Best budget-friendly hotels and hostels in Lisbon, Portugal

Lisbon has become one of Europe’s hottest capital for travel in recent years. With that new reputation and eyes on the Portuguese city, more travellers from every type of budget are wondering how affordable it is. Well compared to other capital cities in Europe, Lisbon won’t break the bank and is friendly for anyone - from solo travellers to students, and any age.

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We asked our Live the World editors, some of who are based in Lisbon themselves, where they would recommend staying on a budget for themselves or when they have family visiting in town. This is what they recommended - along with the top 18 stylish and unique hotels in Lisbon.

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Also while you're out and about in Lisbon, also be sure to check out some of these top activities in the city:

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1. The Independente Hostel & Suites

• Private balconies overlooking the Tagus river
• Breakfast free of charge
• a secluded beer garden for warm days

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Even when you’re on more of a budget, Lisbon hotels know how to treat their guests with full pomp and circumstance. At the Independente Hostel & Suites, you’ll be staying in a palace that was built originally to be the swiss ambassador’s official residence. Yep, way to start your trip with a bang. Now, the turn-of-the-century palace has embellished suites with private lounges, floor-to-ceiling hostel dorms and oh-so-gorgeous common areas to hang out and meet other travellers.

Check out more photos and book your stay at The Independente Hostel & Suites here.

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2. Chalet D´Ávila Guest House

• Free breakfast
• Baggage storage included
• Complimentary coffee

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This guest house will make you feel right at home as a true Lisboeta. It’s an impeccably charming stay with impeccably high hospitality too - from the welcoming Hector who owns Chalet D´Ávila (yep, you’ll be on first-name terms here!) to the whimsical Bossanova music wafting from the cafe. Bonus, it’s also easy to get to and from Lisbon airport here, as well as benign in a neighbourhood that’s within walking distance to expansive parks, cute little coffee shops, and great public transportation.

Check out more photos and book your stay at Chalet D´Ávila Guest House here.

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3. House Sao Bento

• Feel like a true local with this historical building
• Cosily designed shared lounges
• Guests may use the shared kitchen to prepare their own meals

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When you walk in House Sao Bento, make sure to look up! This ancient building has crafted ceilings and 1960’s frescoes that will catch your eye. Each room has its own thoughtfully designed concept that takes you on different journeys throughout your stay. Bonus, if you’ve seen Lisbon’s iconic yellow trams that zip up and down the hills of the city, House Sao Bento is located right on the No 28 tram route (which is in our opinion the best route in the whole capital).

Check out more photos and book your stay at House Sao Bento here.

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4. Lisb'on Hostel

• A garden and a terrace with exceptional views to the river
• Connects you to Free Walking Tours around Lisbon
• Some days of the week they host barbecue dinners in their garden, with music, beer and sangria!

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Hostels are great for meeting other travellers, and at Lisb’on Hostel, this spot is an awesome stay for any age. There are so many things to do that are hosted by this quirky hostel in Lisbon, from their theme nights to family-style dinners, which makes it so easy to make new friends in Portugal’s capital city. Also, the hostel is equipped with top-of-the-line amenities like individual lockers and coat hangers which are both free, as well as Apple computers if you need to use them.

Check out more photos and book your stay at Lisb’on Hostel here.

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5. Rodamon Lisboa

• Every room is fitted with a private bathroom and a desk
• Contactless check-in/out
• On-site restaurant conveniently serves your needs

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Picture this: you check into a historical 19th-century building, right next to the renowned Praça da Figueira in the electrifying neighbourhood of Baixa. Welcome to Rodamon Lisboa, a cool hostel that is exceptionally budget-friendly while providing you the utmost care for your trip. During our stays here, there have been many “pinch-me” moments only because I still can’t believe this chic place is such an affordable hostel.

Check out more photos and book your stay at Rodamon Lisboa here.

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6. Lisbon Check-In Guesthouse

• Air-conditioned rooms with satellite flat-screen TV
• Tuk-Tuk tours are available for booking, upon availability
• Allergy-free suites

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The Estrela district of Lisbon is known for its spacious sprawling greens that aren’t hogged up by tourists, as well as the white domed Basílica da Estrela, a shimmering landmark itself. It’s a neighbourhood where if you want to escape Lisbon’s often overcrowded streets, then staying at the Lisbon Check-In Guesthouse makes for the perfect pair. But if you want a quick hop into the city’s old heart, then the city’s tram 28 ends in Estrela, so you can hop on there and start the journey (where you’ll definitely get your choice of seats, a feat hardly possible on the other tram stops in the popular neighbourhood).

Check out more photos and book your stay at Lisbon Check-In Guesthouse here.

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7. Lisbon Destination

• Guests can enjoy meals prepared by the chef while sharing experiences over dinner with other guests
• Free pool table and take part in one of the activities organised by the staff
• Socket near the bed! Essential for a hostel stay

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What I love about this hostel every time I get a chance to stay here is the leafy, sunny, indoor court that looks like a step out of a tropical jungle. There’s a huge skylight at the Lisbon Destination with natural light filtering through while the room is adorned with different plants. Also when Lisbon gets hot (and boy, in the summer, do you ever feel it), each hostel bed has their own fan that you can turn on and off as you like!

Check out more photos and book your stay at Lisbon Destination here.

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8. Bluesock Hostels Lisboa

• Continental breakfast is available every morning at the property
• Staff at reception can provide assistance around the clock with advice on the area
• Beds have curtains for privacy

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Spacious lockers right underneath the bed? Check. Comfortable plush mattresses? Check. Free towel and padlock? Check. Bluesock Hostels Lisbon also happens to be a 2-minute walk from Avenida metro station so for an easy way to explore Portugal’s capital city, this hostel makes it a great base. Oh, what I also love is that not every hostel has - there’s a light and electrical outlet with privacy curtains for every single bed. No fighting over charging your phone here!

