In town, St George’s Castle, Igreja de Sao Rouge, and the Rossio are all unmissable. Just outside of the city is Belém, a historic town, home to Mosteiro dos Jeronimos and the Belém tower.

The city also boasts a number of small local art galleries or museums. Among these, the Calouste Gulbenkian and the Museu Nacional do Azulejo, are particularly popular with visitors.

For nightlife, the Barrio Alto stands out, even when held up against Europe’s other party capitals. Disguised during the daytime as a quiet, faintly traditional district, when the sun sets it bursts into life as home to the modern music scene.

Shoppers should look to the Baixa, Lisbon’s center. The area’s signature wide streets and uniform buildings were built following the area’s destruction during the 1755 earthquake. Nearby, two beautiful squares, the Praça da Figueira and the Praça do Comércio, make an attractive diversion from the city’s excellent shopping.

But it’s no exaggeration to say that (for the lower cost traveler, at least), the city’s biggest draw is its startlingly good backpackers hostels. Here are four that deserve a special mention:

Lisbon Lounge Hostel

Centrally located and close to the main transport system, LLH ticks all the boxes. There are nine rooms, six bathrooms, three lounges, and a spacious, well equipped guest-kitchen. Breakfast is free and Chef Antonio’s famous home cooked dinners are served nightly for a few euros.

The hostel’s located in the heart of the city, and its main attractions are just a few minutes walk from the door. Or, you can stay in to read, watch a film, or socialize in the lounges. Free Wifi is available in every room, and internet access in the lobby is also free.

Oasis Backpacker’s Mansion Lisboa

Oasis Backpackers Mansion is seconds away from the excitement of the Barrio Alto. Daytime is peaceful whilst fun-filled nights are guaranteed in the neighboring bars and clubs. Alternatively, relax on the roof or barbeque in the hostel’s beautiful patio-garden.

If the luxurious, clean dorms, thick mattresses, and strong hot showers weren’t enough, Internet access and Wifi are free and dinner is cheap and delicious. If you can bear to tear yourself away, the city-savvy staff know exactly which directions to point you in.

Lisbon Poets’ Hostel

If quaint and quiet quickens your heartbeat, go to Lisbon Poets’ Hostel. This 17th century building houses 24 single beds, 2 doubles, a studio, two living rooms, and a kitchen, all spread over the four floors. Be prepared to walk up narrow winding staircases. Internet access is free, breakfast is not.

This is not a party hostel; but with the Barrio Alto only a few steps away, you can party away with the assurance of a quiet nights sleep.

Travellers’ House Hostel

If it weren’t for Lisbon’s amazing sites, there would be no reason to leave this hostel. Located centrally, this 18th century building boasts separate lounges for reading, music, dining, and watching tv/dvds. Everywhere is furnished with free internet and WiFi.

Guests rave about the free breakfast (scrambled eggs on toast), the friendly staff, and the great location. Those who prefer privacy need only look next door to the Little Travellers’ Hostel. The newly renovated apartment has two double rooms, a private shower, toilet, kitchen, and living room.

Before settling down and becoming a copywriter for HostelBookers.com, Ben Cooper stayed in numerous Lisbon hostels and traveled extensively in worldwide.