Where to Stay in Kotor Bay: Top Towns + Best Hotels From Budget to Boutique

Discover the top places to stay in Kotor, including the best areas around the bay and the nicest hotels in the Old Town and beyond.

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The Bay of Kotor is one of the most beautiful places to stay in Montenegro, but choosing where to base yourself isn’t easy. Kotor Old Town is the obvious choice, but the surrounding towns and villages offer a very different experience, often with better views, quieter evenings, and easier access to the water.

We stayed in different parts of the bay at various points during our Montenegro road trip and found that the best base really depends on what you want from your trip. Some areas are better for sightseeing and nightlife, while others are much quieter and better suited to relaxing by the water.

In this guide, we’ll compare the best towns and areas to stay in Kotor Bay, including what each is like, who it’s best for, and our pick of the best hotels, apartments, and boutique stays for different budgets.

Where to Stay in Kotor – Our Experience

We’ve stayed in a few different parts of the Bay of Kotor over several visits, and each one has given us a completely different experience.

On our first trip as a couple, we spent 5 nights in Kotor Old Town, which was a great way to experience the town. We could walk straight out into the medieval streets, meet the local kitty cats, head out for dinner and drinks without worrying about driving, and explore the town early in the morning before it got busy. Staying right in the Old Town also meant we could easily come back to the room during the day when it got too hot.

On our second trip with family, we stayed on the Luštica Peninsula in a holiday home that slept 10 people. It was a completely different type of trip, with much more space and a quieter setting. Having a car was essential, but it gave us the freedom to explore the peninsula and drive into Kotor and the other towns around the bay.

Our third trip, we returned again as a couple and used Tivat as a base, staying in a little apartment. We found this worked really well for having plenty of restaurants and shops nearby and was super convenient for returning our rental car and getting to the airport.

Over our various visits, we also made a point of exploring the towns around the bay rather than simply staying in Kotor every time. We’ve visited Perast, Herceg Novi, Risan, and Lipci, as well as plenty of the smaller villages and waterfront communities along the way.

After staying in different parts of the bay, we’d say there’s no single right place to base yourself. Kotor Old Town works brilliantly if it’s your first time here and you want history, restaurants, and nightlife on your doorstep, while Tivat, Perast, the Luštica Peninsula, and the smaller waterfront villages give you more space and a quieter experience. It really depends on the type of trip you’re planning.

What is the best area to stay in Kotor?

The best area to stay in Kotor really depends on what kind of trip you’re planning. There are actually countless little towns and villages around the Bay of Kotor, but the main ones are:

If you venture away from the main tourist spots, you’ll also find plenty of smaller villages and waterfront communities that are much quieter but still well worth exploring.

Nestled on the edge of the bay halfway between Kotor and Perast, Orahoac is a much quieter waterfront village with stone houses and some lovely swimming spots.

West of Perast, Risan is known for its Roman mosaics, while Lipci is home to fascinating prehistoric rock paintings.

On the Vrmac Peninsula, opposite Kotor, you’ll find the small waterfront villages of Muo and Prčanj, both of which offer a quieter alternative to staying in Kotor itself.

Further around the bay, Bijela, Baošići, Đenovići, and Kumbor sit between the Kamenari-Lepetane Ferry terminal and Herceg Novi, with a mixture of beaches, waterfront restaurants, and hotels.

To the south, the Luštica Peninsula is more rural, with olive groves, small villages, secluded beaches, and quiet coves dotted along its coastline.

Where to stay around the Bay of Kotor

Each area has a very different feel, and things like parking, beach access, restaurants, nightlife, and how much driving you want to do can influence where it’s best to stay around the Bay of Kotor. Here are the best areas, towns, and neighbourhoods.

1. Kotor Old Town

Kotor’s Old Town (Stari Grad) is where we’d recommend staying if it’s your first trip and you like being in the heart of the action. There are some great restaurants in Kotor and the main sights will be right outside your door, and you won’t need a car for most of your stay.

Most accommodation inside the walls consists of budget hostels, small boutique hotels, and guesthouses, many set in historic stone buildings. Rooms can be fairly compact, and some properties involve several flights of stairs with no lift.

We really enjoyed being able to wander around in the evenings and head out early before the cruise crowds arrived. Our accommodation was also right by the trailhead for the Ladder of Kotor hike, which worked out perfectly for us.

The downsides of staying in the Old Town are that it can get noisy and extremely busy in summer, you can’t drive into the Old Town itself (ask ahead about parking), and prices are higher than in other areas around the Bay of Kotor.

2. Dobrota

Dobrota is a neighbourhood north of Kotor that stretches along the waterfront. It’s a good option if you want to be close to the action without actually staying in it, and accommodation here is usually a bit cheaper than in the Old Town.

