This place could not be better located! It's in the center of Alfama - the place to be.
At first, we thought it featured a balcony which turned out to be some kind of terrace onto the street.
At first, we didn't know if we would feel comfortable enough to use it with the area being so too eristic and people walking by but it turns out out the street is a dead end so there's very little traffic. We ended up spending every evening drinking port wine on the terrace.
Also, the bedroom is in the back with no windows and rock walls so it stays fresh throughout the night even though it's very hot outside. So we slept really well!
Overall, we absolutely recommend!