Where to Stay in Portugal: My Favorite Boutique Hotels & Areas in 2026

If you’re planning a trip to Portugal, you’ve likely seen the endless photos of tiled facades and cobblestone streets. But because it’s become so popular, choosing the right base is everything.

I recently spent time exploring the country, from the hilly streets of Lisbon and Sintra to the waterside charm of Porto and Cascais. In this guide, I’m walking you through the best areas to stay and the specific hotels I personally checked into (and a few that are still on my wishlist for next time).

In a Rush? Here Are My Top Recommendations:

• The Perfect Balance: Origine Porto Gaia – A beautifully designed hotel in Porto with stunning views of the city and excellent service.

• The Budget Find: Casa Teva – Minimalist, intentional design in Lisbon at a reasonable price.

• The Splurge: Penha Longa Resort – Nature and luxury between Sintra and Cascais.

While many people gravitate toward the more touristy areas for their stay, I prefer to be just outside that so most of these stays are in quieter areas but still an easy walk to city centers.

1. Lisbon

Where I Stayed: The One Palacio da Anunciada

We were only here our first night in Lisbon but it’s an absolutely gorgeous hotel with excellent service in the Avenida da Liberdade area. The hotel was originally a 16th century palace so it has a ton of charm and beautiful interiors. It is a 5-star hotel so the service is incredible but it will definitely be a bit pricier. The hotel restaurant is excellent (do not miss the breakfast!) and the hotel feels like a little getaway so you don’t even feel like you’re in the middle of the city.  

• Tip: Book this hotel through your Amex platinum to reap full benefits! We got a voucher for some free drinks and tapas at the hotel restaurant in addition to the $100 credit included with AMEX Fine Hotel bookings. Don’t have an Amex platinum? Check what your welcome bonus could be with my referral link!

Where I Stayed: Casa Teva Boutique Hotel

For the rest of our time in Lisbon, we stayed at Casa Teva, located between Baixa and Alfama. This is a much more budget friendly option but the hotel still has such a cool aesthetic. The service feels personal (we even got some great restaurant and fado recommendations from the staff), and the design is perfect if you want a home base that feels like a chic, modern apartment rather than a large hotel. There are a couple of bars and restaurants nearby so it has a very local vibe. If you’re a light sleeper, I probably wouldn’t recommend this hotel because you can hear noises from the street outside but we otherwise, it’s a great place to stay.

Other Great Options in Lisbon That Are on My List:

• The Ivens: Located in the Chiado area, this boutique hotel has some beautifully designed rooms. 

• Memmo Principe Real: A 5-star hotel located in the Principe Real neighborhood. It’s sleek, modern, and sophisticated and offers some great views over the city.

2. Porto

Porto is smaller and more walkable than Lisbon and has so much charm! Definitely my favorite city in Portugal so far and I can’t wait to be able to visit again in the future. 

Where I Stayed: Origine Porto Gaia

Located just across the bridge in Vila Nova de Gaia (where all the Port wine cellars are!), this spot is incredible. Staying on this side of the river gives you that iconic view of Porto’s Ribeira district. The design of the hotel was stunning and the service was always above and beyond. If you can, definitely book a room with a view of the Gaia river!

• Tip: This is a Marriott property so if you have one of the Marriott credit cards or Marriott Gold Status through Amex, you may be able to get a free upgrade. 

On My List for Next Time: 

• Infante Sagres Porto: I love hotels with beautiful design and charm and this one checks those boxes. It’s also a 5-star hotel located Porto’s Old Town if you want to be in the middle of all the action. 

• chic&basic Tokyo Hoose: This is the same hotel chain as Casa Teva in Lisbon and since I liked that stay so much, I'm dying to see one of their Porto locations. It carries that same minimalist, intentional design but with a Japanese/Scottish twist.

3. Sintra

Most people do Sintra or Cascais as a day trip from Lisbon but we made a whole trip out of visiting this hotel. 

Where I Stayed: Penha Longa Resort

Located in a protected natural park between the mountains of Sintra and the beaches of Cascais, this resort is massive but feels very secluded. It’s built around a 14th-century monastery and has a world-class spa and golf course. It’s also a 3-Michelin key hotel and it showed with the excellent level of service and care provided by the staff. My husband and I are big foodies so we specifically stayed here to try one of its Michelin star restaurants: Lab by Sergi Arola. It’s the perfect middle ground if you want to explore both the palaces of Sintra and the coastal vibe of Cascais since each is only a short 15-minute car ride away to either city. 

• Tip: This is a Marriott property so if you have one of the Marriott credit cards or Marriott Gold Status through Amex, you may be able to get a free upgrade. 

Final Thoughts on Portugal

I’m glad I split my time between the grand palaces and the smaller, design-led boutique hotels. If you're planning your trip, don't be afraid to mix up your styles—stay in a palace for two nights, then move to a minimalist guest house. It’s the best way to see all sides of this beautiful country!

Are you heading to Portugal soon? Let me know in the comments which of these hotels is more your vibe!