Great stay in Alfama. I like this district a lot and would recommend staying in it, especially for a first time visit to Lisbon. There are a lot of things to do right outside your doorstep and a lot of fun to be had wandering Alfama looking for small bars/cafes/restaurants. About 10 mins walk to the large square, and many things to see and do on the way.
Be aware that you can't take a taxi right to this unit, you'll need to park a couple of mins downhill and walk up cobblestone streets. It's difficult for suitcases, but doable. You'll then need to carry suitcases up the small stairs. This seems to be extremely common for all homes in the area and you'll see why, the entire district is ancient. We had no problems other than being a bit out of breath but it could be tough if you have mobility issues or something.
The apartment itself is very well renovated. Cozy looking, good bed, windows open to a nice local scene. Friendly people close by. No bars or restaurants directly by it so it was quiet in comparison to other places we passed. A couple nice Fado bar down and around the corner to boot. These bars can have tiny bathrooms and you could end up spending the entire evening there so having your own place around the corner is extremely useful for avoiding bathroom queues or grabbing warmer clothes etc.
Small kitchen we didn't use, but appreciated the fridge. Shower has a pretty small hot water tank but there simply is not enough room in these units for a large one, so don't plan on taking super long showers.
Stay here if you'd like a bit cooler of an experience than a hotel in Baxia. Really enjoyed my stay and would probably choose Alfama again as long as I had more than a couple days in the city.