Where to stay in Montenegro

While Montenegro is gaining popularity, it remains a hidden gem. With just 2.6 million annual visitors, a fraction of the 21 million who flock to neighboring Croatia, it still offers a chance to experience its breathtaking beauty without the crushing crowds. My advice? Visit now, before the secret gets out.

Montenegro’s diverse landscape means that where you stay will define your entire trip. Are you dreaming of dramatic mountain vistas and historic fortresses, or do you crave lively beaches and bustling nightlife? The good news is, in Montenegro, you don’t have to choose, you can have both.

After spending months getting to know this country, I’ve seen the good, the bad, and the seriously overcrowded. This guide is my no-fluff breakdown of where you should actually stay, based on what you want to get out of your trip.

Here’s my quick summary:

For history & atmosphere: Stay in the Bay of Kotor.

For beaches & nightlife: Stay on the Budva Riviera.

For hikes & adventure: Head for the Mountain Interior.

The Big Decision: Kotor vs. Budva?

Most of us planning a trip to Montenegro, will have asked ourselves: “Should I stay in Kotor or Budva?” This is the classic dilemma, and for good reason. These two coastal hotspots are just 30-40 minutes apart, but represent two very different sides of the Montenegrin experience.

One offers dramatic, fjord-like landscapes and ancient Venetian walls, while the other boasts a bustling nightlife and long stretches of sun-drenched beach. Choosing between them will set the entire tone for your trip. To make it easier, here’s a high-level breakdown of what each has to offer:

My Verdict:For me, the raw, historic beauty of the Bay of Kotor is unbeatable. But the right choice really depends on the adventure you’re looking for. For a full breakdown of the pros and cons of each, read my in-depth comparison: Budva vs. Kotor.

The Bay of Kotor:

This is the most iconic and visually stunning part of Montenegro. The areas below offer unique ways to experience the bay, from historic serenity to modern luxury.

Kotor – Old Town

Vibe: A compact, historic harbor town where twisting streets open onto lively piazzas, and every corner feels photogenic. Its serene mornings quickly give way to bustling energy, especially on cruise-ship days, but thankfully they only tend to get a few hours ashore.

Average price range: $$-$$$ (mid to premium—small old town rooms are often pricier than comparable places in the suburbs).

Top 3 reasons to stay here:

• You want to soak up the full old-town atmosphere and wake up to those iconic bay views.
• It’s an ideal base for day trips around the Bay of Kotor and to nearby mountains, with easy access to the bus station.
• Restaurants, cafes, and galleries are all concentrated within easy walking distance.

Top 2 downsides to be aware of:

• Peak summer can be hectic, especially with day-trippers and cruise-ship crowds.
• Rooms in the old town are limited and often smaller and pricier than comparable places just a few minutes’ drive away.

Best for: First-time visitors, history lovers, couples who want postcard-perfect evenings, and photographers. See my complete Kotor travel guide

Getting around: The old town is best explored on foot. Taxis are cheap for short hops, but parking is extremely limited if you have a car. Local buses run from the main station just outside the old town to places like Perast and Budva, making it easy to explore without a car.

Practical tip: If you want the atmosphere without the late-night noise, look for a room on the edge of the old town or a short taxi ride away in Dobrota (see below). You keep the views and the access and often save money.

Must-do / local highlight: Climb the city walls to the fortress early in the morning for sweeping views and to avoid the crowds. Afterward, grab a coffee in one of the shady squares, like Trg od Oružja, and get lost in the old town’s maze of alleyways.

Dobrota – for quiet views, good value

Vibe: A serene waterfront strip just outside Kotor, offering sweeping sea views and a decidedly calmer pace than the bustling old town. This is where I based myself while visiting Montenegro and working remotely.

Average price range: $$ (mid-range apartments and hotels).

Top 3 reasons to stay here:

• You want bay views and easy access to Kotor without the crowds and the price tag
• There are more apartment options and mid-range hotels, making it a perfect value base for your trip
• Evenings are peaceful, perfect for slow dinners at a local konoba and watching the dramatic light change over the water.

Top 2 downsides to be aware of:

• Limited nightlife and a quieter service scene. You’ll need to take a quick taxi ride (5-10 mins) into Kotor for late-night options
• Public transport is less frequent than in the town center; having a car or a taxi plan is essential for exploring further afield.

