Fantastic apartment in Alfama right outside of the castle. I loved being in a beautiful, old building that was renovated with modern amenities. The balcony was nice for reading and enjoying a glass of wine before dinner.
The location is on a hill so it's always a walk down to leave and a walk up to arrive. I recommend taking a taxi from the airport, especially if you have a roller bag, as it's all cobblestones and hills to get there.