Where to Stay in Stockholm, Sweden: 5 Best Areas & Hotels

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Wondering where to stay in Stockholm? You’re in the right place.

Stockholm is one of those cities that feels both elegant and effortlessly cool, but how do you decide where to stay? Some neighborhoods put you right in the middle of the action, while others are all about historic charm or quieter and more local vibes. And since the city is spread across multiple islands, it helps to know which side of the water you want to be on.

To make things easier, we’ve rounded up the five best areas to stay in Stockholm, plus hotel picks for every budget. Keep reading to find the perfect base for your trip!

Where to Stay in Stockholm Map

Overview of the Best Areas to Stay in Stockholm

Stockholm is a fairly compact city, but did you know that it’s spread across 14 main islands? Yup! And while this layout gives the city a very airy and scenic feel, it also means that choosing the right base matters. For one thing, it can make a big difference in how much time you spend getting around.

The good news is that you don’t need a rental car here. Stockholm’s public transit system (SL) is excellent, and the city is very walkable once you’re in the central neighborhoods. Speaking of which, most of the main sights are clustered around Norrmalm and Gamla Stan, which makes them convenient bases for first-time visitors. However, there are a few other areas that are worth considering, as we’ve outlined below:

• Norrmalm Best for first-time visitors – This is the city center, ideal for convenience with Stockholm Central Station, major shopping streets, and lots of restaurants all within walking distance. Radisson Blu Waterfront Hotel is a convenient and comfortable base here.

• Gamla Stan – Best for historic charm – If you want cobbled streets and colorful medieval buildings, Gamla Stan (Old Town) is hard to beat, and staying here puts you right by the Royal Palace and Stortorget. Lady Hamilton Hotel is a cozy, character-filled option in the heart of the Old Town.

• Södermalm – Best for a trendy stay – This is the best area for a trendy stay, with lots of vintage shops and some of the best viewpoints in the city. It has a more local, creative vibe than the city center, but you’re still well connected by metro. Hilton Stockholm Slussen Hotel is a great base with views over Gamla Stan and the waterfront.

• Östermalm- Best for luxury travelers – If you’re after a polished, upscale stay with high-end shopping and museums nearby, Östermalm is a great choice. The Sparrow Hotel is a stylish option with a boutique feel and a central location.

• Vasastan – Best for a local feel – This area is best if you’re looking for green spaces and a more local feel, plus it boasts a dynamic food scene. Hotel Hellsten is a lovably quirky choice that offers great value for its location.

Where to Stay in Stockholm

Norrmalm

BEST FOR FIRST-TIME VISITORS

Pros

• Super central with easy access to major sights and transport
• Within walking distance of Gamla Stan and key museums

Cons

• Can feel busy and commercial compared to other neighborhoods
• Hotel prices tend to be higher 

Norrmalm is the beating heart of Stockholm, and we think it’s the best area for first-time visitors to stay in! Stockholm Central Station is here, so getting in from the airport and taking day trips is very straightforward. You’re also right by Drottninggatan, the main pedestrian shopping street, and Kulturhuset Stadsteatern, which hosts exhibitions and events. It also has a rooftop café with great views that’s well worth checking out! 

Staying in Norrmalm puts you within walking distance of Gamla Stan, the Royal Palace, and the waterfront, so it’s an ideal base for sightseeing. We also really like how central everything feels here. You can walk to major attractions or hop on the metro to reach other areas in minutes. It makes a lot of sense to stay here if you’re short on time in Stockholm.

The area has a polished, city-center feel, with plenty of places to eat, drink, and shop, but we did notice that it feels a bit more corporate than Södermalm or Vasastan. Still, if convenience is your top priority and you want to maximize your time exploring, Norrmalm is hard to beat!

Grand Hôtel Stockholm – $$$

Grand Hôtel Stockholm is one of the most iconic luxury hotels in the city, sitting right on the waterfront opposite the Royal Palace. It feels very old-world and elegant, with grand interiors and sweeping views over Gamla Stan and the harbor. The rooms are spacious and refined, and the service is exactly what you’d expect from a historic five-star property. There’s also a Michelin-starred restaurant, a spa, and an indoor pool – what more could you want?

