The best budget-friendly hotels in Lisbon for a cheap break in the Portuguese capital

Lisbon's popularity has skyrocketed in recent years, bringing with it a steady climb in accommodation prices. The Portuguese capital's combination of photo-worthy architecture, buzzy food scene, centuries of history and a famously sunny climate has made it one of Europe's most sought-after city breaks, but this popularity comes at a cost.

Fortunately, savvy travelers can still find excellent accommodation without emptying their wallets. Lisbon's hotel scene includes numerous budget-friendly options that deliver style, comfort and prime locations without premium prices.

Summer high season (late June to early September) sees prices surge, so be flexible on dates when possible, and watch for major festivals (like Santos Populares in mid-June), which can also impact rates. For the best deals, you may need to forgo extras like balconies, sweeping views or super-central locations, but with pre-planning, you can enjoy a stellar stay while keeping cash for pastéis de nata.

Discover the very best hotels in Lisbon, the best city centre hotels in Lisbon and the best luxury hotels in Lisbon with our guides.

Best budget hotels in Lisbon 2025

At a glance

1. Locke de Santa Joana hotel

It might not be bargain-basement cheap, but the first Portugal outpost from hip British aparthotel brand Locke offers an awful lot of bang for its buck. Five years in the making, the 369 studios and one-bedroom apartments – set within a restored 17th-century convent and contemporary new-build addition – tick all the style boxes, with the project picking up a Wallpaper Design Award in 2024. Budget-conscious travellers can save a pretty penny by making the most of the self-catering facilities, co-working spaces and gym, and one of Lisbon's trendiest bars, The Kissaten (a listening bar from the team behind Spiritland in London), is right on site, saving on Uber rides. The handy metro station nearby makes it easy to reach city centre hotspots when you can bring yourself to leave this crowd-free retreat (complete with pool and sunny courtyards) and hit the busy city streets once again.

Address: Rua de Santa Joana Princesa 15A, 1700-356 Lisboa

Read more: Best luxury hotels in Lisbon for a chic city break, from butler service to Michelin-starred meals

2. Casa do Jasmim by Shiadu hotel

This cosy guesthouse in Príncipe Real, one of Lisbon's most fashionable neighbourhoods, offers remarkable value. Part of the small, sustainably-minded Portuguese Shiadu collection started by two childhood friends in 2009, Casa do Jasmim features 14 rooms in a restored 18th-century building (note there's no lift, but upper-floor rooms have sweeping city views to help sugar the pill of dragging luggage up stairs). There's a charmingly eclectic feel to the decor in rooms and shared spaces, and the hearty breakfasts are a good way to fuel a day's exploring. The quiet location is handy for Lisbon's Botanical Gardens, the kiosks and chic shopping of Príncipe Real and Chiado, and it's close enough to Bairro Alto's bars and restaurants to enjoy a lively night out without being so close it will spoil your sleep.

Address: R. da Academia das Ciências 36, 1200-001 Lisboa

Read more: Best hotels in Lisbon for city views and rooftop sunsets

3. Palácio das Especiarias hotel

A grand restored palace named after the spice trade that brought prosperity to Lisbon during the Age of Discoveries might seem an unusual place to look for budget stays in the Portuguese capital, but this centrally located gem is extremely well-priced. Surprisingly so, given its location steps from well-heeled Chiado, its more-is-more design aesthetic and the wealth of amenities such as a basement spa where guests can sink into Roman Bath-themed pools and enjoy a sauna. With generous breakfasts, afternoon tea and cakes, and a wealth of lavishly-decorated libraries and common rooms to explore, a stay here feels like luxury without the exorbitant price tag. If there's room to stretch the budget, Superior suites and rooms offer tempting extras like large sunny balconies and free-standing bathtubs, which are worth pushing the boat out for, even if just for a night or two.

Address: Rua da Madalena 122, 1100-330 Lisboa

Read more: An insider’s guide to the perfect spring break in Lisbon and how it stole Paris’s crown

4. VIP Executive Eden hotel

While its name might imply otherwise, this apart-hotel in a landmark Art Deco building isn't a mainstay among VIPs or high-flying executives. But while the fixtures and fittings are more budget chain hotel than designer chic, the location inside a restored 1930s cinema (now a National Monument) at the heart of Lisbon's tourist centre, steps from Avenida da Liberdade and Rossio, make it a popular choice among architecture enthusiasts as well as cost-conscious visitors drawn by the reasonable rates and the fact that each of the 75 studios and 59 apartments is equipped with a kitchenette. Breakfast is available for a few extra euros, and during the summer high season, the views from the rooftop pool and bar are more than a match for trendier (and much pricier) options nearby.

Address: Praça dos Restauradores 24, 1250-096 Lisboa

Read more:

5. As Janelas Verdes hotel

A little off the tourist trail but handy for Lisbon's National Museum of Ancient Art and the hip bars, brunch spots and restaurants of hilly Santos, As Janelas Verdes ('The Green Windows') offers a lot of luxury for its price category. A peek behind the namesake shuttered windows reveals lavishly furnished rooms and living spaces in a lovingly restored 18th-century mansion. Guests can escape the busy streets outside to lounge on the rooftop terrace, enjoy breakfast in leafy gardens, sip complimentary port wine during afternoon tea, and generally feel smug in the knowledge that all these luxe touches won't cause any major damage to the bank balance. It pays to be flexible with dates and book well ahead of your visit, as prices shoot up in high season.

