Could see the Settlement from DoubleTree @ Hilton Hotel while we're staying there, from its right as well as back. So I'd say they're about next to each other.
Have walked once from DT@Hilton after breakfast, to Hatten. Grabbed from Dataran Pahlawan that's across from Hatten to DT@Hilton back then, fare was as low as RM5.
Near lah.
Normally visited the Portuguese Settlement for lunch or early dinner and walked around the place, as we're acquainted with some of the residents there including the restaurant we frequented (can't remember the name, so don't ask me coz I only knew how to walk there

). And oh, when there's a festival during our Melaka stay.