It's definitely a very central location, as it's close to a stop of the iconic yellow tram, and also a walkable distance from sightseeing spots like the Pantheon, Portas do Sol, St George's Castle etc. There are plenty of good restaurants in the area as well. It does get a bit too lively sometimes-- we were once woken up at 4am by a group of drunken tourists outside the building-- but it's understandable as Alfama is one of the main tourist attractions after all.