This adorable little rooftop flat in Alfama is a great stay, smack in the middle of the bustling district and at walking distance from a lot of landmarks, including the Castello. You can easliy take the legendary tram 28 to visit the rest of the city. Francisco is a super sweet and helpful host; feel free to ask him anything, he is happy to comply.
There are a lot of restaurants and eateries nearby, most of which feature fado singers nearly every night. Needless to say the athmosphere is more than charming.
The shopping district is close by, one can easily walk - mostly downhill anyway.
You cannot reach the flat by car, so be prepared to haul all your luggages up steep slopes and steps. Best to park your car by the Santa apolonia Station; it costs 8 euro per day.
Good value for money.