The city of Lisbon is well-known for its excellent nightlife, so no matter where you decide to stay you will want to save some of your energy for what the city has to offer after dark. Luckily, even in the city center there are plenty of cheap hotels in Lisbon. Some neighborhoods may be more enjoyable to stay in than others, and with such a hilly city it only makes sense to stay in an area you like so you do not have to hike to and from your hotel room each night!
Some of the neighborhoods to consider looking for cheap hotels in Lisbon in the city center include the Bairro Alto (the “high town,” up on a hill, great nightlife), the Baixa (Lisbon’s downtown, rebuilt on a planned layout), the Chiado (shopping district next to Bairro Alto), and the Alfama (the most typically Muslim neighborhood, also great for eating).
No matter where you choose to stay in Lisbon, the good news is that the city has ample public transportation to help you get around. Yes, it is a hilly city, and you will end up hiking up and down the hills every day to visit the sights or get to and from your hotel – but that does not mean you have to walk everywhere. There is a metro system in Lisbon, as well as street cars, buses and funiculars – some of which help you avoid those hills, too.
Some budget properties in Lisbon to check out are Hotel Borges (a two-star hotel in the Bairro Alto, continental breakfast included in the room rate), Pensao Residencial Camoes (a two-star hotel in the Bairro Alto, many rooms have private bathrooms and some have balconies), Residencial Florescente (a three-star pension in the Baixa downtown area near Restauradores Square), and Hotel Vip Inn Veneza (37 rooms in a three-star hotel near the Bairro Alto, breakfast included).