Check out more photos and book your stay atBluesock Hostels Lisboa here.

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9. Home Lisbon Hostel

• Library and chill-out room include books and board games for guests
• Dining area has a fully equipped kitchen at the property and home-cooked meals can be served
• Each of the 4 dorm rooms at Home Lisbon Hotel features air conditioning, a shared bathroom with a shower

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In a charming 200-year-old building lies your next cosy stay in Lisbon at the Home Lisbon Hostel. This stay is the perfect mix for private, quiet stays or a rambunctious trip with legendary pub crawls organized by the hostel - whichever way you want your stay in Lisbon to be. The hostel also hosts “Mamma’s dinner nights” where a real Lisbon local, who’s heartwarmingly a mother to the hostel, makes her delicious homecooked meals for any guests who want to join in. This includes a rotation of Cod with Cream, Duck Rice, and Lemon Chicken - ready for you after a day of adventuring in Lisbon.

Check out more photos and book your stay at Home Lisbon Hostel here.

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10. Lisbon Top Hostel

• Shared kitchen and a shared lounge
• Free WiFi throughout the property
• All rooms at the hostel are equipped with a seating area

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This hostel actually feels like a family home that has graciously taken the traveller in, with much hospitality and care. If you ever want to feel like you’re staying in a true Lisboeta home, then this hostel brings the best of both worlds! Lisbon Top Hostel goes beyond, with the owner, Fernandez, memorable friendliness. Each room also provides your own private lockers, so you can rest assured of any personal belongings.

Check out more photos and book your stay at Lisbon Top Hostel here.

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11. This Is Lisbon Hostel

• Rooftop with spectacular views
• Heated rooms and dormitories, some have access to a terrace
• Fully-equipped communal kitchen offering guests the possibility to cook their own meals

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Lisbon is all about the great views from up top, whether that be an observation deck, a church tower, or in this case at This is Lisbon Hostel, their own private rooftop. From here, which only guests can access, you’ll have superb sunsets, as well as areas to eat and hang out. Board games are also provided, so you can pair that up with the rooftop knooks. You’ll see right away how you’re in a historical neighbourhood, close to the iconic castle and all around good vibes.

Check out more photos and book your stay at The Is Lisbon Hostel here.

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12. Majesticlara Lisbon Guest House

• Shared kitchen and a shared lounge
• Free WiFi throughout the property
• All rooms at the hostel are equipped with a seating area

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This guest house is owned by a lovely woman named Lara, who’s a caring and thoughtful host. Whether you want to drop off your bags before check-in time, or need help on local recommendations and tips around Lisbon, then Lara’s hospitality at Majesticlara Lisbon Guest House will make you feel comfortable. It’s a cosy stay where you’ll be close to the metro and local restaurants.

Check out more photos and book your stay at Majesticlara Lisbon Guest House here.

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13. Lost Inn Lisbon Hostel

• Beds in mixed and gender-specific dorm rooms
• Breakfast is included in the room rate
• All rooms feature views over the city

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Free sangria and mama’s soup every day at this hostel? Say no more! If you want to feel like nobility, well the Lost Inn Lisbon Hostel is perfectly set in a renovated 18th-century building with heritage touches all around. You’ll also be only a 4-minute walk from the Time Out market as well as other hotspots like the Cais de Sodre train so wherever you want to go, it’s all within reach.

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Check out more photos and book your stay at Lost Inn Lisbon Hostel here.

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14. Inn Possible Lisbon Hostel

• All the rooms have a bathroom, private ones for the double rooms and shared facilities for the dorms
• Breakfast is included in the room rate
• 24-hour front desk

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Modern and minimalistic - sometimes that’s all you need when it comes to an excellent stay in Lisbon. At the Inn Possible Lisbon Hostel, you’ll also be very close to the bus station as well as being near to the centre of the city. The staff are super welcoming so don’t be afraid to ask for any local recommendations. While they have lockers here for your personal belongings, you’ll have to bring your own locks. Other than that, it’s a really clean cosy place!

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Check out more photos and book your stay atInn Possible Lisbon Hostel here.

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15. We Love F Tourists

• Greeted with a cup of tea or coffee anytime you returned from your adventures
• Daily dinner get-together evenings to mingle with fellow travellers easily
• Organized day trip to Sintra and other organized activities optional

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If you’re a solo traveller or someone who wants to make new friends and easily meet new people, then We Love F Tourists is a great hostel for socializing. There are communal areas decked with plushy furniture, and comfortable seatings, all things that make it great to hang out in.

I also love, and find super useful, that each day of the week there’s an organized evening event and dinner by the hostel. Dinner is usually a traditional dish, followed by a live music event at the bar or a pub crawl.

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Check out more photos and book your stay at We Love F Tourists here.

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16. Lisboa Central Hostel

• A travel sustainable property
• Offers a laundry service and luggage storage room
• Each morning a continental breakfast is served in the hostel’s dining area

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At Lisboa Central Hostel, upon check-in you’ll even receive a welcome drink - true hospitality right? What really makes staying here so memorable are the friendly and welcoming staff, truly when you’re new to a city it’s so nice to already know some locals. Here, you’ll feel that right away. Also, you’ll never get bored at this hostel since there are loads of activities organized for you to pick out and explore.

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Check out more photos and book your stay at Lisboa Central Hostel here.

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Curious about the swanky and luxurious hotels in Lisbon?

If you want to switch it up from a budget accommodation, or planning a more lavish stay, check out our recommendations of luxury hotels in Lisbon here.

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