Rooms here typically start at around €550 per night.

Read the glowing reviews and book your stay here!

If Grand Hôtel is fully booked, Lydmar Hotel is a stylish boutique alternative with a more modern, artsy vibe.

Best Western Hotel Bentleys is another central option with classic rooms and an excellent location.

Radisson Blu Waterfront Hotel – $$

Radisson Blu Waterfront Hotel is a modern hotel right next to Stockholm Central Station. Its futuristic façade will definitely catch your eye long before you step through the doors! Plus, its proximity to the city’s main transport hub makes it super easy to get around.

The rooms here are sleek and contemporary, and offer great city or waterfront views. We also love the on-site restaurant, which has floor-to-ceiling windows and serves both Swedish and international dishes. 

Rooms here usually start at around €180 per night during peak season.

Check availability and book your stay here!

If Radisson Blu is sold out, ProfilHotels Central is a solid alternative with a friendly vibe and a central location.

We also think that Hotel Kung Carl is another good choice if you prefer a more boutique-style property near Stureplan.

Scandic Grand Central – $

Scandic Grand Central is a great budget-friendly option if you want to stay right in the middle of Stockholm without blowing your budget. It’s literally next to Stockholm Central Station, so you can roll your suitcase off the train and be in your room in minutes. The rooms are on the smaller side, but they’re comfortable and stylish, with that clean Scandinavian look that we just love!

One thing we really like about this hotel is the atmosphere. The lobby and bar feel buzzy and social, so it’s a fun place to grab a drink or a casual meal without trekking across the city.

Rooms here typically start at around €130 per night during peak season, which is hard to beat for such a central location.

Check all the positive things travelers are saying and book your stay here!

If Scandic Grand Central is fully booked, Hotel With Urban Deli is another cool option with great food on-site.

Best Western Kom Hotel Stockholm is also worth a look if you want something with a quieter vibe.

Gamla Stan

BEST FOR HISTORIC CHARM

Pros

• Right in the middle of Stockholm’s medieval Old Town, with major sights on your doorstep
• Beautiful, atmospheric streets and some of the city’s best photo spots

Cons

• Gets crowded during the day 
• Hotels here tend to be older, with smaller rooms 

Gamla Stan is Stockholm’s Old Town, and it’s easily one of the most atmospheric places to stay in the city. This tiny island is where Stockholm was founded in the 13th century, and to this day, it remains packed with colorful facades and charming medieval squares. Staying here puts you right by Stortorget, the Royal Palace, Stockholm Cathedral, and the Nobel Prize Museum, so you can walk to many of the city’s top sights in just a few minutes!

We love Gamla Stan for first-time visitors and shorter trips, especially if you want to soak up the history and be surrounded by postcard-perfect streets. It’s also well connected, with metro stations at both ends of the island and easy walking access to Norrmalm and Södermalm via bridges.

That said, Gamla Stan can feel very busy during the day, especially when tour groups roll in, and hotels tend to be smaller due to the historic buildings. Prices are also higher compared to more residential neighborhoods. But if you’re dreaming of staying in the heart of Stockholm’s history, Gamla Stan is unforgettable.

Hotel Gamla Stan – $$$

Hotel Gamla Stan is a charming boutique hotel in the heart of the Old Town, and it feels like stepping into a historic townhouse. Well, actually, the hotel is split across three historic buildings, all of which date back to the 17th century. 

The rooms here are individually decorated, with classic details that suit the medieval setting, but still feel comfortable and well-maintained. You’re just steps from Stortorget and the Royal Palace, so it’s an amazing base for exploring on foot.

Rooms here typically start at around €500 per night during peak season.

Secure your stay when you book in advance here!

If Hotel Gamla Stan is fully booked, Hôtel Reisen is a beautiful luxury option right on the waterfront with elegant rooms and a spa.

Victory Hotel is another great alternative with a nautical theme and a more traditional, historic feel.

Lady Hamilton Hotel – $$

Lady Hamilton Hotel is a fantastic option with loads of character. It’s located just behind the Royal Palace and is housed in several historic buildings, giving it a very authentic Old Town feel. The rooms are cozy and traditional, and some have exposed wooden beams and tiled stoves.