Best for: Couples wanting calm evenings, families after space and value, and travellers who want easy access to Kotor without the late-night crowds.

Getting Around: Taxis are readily available and affordable for trips to Kotor. A local bus runs intermittently, but a rental car offers the most freedom.

Practical tip: Look for apartments along the seafront with small balconies. They’re often cheaper than Kotor old-town rooms and still put you just a short drive from the heart of the bay.

Don’t miss a stroll along the famous Dobrota promenade.

Perast – for timeless beauty & peaceful evenings

Vibe: A small, car-free Baroque town frozen in time. Its single main street winds along the water, offering an intimate and peaceful atmosphere once the day-trippers have gone home.

Average price range: $$-$$$ (mid to premium to upscale, boutique hotels and renovated stone palaces are common).

Top 3 reasons to stay here:

• Escape the crowds: After sunset, the town empties out, leaving a tranquil, romantic atmosphere perfect for a slow-paced trip.
• Unrivaled views: Your view across the bay to the iconic islets of Our Lady of the Rocks and St. George is a constant, postcard-perfect backdrop.

An ideal base for relaxation: With no cars or large cruise ships, Perast is a serene retreat. The slow pace is perfect for reading, swimming, and enjoying long, leisurely meals by the water.

Top 2 downsides to be aware of:

• Limited amenities: This is a tiny town. Nightlife is non-existent, and while there are excellent restaurants, there are fewer options for shopping or a casual scene compared to Kotor.
• It can feel like a tourist trap during the day: From late morning until late afternoon, the town can be very busy with day-trippers, which can detract from its peaceful charm.

Best for: Romantic getaways, travellers seeking peace and quiet, photographers, and those who want an exclusive base for exploring the Bay of Kotor by car.

Getting around: The town is entirely pedestrian-only. You’ll park in a designated lot at either end of town. Small boats run frequently from the waterfront to the islands, and taxis are easily arranged for trips to other towns.

Practical tip: Book accommodation with a water-facing balcony or a private pier. Many of the boutique hotels offer this, and having your own slice of the bay for swimming and sunbathing makes all the difference.

Must-do / local highlight: Take a short boat trip out to the artificial islet of Our Lady of the Rocks. Climb the bell tower of St. Nicholas Church for a breathtaking bird’s-eye view of the entire town and its twin islands.

Tivat – for modern luxury, superyacht glamour

Vibe: A vibrant and modern port town on the Bay of Kotor, known for the extravagant Porto Montenegro marina. It’s a chic and upscale destination with a sophisticated, cosmopolitan atmosphere that sets it apart from nearby towns.

Tviat is also a popular destination for remote workers and expats due to its connectivity, and modern lifestyle. A day trip from Kotor was enough for me. It was calm and relaxed but to me lacked the charm of the other towns and cities along the bay.

Average price range: $$-$$$ (mid to luxury, many high-end hotels and apartments, but more mid-range options are available outside of Porto Montenegro).

Top 3 reasons to stay here:

• Luxury and amenities: You want to be at the center of Montenegro’s most luxurious scene. Tivat offers high-end hotels, designer boutiques, and world-class dining, all concentrated in the stunning Porto Montenegro development.
• Central location and transport hub: Tivat has its own airport, making it incredibly convenient for arrival and departure. It’s also a great base for exploring the entire Bay of Kotor and the nearby Luštica Peninsula.
• Vibrant atmosphere: The town is buzzing with life, from the chic cafés and restaurants along the promenade to the lively nightlife scene, particularly in the summer months.

Top 2 downsides to be aware of:

• Lacks historic charm: If you’re looking for ancient stone walls and medieval architecture, Tivat won’t deliver. It’s a modern, purpose-built destination that can feel less “authentic” than Kotor or Perast.
• Can be expensive: The focus on luxury means many of the dining, shopping, and entertainment options come with a premium price tag, especially within Porto Montenegro.

Best for: Luxury travellers, yachting enthusiasts, couples seeking a cosmopolitan vibe, and those who want convenience and modern amenities.

