The Most Budget-Friendly Hotels in Lisbon, Portugal

This small, whitewashed house is tucked away down the narrow streets of Chiado, with views stretching across the city’s red roofs. Inside, 17 individually styled guest rooms are furnished with antiques and the best have private terraces with hot tubs. Breakfast involves a tempting array of warm pastries and bread, as well as fresh fruit and hams. There’s also a sweet spa complete with a sauna, Jacuzzi and Turkish bath.

For a taste of authentic Lisbon, this 18th-century palace is just the ticket. Step inside to preserved stucco ceilings, flagstone floors, open fires and hand-painted tiles, and walk through pretty courtyards filled with flowers. Rooms and suites each have their own style – the Dove room used to be the palace chapel and features the original tiling and wood floor. Buffet breakfasts of freshly squeezed orange juice and regional hams are usually eaten al fresco.

You’ll find this quiet bed and breakfast close to the party district of Bairro Alto, making it a welcome respite from all the revelry. What used to be the home of monks and nuns is now a spectacular guesthouse in the centre of Lisbon, set in a hidden courtyard between cobblestone streets. Traditional Portuguese washing tanks stand next to each door, repurposed with bright colours and filled with plants. The breakfast area is also a distinctive feature, with its tile-covered floors and small souvenir shop in the corner selling hand-made products.

A prime location between Estrela and Príncipe Real helps place Lisbon São Bento Hotel among the best budget-friendly hotels in Lisbon. This three-star property offers 52 rooms, with decor inspired by Lisbon’s water system – there is a beautiful 18th-century reservoir only a few minutes away, after all. While every room is modern and comfortable, the junior suite has one bonus – a private terrace with a view over Lisbon and the Tagus River. Take advantage of the delicious buffet breakfast, which can include gluten-free products on request.

You’ll find The Indy House in the heart of Intendente, a neighbourhood full of international restaurants and hipster party spots. This Lisbon aparthotel has spacious rooms with natural light, plants and colourful wallpaper. The outdoor terrace is a great place to relax and hosts regular live performances and cocktail nights. Each floor has a shared kitchen, allowing you to prepare your meals, but breakfast is also available. Near the hotel, there’s a food market, a public indoor pool and several vintage shops.

In a historical building with a striking facade of turquoise tiles, Sofia and Márcio created the Vila Garden Guesthouse. With a background in hospitality and a passion for their city, this young Portuguese couple set out to transform a building in Lisbon’s Anjos neighbourhood into a modern guesthouse. Of the 22 stylish bedrooms, the deluxe suite, with its own Jacuzzi, is the most impressive. The highlight of this guesthouse, however, is the private garden. Here, you’re invited to enjoy the aroma of citrus trees while basking in the morning sun. To save some money, you can prepare light meals in the common kitchen.

Lutécia Smart Design is an affordable four-star boutique hotel located in Areeiro. It has eight floors, each with a different theme, from the minimal White Space to the gold and black tones of Disco. The hotel also features a fitness centre, a bar and a restaurant that specialises in Portuguese and Indian cuisine. Nearby is Roma-Areeiro train station, which connects directly to the lively Sintra neighbourhood, and several parks, including the Gulbenkian Garden and Museum.

The VIP Executive Art’s is an elegant four-star hotel located near Oriente station. It’s an affordable option for anyone who wants to stay near Lisbon’s airport, which is only one metro stop away. The hotel has 300 rooms, all soundproofed, so you can enjoy a quiet night’s sleep. There’s also a bar and a restaurant serving a mix of Portuguese and international cuisine. Near the hotel, you can enjoy the promenade along the river and a few pleasant green spaces.