Where to Stay in Tokyo: 4 Best Areas and Hotels for All Budgets

We are completely in love with Japan, and Tokyo holds a special place in our hearts. This unique city is a perfect fusion of tradition and modernity. From futuristic skyscrapers and neon-filled neighborhoods to tranquil shrines and historic streets, Tokyo offers a diversity of experiences that is hard to find anywhere else. However, the question of where to stay in Tokyo is one of the biggest concerns for any traveler, given the immense variety of neighborhoods and accommodation options in the city.

According to the UNWTO (United Nations World Tourism Organization), Japan recorded a significant increase in visitors in 2024 due to interest in its rich cultural heritage and cuisine, and the outlook for 2025 will be no different. If you haven’t had the chance to visit this wonderful country yet, perhaps this is the year, and Tokyo must be on your Japan itinerary.

We have traveled to Tokyo three times, and in 2025 we will return for the fourth time during our second trip around the world, because this city always has something new and surprising to offer. Choosing the ideal place to stay in Tokyo can be a challenge, as each area of the city provides a unique experience, from vibrant nightlife and luxury shopping to calmer and more traditional environments. In this article, we will share the best areas to stay in Tokyo and suggest the best hotels for all budgets – from economical options to the most luxurious.

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The Best Areas to Stay in Tokyo

Shinjuku – Nightlife and City Energy

Why Stay in Shinjuku?

Shinjuku is one of the busiest areas in Tokyo, known for its vibrant nightlife, skyscrapers, and endless entertainment options. Shinjuku Station, one of the busiest in the world, makes it easy to access other parts of the city, making this area extremely convenient. Shinjuku is ideal for those who want to be in the heart of the action and enjoy plenty of bars, restaurants, and shops. According to Lonely Planet, Shinjuku is a city within the city and one of the most vibrant areas to stay in Tokyo.

Best Hotels in Shinjuku

• Budget Option: IMANO Tokyo Hostel – This hostel offers a budget option with private rooms and dormitories, located in one of the best areas of Shinjuku. It’s ideal for backpackers or those traveling on a limited budget but wanting to be in the heart of the city.
• Mid-range Option: Citadines Central Shinjuku Tokyo – This mid-range hotel has a central location in Shinjuku, offering spacious rooms and an excellent balance of price and comfort. It’s a popular choice for those wanting to be close to the area’s attractions without spending too much.
• Luxury Option: Bellustar Tokyo – Situated at the top of a skyscraper in Shinjuku, this luxury hotel offers stunning views of the city and a sophisticated experience. The rooms blend modern design with traditional touches, while amenities include an excellent spa and gourmet dining options, ensuring a memorable stay.

Shibuya – The Youthful Heart of Tokyo

Why Stay in Shibuya?

Shibuya is one of the most iconic areas of Tokyo, especially known for the busiest crossing in the world and the Hachiko statue. It’s the youth fashion district, packed with shops, cafes, and restaurants. Shibuya is the perfect choice for those looking for a lively atmosphere, with easy access to major tourist attractions and a vibrant nightlife. According to Culture Trip, Shibuya is one of the best areas to stay in Tokyo with great accommodation options.

Best Hotels in Shibuya

• Budget Option: Shibuya Hotel En – A budget hotel located near Shibuya Station, ideal for those looking for an accessible and comfortable place to explore the city. The rooms are compact but well-equipped, offering great value for money.
• Mid-range Option: Shibuya Excel Hotel Tokyu – Located directly above Shibuya Station, this mid-range hotel offers spacious rooms with views of the famous crossing. With excellent location and a comfortable atmosphere, it’s a great option for those looking for something in the middle of the budget.
• Luxury Option: Cerulean Tower Tokyu Hotel – This luxury hotel offers panoramic views of Tokyo and sophisticated rooms. It’s a premium choice for those wanting a more exclusive hotel experience while being close to Shibuya’s main attractions.

Ginza – The Luxury and High-End Shopping District

Why Stay in Ginza?

Ginza is the most luxurious district in Tokyo, famous for its international designer stores and gourmet restaurants. It is the ideal destination for those looking to shop at luxury brand stores and explore one of the city’s most elegant areas. Ginza also offers a central location with easy access to various other parts of Tokyo. According to The Times, Ginza is one of the coolest districts for shopping and stylish hotels, making it a great option for where to stay in Tokyo.

Best Hotels in Ginza

• Budget Option: Sotetsu Fresa Inn Ginza-Nanachome – This budget hotel is located in the heart of Ginza, providing an affordable stay in one of the city’s most sophisticated areas. The rooms are small but modern and functional, offering great value for those looking to stay close to everything without spending too much.
• Mid-Range Option: Mitsui Garden Hotel Ginza Premier – This hotel offers a mid-range experience with stylish rooms and stunning city views. Its location in Ginza makes it ideal for those who want to explore the area’s shops and restaurants without paying luxury hotel prices.
• Luxury Option: The Peninsula Tokyo – One of the most prestigious hotels in the city, The Peninsula offers an unparalleled luxury experience, with spacious rooms, excellent service, and a prime location in Ginza. It is the perfect choice for those seeking an exclusive stay with all the amenities of a 5-star hotel.

Asakusa – The Tradition and History of Tokyo

Why Stay in Asakusa?

Asakusa is one of the most traditional areas of Tokyo, famous for the Senso-ji Temple and its historic streets. If you’re looking for a cultural experience and want to immerse yourself in Japanese history and traditions, Asakusa is the ideal place to stay. The area offers a quieter environment compared to other busier neighborhoods. According to Tokyo Cheapo, Asakusa is one of the most affordable areas where to stay in Tokyo.

Best Hotels in Asakusa

• Budget Option: Sakura Hostel Asakusa – This hostel offers an affordable stay with a friendly and welcoming atmosphere. Located near Senso-ji Temple, it is an excellent choice for travelers seeking comfort and convenience without spending too much.
• Mid-Range Option: The Gate Hotel Asakusa Kaminarimon – A mid-range hotel that combines modernity with the traditional atmosphere of Asakusa. Located near the temple, it offers comfortable rooms and a fantastic view of the area, making it an excellent option for those wanting to explore Tokyo’s cultural district.
• Luxury Option: Asakusa View Hotel – This luxury hotel offers spacious rooms with spectacular views of Senso-ji Temple and Tokyo Skytree. It is an ideal choice for those looking for comfort and a more sophisticated experience while being immersed in the traditional atmosphere of Asakusa.

Tips for Choosing the Best Hotel in Tokyo

Define Your Priorities

Before choosing where to stay in Tokyo, it’s important to think about the type of experience you’re looking for. Do you want to be close to the nightlife? Prefer a quieter, more cultural area? Or are you looking for luxury shops and restaurants? Choose the area that best fits your travel style.

Budget

Your budget will greatly influence your choice of hotel in Tokyo. You can find budget options in the busier areas, but there are also luxury hotels available. Do your research in advance and compare prices to find the best deal.

Accessibility to Transportation

Tokyo has an excellent public transportation system, and being close to a subway or train station can make your trip much easier. Look for hotels in Tokyo that are near the main subway lines, so you can move quickly between different neighborhoods.