Hotel Florescente
If you're looking for a great location for sightseeing, check into one of the bright and cheerful rooms on the five azulejo-lined floors of the Residencial Florescente. Try to book well ahead: this is one of the few reasonably priced options in the heart of town, and it fills up quickly. There's a small outdoor pool and sun terrace with a bar serving poolside drinks, and the on-site restaurant offers Portuguese dishes.