It wasn't so long ago that Lisbon was Europe's backwater capital, with lodging options restricted to an unexciting handful of hotels and guesthouses. No more. The best neighborhoods to bed down in are Bairro Alto, Chiado, and Baixa, but you can also do well a little further afield, as there are many appealing properties within walking distance or a short cab ride of the city center. The big plus in Lisbon? Unlike in other European capitals, here you can stay in a luxury property without splashing too much cash.