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The Pensão Residencial Santa Catarina has barebones, basic accommodation in the southwestern part of Bairro Alto.
Its three floors hold 16 en suite rooms with simple wood furniture and brown carpets. Although all rooms have windows, they can feel a little dark. But stick your head out the window and look up or down the street: you'll find some nice views. Bathrooms are compact, but at least you don't have to share. And breakfast is included in the rate.
Affordable prices and several guidebook recommendations keep the place busy. You'll find a lot of 20-somethings here—mostly those who've moved on from hostels but aren't yet ready to pay for a full-blown hotel. And unlike many other basic budget digs, the Santa Catarina offers rooms with television and telephone.
The friendly owner is like a sweet grandpa. And the TV lounge and bar, though circa 1907s in style, are definitely charming in an old-school way.
Ask about low season discounts, which can be up to 15% less than the prices listed here.
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