My traveling companions and I will be driving from Porto to Lisbon and would like to spend one night in Obidos. We definitely want to be inside of the city walls - hotel/lodging suggestions???
My suggestion is Pousada do Castelo de Óbidos, it's an historic building converted into a hotel.
You'll have to park outside the town and walk to the hotel.
https://www.pousadas.pt/en/hotel/pousada-obidos?utm_campaign=pousada-obidos-partoo&utm_medium=organicsearch
You may need to park outside the walls. One lodging location is previously mentioned castle, now a hotel. It has its own parking, but getting to it is a chore. We stayed at the Casa Do Relogio in September 2023. It is just outside the wall, but by an opening through the wall. It was fine for one night and had a lot of charm. We parked beside the wall about 50 yards from the hotel. We were in room 8 and it had a/c. Not all rooms had it.
Óbidos is small and can be seen in a couple hours.
Depending on time of year and events happening in Obidos, it can be hellish to find parking near the old town. (My dentist is, thankfully, not near the old town.)
I did exactly that drive last year and honestly, staying inside the walls in Óbidos is 100% worth it, the whole place changes once the day-trippers leave.
If you want the wow experience, go for Pousada Castelo de Óbidos (you’re literally sleeping in the castle).
Otherwise, good and more relaxed options inside the village are Casa das Senhoras Rainhas or Casa Lidador, both central and charming.
Just park outside the walls and walk in (5–10 min). The best part is the atmosphere at night when it gets quiet.