Lisbon’s oldest district is known for its labyrinth of narrow streets, abundant fado bars, and historical attractions. Opened in 2015, Santiago de Alfama is a draw in its own right. The former 15th-century palace is just below São Jorge Castle. Its 19 guest rooms offer views of the River Tagus or courtyard garden, as well as unique configurations, including interconnecting bedrooms that would be ideal for families. Most accommodations combine traditional features such as wood-paneled ceilings and intricate cornices with modern comforts like rain showers and bespoke linens.
With so few rooms, the staff will always know your name, though it’s unsurprising in this family-run hotel that functions like a more intimate B&B. Be sure to dine in the café/bistro Audrey’s, named after the owners’ daughter and serving seasonal dishes using fresh produce from the kitchen garden.