Getting around: The town center is walkable, especially the Porto Montenegro area. For exploring further, taxis are widely available, and you can easily rent a car. The proximity to Tivat Airport (TIV) is a major plus.

Practical tip: While Porto Montenegro is the star attraction, look for accommodation in the surrounding neighborhoods for a more authentic local experience and better value. The town’s promenade stretches beyond the marina and is great for evening walks.

Must-do / local highlight: Stroll along the Porto Montenegro promenade to marvel at the superyachts, then explore the Naval Heritage Museum for a glimpse into the area’s past. For a more traditional experience, visit the nearby village of Gornja Lastva, tucked away in the hills.

The Budva Riviera

This is the heart of Montenegro’s beach and party scene. It has a different energy from the Bay of Kotor and should be considered as its own distinct region. here you’ll find more sun, sand, and a more lively atmosphere.

Budva – for beaches, nightlife, and a bustling Old Town

Vibe: The undisputed center of Montenegro’s tourism, Budva is a high-energy city where modern resorts, a vibrant nightlife, and a stunning medieval Old Town coexist. It’s the place to go for sun, sand, and a lively atmosphere.

Average price range: $$-$$$ (mid to premium—a wide range of options from budget apartments to luxury resorts, but prices are highest in peak summer).

Top 3 reasons to stay here:

Beaches and nightlife: You want a classic beach holiday with a buzzing atmosphere. Budva is famous for its long sandy beaches, extensive promenade, and a legendary nightlife scene with open-air clubs and beach bars.

A mix of old and new: The compact, historic Old Town (Stari Grad) offers a beautiful contrast to the modern city, with its cobbled streets, ancient walls, and charming cafes.

Family-friendly amenities: With a large water park, numerous family-friendly beaches, and a wide array of activities, Budva caters well to families looking for a fun and engaging trip.

Top 2 downsides to be aware of:

• It gets extremely crowded: During peak season (July and August), Budva is packed with tourists. The beaches and promenade can feel overwhelmed, and traffic becomes a major issue.
• It can feel less authentic: The focus on tourism means the city outside the Old Town can feel generic and overdeveloped, lacking some of the local character found in other Montenegrin towns.

Best for: Party-goers, beach lovers, families with kids, and travellers who want a high-energy vacation with plenty of amenities and activities.

Getting around: The main city and Old Town are walkable, and taxis are widely available. A popular and convenient local bus system connects the beaches along the Budva Riviera, making it easy to hop between them without a car.

Practical tip: If you want a break from the crowds, take a short boat trip to Sveti Nikola Island, a nearby island with beautiful, less-crowded beaches and a much more peaceful vibe.

Must-do / local highlight: Explore Budva’s Old Town by walking its city walls for a fraction of the cost of Dubrovnik’s. Afterwards, grab a cocktail at a bar on the promenade and enjoy the evening buzz. For party goers, check out a superclub like Top Hill.

Sveti Stefan – for luxury & exclusivity

Vibe: An iconic and impossibly photogenic islet, home to a five-star hotel. This destination is defined by its breathtaking views, high-end exclusivity, and a serene atmosphere that is a world away from the busy coastline.

Average price range: $$$$ (ultra-luxury—the island hotel is one of the most expensive in Montenegro).

Top 3 reasons to stay here:

• Ultimate exclusivity: The island itself is a private resort, offering a secluded and serene experience with impeccable service and absolute privacy.
• A once-in-a-lifetime setting: You get to stay in a beautifully renovated medieval village, with cobblestone streets and historic buildings, all while enjoying the amenities of a world-class hotel.
• Unrivaled views: Whether you are on the island or in the mainland village, the views of the islet, the pink pebble beaches, and the turquoise water are truly spectacular.

Top 2 downsides to be aware of:

• Exorbitant cost: The price of a room on the island is prohibitive for most travellers, making it inaccessible for all but a few.
• Limited public access: The island is a private resort. You can’t just walk onto it; access is restricted to hotel guests or those with a confirmed dinner reservation at the restaurant.

Best for: Ultra-luxury travellers, honeymooners, and couples celebrating a very special occasion, or just Instagrammers and influencers

Getting around: The mainland village is easily accessible by car or taxi from Budva. The island is connected by a narrow causeway. The best way to explore is with a rental car, as the main road offers the best views and connects you to nearby beaches.

