Great choice! Joana's loft is brand new, functional and very well refined. The internal patio is nice for having breakfast outside.
We stayed 6 days in Lisbon and enjoyed very much the location. We could easily reach the center on foot, or take the famous 28 line.
The area of Alfama is charming and quiet, but around the feast of Saint Antony (June 13th) the alleys become very crowded of people and stalls. On one hand you can enjoy the joyous atmosphere of the fair, on the other hand during those few nights music will continue until late.
We greately recommend this place!