Where to Stay in Monterey California: My Favorite Areas & Hotels in 2026

I had a fantastic weekend in Monterey, and it’s actually a place that really surprised me with how many cool hotels and things to do there are.

We spent 2 nights in Monterey, staying at a really cute little bed and breakfast, and used it as our base to explore the city and the surrounding area. We visited Carmel-by-the-Sea, drove the 17-Mile Drive and went whale watching, so there was plenty to keep us busy.

Monterey is also fairly spread out, so when booking your hotel, I’d definitely pay attention to the location. There are quite a few different areas to choose from, and the hotels range from super affordable motels to really nice boutique hotels and resort spas.

To help you figure out where to stay in Monterey on your next visit, I’ve put together this guide to the best areas and hotels in Monterey, including where I stayed myself and which places I’d consider booking if I came back.

Where to Stay in Monterey? I’ve Got the Answers

We spent a weekend in Monterey, and during those two nights, we managed to explore pretty much everything we wanted to see in the city itself. We also used Monterey as a base for exploring the surrounding area, including Carmel-by-the-Sea, Carmel Valley and even parts of Big Sur.

For that to work, I wanted somewhere with private parking so we could easily head out on day trips, but I also wanted to be able to walk out of the hotel in the morning, grab a coffee and explore a little without having to get in the car straight away.

That’s how we ended up at Merritt House Hotel, the cutest little bed and breakfast that almost feels like a small manor house. It’s super cozy and charming, and the breakfast was really yummy. So I can already say that I’d highly recommend staying here! (Stargazer Hotel is a great more budget friendly alternative!)

The hotel is located in Downtown Monterey / Old Monterey, and the location was pretty much perfect for us. I could walk to Old Fisherman’s Wharf and the waterfront, but also to two of my favorite coffee shops in Monterey, Captain + Stoker and Alta Bakery.

Quick side note: if you go to Alta Bakery, you HAVE to try their Reuben croissant. That thing is crazy delicious!

My Favorite Areas in Monterey California

Downtown / Old Monterey

We stayed in Downtown Monterey, also known as Old Monterey, and I was super happy with our choice. Whenever I go on a city trip, I always try to stay somewhere where I can do at least a few things on foot instead of having to use the car first thing in the morning. And that worked perfectly here.

Downtown is pretty lively, with loads of good restaurants and some awesome cafes (check out my guide to the best cafes in Monterey!). Even better, we could walk straight to Old Fisherman’s Wharf, where we joined our whale-watching tour, and explore the waterfront without having to drive anywhere.

Cannery Row

Cannery Row is another great area to stay in Monterey. It’s right by the ocean, with plenty of hotels, restaurants and other things to do within walking distance. I recommend checking out the Victorian Inn if you’re looking for somewhere to stay around here.

You can walk straight from your hotel to the waterfront, and the famous Monterey Bay Aquarium is only about a 12-minute walk away. So if you want to spend time by the ocean and have restaurants and attractions nearby, Cannery Row is a really good alternative to downtown.

Pacific Grove

Pacific Grove is quite a bit quieter and more laid-back than the first two areas, but I really liked it here too. I’d consider staying here if I wanted a calmer atmosphere without being too far from everything.

There are some really cute streets around Pacific Grove, along with a few places I loved. Bookworks is an awesome little bookstore and coffee shop, while Hops & Fog Brewing is a small pub and microbrewery where I really enjoyed a good afternoon pint!

You’re also close to Lovers Point, the 17-Mile Drive and Point Pinos Lighthouse, so there’s plenty to explore nearby.

Carmel-by-the-Sea

And lastly, there’s Carmel-by-the-Sea, which isn’t technically part of Monterey but is the town just south of it. The two are connected by the famous 17-Mile Drive, and I actually stayed in both places during our California road trip.

Honestly, both make fantastic bases for exploring the region, but they have pretty different vibes. Carmel-by-the-Sea feels more upscale, with its adorable cottages, cute little streets and fancy restaurants, whereas Monterey is more casual and generally more budget-friendly.

So if you’re planning a special occasion or want to treat yourself to a fancy hotel for the weekend, I’d definitely consider Carmel-by-the-Sea. But if you’re traveling with family or trying to keep your budget a little lower, I’d choose Monterey.

My 5 Favorite Hotels in Monterey

1. Merritt House Hotel // Where I Stayed and Loved It!

We stayed at Merritt House Hotel in Monterey, and I really have to say, it was such a great experience. It’s basically a small bed and breakfast, but everything feels so thoughtful and charming. The whole place is super cozy, and I genuinely felt at home staying here for a couple of nights.

The best part for me, though, was the location. I personally love being able to walk places without having to get in the car every time I want to go somewhere. From here, I could walk to loads of restaurants and coffee shops, Old Fisherman’s Wharf and the waterfront, so it was the perfect base for exploring Monterey.

On top of that, there’s private parking, and the breakfast was way better than I expected. So yes, I can already tell you that I’d happily stay here again!

► Click Here for Prices & Availability: Merritt House Hotel

2. Portola Hotel & Spa // Best Luxury Hotel in Monterey

If I came back to Monterey with a bigger budget and wanted to treat myself a little, I’d most likely stay at Portola Hotel & Spa. I think it’s one of the best luxury hotels in Monterey.

The hotel has a really nice pool and spa area, a gym and pretty much everything else you’d want for a relaxing vacation. But my favorite part is actually the design. It has a really cool, modern seaside-town look and especially the rooms look super cool!

And the location is fantastic, too. You’re right in the heart of Monterey, close to the waterfront and within walking distance of plenty of restaurants and attractions. So if you want something a little more upscale without sacrificing the location, Portola Hotel & Spa would definitely be one of my first choices.