One thing we really like about this stay is that breakfast is included! That’s actually not super common in central Stockholm hotels, and it definitely helps to keep costs down when it comes to dining out.

Rooms here usually start at around €300 per night during peak season, or €180 in the off-season.

Check availability and book your stay here!

Castle House Inn – $

Castle House Inn is a great budget-friendly option in Gamla Stan, especially if you want to stay central without spending a fortune. It’s just a short walk from the Royal Palace, and while the rooms are simple, they’re clean and comfortable. 

Some rooms have shared bathrooms, which helps keep prices down. There are also quadruple rooms, which are ideal for groups traveling together, and you can even book a dormitory bed, although there’s an upper age limit of 40 for this.

Rooms here typically start at around €150 per night during peak season.

Don’t miss out – book your stay here before it fills up!

If Castle House Inn is fully booked, Scandic Gamla Stan is another reliable budget-friendly option that feels more like a proper hotel than a hostel.

Södermalm

BEST FOR A TRENDY STAY

Pros

• Artistic area with lots of vintage shops and cool cafes
• Lots of viewpoints and waterfront walks 

Cons

• Spread out area
• Fewer classic tourist landmarks than Norrmalm and Gamla Stan

Södermalm is the hipster part of Stockholm, and we had so much fun exploring this area! It’s perfect if you like getting off the beaten tourist path and discovering more local gems. This area is home to very few chains and a wealth of indie boutiques and specialty coffee shops, not to mention many of the city’s best bars around the SoFo district.

The vibe here is young and artsy. It’s an alternative area, and while it’s not home to many typical tourist landmarks, there’s still plenty to do. One of the biggest highlights here is Monteliusvägen, a scenic walking path with some of the best sunset views over Gamla Stan and City Hall. 

Fotografiska, Stockholm’s famous photography museum, is also located on Södermalm, and this is a Stockholm must-do in our book! The exhibitions are always changing, so there’s something new to see every time you visit.

Södermalm is well connected by metro and buses, so getting to the city center is easy, but it does take a bit longer to walk to major sights. The area is also quite spread out, but if you don’t mind some extra walking, it’s a lot of fun to explore. It’s an awesome choice if you’ve been to Stockholm before and want something a little different this time around!

Stockholm Stadshotell – $$$

Stockholm Stadshotell is a beautiful boutique hotel in Södermalm that feels stylish, intimate, and very Scandinavian. The rooms are thoughtfully designed with muted colors and custom furniture. We love its cozy, residential feel! 

There’s also an on-site restaurant and bar, so you can enjoy a great meal or drink without leaving the property. We love this option if you want something polished and well-designed without staying in a big chain hotel. It’s also well located for exploring SoFo, Fotografiska, and the waterfront.

Rooms here typically start at around €350 per night during peak season.

Check availability and book your stay here!

If Stockholm Stadshotell is fully booked, Hotel Rival is a stylish, cinema-themed boutique hotel on Mariatorget with a gorgeous Art Deco design.

We also like Hotel Frantz, which has a cozy feel and an excellent restaurant on-site.

Hilton Stockholm Slussen Hotel – $$

Hilton Stockholm Slussen Hotel is a more affordable option with one of the best locations in Södermalm. It sits right by Slussen, so you’re steps from Gamla Stan and well connected to the rest of the city by metro and buses. A lot of the rooms have views over the water and Old Town, which is a huge bonus in our book! 

The rooms are spacious and comfortable, and there’s a restaurant, bar, and gym on-site. It’s a great base if you want modern comfort and easy access to both Södermalm and the historic center without paying luxury prices.

Rooms here usually start at around €220 per night during peak season.

Check availability and book your stay here!

If Hilton Slussen is fully booked, Hotel Hornsgatan is a charming boutique option with individually decorated rooms and a homey vibe.

Alternatively, Hotel Hellstens Malmgård is a quirky historic property with period decor and a quiet garden.

