Palau is a pristine Pacific paradise featuring the legendary Rock Islands, a UNESCO World Heritage Site with over 200 limestone and coral islands covered in lush greenery. This small nation offers world-class diving, the famous Jellyfish Lake where you can swim among millions of harmless jellyfish, and some of the most biodiverse marine environments on Earth.
Accommodation overview
Hotels by budget
Find accommodation that fits your travel budget.
Budget-friendly (under $50/night)
DW Motel
Clean and affordable motel in central Koror offering basic but comfortable rooms with air conditioning and WiFi. Perfect for budget-conscious divers and backpackers who prioritize location and value. Walking distance to restaurants, shops, and dive operators.
Check rates on Booking.comPalasia Hotel Palau
Budget-friendly hotel offering simple, clean rooms with essential amenities in downtown Koror. Great location for exploring the island and easy access to dive shops and restaurants. Popular with backpackers and budget travelers for its friendly staff and reasonable rates.
Check rates on Booking.comOcean Star Hotel
Four-star hotel offering good value with comfortable accommodations, shared lounge, terrace, and restaurant. Located in Koror with 24-hour front desk, airport transportation, and free WiFi throughout. Good balance of amenities and affordable pricing.
Check rates on Booking.comPalau Hostel & Backpackers
Palau's first dedicated backpacker hostel offering dormitory beds and private rooms at the lowest prices in the country. Communal kitchen, common room, and free WiFi attract budget travelers. The friendly owners help arrange affordable group tours and dive packages.
Check rates on Booking.comKoror Guesthouse
Clean, family-run guesthouse offering simple rooms with private bathrooms at budget prices. The friendly Palauan hosts serve local breakfast, share tips on free activities, and can arrange affordable tours. Walking distance to shops and restaurants.
Check rates on Booking.comMalakal Inn
No-frills budget inn on Malakal Island perfectly situated for divers who want to roll out of bed and onto the boat. Basic rooms with air conditioning and private bathrooms. Shared kitchen and common area. The dive shops are next door.
Check rates on Booking.comPalau Garden Bungalows
Affordable self-contained bungalows with kitchenettes set in a lush tropical garden on the outskirts of Koror. Ideal for families or groups wanting more space and independence at budget prices. Free parking, BBQ area, and a quiet atmosphere.
Check rates on Booking.comMid-range ($50-150/night)
Cove Resort Palau
Modern beachfront resort offering excellent value with comfortable rooms, pool, and beach access. Located close to downtown Koror, it's popular with divers for its convenient location and dive packages. Clean, contemporary design with helpful staff and good restaurant on-site.
Check rates on Booking.comSea Passion Hotel
Well-maintained hotel in central Koror offering spacious rooms with modern amenities at reasonable prices. Features include a pleasant pool area, helpful tour desk, and proximity to restaurants and shops. Popular with both divers and leisure travelers for its convenient location and friendly service.
Check rates on Booking.comPalau Central Hotel
Contemporary downtown hotel with 82 designer rooms featuring Keurig coffee machines, WiFi, and private balconies with Rock Islands views. Centrally located for easy access to restaurants, shops, and dive operators. Modern amenities and competitive pricing make it popular with business and leisure travelers.
Check rates on Booking.comRose Garden Resort
Peaceful hillside resort offering panoramic views of the Pacific Ocean and Rock Islands from private cottages. Perfect for couples and families seeking a quieter alternative to downtown Koror. Lush tropical gardens, friendly atmosphere, and excellent value for money.
Check rates on Booking.comPalau Sunrise Resort
Welcoming mid-range resort on a hillside with sweeping ocean views and spacious rooms. Features an infinity pool overlooking the Rock Islands, a popular seafood restaurant, and knowledgeable staff who arrange tours. Excellent value for the amenities provided.
Check rates on Booking.comLandmark Hotel Palau
Modern hotel in the heart of Koror known for reliable service, well-appointed rooms, and a popular rooftop restaurant. Rooms have contemporary furnishings and some feature Rock Islands views. Close to the main ferry dock, shops, and diving operators.
Check rates on Booking.comFish N Fins Resort
Diver-focused boutique resort on Malakal Island, ideally located right next to the dive boats. Simple but comfortable rooms, hearty breakfasts, and expert dive staff make this a favorite among diving enthusiasts on a mid-range budget.
Check rates on Booking.comLuxury ($150+/night)
Palau Pacific Resort
Palau's premier luxury resort featuring a private beach, full-service spa, and dive center. Set on 64 acres of tropical gardens with stunning ocean views, the resort offers spacious rooms with balconies overlooking the Rock Islands. Multiple restaurants, infinity pool, and world-class amenities make this the island's top choice for luxury travelers.
