Hotelier Grace Leo-Andrieu has a talent for turning sows' ears into silk purses. The latest proof is this slick revamp of a formerly frumpy hotel turned office space in Lisbon's buzzy bohemian center. Inside the original 1845 building, the low-key reception desk flanks the vest-pocket restaurant, Flores. The hotel's design incorporates a smart hybrid of Portuguese colonial references, and a pumpin' jumpin' DJ spins tunes at the three-level bar. Despite distant traffic noise—the Praça Luis de Cam›es is one of the city's busiest—this place is all about the pleasures of good-looking surroundings (and staff) and a perfect location. The only false notes are the exorbitant surcharges for Internet and phone use, and the early breakfast hours in a famous late-night city.