Hotel Hellstens Malmgård – $

Hotel Hellstens Malmgård is a comfortable stay in Södermalm, and best of all, it’s budget-friendly! This hotel is located just a few steps from the metro, so you can easily access the rest of Stockholm.

We love how homey this place feels, as each room is uniquely decorated, so nothing feels cookie-cutter. Set in a historic building, it is charming, but well-kept, adding to the cozy feel. The rooms are simple and offer double or single rooms, and they offer a daily breakfast that is consistently raved about. There is also a terrace and a garden that you can enjoy. 

Prices range from about €100 to €220 per night.

Check your travel dates and lock in your stay here!

If ApartDirect is fully booked, Långholmen Hotel is a unique stay in a former prison with stylish rooms and lots of character.

Citybox Stockholm is another affordable option with minimalist rooms and a great central location.

Related Read: Need help putting your trip together? Check out our 3-day Stockholm itinerary for the top sights, tours, restaurants, and more!

Östermalm

BEST FOR LUXURY TRAVELERS

Pros

• Elegant, upscale feel with high-end shopping and dining
• Close to parks, museums, and the waterfront

Cons

• More expensive than other parts of Stockholm
• Less nightlife than Södermalm and Norrmalm

Östermalm is Stockholm’s most polished neighborhood and one of the best places to stay if you’re after an upscale experience. This area feels grand and residential, with wide boulevards and beautiful architecture. The pace of life here is also noticeably calmer than in the city center, so we think it’s a great option for families. And it’s home to some of Stockholm’s top luxury hotels, so if you’re looking to splurge, this is where you’ll find the most impressive options!

One of our favorite things to do here is visit Östermalms Saluhall, a historic food hall where you can sample everything from seafood and Swedish classics to gourmet pastries. Yum! Humlegården Park is another great spot to check out, and it’s perfect for strolls and picnics on sunny days. 

If shopping is on your agenda, you’ll love Östermalm! The streets around Biblioteksgatan are lined with designer boutiques and Scandinavian brands, so leave some room in your suitcase.

Östermalm is also close to several museums and the waterfront promenades, which makes it easy to mix sightseeing with a few slower days. It’s a great base if you want a stylish stay with easy access to central Stockholm, but with a quieter and more exclusive feel.

Hotel Diplomat Stockholm – $$$

Hotel Diplomat Stockholm is one of the most iconic luxury hotels in Östermalm, and it sits right on the waterfront along Strandvägen. The interiors feel classic and elegant, with high ceilings and antique details. The rooms overlook either the harbor or the city, so you’re guaranteed a great view! The on-site restaurant is also one of the best in the city, so if you like fine dining, you’ll be in the right place.

We love this option if you want a grand, old-world feel in a prime location, with easy access to parks, museums, and high-end shopping. It feels timeless and very “Stockholm.”

Rooms here typically start at around €400 per night during peak season.

Read the glowing reviews and book your stay here!

If Hotel Diplomat is fully booked, Ett Hem is a stunning boutique luxury hotel with an intimate feel.

Best Western Hotel Karlaplan is a more affordable upscale option with a great location and solid reviews.

The Sparrow Hotel – $$

The Sparrow Hotel is a boutique hotel tucked away near Biblioteksgatan, right in the heart of Östermalm’s shopping district. The rooms are modern and cozy, with lots of chic Scandinavian design touches. There’s also a lovely French bistro on-site, which is a great spot for breakfast or dinner.

We think that this is a great base if you want to be close to designer shops, cafés, and cultural sights, while still being within walking distance of Norrmalm and the waterfront. It’s just a 4-minute walk from Östermalmstorg Metro Station, so staying here makes it super easy to get around Stockholm.

Rooms here usually start at around €220 per night during peak season.

Check availability and book your stay here!

If The Sparrow is all booked up, Home Hotel Wellington is another well-rated option right nearby.

And if you want something with a bit more of a refined, classic feel, Hotel Esplanade is another great choice, and it includes breakfast.

Scandic Park – $

Scandic Park is a solid budget-friendly option in Östermalm, especially if you want space and easy access to green areas. The hotel sits right by Humlegården Park, so you’re close to lots of walking paths, while still being well connected to the city center. The rooms are simple but comfortable, and there’s a gym and sauna on-site.

