party Hostel, Solo Traveller
  4. Home Lisbon Hostel - best for Party Hostel, Solo Traveller, Youth Hostel
  5. Goodnight Lisbon Hostel - best for Couples, Party Hostel, Solo Traveller

Top 10 Tips for Your First Time in Lisbon

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  • Pack shoes with grip—calçada portuguesa tiles turn into rogue ice rinks when drizzle hits.
  • Buy a Viva Viagem card at the airport and load “zapping” credit; one contactless tap covers metro, tram, ferry, and suburban trains.
  • Eat dinner before 20:00 or after 22:00 to dodge queues and score friendlier prices on prato do dia specials.
  • Carry coins for miradouro coffee stalls—card readers here take a “break” more often than you’d like.
  • Download the Carris or Citymapper app; real-time tram info prevents you from waiting 25 minutes for a carriage bursting with tourists.
  • Skip pricey tuk-tuks and use Elevador da Bica or Elevador da GlĂłria—free with Viva Viagem and saves your calves an incline or two.
  • Many museums waive entry fees after 14:00 on Sundays; queue early, as locals know this trick too.
  • For Sintra day trips, train out at 08:11, tackle Pena Palace last, and snack at Piriquita between sights—reverse flow equals fewer selfie sticks.
  • Order “meia dose” (half portion) at traditional restaurants; Lisbon servings laugh at stomach capacity, and food waste is a crime in every language.
  • Sunset at Miradouro da Senhora do Monte is legendary; pack a jacket even in July—hilltop breeze surprises unprepared shoulders.

Bonus wisdom: carry earplugs if you’re bedding down in Bairro Alto, learn at least bom dia and obrigado to earn smiles, and never turn down the second pastel de nata. It’s scientifically impossible to regret.

Hostels in Lisbon Are the Best Option – Here’s Why

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Lisbon’s hostel game is a borderline overachiever. Many occupy restored 19th-century mansions with wrought-iron balconies and mosaic floors that would bankrupt a boutique hotel elsewhere.

Dorms often come with privacy curtains, USB sockets, and lockers roomy enough to swallow your 50-liter pack.

The perks go beyond architecture. Daily walking tours, communal dinners, and €5 surf shuttles to Costa da Caparica create built-in friend groups, which is gold for solo travelers.

I’ve swapped cooking tips with Aussies over free sangria nights and found motorbike buddies for a spontaneous ride to Cabo da Roca before breakfast.

Female-only dorms are common, and staff generally know every shortcut elevator, plus where to score late-night caldo verde.

You’ll save cash, but more importantly, you’ll plug straight into Lisbon’s social current—no awkward “so where are you from?” icebreakers needed because the hostel has already set up a tile-painting workshop in the common room.

7 Hidden Gemz for Lisbon (by Hostelgeeks)

7 Hidden Gemz for Lisbon (by Hostelgeeks)

Final Recommendations

Lisbon is a city that rewards curiosity and light packing. Choose a neighborhood that matches your rhythm—party pulse, morning pastry crawl, or riverside jog—and let tram bells soundtrack the days in between.

Toss in a pair of decent sneakers, keep an eye out for tiled shortcuts, and don’t be surprised when you extend your stay “just one more night.”

The city’s hills may test your calves, but its viewpoints repay the effort, with golden rooftops stretching toward the Atlantic.

So book that bed, charge your camera, and I’ll see you under an azulejo archway soon—probably with crumbs of pastel de nata on my shirt.

Backpacking Lisbon? Here’s What You Need to Know

These are the guides I wish I had before visiting. I’ve been there, had fun, did some minor mistakes, and now I’m passing the best tips on to you. Safe travels!

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