Stockholm is a city where the prices of hotels, guest houses, and apartments generally run higher than in most other European cities. That said, choosing your travel dates wisely can certainly take the edge off these steep costs.
Another effective strategy to save on accommodation is to venture beyond Stockholm’s Old Town, Gamla Stan. Even there, surprisingly affordable options exist if you know where to look, without compromising on quality.
In the article below, you’ll discover the best areas in Stockholm, complete with recommended places to stay that cater to various budgets. Whether you’re looking to splurge or save, you’ll find something that suits your wallet.
1. Gamla Stan, where to stay in Stockholm for first time
Gamla Stan, or the Old Town, is the historical heartbeat of Stockholm. Nestled on the small island of Stadsholmen, this district is bridged closely to the city’s central neighborhoods and is a treasure trove of Swedish heritage.
It’s one of the best-preserved medieval quarters in Europe, distinguished by its vividly colored buildings.
You’ll find the majestic Stockholm Cathedral, the Royal Palace, the Nobel Prize Museum, the Parliament House, the German Church, Riddarholmen Church, and the vibrant Stortorget Square here.
This area is not just about historical sights; it boasts a lively mix of restaurants, bars, and shops, all within an easy walking distance.
Accommodation here tends to be pricier compared to other areas. However, if you plan your trip well in advance, you can find some more budget-friendly options.
Personally, I find the blend of history and vibrant city life in Gamla Stan truly enchanting.
Best Hotels in Gamla Stan
- (€€€) Hôtel Reisen in The Unbound Collection by Hyatt: a 5-star hotel with breakfast and spa, 150m from Royal Palace
- (€€) Victory Hotel: a 4-star hotel with breakfast, 250m from Nobel Prize Museum
- (€) Castanea Old Town Hostel: hostel with dormitories and private rooms, 200m from Royal Palace
2. Norrmalm, best area to stay in Stockholm
Norrmalm is just a stone’s throw away from Gamla Stan, yet it presents a striking contrast. Known as the financial nucleus of Stockholm, this area buzzes with commercial energy, flaunting modern buildings, bustling shops, and a wide array of accommodation options that mirror its contemporary vibe.
While Gamla Stan holds the geographical heart of the city, Norrmalm is the real center of daily life in Stockholm. For me, it’s undoubtedly the best area to stay in when visiting the city.
Here, you’re also at the hub of Stockholm’s public transportation network, with the Central Station conveniently located for those planning to explore further afield.
Community-wise, Norrmalm is a hive of activity. It’s packed with shopping centers, retail stores, cinemas, theaters, restaurants, cafes, and nightlife spots.
In terms of attractions, it’s home to the National Museum, the Royal Swedish Opera, the House of Culture, St. James’s Church, and the Kungsträdgården park.
In short, Norrmalm is the most practical and convenient neighborhood in Stockholm. It’s a short walk to Gamla Stan, well-connected, great for shopping, and vibrant with dining and nightlife options after a day of exploring.
As for accommodations, the area offers everything from cozy guesthouses to luxurious hotels. Although prices are generally higher than in other districts, they are typically a bit more affordable than those in Gamla Stan.
Best Hotels in Norrmalm
- (€€€) Bank Hotel, a Member of Small Luxury Hotels: a 5-star hotel, 200m from Kungsträdgården
- (€€) Hotel With Urban Deli: a 4-star hotel with breakfast, 1km from Kungsträdgården
- (€) City Backpackers Hostel: hostel with dormitories rooms, 1.5km from Kungsträdgården
3. Sodermalm, best area to stay in Stockholm for nightlife
Sodermalm is a gem for those visiting Stockholm who are on the lookout for vibrant, alternative spots without the hefty price tag but full of charm.
Situated just south of Gamla Stan, Sodermalm has become the epicenter of the city’s nightlife. If you decide to stay here, you’ll be spoilt for choice with a plethora of bars and clubs.
Despite its bustling nightlife, Sodermalm retains a tranquil side, with quiet residential areas away from the hustle and bustle.
This neighborhood is teeming with quirky shops, art galleries, trendy cafes, and restaurants mostly run by young entrepreneurs. It also serves as the prime LGBTQ area in the Swedish capital.
Notable attractions in Sodermalm include Fotografiska, a major photography museum, and the Stockholm City Museum.
As for accommodations, you’ll find that staying here is generally more wallet-friendly compared to other areas. There are several excellent four-star hotels offering reasonable rates—a pleasant surprise in this part of Stockholm.
Best Hotels in Sodermalm
- (€€) Hotel Frantz, WorldHotels Crafted: a 4-star hotel, 1.7km from Royal Palace
- (€) Hotel Hornsgatan: a 2-star hotel with breakfast, 1.5km from Nobel Prize Museum
- (€) STF Zinkensdamm Hostel: hostel with private rooms and kitchen, close to Tantolunden park
4. Kungsholmen, best area to stay in Stockholm for families and kids
Kungsholmen is a serene gem right in the heart of Stockholm, particularly around the City Hall and near the borders with Norrmalm.
