Cocorico
There are just 10 rooms at this stylish French-owned boutique guesthouse a short walk from the shops of Rua Santa Catarina, so be sure to book ahead; the place attracts a style-conscious set thanks to a great deal of French panache in the design. There are elegant touches everywhere, and the pick of the guest rooms has a lovely stucco ceiling. Breakfast is a feast of French and Portuguese delicacies, and can be enjoyed in the chic on-site bistro.