There’s a long waterfront promenade, which is walkable to Kotor and lined with swimming spots, restaurants, and plenty of apartments. It’s a good choice if you’re on a budget and want somewhere slightly quieter but not too far away from the main attractions – perfect for families, digital nomads, and backpackers.

You’ll find lots of apartments, guesthouses, waterfront hotels, and a few higher-end properties on offer, often with balconies or terraces overlooking the water. Larger apartments are also useful for families or travellers staying long-term.

Dobrota is stretched along the main road, so traffic can be an issue in summer. The further north you stay, the less convenient it becomes to walk into Kotor, so we’d check the exact location before booking.

3. Perast

Perast is tiny compared with Kotor, but that’s exactly why people choose to stay here. The waterfront is lined with historic stone buildings, and the views across the bay towards Our Lady of the Rocks are the main appeal.

Perast is definitely one of the prettiest places in Montenegro, so it can get busy in the daytime, but it’s lovely and peaceful in the evenings. Accommodation here is limited – mostly small boutique hotels, historic properties, guesthouses, and private apartments, with a few more luxurious options. Parking is also difficult, and the town is pedestrianised, so we’d make sure a space is included in your booking if you’ve got a rental car.

Because it’s quieter and has a romantic waterfront setting, Perast is perfect for couples looking for somewhere a little quieter than Kotor, but the downside is that the choice of restaurants, shops, and other facilities is also limited compared with Kotor. It’s great for a couple of nights, but we wouldn’t stay here for a week’s holiday.

4. Herceg Novi

Herceg Novi is one of the largest towns on the Bay of Kotor, and one of the furthest from Kotor Old Town and Tivat airport, nestled on the western edge of the bay by the Croatian border. It feels more like a proper coastal town than Perast or Kotor Old Town.

There’s a long promenade, beaches, restaurants, and shops, making it a good choice if you want to combine sightseeing with time by the sea or prefer more traditional beach-town vacation vibes.

There’s a wide range of apartments, guesthouses, hotels, resorts, and waterfront properties, from fairly simple places to some seriously high-end resorts. It’s got a good mix of things to see and do, with swim spots and beaches and its own little Old Town, so it’s no wonder it’s one of the most popular places to stay in the Bay of Kotor.

Herceg Novi works best as a base if you like the town itself and don’t plan to do too much exploring, but it can be inconvenient if you want to see more of the bay and the southern coast of Montenegro, especially in summer when traffic gets congested.

5. Tivat

Tivat is much more modern than Kotor and Herceg Novi, with a good choice of restaurants, shops, waterfront bars, and the Porto Montenegro marina. It also has the advantage of being extremely close to Tivat Airport, making it convenient the day before or after a flight, but it’s not where we’d choose to stay on the bay for any other reason.

There’s everything from apartments and smaller hotels to luxury marina hotels, boujee resorts, and serviced accommodation. Porto Montenegro, known for luxury shopping, is home to some of the most upmarket accommodation around the bay, while the town itself has more affordable options.

Tivat is a good base for families, those looking to take marina and yacht trips, or airport access. It’s close to the Kamenari-Lepetane Ferry, so you can quickly and conveniently hop over to the other side of the bay. It’s also a good option if you don’t want to hire a car, as there are bus connections around the bay.

The downside is it’s pretty soulless. If you’re looking for medieval Montenegro, Tivat won’t give you the same experience as Kotor or Perast. Some parts are quite modern and resort-like, particularly around Porto Montenegro, and you’ll need to travel every day if most of your sightseeing is focused on Kotor’s Old Town.

6. Luštica Peninsula

The Luštica Peninsula is where we’d look if we wanted a much quieter holiday experience. It’s more rural than the main towns, with olive groves, small villages, secluded coves, and beaches. There are also newer developments like the luxurious Luštica Bay if you want resort facilities without staying in a major town, while the traditional fishing village of Rose is popular and has passenger boat connections to Herceg Novi.

Accommodation ranges from holiday homes, villas, and private apartments to resort apartments and higher-end properties. We stayed in a holiday home near Radovici, which was the perfect family getaway. We’d highly recommend the peninsula to families or groups because you can find larger homes with outdoor space and private pools.

One thing to note is that public transport is limited, and the peninsula is spread out, so having a car is essential. It’s also not the place we’d choose if your main priority is walking out of your accommodation and straight into Kotor Old Town.

The best hotels in Kotor Old Town

Kotor Old Town has a surprisingly wide range of accommodation considering how small it is. You can stay in a social hostel inside a centuries-old building, rent a simple private room close to the walls, or go for one of the historic boutique hotels occupying restored stone buildings. This is where we’d recommend staying on your first trip to Montenegro, and we’ve picked a mixture of options at different price points, so you can see what you’re actually getting for your money.

