Where to Stay in Istanbul: 3 Best Areas and Hotels for All Budgets

Istanbul is a fascinating city, where East and West meet, blending the old and the modern in a unique way. With iconic views like the Bosphorus, Hagia Sophia, and Topkapi Palace, it’s a destination that captivates any traveler. This vibrant city offers an incredible cultural diversity, from historic bazaars and grand mosques to modern cafes and lively nightlife. However, the question of where to stay in Istanbul can be challenging, given the city’s size and the different experiences each neighborhood provides.

According to the Future Travel Trends Report from American Express Global Business Travel, Istanbul will continue to be a rising destination in 2025. The city stands out for its rich cultural heritage, diverse gastronomy, and an increase in air connectivity, making it increasingly accessible for travelers. Skyscanner also mentions Istanbul as a travel hotspot, highlighting the growing interest of tourists in exploring destinations that offer a fusion of history and modernity.

We have visited Istanbul twice, and one of us spent considerable time in the city over three years due to professional projects. Therefore, we are well acquainted with the best places to stay in Istanbul, whether for a short trip or an extended stay. In this article, we will share with you the best areas to stay in Istanbul, with hotel suggestions for all budgets – from budget to luxury options.

The Best Areas to Stay in Istanbul

Sultanahmet – History and Culture

Why Stay in Sultanahmet?

Sultanahmet is the historic heart of Istanbul, home to some of the city’s major tourist attractions like the Hagia Sophia, the Blue Mosque, and the Topkapi Palace. This is the ideal area for those who want to be immersed in the city’s history and culture, exploring the most iconic spots on foot.

According to Travel + Leisure, Sultanahmet is one of the best areas where to stay in Istanbul, allowing travelers to dive into the city’s rich history and culture with easy access to iconic attractions.

Best Hotels in Sultanahmet

• Budget Option: Cheers Hostel – Located in the heart of Sultanahmet, this hostel offers private rooms and dormitories at affordable prices. It’s known for its welcoming atmosphere and a rooftop bar with views of the Hagia Sophia, perfect for budget travelers.
• Mid-Range Option: Sirkeci Mansion – This mid-range boutique hotel provides a comfortable stay with a touch of Ottoman charm. Located near the Topkapi Palace, it’s a great choice for those wanting to explore Sultanahmet without breaking the bank.
• Luxury Option: Four Seasons Hotel Istanbul at Sultanahmet – A luxury hotel housed in a former neoclassical building, offering a unique experience with stunning views of the Hagia Sophia and top-notch service. A perfect choice for those seeking a historic and sophisticated stay.

Beyoglu – Nightlife and Modern Art

Why Stay in Beyoglu?

Beyoglu is the artistic and cultural center of Istanbul, featuring the famous Istiklal Avenue, modern art galleries, and a vibrant nightlife. It’s an ideal area for those seeking a lively atmosphere with easy access to restaurants, bars, and clubs, as well as cultural attractions like the Istanbul Modern Art Museum.

According to Lonely Planet, Beyoğlu is one of the best areas where to stay in Istanbul, offering a vibrant fusion of nightlife and modern art, perfect for those wishing to explore the city’s contemporary culture.

Best Hotels in Beyoglu

• Budget Option: Cheers Midtown Hostel – A budget-friendly option located near Taksim Square and Istiklal Avenue. With simple and comfortable rooms, it’s an excellent choice for those wanting to be close to the action without spending much.
• Mid-Range Option: The Marmara Taksim – A mid-range hotel with a prime location at Taksim Square, offering panoramic views of the city and easy access to public transport. Ideal for those looking to explore Beyoglu while maintaining a good balance between comfort and price.
• Luxury Option: Pera Palace Hotel – This iconic hotel is a true historical gem, with an ambiance that harks back to the era of the Orient Express. Luxurious rooms and impeccable service make this hotel a unique experience in Beyoglu.

Karaköy – Modernity and Style

Why Stay in Karaköy?

Karaköy is one of the trendiest areas in Istanbul, where modernity meets history. This former port district has transformed into a hub of modern cafés, innovative restaurants, and art galleries. Its proximity to the Bosphorus offers stunning views and easy access to Sultanahmet, Beyoglu, and other parts of the city.

According to Condé Nast Traveler, Karaköy is one of the best areas where to stay in Istanbul, known for its modernity and style, standing out for its combination of contemporary culture, art, and a vibrant culinary scene.

Best Hotels in Karaköy

• Budget Option: Hush Hostel Lounge – A modern and relaxed hostel located in the heart of Karaköy. It offers dormitory and private rooms, ideal for socializing with other travelers and exploring both the historic and modern areas of the city.
• Mid-Range Option: 10 Karaköy Istanbul – A design hotel with a central location in Karaköy. It offers elegant rooms and a sophisticated atmosphere, making it ideal for travelers who want to be close to the cultural life and new hotspots of Istanbul.
• Luxury Option: Raffles Istanbul – This luxury hotel offers an exquisite experience with elegant rooms and high-quality services. Located near the Bosphorus, it features a world-class spa, award-winning restaurants, and stunning city views, making it perfect for a sophisticated stay in Istanbul.

Tips for Choosing the Best Hotel in Istanbul

• Define Priorities: Think about the type of experience you want to have. If you prefer to be surrounded by history, Sultanahmet is the perfect choice. For nightlife and art, Beyoglu is ideal, while Karaköy offers a mix of modernity and style.
• Budget: Like in any city, your budget will significantly influence your hotel choice. Istanbul offers a wide range of options for all tastes and budgets. We recommend booking in advance, especially in the most popular areas.
• Accessibility to Transportation: Istanbul is a vast city, so it’s important to choose an area with easy access to public transportation. Proximity to a tram, metro, or ferry station can make a big difference in your travel experience.