Hotels are plentiful in Lisbon's historic downtown area, especially from the Avenida da Liberdade corridor (north of Rossio) extending south into Baixa and Chiado. Hotels in the Alfama district are typically higher priced. Those in the Bairro Alto neighborhood are very convenient to bars and clubs, but as Lonely Planet puts it, they are "better for all-night partying than quality shut eye."
As for the pocketbook, Lisbon's hotels are quite reasonably priced compared to most European capitals. You can find everything from backpacker hostels to luxury hotels -- all within the downtown historic district. At the budget end, Lisbon offers a wide selection of guest houses (known as pensãos) for as little as $25 USD per night. At the very top end, you can expect to pay anywhere from $150 to $400 USD per night (higher during peak times).
- Avenida da Liberdade stretches north west from the Rossio, through Restauradores, through Avenida and on to Marques de Pombal. Full of hotels, fancy shops and even more restaurants, these areas are handy to everywhere else and also a very good choice to stay in." -- TripAdvisor
- If you can't afford to stay in Lisbon's world-class hotels, a good alternative is the city's reasonably priced guesthouses -- called pensãos (pensions). ... Often you'll have to share a bathroom, although many have hot and cold running water in a sink in your room. Some of the pensions in Lisbon are centrally located and are a good way to see the sights day and night without shelling out a lot of money for accommodations." -- Frommer's
- Cheaper guest houses can be found on the streets parallel to Avenida da Liberdade, such as Rua das Portas de Santo Antao and Rua da Gloria." -- Rough Guides