Planning three nights in Lisbon and would like to be located in area where public transportation is available. DH and I enjoy smallish hotels with charm from whatever place we're in - would prefer not to be in a big chain. Also looking for a "smallish" price!
Any suggestions?

You can try the Bairro Alto Hotel to see if it's within your budget. The Hotel Olissippo Saldanha (49 rooms) is in the center of the city, while the Olissippo Castelo Hotel (24 rooms) is in the Bairro do Castelo, beside the walls of St. George Castle (It gets the highest rating on booking.com for hotels with 25 rooms or less).

Thank you for suggestions.

I have one more question re Lisbon......in a nutshell, can anyone explain the different sections of the city. I believe Bairro Alto may be the upscale one?

Even if you don't stay at the Bairro Alto Hotel go up to their terrace for a drink. Lovely spot and a lovely view.

We recently stayed at the Residencial Florescente on the 'eating street'. It had a 'smallish price' and the location was very convenient. It was just around the corner from the Rossio station. The buffet breakfast was one of the best we had on our trip. Our only complaint was the smallish room but I bet they have larger ones. We were very happy there and would stay there again.

I stayed at Hotel Mundial.

Good location. Can walk to many sites in Lisbon from the hotel.

My ex-husband was born and lives in Lisboa.

Thin

I also stay at the Residencial Florescente. If you have more money the Avenida Palace is more upscale and even closer to transport. The Barrio Alto is the nightlife area. The castle is not central.

I suggest a good guidebook to help you sort out the neighborhoods. At least Lonely Planet's Lisbon Encounter.

We also stayed at Residencial Florescente. Loved its location, in the center and near public transport. The room was OK, the breakfast also. Free internet. The price is not high.

We loved the Hotel Avenida Palace. Great service there. Amazing breakfast buffet. Next door to Rossio train station. Centrally located on the avenue for walking in all directions. Very good prices.

Bookmarking. Thanks everyone for all the suggestions.