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Help, please, with best areas to stay and lodging in Lisbon and Spain

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I finally finalized our itinerary in early April 2016, thanks to the many Fodorites who generously offered advice and posted trip reports:

Lisbon (4 nights)
Sevilla (5 nights)
Arcos (1 night)
Malaga city (3 nights)
Granada (3 nights)
Toledo (2 nights)
Madrid (2 nights)

I'm looking for recommendations on what neighborhoods to stay in and lodging. We like smaller boutique hotels or B&Bs, ideally with a view, and are leaning toward an apartment in Sevilla. We'd like to keep the cost below $300 per night, at least in those areas where we'll be spending more nights, but please give me your splurge recommendations too. In terms of neighborhoods, we want charm and prefer to be away from the hordes of tourists, yet within reasonable walking distance to restaurants, cafes and shops. For example, in Barcelona we preferred the Eixample to the Barri Gotic and just loved the Hotel Murmuri.

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