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understanding Lisbon's neighborhoods

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Thanks everyone for your help with itinerary planning. Now we are in the last stages of hotel choices: Lisbon and Porto to go. I've read the guidebooks about the different neighborhoods in Lisbon, but am having a hard time grasping what would work best. There seem to be nice hotels in all of them, all with pro's and cons. I gather the Alfama has a lot of character but the hills are steep. Several people on this list serve have mentioned the Rossio subway stop as a good location. I'm curious about your take on the different neighborhoods and the pro's and cons of each.

We are in our 50's, in relatively good shape and not afraid to use public transport, but I suspect we wouldn't want to be too far from restaurants, and ease of access to public transport would be good.

and any hotel suggestions would be gratefully appreciated.

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