1. Hostel Old Town Kotor

If you’re travelling on a budget, Hostel Old Town Kotor is one of the best-known hostels in Kotor. It’s in the heart of the Old Town, putting you only a short walk from restaurants, the waterfront, bus station, and cruise terminal.

The hostel occupies a historic building within the Old Town and offers a mixture of 6- and 8-bed dorms, as well as private double rooms. Facilities include WiFi, air conditioning, large lockers, luggage storage, a bar, and a tours/travel desk.

The big selling point is the social atmosphere. The hostel organises events and activities including boat trips, dinners, pub crawls, and other experiences, so it’s particularly easy to meet other travellers. Every time we walked past, the vibes were high, so it’s perfect for backpackers and solo travellers.

2. Viktor’s Rooms

Viktor’s Rooms is a basic but comfortable option and where we stayed on our first visit. Its location just outside the town walls near the North Gate is perfect, set inside a stone house just two minutes’ walk from Kotor Old Town.

The rooms are simple private rooms rather than hotel-style accommodation, with options including single and twin rooms. You do share bathrooms, a kitchen (hobs and fridge), and outdoor patio space, and rooms also feature air conditioning, a TV, and WiFi.

It’s exceedingly affordable considering it’s so close to the Old Town and was an absolutely fabulous find on my part, if I do say so myself. It’s not luxury by any means, but if you want to be in the heart of town, don’t want to spend a fortune, and are happy to forgo an en-suite, it’s a great option.

3. Historic Boutique Hotel Cattaro

Historic Boutique Hotel Cattaro is right in the heart of the Old Town, occupying part of the historic town walls around the Square of the Arms. The location is about as central as you can get, with restaurants, cafés, shops, and bars immediately outside the hotel.

The building itself is part of Kotor’s heritage, so it is very different from staying in a modern purpose-built hotel. Rooms combine the old architecture with modern facilities, and the hotel’s current offering includes standard and deluxe rooms and suites. Some even include balconies overlooking the main square and San Giovanni Fortress.

The hotel is also part of the wider Cattaro Complex, which includes Restaurant Citadel and Pub AS, but it’s also close to some of the best cafés and restaurants in Kotor, so you won’t be short of great places to eat.

The only downsides are that it’s very central, so the streets can be busy, and there’s no easy car access to the historic centre, so you’ll need to arrange parking outside the walls.

4. Hotel Hippocampus

Hotel Hippocampus is a small boutique hotel inside the Old Town, housed in a renovated 17th-century building. The hotel combines original stonework with much more contemporary interior design.

In keeping with the Old Town, this is a small property rather than a large hotel, with seven fully equipped units. Facilities include Wi-Fi, air conditioning, and LCD TVs, but the real highlight is the hotel’s rooftop bar and restaurant, which offers panoramic views over the red-tiled rooftops of the town.

If you’re looking for somewhere to stay in Kotor as a couple, Hotel Hippocampus is perfect.

Vacation rentals in Kotor

If you want more space than a hotel room, holiday homes are a really good option around Kotor and the wider bay. You’ll find everything from simple apartments for couples to large villas with pools, gardens, and sea views that work well for families and groups.

This is what we did with my family, staying in the beautiful Villa Maslina, and it was a dreamy week.

Airbnb and Vrbo are great places to look for rentals, especially around Dobrota, the Vrmac Peninsula, Tivat, and the Luštica Peninsula.

Just be sure to check the location carefully – a property advertised as being in Kotor can actually be several miles outside the Old Town or in a different settlement altogether. Open up the map, check the parking situation, and work out the distance to the nearest shops or restaurants before booking.

How to choose where to stay in Kotor

There are plenty of places to stay around Kotor, from apartments and guesthouses to boutique hotels, villas and larger holiday homes. Rather than simply looking for the nicest-looking property, think about where you want to spend your time, whether you’ll have a car, and how much peace and quiet you need.

Kotor Old Town vs Dobrota

Staying inside the Old Town puts restaurants, bars, historic buildings, and the main sights right outside your door. It’s particularly convenient if you’re visiting for a short break or don’t have a car. The downside is that it can get very busy and noisy, especially during the summer and when cruise ships are in.

Dobrota, on the other hand, is a better option if you’d like to be close to Kotor but don’t want to stay in the middle of the crowds. There are plenty of waterfront apartments and guesthouses, many with balconies and views across the bay for less money than accommodation in Kotor’s Old Town. You also have easier access by car, although you’ll need to walk or drive into Kotor for most sightseeing.

