We stayed there a week ago and we liked it because it was clean and central. Everybody is friendly and the breakfast was good.
The residence is very central and very quiet actually.

Our room had 001 had rather a small and hard bed, but we will definetly stay there again.

Been here twice already and thought its time to review it too.
The Residencial Alegria is located at the Praca de Alegria just a few meters off the Avenida de Libertade which connects Praca Marques de Pombal with the Rossio, so its pretty close to Bairro Alto, Bairro Baixa and also in walking distance of Alfama. All thess are the spots where you would want to go when in Lisbon. You get there by taxi from the airport for less than 10 EURO and you can access the Metro (I think it is Linea Azul) in less than a 5 minutes walk.
The Hotel itself is pretty basic with AC but small rooms, even smaller bathrooms, no fridge or minibar, beds are ok sized.
The rooms with view of the Park (Praca de Alegria) are quite though the street noise starts at 7 AM or so during weekdays but I kept sleeping with open windows. Oposite of the Hotel is a resto with good food (try Chicken Piri Piri) and on the backstreet of the hotel another resto offers more good food (try the Pork (Leitao) or the Lamb). More restos and bars are in Bairro Alto which you can reach in a 10 minute walk (steep uphill though) or with the Funiculare (small trains getting you uphill) whenever they are working - most of the time they seem to be under restauration.
Breakfast is as basic as the hotel: Toast, butter, something I would loosely define as "ham", cheese and marmelade. I asked for a boiled egg once, they were unable and unwilling to do it.
I quite like this hotel though for its location (central but quite) and price but if you are into a little more comfort, look for something else.

My husband and I stayed in Residencial Alegria for a night after a tour in the south of Portugal. We were given one of the room witch is just behind the Night Club!!!!
We did not sleep a single minute, the music was slightly too loud!!! We complain to the night manager and he ask us to fill a form, witch of course we did, and found out that there were more than 20 complains …..

He sweared that we were going to be refund as we were not even warn and ask if it was OK for us to rent this special room . The next morning, as we left the Hotel, the morning manager refused to refund us but made the promise that if we complain from London it would be fine….
Witch we did…. We just receive an email with excuses!

SO WHY DO THEY KEEP RENTING THESES ROOMS?
JUST BECAUSE IT IS HELPING THEM IN THERE "WAR" WITH THE NIGHT CLUB AND NEED MORE COMPLAINS TO HAVE IT CLOSED!!!!

WE ARE NOT BEING WARNED AND NOT EVEN REFUND, I AM VERY ANGRY AT THIS HOTEL!
I DO NOT ADVISE IT TO ANYONE!!!

Anne29

I found the Residencial Alegria to be perfectly fine, and an excellent value for the money.

The staff was always willing to help, which was much appreciated as this was my first trip to Lisbon.

My room was on the main floor and was spotless. The bathroom was very clean as well. The furniture was fine, although I did find the mattress a bit hard.

I did not eat breakfast in the hotel. I prefer to walk about and find a place to eat - many options are available.

The hotel is only a couple of blocks from the Metro. The location is very good. You can walk to the Bairro Alto (uphill) or Baixa neighborhoods. If you don't wish to walk, you can always take a taxi (very cheap), the Metro (clean and efficient), bus, or tram.

In summary, a nice little hotel in a very good location.