Had a great stay in the middle of Alfama's 'Fado' district. Adelaide picked us up at the airport and showed us in - very convenient. Everything was clean and as advertised - a very pleasant place to stay. It is right in the middle of the small alleyway-like streets of Alfama, where there are many small restaurants to choose from, and shops to get food and drinks.
The only warning I would add is that, because it's such a lively part of Lissabon, take this into account when booking a Saturday. The sound from nearby parties can go until 2am, and the upstairs bedroom is not soundproof at all. It was totally fine in the lower (3rd floor) room though.