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any hotels make an attempt to connect with local culture and history; few are as successful as Pestana Rua Augusta. This luxury hotel is enviably located on one of the liveliest streets in Lisbon’s Baixa district, directly next to the triumphal arch that leads to the harborfront Praça do Comércio. Its striking lobby, which features a gorgeous mirrored bar in the place where a reception desk might be, displays an eye-catching blue and white tile mural by the late, great Portuguese artist Eduardo Nery — and one of the bar’s signature cocktails, in further homage to the ceramics master, is called Nery’s Tiles.

It helps, of course, that the Pestana brand is Portuguese; even so, this historic corner building has been transformed into a hotel with great attention to detail and deep respect for the place. Like many in the neighborhood, the building is Pombaline in style, intended for retail space on the ground level and private residences on the upper level; it stands to reason that the restoration work is especially notable on the ground floor. The upper five levels, maintaining the building’s original design, contain suites that are light-filled and compact. The aesthetic takes inspiration from botanical elements: think pale wood flooring, a delicate green and white color palette, and wallpaper portraying painterly interpretations of natural scenes and birdlife. The building’s charming original windows, now soundproofed, face views of the street or the interior courtyard, and some have small balconies. Corner suites feature views on two sides, while the highest-level suites, with vaulted ceilings due to the mansard roof, come with views of São Jorge Castle.

Back on the street level, the hotel’s all-day restaurant and café serve local specialties at sidewalk tables. It’s an ideal venue for planning the day over breakfast — all of Lisbon’s historic center is at the doorstep — or kicking back to sip Portuguese wine and watch people go past.