Check rates on Booking.comPalau Royal Resort
Upscale waterfront resort offering contemporary rooms with ocean or garden views, located in the heart of Koror. Features include a large pool, spa facilities, and direct marina access for dive boats. The resort combines modern luxury with traditional Palauan hospitality and offers convenient access to shops and restaurants.
Check rates on Booking.comWest Plaza by the Sea
Boutique luxury hotel offering elegant ocean-view suites with modern amenities and personalized service. Located on Koror's waterfront with sunset views over the Rock Islands, the property features a rooftop bar, restaurant, and small pool. Popular with honeymooners and couples seeking an intimate luxury experience.
Check rates on Booking.comAirai Water Paradise Hotel & Spa
Unique family resort featuring Palau's only water park with slides and pools set against jungle and ocean views. Spacious rooms with either ocean or rainforest views, full-service spa, and multiple dining options. Perfect for families wanting both luxury amenities and entertainment for children.
Check rates on Booking.comNeco Marine Dive Resort
Boutique luxury dive resort owned by legendary Palau dive pioneer Francis Toribiong, offering exclusive access to pristine dive sites and personalized service. Features stylish ocean-facing bungalows, a world-renowned dive operation, and chef-prepared meals using local ingredients.
Check rates on Booking.comBest neighborhoods to stay
Choose your base based on your interests and travel style.
City Center
The heart of Palau with easy access to main attractions, restaurants, and transportation.
Best for: First-time visitors, short stays
Old Town
Traditional architecture and local character. Walking distance to historical sites and authentic dining.
Best for: Culture enthusiasts, photographers
Our top picks
Handpicked recommendations for every type of traveler.
Palau Pacific Resort
Palau's premier luxury resort featuring a private beach, full-service spa, and dive center. Set on 64 acres of tropical gardens with stunning ocean views, the resort offers spacious rooms with balconies overlooking the Rock Islands. Multiple restaurants, infinity pool, and world-class amenities make this the island's top choice for luxury travelers.
Check rates on Booking.comCove Resort Palau
Modern beachfront resort offering excellent value with comfortable rooms, pool, and beach access. Located close to downtown Koror, it's popular with divers for its convenient location and dive packages. Clean, contemporary design with helpful staff and good restaurant on-site.
Check rates on Booking.comDW Motel
Clean and affordable motel in central Koror offering basic but comfortable rooms with air conditioning and WiFi. Perfect for budget-conscious divers and backpackers who prioritize location and value. Walking distance to restaurants, shops, and dive operators.
Check rates on Booking.comPalau Royal Resort
Upscale waterfront resort offering contemporary rooms with ocean or garden views, located in the heart of Koror. Features include a large pool, spa facilities, and direct marina access for dive boats. The resort combines modern luxury with traditional Palauan hospitality and offers convenient access to shops and restaurants.
Check rates on Booking.comSea Passion Hotel
Well-maintained hotel in central Koror offering spacious rooms with modern amenities at reasonable prices. Features include a pleasant pool area, helpful tour desk, and proximity to restaurants and shops. Popular with both divers and leisure travelers for its convenient location and friendly service.
Check rates on Booking.comPalasia Hotel Palau
Budget-friendly hotel offering simple, clean rooms with essential amenities in downtown Koror. Great location for exploring the island and easy access to dive shops and restaurants. Popular with backpackers and budget travelers for its friendly staff and reasonable rates.
Check rates on Booking.comBooking tips
Get the best deals and avoid common mistakes.
Book 3-4 months ahead for December to April dry season as Palau's best hotels sell out quickly due to limited room inventory
Many dive resorts offer significant discounts when you book diving packages combined with accommodation - ask specifically about dive packages
Airai Water Paradise is the best family option with the only water park on the island and large family rooms; book early as it fills for school holidays
Palau Pacific Resort and Neco Marine are the premier luxury choices - confirm current pricing directly as website rates often differ from third-party booking platforms
Budget travelers should check Palau Hostel's group dive packages which can reduce costs significantly vs. booking diving separately
Alternative accommodations
Beyond traditional hotels, consider these options.
Guesthouses
Family-run guesthouses offer authentic local experiences and often include home-cooked meals. Great for cultural immersion.
Serviced apartments
Ideal for longer stays or families. Kitchen facilities help save money and provide flexibility.
Hostels
Budget-friendly option for solo travelers. Dorms and private rooms available with social common areas.