Great place to stay in Alfama, it's beautiful, cozy, very clean, close to all major touristic objectives in Lisbon, it's only a few minutes down to the main road along the coast making transport very easy, there are lots of pubs and restaurants nearby. During our stay the Alfama district was celebrating the Sardines Festival so we were happy to blend in with tourists and locals alike. I have to say that I had the best bifana sandwich and sardines not far from the place where we stayed. Luren & Eduardo are great hosts and I highly recommend this place if you visit Lisbon.
P.S. We rented a car for a few days to visit the surroundings and there are lots of parking places near St. Apolonia Train Station or near Fado Museum which is 5 minutes from the apartment.
P.P.S The taxi to the airport was 11 euros