I travel with my family for a long weekend to Lalita's place and we were a bit disappointed unfortunately.
We were a group of 7 people and we can't really say the the 7th person slept very well on the "couch". The place itself ended up to be smaller than the photos let us believe. On of the room was also really smelly and really humid with an electrical plug standing out of the wall. Finally the only nice room gets right on the street which is next to a bar (hence really noisy).
However the appartment is right in the center of the city, close to all nice neighborhoods and transportation which was really convenient to discover beautiful lisbon. Moreover Lalita has been really helpfull and nice to us giving useful info.
I'd have to say that this does not fit for 7 persons for sure but could be acceptable given the price for a smaller group providing improvement on one of the room.