These cheap Lisbon hotels allow you to stretch your travel fund further while providing a cozy place to stay in Portugal’s capital.
I’m a budget traveler through and through, but I also appreciate quality hotel stays! And if you know where to look, there are plenty of incredibly affordable hotels in Lisbon that tick all the boxes of what I consider a perfect stay: cheap, in a good location, and with a bit of a personality. Thankfully, cheap hotels don’t automatically mean low quality anymore!
So, if you’re planning a trip to Lisbon on a budget, check out this list of the best cheap hotels and hostels!
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When is the Best Time to Visit Lisbon?
The best time to visit Lisbon is in the summer, or should I say, it’s the most popular time to visit. This is because summer in Lisbon is hot (80’s F), sunny, and experiences low rainfall. But with the beautiful weather comes more crowds and much higher prices (like 2-3x higher).
As great as summertime is, don’t sleep on Lisbon’s off seasons! Although spring and fall bring slightly lower temps and somewhat more rainfall, Portugal is still gorgeous these times of the year and sees fewer people visiting.
Winter in Lisbon means very affordable prices and low crowds. I visited in February and enjoyed blue skies, and 65+ F degree temps my whole trip. Dead of winter in Lisbon experiences temperatures in the 50s – still pretty pleasant if you ask me.
How much time is needed in Lisbon?
I visited Lisbon in 3 days and found it was the perfect amount of time to see the city and take a day trip to Sintra. But at minimum, I’d say two days in Lisbon are needed to tick off all of the city’s top attractions. If you only have one day, the city is so walkable that you’d be able to cover a lot of ground too.
What is Lisbon Known for?
Lisbon is a colorful city that’s known for its cute yellow trams, delightful Fado music, and insanely friendly locals. It also boasts some pretty cool things to do.
Some of the best things to do in Lisbon include:
- Eating Pastel de Nata from top bakeries like Pastéis de Belém and Pastelaria Santo António
- Touring historic landmarks like the Jerónimos Monastery, Belem Tower, and the Castelo de S. Jorge.
- Watching the sunset from the many fantastic viewpoints, or Miradouros.
- Indulging in local eats (seafood baby!), hip restaurants, and rooftop bars.
Read More: Best Things to Do in Lisbon, Portugal
4 Best Areas to Stay in Lisbon
Lisbon is a pretty walkable city overall, so if you opt to stay in or near the city center, you should be golden. However, staying downtown can mean slightly pricier nightly rates.
So if you’re really striving to get the cheapest of the cheap hotels in Lisbon, I recommend staying outside the city center.
In general, the best districts in Lisbon for travelers include:
Baixa / Rossio are in the very center of the city and conveniently is in the middle of many of Lisbon’s top attractions. The Rossio metro and train station offer a convenient journey between downtown and the Lisbon airport.
Alfama is Lisbon’s old quarter nested immediately to the east of downtown. It’s famous for Fado music, charming narrow streets, and pretty lookout points. Most of the neighborhood is at a steep incline, which means hilly walks.
Bairro Alto / Chiado are two “fancier” districts with excellent eateries and is close to the city’s best shopping. It’s located immediately north of downtown.
Arroios / Avenida da Liberdade is located north of Bairro Alto, which means it’s probably about a 25+ minute walk from downtown. Still, it’s a nice place to stay and usually offers a more reasonable nightly rate.
How to Book Cheap Hotels in Lisbon
Hotel rates can fluctuate greatly depending on the season if there are big events happening, and general availability.
And since 2022, travel in Europe has truly exploded and shows no signs of stopping. Which means everything has drastically gone up in price and European hotspots are the most crowded I’ve ever seen.
So, in order to secure the best cheap Lisbon hotel, I recommend:
- Booking early, at least 6+ months before your trip.
- Visiting in the off-season because winter in Lisbon is still beautiful thanks to year-round sunshine and pleasant temps and summer will significantly increase your travel costs.
- Comparing prices on both Booking.com and the hotel’s actual website.
- Staying outside of the city center.
- Consider staying in a hostel instead, many of which have private rooms available.
The Cheapest Lisbon Hotels That Don’t Sacrifice Quality
Accommodation is one of the most significant expenses of any trip, but why waste unnecessary travel budget on a place to sleep? Booking a budget hotel in Lisbon is, in my opinion, the best way to see the city.
It allows you to spend more on delicious food, exciting attractions, or pampering activities.
Here are some of the cheapest hotels in Lisbon available that check my boxes of a good stay which means a reasonable location, at least an 8+ rating, and an enjoyable stay experience.
1. My Story Hotel Tejo
Why stay here: A reasonably priced hotel next to the Rossio metro in the heart of Baixa.