We like this hotel if you want good value in an upscale area and don’t need boutique bells and whistles. It’s practical, reliable, and well-located, so you can’t really go wrong!

Rooms here typically start at around €140 per night during peak season.

Lock in your travel dates when you book here!

If Scandic Park isn’t available, Scandic Anglais is another central and affordable option with a lovely courtyard.

Mornington Hotel Stockholm is also worth a look because it offers modern, boutique rooms and a cute library bar that’s a must-visit for any bookworm!

Vasastan

BEST FOR A LOCAL FEEL

Pros

• Residential, laid-back vibe with great cafés and restaurants
• Close to beautiful parks
• Less touristy than central districts

Cons

• Slightly farther from major sights like the Royal Palace and Old Town
• Fewer boat tours and big attractions right on your doorstep

Vasastan sits just north of Norrmalm and feels more like real, everyday Stockholm than a tourist hub. If you prefer staying in a neighborhood where locals actually live, this is a great place to base yourself! The streets here are lined with independent cafés, bakeries, and casual restaurants, and you’ve also got Rörstrandsgatan, which is one of the city’s best food streets. We think it’s a must-visit in summer when the terraces fill up.

One of the biggest perks of staying in Vasastan is the green space. Vasaparken and Observatorielunden Park are both lovely for morning walks and picnics when you need a break from sightseeing. The area also has a strong residential feel, with beautiful architecture and a slower pace compared to Norrmalm or Södermalm.

It’s still easy to get around from here. You can walk into the city center in about 15-25 minutes, or hop on the metro or bus and be there in just a few stops. If you want a calm base with great food and a more local atmosphere, Vasastan is a really appealing choice. It’s another good pick if you’ve been to Stockholm before and want to see a different side of the city.

Hotel Ruth – $$$

Hotel Ruth is one of the most stylish boutique hotels in Vasastan, and it’s a great pick if you want a polished stay. The rooms are elegant and cozy, with bold colors and quirky design touches that make it feel more like a chic townhouse than a standard hotel. There’s also a lovely restaurant and bar on-site, which is popular with both guests and locals.

The location is excellent for exploring Vasastan’s cafés and parks, and it’s still easy to reach the city center by metro or on foot. It’s right near Odenplan station, so it’s ideal if you’re planning to get around with public transport. Oh, and breakfast is included! 

Rooms here typically start at around €250 per night during peak season.

Read all the positive reviews and book your stay at Hotel Ruth here!

If Hotel Ruth is fully booked, Villa Dahlia is another gorgeous boutique option in an excellent location.

We also like Clas på Hörnet because it’s super charming and has a traditional Swedish restaurant on-site.

Hotel Hellsten – $$ 

Hotel Hellsten is a great mid-range option in Vasastan that’s full of character. The rooms feature bold colors and vintage-inspired decor, and the Earth Bar holds jazz concerts every Thursday night. 

The staff here are very friendly and welcoming, and breakfast is included with your stay. Drottninggatan pedestrian street is just a 5-minute walk from the property, and you’re also just a short walk from Rörstrandsgatan. The metro is close by, too, which makes it easy to get into the city center.

Rooms here usually start at around €200 per night during the summer.

Check availability and book your stay here!

If Hellsten is all booked up, Lilla Rådmannen is another reliable option with modern rooms and a central location.

Best Western Plus Time Hotel is also worth a look if you want a more contemporary feel.

Blique by Nobis – $ 

We’re so impressed by what great value for money Blique by Nobis offers! It’s a super trendy budget hotel that’s housed in a former printing house. The industrial design gives it a creative, artsy vibe, and there’s a rooftop bar that offers great views of the city. It even has those cool egg chairs that you can sit and swing in while you sip your drink.

The hotel is also close to two metro stations and two train stations, so you’ve got great access to Stockholm’s public transport network. And to top it all off, a very generous breakfast is included with your stay!

Rooms here typically start at around €120 per night during peak season.

Book your stay here, before it fills up!

If Blique is already full, Elite Palace Hotel & Spa is a solid alternative with a gorgeous spa on-site.