Kotor vs Perast

Kotor has far more accommodation, restaurants, bars, and things to do than Perast, making it the more practical base for exploring the wider bay. You can also easily arrange boat trips and other activities from here. But Perast is much smaller and quieter. It’s lovely for a slower couple of nights, but the limited choice of shops, restaurants, and accommodation means we’d be less inclined to use it as our base for a longer sightseeing trip.

Kotor vs Budva

Budva is a large, busy seaside resort town and more geared towards a traditional seaside holiday, with more beaches, beach clubs, nightlife, and resort-style accommodation. It’s a better fit if spending your days by the sea and your evenings out is the main focus of your trip.

Choose Kotor if you’re more interested in history, mountain scenery, boat trips, and exploring the Bay of Kotor. The Old Town is the main attraction, but there are plenty of activities beyond it, including hiking and swimming. Choose Budva if you like lounging on the beach beside banging bars, partying after dark, and water activities like SCUBA diving.

The two towns are only a 30-minute drive apart – close enough that you can visit either as a day trip, but we’d base ourselves in Kotor if exploring the bay is the main reason for your visit, and consider Budva if you want more of a beach and nightlife holiday.

Tips for booking accommodation in Kotor

Here are our top tips for booking accommodation in Kotor:

Kotor Accommodation FAQs

To help you plan where to stay around the Bay of Kotor, we’ve answered these frequently asked questions.

Which part of Kotor to stay in?

Kotor Old Town is the most convenient place to stay if you want to be close to the main sights and restaurants, while Dobrota is a quieter option with waterfront accommodation and views across the bay. Staying further around the bay, such as in Perast or Tivat, gives you a different experience and can work well if you’re exploring by car.

Should I stay in Kotor Old Town?

Staying inside Kotor Old Town is a great option if you want to be right in the middle of the action, particularly if you’re only visiting for a short time. However, the narrow streets mean you won’t be able to drive directly to most accommodation, and it can be noisy during the busiest parts of the day.

How many days in Kotor is enough?

We’d recommend at least two days in Kotor, which gives you enough time to explore the Old Town, climb the city walls and take a trip around the bay. If you have three or four days, you’ll have more time to explore nearby places such as Perast, the Luštica Peninsula, and Lovćen National Park without rushing.

Is it safe to walk around Kotor at night?

Kotor is generally safe to walk around at night, particularly in the busy areas of the Old Town and along the waterfront. As with anywhere, take normal precautions with your belongings and be a little more careful in quiet or poorly lit areas.

Is Kotor a good base for exploring Montenegro?

Kotor is a convenient base for exploring the Bay of Kotor and parts of the surrounding coast, particularly if you’re travelling by car. It’s less convenient for day trips to Montenegro’s northern mountains, so if you want to explore places like Durmitor National Park, you may want to split your stay between different parts of the country.

Where should I stay in Kotor for a view?

For bay views, look at accommodation along the waterfront in Dobrota, while some properties on the hillsides above Kotor and in Tivat have panoramic views across the bay and Old Town. Just check how easy the accommodation is to reach, as hillside properties can involve steep roads or steps.

Where should couples stay in Kotor?

As a couple, we loved Kotor Old Town, but Dobrota and Perast are also good options. The Old Town is ideal if you want to be close to restaurants and have everything within walking distance, while Dobrota and Perast are quieter options with waterfront accommodation and a more relaxed feel.

Where should families stay in Kotor?

For families, Dobrota or the wider Kotor area can be more practical than staying inside the Old Town. We loved staying on the Luštica Peninsula with my family for a holiday. You’ll generally have more space, easier access by car, and accommodation with facilities such as kitchens and swimming pools, while still being close enough to visit Kotor Old Town.

Read next:

A Traveller’s Guide to the Bay of Kotor: Europe’s Southernmost Fjord

27 Cool Things to Do in Kotor + What Not to Do

How to Spend One Day in Kotor & Our Free DIY Old Town Walking Tour Route + Map

8 Fun Day Trips from Kotor + 2 Tours Not to Book

11 Best Montenegro Blue Cave Boat Tours + Is It Even Worth It?

How to Visit Lovćen National Park & Mausoleum of Petar II Petrović-Njegoš

Driving the Kotor Serpentine vs Taking the Kotor Cable Car

Our 15 Favourite Cafés, Bars & Restaurants in Kotor + Veggie/Vegan Options

What It’s Really Like to Hike the Ladder of Kotor

How to See & Support Kotor’s Cats

A Quick Guide to Taking the Kamenari-Lepetane Ferry in the Bay of Kotor

A Traveller’s Guide to the Luštica Peninsula

How to Find the Lipci Rock Art: Prehistoric Petroglyphs in the Bay of Kotor