Located on a hill in an old part of time, it combines an interesting area with nice views. The hotel is clean and completely pleasant. It is somewhat out of the way, but if you learn how to use the trams in Lisbon, it becomes much more central. It is a pleasant walk from nearby tram stops if you don't mind cobblestones.
Our room came with a lovely little veranda, where, even in December, we could sit outside with privacy while having a before-dinner drink. I don't think it is easy to find a small comfortable hotel with reasonable price (to us), which is what this is. But no glitz., and not for somebody who has trouble getting around, unless you are willing to use taxis.

I will make this quick. I loved this place! I booked the hotel on venere.com and got a great rate. The hotel is in the Alfama district which is a world in and of itself. There is a tram nearby (28) that will take you to every must see site. There arent really many options for food near the hotel so having dinner before heading back is a great idea. The room was nice with a balcony that overlooked the city.

The hotel is about 15 mins away from the airport and the cab was under 10 euro (there are additional charges for bags).

I highly recommend this hotel because it was convenient, clean and comfortable.

The Olissippo Castelo Hotel is truely a gem. It is small, only 24 rooms, and the location near the Castle is unique. There is only one other hotel in that area and it is at least twice as much. The rooms are comfortable, many with private terraces and the cost to upgrade to a suite very reasonable. The staff are extremely friendly, helpful and accomodating. You even are greeted with a complimentary bottle of port in your room when you first arrive. Breakfast is fresh and comprised of a wide selection of hot dishes, cold meat and cheese, cereal, granola, yougart and of course, delightful pastries. An incredible bargin with great benefits!

My wife and I sayed here for 3 nights recently. We were made very welcome by the friendly, helpful and informative staff who gave us several good dining recommendations, made reservations, arranged taxis etc . The hotel is well located but extremely quiet and has easy access via the frequent tram service (5 mins away) into the city centre or elsewhere. There are some steep walks around but it is the hills of Lisbon which adds to its charm and provide the great views ! Taxis are quite cheap but check your change ! It is almost as cheap for two people to get a taxi from the Hotel to centre rather than the tram. The breakfasts were good and well organised. The rooms very clean and comfortable.

If you enjoy good food do not miss the tasting menu (35 euros) at Restaurante 100 Manieras in the Biarro Alto. They will match wines to the courses if you ask them to do so. We did - it came to about the same price as the food but well worth it.