Hotel Senhora do Monte
If you want expansive views of the castle and the entire neighborhood, book a room on one of the upper floors of this small modern hotel perched atop the tallest of Lisbon's seven hills. In summer, ask for a balcony or one of the rooms with large terraces. The top-floor breakfast room has huge windows and lots of sunny spots for admiring the view. There's no metro station, but Tram 28 runs nearby.