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A longtime EuroCheapo favorite, the Pensão Ninho das Águias, perched like a songbird in the treetops of Alfama, offers phenomenal views at serious budget prices.
Sure, the hostel is out of the way, far up on the north side of steep Costa do Castelo. Room décor is a hodgepodge with mismatched furniture and oddly paired curtains and bedding. There are no telephones, televisions, elevator, or even breakfast service. And, yes, you'll have to share a toilet no matter what (though you may have a bidet).
But this pension basically sits in the shadows of Castelo de São Jorge. It's charming, eclectic, and family-run (28 years!). At times you may resent the spiral staircase that leads up from the street-level entrance, forming a final vertical barrier between you and your bed. But step out onto that terrace, drink in the panoramic views, pet the resident pooch, and we guarantee you'll have forgotten all about the trek.
Rooms with shower are €5 more than those with just a bidet and sink. Of the 16 rooms, five have fantastic views—request ahead. Soda and coffee are available at the reception, along with a pay phone.
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