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In a city famed for its trendy hostels, this place stands out. For as little as €12 guests can get a room with a view in a Belle Époque palace that was once the official residence of Switzerland's ambassador. The location is hard to beat. On one side, high windows look out over the gardens of São Pedro de Alcântara, offering one of the best views of downtown Lisbon and São Jorge Castle on the opposite hill. Round the back is the Bairro Alto, the tightly packed neighborhood that forms the throbbing heart of Lisbon nightlife. The hostel is also strategically located between the chic shopping zones of Príncipe Real and the Chiado. There are mixed and single-sex dorms for six, nine, or 12. Expect minimalist decor. Furniture consists only of bunks with built-in lockers hewn from bare, recycled wood. But the cotton sheets are crisp and clean, there's a spacious kitchen, and a cool, light-filled lounge that hosts movie nights and occasional impromptu live music. If you can afford to look beyond the dorms, there are four classy private suites upstairs with private balconies overlooking the Tagus river for up to €130 a night. Either way, breakfast and Wi-Fi are included. The laid-back ambience continues in the hostel's restaurant The Decadente, which is renowned for its seasonal, locally sourced Portuguese cuisine, innovative cocktails, and sumptuous Sunday brunches.