When a hotel is lucky enough to be next to the São Jorge castle, it doesn't need much more to provide a happy experience.
There are some hotels near the castle, but none like this, dug into the hill's slope. The Olissipo Castelo is unique for several reasons, particularly its view of Lisbon. It has 12 classic and comfortable rooms, in need of a technological upgrade – the old TV sets almost feel like visual pollution. The suites have a living room and a 50sq/m terrace; all of them offer the same panorama. The staff is friendly and helpful in suggesting restaurants or alternative cultural events to their guests. They are always willing to share the city's most precious secrets for the greater good of their guests' enjoyment.
There is no restaurant at the hotel due to the insane amount of dining spots between Alfama and Mouraria – practically one every other door. The hotel serves breakfast and there's a bar and room service, but these are little more than sandwiches. Since you're walking, go downhill to the Taborda Theatre and wait for the sun to set at the outdoor tables of the Café da Garagem. It has an unforgettable view. Don't spread the word about this, or we may never get a seat by the window again. It will be our little secret.