Where to Stay in Palau
A regional guide to accommodation across the country
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Regions of Palau
Each region offers a distinct character and accommodation scene. Find the one that matches your travel plans.
The commercial heart of Palau and where the vast majority of visitors stay. This area offers the widest selection of accommodation, from budget guesthouses to upscale hotels, all within walking distance or short drives of restaurants, shops, and dive operators. Most properties have waterfront locations along Koror's coastline.
Connected to Koror by a causeway, Malakal is Palau's harbor area and home to several dive resorts and mid-range hotels. The location puts guests right at the departure point for Rock Islands tours and dive trips, making it extremely convenient for water-based activities.
Just south of Koror and connected by bridge, this quieter island offers a handful of resorts with more space and tranquility while remaining close to Koror's amenities. Properties here tend to be larger with more extensive grounds and beach areas.
Located between Koror and Babeldaob, this island offers a more local residential feel with a small selection of guesthouses and budget accommodations. It's quieter than central Koror but still easily accessible, providing good value for budget-conscious travelers.
Palau's largest island offers very limited accommodation options focused on eco-lodges and small guesthouses. This area appeals to travelers interested in cultural experiences, jungle trekking, and exploring ancient stone monoliths away from the diving crowds.
The eastern coastline of Babeldaob features a few isolated properties offering peaceful beachfront settings and access to less-visited dive sites. This region is ideal for travelers seeking solitude and willing to sacrifice some convenience for tranquility.
Located on southern Babeldaob near the international airport, this area has a few convenient options for late arrivals or early departures. While not ideal for a full stay, these properties work well for transit purposes and offer lower prices than Koror.
This historic island south of Koror offers extremely limited accommodation—typically just one or two basic guesthouses. Staying here appeals to World War II history enthusiasts wanting to explore the battlefields and those seeking an authentic, off-the-beaten-path island experience.
While day trips are the norm, one or two exclusive properties offer overnight stays within the Rock Islands themselves. These ultra-remote options provide unparalleled access to pristine nature and world-class diving but come with premium prices and limited amenities.
The remote islands of Angaur and Sonsorol have virtually no tourist infrastructure, with only the most basic local accommodations available on Angaur. These destinations are for true adventurers willing to forgo comfort for authentic cultural immersion and pristine natural environments.
Accommodation Landscape
What to expect from accommodation options across Palau
Palau has minimal presence from international hotel chains, with no major brands like Marriott, Hilton, or Hyatt operating in the country. The closest to chain accommodation are a few regional Asian hotel groups and internationally-affiliated dive resorts. This absence of chain hotels means most properties are independently owned and operated, giving the accommodation scene a distinctly local character. The lack of brand-name hotels also means travelers should rely more heavily on recent reviews rather than brand expectations when booking.
Independent, locally-owned hotels and guesthouses dominate Palau's accommodation landscape. These range from family-run guesthouses where owners personally greet guests, to professionally managed dive resorts with decades of experience catering to international visitors. Many properties are owned by Palauan families or long-term expat residents who have deep knowledge of the islands. Local accommodations often provide more personalized service and cultural insights than chain hotels, and owners frequently assist with tour bookings, transportation, and dining recommendations. The small size of most properties means staff can offer genuine attention to guest needs.
Palau offers several accommodation experiences unique to its island setting. Traditional bai-inspired architecture appears in some resorts, incorporating elements of Palau's distinctive men's meeting houses with their steeply pitched roofs and painted beams. A few properties offer overwater bungalows or rooms built on stilts over the lagoon, providing direct water access and stunning marine views. Eco-lodges on Babeldaob emphasize sustainable practices and cultural immersion, often including traditional thatched-roof construction and solar power. For the adventurous, basic beach camping is possible in designated areas of the Rock Islands with proper permits, and some dive operators offer liveaboard boats for multi-day diving expeditions that serve as floating hotels exploring Palau's remote sites.
Booking Tips for Palau
Country-specific advice for finding the best accommodation
Most visitors come to Palau specifically for diving, and many accommodations offer dive packages that bundle rooms with daily boat dives at discounted rates. Booking these packages directly with resorts often provides better value than booking accommodation and diving separately. Compare what's included—some packages cover tanks and weights only, while others include equipment rental, Rock Islands permits, and even airport transfers.
All visitors must purchase a $50 Rock Islands permit (valid 10 days) and a $30 fishing permit to access Palau's famous marine areas. Some accommodations include these in their packages, while others don't—always clarify before booking. Additionally, there's a $100 departure environmental fee. These mandatory costs add significantly to your trip budget, so factor them into your accommodation decisions.
Most dive boats and Rock Islands tours depart from Malakal Harbor between 7:30-8:30 AM. Staying in Koror or Malakal minimizes early morning travel time, while properties on Arakabesang or Babeldaob may require 15-30 minute drives. If you're planning daily water activities, proximity to departure points can significantly impact your schedule and convenience.
Many Palauan hotels and resorts offer better rates when booked directly through their websites or email rather than through third-party booking platforms. This is especially true for dive packages and extended stays. Direct contact also allows you to ask specific questions about dive operations, dietary requirements, and transportation that may not be clear on booking sites.
Accommodation offerings vary significantly in Palau. Some rates include breakfast, airport transfers, and kayak use, while others charge extra for everything. The remoteness of Palau means restaurant meals are expensive ($15-30 per person), so properties including breakfast or kitchenettes can provide substantial savings. Always verify exactly what's included in your rate to avoid surprise charges.
Palau has fewer than 1,500 hotel rooms across the entire country, and most properties are small (10-40 rooms). During peak season, the entire island can sell out, particularly around holidays. Book at least 3-4 months ahead for high season travel, and 6-8 weeks minimum even for shoulder season to ensure you have choice in where you stay.
When to Book
Timing matters for both price and availability across Palau
For travel during December-March peak season, book 3-6 months in advance, especially for Christmas, New Year's, and Chinese New Year periods when properties can sell out entirely. Japanese Golden Week (late April/early May) also requires advance booking of 2-3 months. Mid-range and luxury properties fill up first, but even budget guesthouses see high demand during these periods.
November and April-May shoulder season allows more flexibility, but booking 6-8 weeks ahead is still recommended to secure your preferred property and any dive packages. Prices during shoulder season are typically 10-20% lower than peak, and you'll have better selection if booking at least a month out.
June through October low season offers the most flexibility and best prices, with last-minute bookings often possible and rates 30-50% lower than peak season. However, the best-value properties still book up, and if you have specific accommodation requirements (waterfront rooms, dive packages), booking 3-4 weeks ahead ensures availability. Some smaller properties close for maintenance during September-October.
Given Palau's limited accommodation inventory and popularity as a diving destination, earlier booking is always better. Even budget travelers benefit from advance planning to secure the limited affordable options. If you're booking a dive package or traveling with a group, add extra lead time. The small size of most properties means they can't simply add rooms when demand is high—once they're full, your options become severely limited.
Good to Know
Local customs and practical information for Palau