Where to stay

Baixa is one of Lisbon's best shopping neighborhoods, particularly along pedestrian-only Rua Augusta. Stay here for clothing stores, silversmiths, goldsmiths and shoemakers. Alternatively, consider a hotel in even more popular Chiado, known for its leather goods, crafts and designer boutiques. Tree-lined Avenida da Liberdade is the place to stay for haute couture and international brands such as Burberry and Armani. For the best bargains, look for accommodations in Graça or São Vicente, areas in the wider neighborhood of Alfama. The Feira da Ladra fleamarket takes place here, near the National Pantheon, every weekend, complemented by views of the stunning Tagus River.

Tucked away among top tourist attractions, Mouraria is an excellent place to stay for its old Lisbon culture and acclaimed fado music. Narrow alleyways open to cozy tascas serving delicious, inexpensive food and local wine. Stay in Belém to be close to the Torre de Belém tower, the Berardo Collection art museum and the excellent Maritime Museum. For more fado clubs and lively nightlife, you can't go wrong with accommodations in Bairro Alto, the Upper City. Take a trolley car up one of Lisbon's seven legendary hills to reach this busy, bohemian neighborhood, full of live music, excellent restaurants, tattoo parlors and bars.

Hilltop Alfama is Lisbon's best neighborhood for sightseeing, particularly for first-time visitors. You'll get a sense of the city's Moorish history as you follow winding medieval streets to St. George's Castle, Sé Cathedral and the Portas do Sol lookout on foot or by the convenient tram. Accommodations in Belém are a good choice for seeing the city's top attractions, including the 16th-century Jéronimos Monastery, the National Coach Museum and the Torre de Belém tower. Just 40 minutes from downtown Lisbon lies Sintra, an excellent choice for a quiet sightseeing stay with easy access to the city. It's home to the National Palace of Sintra, the 8th- and 9th-century Moors' Castle and the National Palace of Pena.

Foodies stay in Cacilhas, on the south side of the Tagus River, for some of the best seafood restaurants in Lisbon. Consider accommodations in Cais do Sodré, a favorite dining spot of hip locals and home to the large Mercado da Ribeira and its gourmet food stalls. There are ample restaurants to choose from, including the most fashionable and upscale and those that are more budget friendly. Book a hotel in Bairro Alto or Bica for more amazing restaurants serving traditional Portuguese steak and grilled seafood. Other places to stay for numerous and varied restaurant choices include Chiado, especially near Carmo Street, and Baixa, near Rossio and Restauradores squares.

Take a break from the city bustle and stay in Cascais, a chic beach resort just a 45-minute train trip from Lisbon and popular both in summer and in the off-season. Alternatively, consider accommodations in seaside Estoril, within walking distance of Cascais, and full of pretty beaches and one of Europe's largest casinos.