Location is great! It's on one of the main drags on Alfama so there's lots of bars and restaurants around. It's a 2 minute walk from a really nice overlook (Portas do Sol) that has a snack/drink kiosk, which I ended up using as my personal evening-relaxation patio.
The neighborhood mostly quiets down at night and the windows are quite good at blocking sound (and light) so it's easy to sleep. There are upstairs neighbors though, so you're also a bit at their mercy (which was fine all but one night).
Transit is okay -- the street allows cars, so a taxi or tuk tuk can haul your stuff to the door, but even though two trams are readily accessible (the 12E is literally across the street) they are usually packed to the limit with tourists. All the hill walking is good exercise though. :)