► Click Here for Prices & Availability: Portola Hotel & Spa

3. Victorian Inn 

Victorian Inn is one of the best-value hotels on Cannery Row. It’s a three-star hotel with more of a traditional, old-school American design, but without feeling outdated. And honestly, I quite like that actually!

The rooms are really spacious, and I’ve also heard great things about the included breakfast, which is always a nice bonus when you’re staying somewhere for a couple of nights.

But for me, the biggest selling point is definitely the location. You’re literally about an 8-minute walk from the oceanfront and around a 12-minute walk from the Monterey Bay Aquarium. On top of that, there are loads of good Italian and Mexican restaurants nearby, as well as plenty of casual dinner spots.

So if you’re visiting Monterey with your family and want somewhere that’s close to the ocean, restaurants and attractions without spending a fortune, Victorian Inn is definitely worth checking out.

► Click Here for Prices & Availability: Victorian Inn

4. Stargazer Hotel Monterey // Great Hotel with Free Parking

Stargazer Hotel Monterey is another really good value-for-money option, especially if you’re traveling by car.

Rooms can sometimes be found for under $100 per night, which is pretty great for California. It’s technically more of a motel, but it’s been renovated and looks really nice, with beautiful rooms, an indoor pool and some fantastic reviews.

The location is good, too. You’re close to downtown Monterey, so you can still get out and explore without having to drive everywhere. And because it’s a motel-style property, free parking is included.

Let me tell you something: during my month-long road trip through California, I quickly realized how much I hated staying at regular hotels that charged ridiculous fees for parking. At some point, I actually WANTED to stay at a motel because it just made my life so much easier and cheaper!

So if you’re doing a California road trip and want a clean, comfortable place to stay without paying extra just to park your car, I’d definitely look at Stargazer Hotel Monterey.

► Click Here for Prices & Availability: Stargazer Hotel Monterey

5. Arbor Inn Monterey // Best Cheap Hotel in Monterey

And lastly, we have Arbor Inn Monterey, which is probably the best option on this list if you’re trying to keep your accommodation costs as low as possible.

You can sometimes find rooms for around $60 per night, which is pretty unheard of in California, especially somewhere like Monterey. Every room also comes with a parking spot, so you don’t have to worry about paying extra for that.

But don’t assume that just because it’s cheap, it’s going to be some dingy little motel. The rooms look really nice, the property seems well cared for, and for the price, I think it’s a fantastic option.

If you’re on a California road trip or traveling on a smaller budget, this is a great way to save some money without having to stay somewhere that feels run-down.

► Click Here for Prices & Availability: Arbor Inn Monterey

FAQs About the Best Places to Stay in Monterey California

Is Monterey Worth Visiting?

Absolutely! Monterey is such an underrated little town, with loads to do, from whale watching to driving the famous 17-Mile Drive. It’s also a fantastic base for exploring everything from Big Sur to Santa Cruz, so I definitely think it’s worth adding to your California road trip.

Is Monterey Expensive to Visit?

Not particularly, at least compared to nearby towns like Carmel-by-the-Sea. Monterey has some great budget-friendly hotels and plenty of affordable restaurants, so you don’t necessarily have to spend a fortune to enjoy your time here.

What Is the Best Cheap Hotel in Monterey?

I’d look at Arbor Inn Monterey first if you’re trying to keep costs down. Rooms can sometimes be found for well under $100 per night, and parking is included. Stargazer Hotel Monterey is another great option, with rooms sometimes available for just under $100 per night, including an indoor pool and free parking.

What Is the Best Luxury Hotel in Monterey?

In my opinion, Portola Hotel & Spa is one of the best luxury hotels in Monterey. It’s a really nice upscale hotel in a fantastic location near the waterfront, with a pool and spa area.

But if you prefer something smaller and more charming, I can also highly recommend Merritt House Hotel, where we stayed. It’s a super cute little bed and breakfast, and I absolutely loved it!

Should I Stay in Monterey or Carmel-by-the-Sea?

That’s totally up to you because the two places have pretty different vibes.

Monterey feels more like a proper city, with quite a few hotels and plenty of budget-friendly options too. Carmel-by-the-Sea, on the other hand, is a cute little old-school town with adorable cottages, fancy restaurants and a generally more upscale feel.

Final Thoughts on the Best Monterey Hotels

All in all, I had a suuuuper good experience in Monterey! I honestly had no idea I’d like it this much, but I really did. And our hotel definitely played a part in that.

Merritt House Hotel was just such a cute little place to stay, with its cozy rooms, lovely breakfast and fantastic location. Being able to walk to my favorite coffee shops and bakeries in the morning instead of getting straight into the car? Heck yeah, that’s exactly what I want my vacation to be like!

Overall, I’d recommend staying either in Downtown Monterey or Cannery Row, especially if you’re planning on doing a lot of the activities around town. Both areas make it super easy to get around, and you won’t have to keep jumping in the car every time you want to go somewhere.

I hope this guide on where to stay in Monterey, California gave you a good idea of my favorite hotels and areas and helped you plan your next trip!

Check Out My Other Monterey Guides

Where to Stay in Monterey California: My Favorite Areas and Hotels

Cafes & Coffee Shops in Monterey: My Top Spots for a Good Coffee

How Many Days in Monterey Do You Need? My Honest Day by Day Guide

Is Monterey California Worth Visiting? My Honest Review

Things to Do in Monterey California: My Top Activities and Places to Visit

Is the 17-Mile Drive Worth it? My Honest Review