6 TOP Areas + 2024 Hotel Guide

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Aerial view of Stockholm's historic Gamla Stan with colorful buildings and boats along the waterfront

The capital’s numerous islands and fun attractions will make your holiday unforgettable! But first you’ll need to find a place where to stay in Stockholm!

I visited Stockholm and got to know the city pretty well (loved it!)! So keep reading and you’ll find everything you need to know about planning your trip from which are the best areas and most fabulous hotels!

Stockholm Old Town (Gamla Stan) is the best area in this big city, as it has many iconic attractions and beautiful surroundings! But if that’s not your scene, don’t worry, you’ll find 5 more areas below, each catering to different interests!

For each of those areas I manually compared all the areas and hotels in Stockholm and handpicked only the best ones, which I then sorted by budget so that you can easily pick your favorite, be it luxury, mid-range or budget accommodation.

Please note that this capital city is pretty expensive (compared to other European cities), so I definitely recommend booking your favorite hotel here, in advance and scoring a cheaper price!

If you’re in a hurry…

Busy shopping street in Stockholm with pedestrians, shops, and city life

Ready to book your holiday, including the hotels? Then check out this short list with the best hotels in Stockholm Old Town:

Which area should you choose?

Firstly, make sure to check out this map with all the areas in the Swedish capital that I will talk about in this post:

A colorful map highlighting the best areas to stay in Stockholm, with numbered locations and labels for easy navigation

1. Stockholm Old Town (Gamla Stan) – for first timers

Colorful facades of old town Stockholm buildings in Stortorget square with people milling about

Welcome to one of the most beautiful and the oldest medieval areas in Europe!

Everything has been so well-preserved here over the years that you’ll feel as if at any time a medieval knight will pop out of nowhere!

Old Town (Gamla Stan Stockholm) has countless attractions and before you jump to see them all, take some moments to explore the cobble-stoned streets and snap some pics of the colorful houses!

After that you can check out the incredible Royal Palace (Kungliga Slotten), the home of Sweden’s royal family! You should also stop by the Parliament building (Riksdag) and the Stockholm Cathedral, which has stunning architecture!

I know, there are so many incredible things to do in Stockholm! If you don’t know where to start, check out my 3 day Stockholm itinerary, where you’ll find so many useful tips.

Stockholm has a fascinating history and it is actually the birthplace of Alfred Nobel! They hold Nobel Prize Awards on December 10th – anniversary of Nobel’s death.

There’s actually a place called the Nobel Museum, which I highly recommend visiting as it’s super fun – you will learn more about Nobel laureates such as Marie Curie, Nelson Mandela, and Winston Churchil

By the way, Gamla Stan has easy and convenient access to the rest of the city via public transport or ferries that connect the islands! Stockholm’s metro system is amazing and you can go anywhere around the town.

Here, you’ll also be surrounded by many awesome restaurants and cafes, where you can enjoy their yummy pastries! One of my favorites is their version of cinnamon rolls called kanelbulle. They go perfect with a cup of coffee!

A collage of three hotel photos to stay in Stockholm Old Town: an opulent room with vintage furniture and candelabra, a plush bed with a colorful tapestry above, and a regal room with red drapes and a classic writing desk.

Luxury (€230 and up)

Collector’s Victory Hotel – here’s a charming hotel just a short walk from the attractions and all great restaurants in the Stockholm city centre! The accommodation boasts beautifully-designed rooms with a naval theme and modern amenities.
Hôtel Reisen in The Unbound – enjoy the stunning sea views from your rooms in this luxurious hotel that’s ideally located just a short walk away from the attractions. Here you can relax in their spa center with a nice Swedish massage.

Mid-range (€130 – €230)

Collector’s Lady Hamilton Hotel – this hotel has a wonderful central location and some amazing rooms! They have their own sauna, plunge pool, and there are plenty of places within walking distance where you can eat, drink and shop.
Scandic Gamla Stan – housed in a mid 17th-century building, this hotel comes with rooms that have a Gustavian-style décor and a flat-screen Tv.

Budget (up to €130)

Castle House Inn – here’s something a bit more affordable in Gamla Stan that offers rooms with city views and bike rentals! The Royal Palace and the other attractions are within walking distance!
Castanea Old Town Hostel – check out this super affordable hotel that’s centrally located and has rooms with wooden floors and laundry facilities.

2. Norrmalm – where to stay for the urban atmosphere

Train entering a station with Stockholm's old town and city hall in the background

If you walk a bit to the North from Gamla Stan, you’ll reach the fabulous neighborhood of Norrmalm, the business and commerce district of Stockholm (also known as CBD or “The City”).

This area is centrally-located plus it’s very well connected to the rest of the neighborhoods and other cities in the country through the T-Centralen metro station and Central Station Stockholm.

I would definitely recommend to those of you who love that hyped urban atmosphere and staying right in the middle of everything!

Have you heard about Stockholm Syndrome? The robbery took place in 1973 in Kreditbanken bank (map). It lasted for six days, during which the hostages developed a bond with their captors.

Normalan is like a museum-paradise, there are lots of cool places to visit here like the National Museum, the Royal Swedish Opera and the House of Culture (Kulturhuset) which is more than a museum as it hosts a theater and live performances.

This is where you’ll also find the Drottninggatan pedestrian street which has lots of shops and cafes!

NOTE: Make sure you always have a card with you! Many places in Stockholm don’t accept cash and I know nowadays most of us don’t walk around without a card, but it’s important to know this!

If you want to take a break from the urban affair you can head to Kungsträdgården Park (map) (King’s Garden), one of the most beautiful parks in town.

There are also countless shops here, from small designer shops to big outlets, as well as plenty of hotel options for all budgets (amazing luxury hotels as well!).