Alternatively, Hotel Birger Jarl is another comfortable option that offers modern design and a lot of bang for your buck.

Top Activities to do in Stockholm, Sweden

Now that you’ve picked out your favorite area and hotel, you can plan the rest of your trip! We were surprised by how much we loved Stockholm and found a lot of hidden gems among the top sights. Here are a few activities to add to your itinerary!

• Explore Stockholm with a local – Learn about Stockholm’s history and culture with a local guide on this top-rated walking tour. This is great to do on your first day in the city to get your bearings!

• Discover Viking history – Stockholm has a long history of Viking culture, so this tour through the countryside was super interesting. The highlights included the Viking parliament and graveyard, seeing ancient runestones and the old village of Sigtuna, and learning a ton of history from our expert guide!

• Taste your way around the city – Discover the tasty side of Stockholm on this food tour! We love food tours because they help us try local delicacies, and we end up finding hidden gems that we would have missed on our own.

• Go on a ghost tour – Curious about Stockholm’s dark past? This ghost tour will give you all the spooky details in a fun and exciting after dark experience. It’s a mixture of theatrical performing with history for a new perspective of the city!

• Visit the Vasa and Skansen Museums – Stockholm is home to two very iconic museums, so visit both on this organized tour. The Vasa Museum focuses on maritime history and The Skansen Museum is unique because it’s the oldest open-air museum in the country, and it even has a zoo!

Related Read: Check out our blog on the top things to do in Stockholm for even more can’t miss activities!

Renting a Car in Europe

Exploring Europe by car is a fantastic way to uncover hidden gems—think charming villages, scenic countryside, and off-the-beaten-path spots that trains and buses might miss. Driving here is generally straightforward, but it’s good to be prepared for some regional quirks.

We always use Discover Cars to book our rentals and can’t recommend them enough. It’s super easy to compare prices, check company ratings, find automatic cars (which can be tricky in Europe!), and add affordable full coverage insurance. If you want a full breakdown, check out our Discover Cars review here.

Tips for Renting a Car in Europe

• Know the local rules: Most countries drive on the right, except the UK, Ireland, Cyprus, and Malta. Road signs and driving laws can vary, so do a quick check before you go.
• Practice defensive driving: In parts of Europe, especially in the south, driving can feel fast-paced and a little unpredictable. Make sure you stay alert and keep a safe following distance.
• Insurance is essential: I highly recommend adding full coverage insurance to your rental. Whether it’s a parking lot ding or a chipped windshield on a mountain road, full protection gives you peace of mind. Plus, it’s super affordable through Discover Cars!
• Pick the right vehicle: Most rentals in Europe are manual, and automatic cars are limited, so book early if that’s what you need. A compact car is also ideal for narrow roads and tight parking. On Discover Cars, you can easily filter for everything you need.
• Watch for restricted zones: Many cities have low-emission or restricted traffic zones. Driving into these without a permit can result in fines, so always check local rules if you’re heading into a city center.
• Be prepared for border crossings: While crossing borders is usually easy within the Schengen Zone, some rental companies require you to declare your travel plans in advance. Always check with Discover Cars if you’re planning to drive into another country.

What You Need to Rent a Car in Europe

• A valid driver’s license from your home country.
• If you’re from outside the EU, an International Driving Permit (IDP) is recommended—and in some countries, it’s legally required.
• A credit card in the driver’s name is typically needed for the security deposit.
• Most rental companies require drivers to be at least 21 years old. If you’re under 25, expect a young driver surcharge—and in some countries, the minimum age may be higher.

Ready to hit the road? Book your car with Discover Cars here and discover the freedom of exploring Europe on your own terms!

Thanks for reading!

Stockholm is such a fun city to explore, but choosing the right place to stay really matters! You want to be sure to have a hotel that fits your comfort standards and is located in an area that blends convenience and style. That way, you can rest properly and go out, refreshed and ready to explore!

If you need help planning the rest of your trip, see all of our Europe blogs. We love helping fellow travelers pick out their next destination and plan a memorable getaway. Here are a few related blogs to get you started – cheers!

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