I stayed at the My Story Hotel Tejo on my trip to Lisbon. I had planned my visit pretty spontaneously (read: super last minute), so I didn’t have many options available to me. However, I really enjoyed my stay at My Story Hotel Tejo.
The location was perfect – only a minute to the Rossio metro and walking distance to Lisbon’s main attractions. Plus, the price was affordable, and they let me check in early when I arrived at 1:00 pm versus their standard 3:00 pm, which I appreciated. The room was small but perfect for one or two and was simple yet stylish.
The hotel is part of a chain and has many other locations, including the neighboring My Story Hotel Rossio and My Story Hotel Figueira – two more options to consider. I paid €48/night for my February trip, but summer rates jump up to $200.
2. LX SoHo Boutique Hotel
Why stay here: A clean and well-reviewed boutique hotel on the Avenida Almirante Reis.
Hosting numerous amenities like an outdoor terrace and a stylish restaurant complete with floral wallpaper and greenery, the LX SoHo Boutique Hotel delivers an affordable boutique experience. The style continues into the rooms, where crisp linens and natural light create a cozy atmosphere. Each room features an electric kettle and a work desk, and some even have a balcony.
Although public transport makes it easy to get around, it’s a bit outside of walking distance of Lisbon’s top attractions. For reference, the Miradouro da Senhora do Monte is a 13-minute walk, and the Castle is a 28-minute walk away.
3. Hotel Gat Rossio
Why stay here: A modern hotel centrally located feet from the Rossio Metro stop.
Pops of color and eye-catching patterns greet you at the Hotel Gat Rossio. You can choose if you’d like to book your stay with or without breakfast included.
Each room features a flat-screen TV, a work desk, and a safe. The hotel also has a terrace where you can lounge or dine al fresco.
4. Be Poet Baixa Hotel
Why stay here: An eclectic hotel overlooking the beautifully tiled pedestrian street of Rua Augusta.
The Be Poet Baixa Hotel is a hotel that features uniquely decorated rooms and fun color-themed floors. The hotel serves a high-quality buffet breakfast each morning that’s included for select bookings or can be purchased at the hotel.
Be Poet is conveniently located less than a minute from the Santa Justa Lift and is right in the heart of Baxia. There’s also a 24-hour front desk that makes late check-in a breeze.
5. Feeling Chiado 15
Why stay here: Apartment-style suites in a historic building overlooking the Carmo Convent.
The Feeling Chiado 15 is an excellent pick for those who prefer a guesthouse-type stay. This homey hotel only hosts four suites, all of which come with views of the Carmo Convent and are filled with endless sunshine.
Guests also enjoy a complimentary breakfast during their stay. There’s even a suite with a balcony where you can relish a front seat to the stellar view.
6. Rodamón Lisboa
Why stay here: A stylish Lisbon hotel with both privates and hostel beds a ten-minute walk from the São Jorge Castle.
I actually walked past the Rodamón Lisboa during my Lisbon visit and immediately walked back and poked my head in. It’s a beautiful place! Bright blue tiles and modern metal decor elements make this a stylish pick.
That, coupled with its fantastic location a minute from the busy Rossio square, puts this Lisbon hotel at the top of my stay list next time I’m in town. Take your pick between standard and double and twins, as well as a bed in a shared dorm if you’re traveling solo or looking to meet fellow travelers.
7. Yes Lisbon Hostel
Why stay here: A hostel that’s been voted the best hostel in the world twice and is minutes away from the Praça do Comércio.
Although Yes Lisbon Hostel is a hostel with only dorm beds, I had to include it on this list because it’s consistently considered one of the best hostels in the world. That’s a pretty insane accomplishment!
The hostel is right in the heart of Lisbon and offers some fun activities like free walking tours, community dinners, and pub crawls. It’s a great place to stay for solo travelers or social butterflies looking to make friends.
Best Hostels in Lisbon with Private Rooms
If you’re up for staying in a Lisbon hostel, the city has some pretty amazing options. These best hostels in Lisbon have both dorm beds and cheap privates – just don’t forget to your hostel etiquette!
- Sunset Destination Hostel Lisbon is a super popular place to stay in Lisbon that boasts stylish interior design, privates starting from $80/night, and dorm beds from $25/night. It’s in Cais de Sobré.
- Be Lisbon Hostel Intendente is in the Arroios neighborhood and has privates with shared bathrooms starting around $70/night.
- This is Lisbon Hostel is in Alfama and offers private rooms starting around $90/night that rock a city view and a balcony.
- Lisbon Destination is conveniently housed in the Rossio Train Station and has a really cool, spacious lounge with tons of plants and a skylight. Their privates start at $90 and dorms at $23.