The neighborhood stretches out a bit, so if you find yourself on the farther end, you’ll be a bit more removed from the central tourist spots.
This might mean relying on the metro or other public transport options for your city explorations, unless you don’t mind a bit of a walk—the distances are manageable.
However, Kungsholmen itself has its charms that you don’t need to travel far to enjoy. The iconic Stockholm City Hall and its impressive tower are right here, as is the expansive and beautiful Kronobergsparken, arguably the city’s most significant park.
While there might not be an abundance of accommodation options in Kungsholmen, the ones you do find tend to be more reasonably priced compared to other popular areas in Stockholm.
It’s a fantastic choice if you’re traveling with kids or as a family, offering both tranquility and proximity to some of the city’s key attractions.
Best Hotels in Kungsholmen
- (€€) Courtyard by Marriott Stockholm Kungsholmen: a 4-star hotel with breakfast, 5 minutes walk from metro station
- (€) Sky Hotel Apartments, Stockholm: rooms with fully equipped kitchen, 1.2km from Kronobergsparken
- (€) City Hostel: hostel with dormitories and private rooms, 850m from Kronobergsparken
5. Vasastan, a quiet area to stay in Stockholm
Vasastan may not be in the center of Stockholm, but it certainly has its perks. It’s a neighborhood that perfectly blends charm, authenticity, and affordability.
Walking its streets, you’ll mingle mostly with Stockholm locals going about their daily routines—a genuine slice of Swedish life.
Although it’s not a tourist hotspot, getting to Gamla Stan or other central areas is hassle-free thanks to the efficient metro system. The area itself is quite modern, featuring a variety of shops for every taste and need.
Accommodation in Vasastan predominantly consists of guesthouses and small to medium-sized hotels, which are much more budget-friendly compared to those in the heart of the city.
This makes Vasastan an excellent choice for travelers looking for value without sacrificing the convenience of city life.
Best Hotels in Vasastan
- (€€) Miss Clara by Nobis: a 4-star hotel with breakfast, 100m from metro station
- (€€) Hotel Ruth, WorldHotels Crafted: a 4-star hotel with breakfast, 950m from Tekniska högskolan station
- (€) Ibis Styles Stockholm Odenplan: a 3-star hotel with breakfast, 50m from Odenplan station
6. Djurgarden, where to stay in Stockholm for the museums
Djurgarden is a dream destination in Stockholm if you’re after lush green spaces and an array of fascinating museums. However, it’s worth noting that accommodation options here are quite limited.
Stockholm boasts over fifty museums, and some of the most captivating ones are nestled on this island in the eastern part of the capital.
Don’t miss the Nordic Museum, ABBA The Museum, and the Vasa Museum. These are all conveniently located within a short distance of each other.
Connectivity is a strong point for Djurgarden. The island is well-serviced by tram stops and even boats that navigate Stockholm’s canals, making it easy and affordable to reach any part of the city you wish to explore.
As for staying here, while the few available hotels do offer a unique experience, they aren’t the most budget-friendly. If staying amidst nature and culture is your thing, Djurgarden might just be worth the splurge!
Best Hotels in Djurgarden
- (€€€) Backstage Hotel Stockholm: ξενοδοχείο 5 αστέρων με πρωινό, 5 λεπτά από το κέντρο με το τραμ
- (€€) Hotel Hasselbacken: a 4-star hotel with restaurant, breakfast and bar, next to the Skansen Open-air Museum
7. Ostermalm, a charming area to stay in Stockholm
Ostermalm, nestled northeast of the city center, is easily walkable to Gamla Stan and offers a tranquil residential vibe that doesn’t attract the usual tourist crowds.
If you’re a fan of shopping, you’ll fall in love with this area, especially Birger Jarlsgatan—a street lined with fantastic shops.
Beyond retail therapy, Ostermalm is home to some intriguing museums, including the Military Museum and the Swedish History Museum.
Dining in Ostermalm is a treat, with some of Stockholm’s finest restaurants. There are also chic cocktail bars and some of the city’s most sophisticated nightlife spots.
Keep in mind, Ostermalm is Stockholm’s most upscale area, and this is reflected in its accommodation costs. The neighborhood boasts a number of luxury hotels, so prepare to dig deep into your pockets if you choose to stay here.
Best Hotels in Ostermalm
- (€€€) Villa Dagmar: a 5-star hotel, 200m from Military Museum
- (€€) The Sparrow Hotel: a 4-star hotel with breakfast, 3 minutes walk from Royal Dramatic Theatre
- (€) Biz Apartment Gärdet: a 4-star hotel with breakfast, 800m from Frihamnen port
