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Anonymous
OP, my friend just recently opened a hostel next to the National Theater in Rossio Square. There's no better location really. It's called "Lisbon Story Guest House" It's a little pricey because of the location, 50 Euros a night, but you are going to spend at least 30 most places anyhow.
Also, if you have some monies and want to see very hot Brazilian chicks (that you can rent, or not, your choice) just say to the taxi driver "Elefante Branco". BTW, taxis are cheap, use them.
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