A collage of three hotel images in Norrmalm, Stockholm: a sleek hotel bar with modern lighting, a contemporary bedroom with a red accent wall and chic decor, and a stylish lobby with comfortable seating and warm lighting.

Luxury (€180 and up)

At Six – here’s a super modern hotel with a central location that has fabulous rooms with amazing city views! The accommodation also has a restaurant that serves international cuisine, a fitness center and private parking.
Grand Hôtel Stockholm – you’re going to love these rooms! They have such an amazing design, a fine dining restaurant and a spa center where you can relax after a day out!

Mid-range (€120 – €180)

Scandic Hotel Continental Stockholm – enjoy the stunning views from the rooftop terrace of this hotel, which has a restaurant. The property is right across the street from Stockholm Central Station (the train station).
Haymarket by Scandic – this art-deco themed hotel has a perfect location just minutes walk away from the attractions and it offers a small cinema (OMG) and 2 restaurants.

Budget (up to €120)

City Backpackers Hostel – are you wondering where to stay on a budget in this amazing neighborhood? Here is your answer! This colorful, friendly hostel is super close to Stockholm Central Station, which is a very good advantage!
Downtown Camper by Scandic – here’s the amazing Scandic hotel that comes with a swimming pool, a spa and 2 restaurants. While here you can try yoga and join the movie

3. Södermalm – Stockholm’s hipster area

Tranquil scene of a bridge and waterways in Stockholm with buildings and greenery

Conveniently located south of Gamla Stan, around a 30 min walk away, this area is one of the coolest and trendiest ones in the capital city and a great spot for those who want to enjoy Stockholm’s nightlife.

Södermalm is pretty big! To get around more easily, you should know that in the North part you’ll find some amazing attractions like the Stockholm City Museum, also the Mariaberget (map) observation deck where you can catch a gorgeous sunset.

By the way, if you’re looking for more places to admire the views in this area, I’d also recommend the Monteliusvägen (map) and Fjällgatan (map) points! You’ll love both of them!

Then in the Hornstull part of the island you’ll find lots of green areas, Tantolunden is probably the biggest one where you can stroll around during the day.

So many things to see here! And the cherry on top is probably the hipster SoFo area (abbreviation from South of Folkungagatan), where you’ll find lots of restaurants, book-shops (perfect for those who want to get some souvenirs) and cafes.

Here you can enjoy the city’s lively nightlife, especially during the weekend! Around Sofo there are lots of places where you can grab a drink! Snotty Sound Bar is a really fun one, where you can start the night!

P.S. If you want to try the famous Surströmming, the traditional Swedish tinned fish – be prepared because it is super smelly. Some people compared it to the smell of a rotten egg! 😉

A collage of three hotels in Södermalm, Stockholm: a serene bedroom with light decor and artwork, a vibrant lounge area with plush seating and eclectic lighting, and a cozy dining area with candlelight and rich brown tones.

Luxury (€180 and up)

NOFO Hotel – this wonderful upscale hotel is located in a nice historical building from 1780 with a very convenient location, right in the middle of the island. They offer cozy rooms, an inner courtyard, an on-site restaurant and daily breakfast.
Hotel Rival – how cool is this 1930s Art Déco building? Inside is even more amazing and it has rooms with large ABBA pictures, Tvs and also a bar.

Mid-range (€100 – €180)

STF Hotel Zinkensdamm – sleep like a baby in the cozy rooms of this hotel that has a modern decor. The accommodation offers a sauna and fun activities like playing mini-golf!
Hotel Hellstens Malmgård – dating back to the 18th century, this hotel is set across the water from the city center and it has individually decorated rooms and a terrace.

Budget (up to €100)

Skanstulls Hostel – this awesome 2-star hostel has some unbeatable prices and some superb rooms, all at the same property! They even have their own kitchen that you can use to prepare your own meals and save some bucks to spend on other attractions.
STF Långholmen Hostel – such a unique hotel that’s housed in a refurbished 1800s prison building! Don’t worry though, everything is so modern and it also offers bike rentals, a restaurant and a bar.

4. Östermalm & Djurgården – best place for culture

Amusement park rides at Gröna Lund in Stockholm with cityscape and blue sky in the background

This area is absolutely huuuge!

Most of its attractions are set in the Southwestern part of the area, so I’d recommend getting your hotel there so that you don’t have to walk a lot to reach your attractions.

Östermalm is located around a 30 min walk away from Gamla Stan, in the Northeastern part of the city and it also includes the gorgeous Djurgården which is like a smaller national park.

Outside of the attractions, it is an upscale residential area, and I would recommend it for families but also those who want to really explore all those attractions.

The famous ABBA Museum which is super fun and even has a dance floor (I may have enjoyed the karaoke there a bit more than I can admit!). Then there’s the Army Museum, the Swedish History Museum, Vasa Museum and the Viking Museum where you can dive into Viking history! PRO TIP: Definitely watch the Vikings TV series before your trip if you’re into this!

If you’re traveling with your family, the Gröna Lund amusement park and the Junibacken museum are definitely a must-see – SO much fun!

Right near Östermalm & Djurgården there’s a little island called Skeppsholmen which is connected to the mainland via a bridge from Norrmalm. But you can visit it from this side as well via ferry and I highly recommend doing it as it has even more museums and parks.

If you enjoy Stockholm’s natural side, consider visiting the Stockholm Archipelago, which is made of a total of 30,000 islands!

A collage of three Östermalm & Djurgården hotel interiors in Stockholm: a living area with an ornate stove and chandelier, a modern lounge with iconic egg chairs, and a bedroom with warm wood tones and contemporary design.