Address: Rua das Janelas Verdes 47, 1200-690 Lisboa

Read more: How Porto became Lisbon’s cooler – and cheaper – little sister

6. Browns Avenue Hotel

This minimalist-chic hotel scores major brownie points for maintaining reasonable rates despite a plum location on Avenida da Liberdade, Lisbon's chic downtown avenue lined with high-end shops and highly priced hotels. Part of a local Portuguese hotel group, Browns Avenue offers 46 bright, contemporary rooms with soundproofed windows (essential on this busy thoroughfare) and sleek bathrooms. Small but thoughtful extras include Smart TVs, Nespresso machines in every room, and a buffet breakfast served until a civilised 11 am. The rooftop swimming pool is a welcome feature rarely found at this price point in central Lisbon. While there's no restaurant, the central location puts you within walking distance of countless dining options, and the 24-hour reception team can point you

Address: Av. da Liberdade 138, 1250-146 Lisboa

Read more: The unexpected destination that is perfect for an adventure holiday

7. Mama Shelter Lisboa hotel

Opened in 2022, the first Portuguese outpost of youthful French-owned hotel chain Mama Shelter attracts a fashionable crowd with its slick restaurant, rooftop bar with late-night DJ sets and views over the Tagus and a bold design. Like others in the Mama Shelter fold, the hotel is designed with the Instagram set firmly within its sights, but rates remain accessible for a central address. Located in the upscale Príncipe Real district, the 130 rooms vary in size – some on the smaller side, making them a good bet for a short stay or heady weekend away rather than a longer holiday, though all feature good-sized beds. Downstairs, a huge island bar dominates the restaurant space where well-heeled passersby rub tanned shoulders with the hotel’s guests, drawn by decent pizzas, burgers and a sense of being at the heart of the party.

Address: Rua do Vale de Pereiro 19, 1250-270 Lisboa

Read more: Most beautiful cities and towns to visit in Portugal

8. Hotel White Lisboa

Located next to the metro station in the largely residential area of Saldanha, this clean-lined, well-located three-star hotel is a savvy pick for travellers after comfort and convenience without a sky-high bill. The name reflects the crisp, minimalist aesthetic – white rooms with natural wood elements, complemented by patterned tile floors and distinctive lighting. While lacking a gym, it offers a small rooftop plunge pool and bar with city views. With its mix of students, locals and plentiful cheap eats, the location is a practical option for those who want to experience authentic city life while maintaining easy access to the main tourist areas.

Address: Rua de Santa Marta 71, 1150-293 Lisboa

Read more: Why this Portuguese holiday resort visited by Cristiano Ronaldo is perfect for families

9. Residencial Florescente hotel

This long-established, family-run hotel in Lisbon's busy Baixa district punches above its weight, offering reliable comfort in a location that's hard to beat for the price. Housed in a narrow 18th-century townhouse on a pedestrianised street packed with old-school tascas and theatre-goers heading to nearby Teatro Politeama, Florescente has 66 rooms, many with city views. Interiors are simple but inviting, with colourful textiles and thoughtful lighting, and guests rave about the friendly staff and impressive breakfast spread. A leafy rooftop terrace, small plunge pool and quiet lounge areas add to the appeal, making it a smart base for independent travellers looking for a friendly welcome in a location that’s ideal for exploring Lisbon’s major tourist attractions.

Address: Rua Portas de Santo Antão 99, 1150-266 Lisboa

Read more: The beach holiday that doubles as Europe’s best off-season foodie break

10. Hotel Convento do Salvador

Art lovers and history buffs will find much to love at this tranquil hotel in Alfama, Lisbon's oldest neighbourhood. Built within a former convent, the three-star property blends a pared-back contemporary design with original features such as arched corridors and thick stone walls, and there are artworks galore to be admired if you can take your eyes off the views outside. The 43 rooms are simple but comfortable, and there's a calm courtyard terrace for morning coffee or post-sightseeing drinks. The famous yellow trams rattle by a short distance from the hotel, but you’ll still need plenty of stamina to make the climb to the hotel entrance. The payoff, however, is a killer vantage point and peaceful escape from the crowded cobbled streets.

Address: Rua do Salvador 2B, 1100-465 Lisboa

Read more: Melides has a quiet magic – it’s no wonder Harry and Meghan would want a house here

FAQs

The cheapest time to visit Lisbon is generally during the low season, which runs from November to March, excluding the Christmas and New Year period. The weather is likely to be cooler and wetter, but there will be fewer crowds to compete with at top attractions.

What currency do I need?

Like all cities in Portugal, Lisbon uses the Euro as its official currency.

Is Lisbon cheap or expensive?

Lisbon is generally considered affordable compared with other major European capital cities, with budget travellers able to enjoy the city on a budget of around €50 per day. Public transport is cheap, while Uber and taxis can be expensive during peak periods. Coffees and pastries are reasonable, but the sky’s the limit when it comes to Lisbon’s rarefied dining scene. Simply strolling around the city can provide a wonderful overview of this historic city, while parks, churches and some museums – such are Museu Coleção Berardo – remain free.

Why trust us

The hotels featured in this list have been carefully selected by The Independent's expert hotel writer in Lisbon, Lucy Bryson. Our contributors either live in these locations or visit frequently, ensuring a personal and informed perspective. When picking which hotels to include, they consider their own experience staying in the hotels and evaluate location, facilities, service and all the other details that make for an exceptional stay for all types of traveller.