My favorite areas of the city (and also the most central) would be Chiado, Príncipe Real, Rossio, Baixa. From there you can walk to most places or, if a bit further away, there is always a direct transportation to the other spots. So, anywhere around this area on the map, really! 🙂
- The hotel The Independente is really nice (they have both a hostel and suite version. Lovely decoration, right in the middle of everything. A friend of mine stayed there and loved it too).
- You can also try Airbnb, which usually has good prices and locations, and allows you to cook your own food 🙂
Also: if you do book somewhere and love it, let me know so I can add it here to the list! 😉