Travessa II in Alfama was a great place to stay in Lisbon. The Alfama area is lively and full of little shops, cafes and restaurants. You can easily walk up to Castelo Sao Jorge or into the city centre to see the famous sites of the city.
Don't be put off by the outside of the apartment. The lane that goes to the apartment was a bit run down but once inside, the apartment was very nice and exactly as it appeared in the photos. The kitchen is small but well equipped. There is a steep flight of stairs to climb to get to the flat so keep that in mind if stairs are an issue for you. The welcome bottle of wine from Paula and Fatima was much appreciated as well as the binder with lots of info on things to see and do in Lisbon. The guys in the rental office around the corner were great too. Always available to answer our questions