There is no better location in Lisbon. Period. Everything is walking distance and the neighborhood is lively and happy.
This is a quirky very cool place. So many things to look at just inside your hotel. The owners apparently were fascinated by Alice in Wonderland and it shows. I'll leave it at that.
I did do a little exploring, visiting the other themed floors of the hotel. We were on the tribal floor and I think I might have liked the pop music floor but we had a great indoor 4 story faux garden complete with birds singing. (I did not see any actual birds). We did have one of the smallest rooms - i think they call them cocoons... It was not horribly small by European standards but if you are one that likes your space, opt for a larger type.
The staff is amazingly helpful and friendly. I accidentally ripped my hop on hop off ticket in half and the receptionist staff insisted on finding tape, repairing it and even walking me halfway to the bus stop (which is directly across the square). When we checked out, a different receptionist called our cab, took our luggage to the taxi, and instructed the driver where to take us and how much to charge us. Above and beyond for sure.
Their breakfast is also good - not spectacular but certainly substantial.
Finally - BOOK EARLY. While we were there a few people walked in and tried to get rooms. They were told the hotel had been booked up since June (we were there in Sept).