The Most Budget-Friendly Hotels in Lisbon, Portugal

Save money on accommodation and spend more seeing the sights in Lisbon
Save money on accommodation and spend more seeing the sights in Lisbon | © Jon Lovette / Alamy Stock Photo
Photo of Joana Taborda
10 September 2019
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For financially savvy travellers, staying at one of Lisbon’s affordable accommodation options means more euros for sampling pastéis de nata (egg custard tart), browsing Feira da Ladra market and visiting Belém Tower. Here are the best cheap hotels in Lisbon.

With so many beautiful monuments to see and beaches to visit, it would be a shame to arrive in Lisbon to find you’ve spent most of your budget on your accommodation. The good news is, when looking for an affordable place to stay in Portugal‘s capital, you don’t have to compromise on quality. There are hotels with historic charm, modern facilities and even jaw-dropping city views, all at a low cost.

Casa Balthazar

Loungers by the outdoor pool at Casa Balthazar
Courtesy of Casa Balthazar / Expedia
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.

Palacio Ramalhete

A bed, desk with champagne and grapes, and a sitting area in a stylish hotel room at Palacio Ramalhete
Courtesy of Palacio Ramalhete / Expedia
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.

GS Chiado Boutique Studios & Suites

A bed and balcony in a minimalist guest room at GS Chiado Boutique Studios
Courtesy of GS Chiado Boutique Studios / Expedia

GS Chiado Boutique Studios & Suites is among the few cheaper hotels in Lisbon located in the city centre. Set near Chiado and Rossio, this is a great option for travellers who want to stay close to Lisbon’s main attractions, including the Santa Justa Lift, Arco da Rua Augusta and Terreiro do Paço. There is a mixture of studios and suites available, and most of them feature a private balcony looking out to Castelo de São Jorge. The decor has a rustic feel, with wooden floors and exposed beams. Some rooms also include a kitchenette with a stove and microwave.

Casa do Patio by Shiadu

A couch, computer and artwork on the wall in a sitting area at Casa do Patio by Shiadu
Courtesy of Casa do Patio by Shiadu / Expedia

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.

Lisbon São Bento Hotel

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.

The Indy House

A large wood table with chairs, a reception desk and chandeliers in the stylish lobby at the Indy House
Courtesy of The Indy House / Expedia

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.

Vila Garden Guesthouse

Deck chairs and trees in the garden at Vila Garden Guesthouse
Courtesy of Vila Garden Guesthouse / Expedia

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 Hotel

A large blue couch and yellow armchairs in the stylish reception area at Lutécia Smart Design Hotel
Courtesy of Lutécia Smart Design Hotel / Expedia

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.

VIP Executive Art’s Hotel

Stylish eggs chairs in the modern lobby at VIP Executive Art’s
Courtesy of VIP Executive Art’s / Expedia

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.

For more options check out our pick of the best hotels in Lisbon for every traveller, or expand your holiday to include the shimmering beaches of southern Portugal with the best cheap hotels in the Algarve, all bookable with Culture Trip.

Ellie Ross contributed additional reporting to this article.

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