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Most infinity pools are blue. The one on the terrace of the Memmo is a deep brick-red that matches the rooftops of Alfama tumbling down the hillside below. Alfama is Lisbon's oldest neighborhood, a jumble of alleys strung with washing and echoing with the plaintive sounds of fado music. The resemblance to an Arab medina is no coincidence—it was one for 400 years until the Christian reconquest of 1157. The Memmo, which opened in late 2013, claims to be the area's first luxury boutique hotel. In a historic city blessed with seven hills and a river stretching for 10 miles, breathtaking views are not hard to find but few match those from the Memmo's pool, the surrounding sun deck, and many of the rooms. The hotel is tucked away down a cul-de-sac lined with citrus trees just behind a 12th-century cathedral. Modern furniture in soft creams and browns blends with interior features like portions of ancient stone wall or domed baker's ovens transformed into cozy sitting rooms. The smaller bedrooms are compact, but don't feel cramped. All come with Egyptian linen sheets, LED TVs, iStations, and free Wi-Fi. There's a small gym equipped with TechnoGym machines, but just strolling up and down the hills of Alfama might provide more rewarding exercise.