It was not a good experience. The location is indeed in the old town Alfama but I would not recommend living there. It takes a long walk to transportation. The girl who checked us in did not have any intention to help us with our big luggages until my friend fell on the steepest staircase I've ever seen in the building. There is two red stains on the bed sheet. After informing the host, one of their collages came knocking on our door with bad attitude insisting it was not blood but "red paint" while the host I contact with said it was just red wine. So I guess it can be any possibility instead of blood then. The bathroom has weird smell. The building was not designed to be sound-proofing as we could hear everything our neighbor does which is very annoying when your trying to sleep.
Other than that, the apartment is everything as described. There are few good restaurants around.