Practical tip: If you can’t afford to stay on the island (which is most people), you can still experience the magic. Take a short walk up the hill to the famous viewpoint for the best photo, or book a table at the island’s restaurant for a stunning, albeit pricey, dinner experience.

Must-do / local highlight: Get the classic photo of the island from the roadside viewpoint. Then, spend some time on Sveti Stefan’s public beaches, which are beautifully maintained and offer a great vantage point of the islet.

Žabljak – for adventure and mountains

Vibe: The gateway to Durmitor National Park. This is a destination defined by its dramatic alpine landscape, glacial lakes, and a focus on outdoor adventure.

Average price range: $–$$ (budget to mid-range, hostels, guesthouses, and apartments are common and affordable).

Top 3 reasons to stay here:

• Direct access to Durmitor: You are at the heart of the national park, with trailheads for stunning hikes and walks starting right from town.
• Escape the coastal heat: A perfect summer retreat, offering cool, fresh mountain air and a complete change of pace from the crowded beaches.
• The region is a playground for outdoor enthusiasts, with world-class hiking, rock climbing, and the famous Tara River Canyon for rafting.

Top 2 downsides to be aware of:

• Isolated and remote: Žabljak is a long drive from the coast and other major Montenegrin cities. You will feel a strong sense of isolation.
• Unpredictable weather: Even in summer, the weather can change quickly. It’s not uncommon for temperatures to drop and for it to rain, so you need to be prepared for all conditions.

Best for: Hikers, adventure seekers, budget travellers, nature photographers, and anyone who wants to experience Montenegro’s mountains.

Getting around: The town center is walkable, but a car is highly recommended for exploring the wider national park, visiting different trailheads, and driving the famous Durmitor Ring scenic route. Or if like me, you prefer two wheels, then an adventure motorcycle would be perfect.

Practical tip: Always pack layers and good, waterproof footwear, even if the forecast looks good. Be sure to visit the park’s visitor center for up-to-date trail maps and safety information.

Must-do / local highlight: Hike the trail around the stunning glacial Black Lake (Crno Jezero), or for a bigger adventure, go white-water rafting on the Tara River, Europe’s deepest canyon.

Alternatives to the main tourist hotspots

If the main hubs don’t quite fit your style, Montenegro has plenty of other corners to explore. Here are a few more places to add consider away from the masses.

Herceg Novi: Located just opposite the entrance to the bay of Kotor, this sun-drenched town is defined by its stunning greenery, multiple fortresses, and a famous “city of stairs” reputation.

It offers a lived-in, authentic feel with a lively 6km-long promenade and a charming, less-crowded old town. It’s also much cheaper than near-by Tivat.

Ulcinj: Located near the Albanian border, Ulcinj is famous for its multicultural atmosphere and the 12km-long Velika Plaža (beach), a paradise for kite-surfers and sunbathers. It also boasts the warmest waters in Montenegro.

Its historic Old Town offers a unique, Ottoman-influenced charm, while the town itself is a vibrant and budget-friendly alternative to the crowded northern coast.

Petrovac: A relaxed, family-friendly alternative on the Budva Riviera for those who want beautiful beaches without the late-night party scene.

Kolašin: The gateway to Biogradska Gora National Park, this mountain town is a great base for exploring one of Europe’s last remaining primeval forests.

Plužine: A stunningly scenic town perched on the edge of the turquoise Piva Lake, perfect for road-trippers and those seeking tranquility in the northern mountains.

Grebaje Valley (Prokletije): For the truly adventurous, this is the base for exploring the wild and jagged peaks of the “Accursed Mountains”, some of the most dramatic and untouched hiking in the Balkans.

Montenegro 7-day itinerary

As you can see, there’s a lot to discover in Montenegro, but given seven days, this is what I’d do.

Days 1-3: The Bay of Kotor. Base yourself in Kotor or the quieter Perast. Spend your days getting lost in the Old Town, hiking the fortress walls for that iconic view, and taking a boat trip on the bay.

Days 4-5: The Budva Riviera. Drive the scenic coastal road to Budva. Spend a day enjoying the beaches and the lively atmosphere of the Old Town, and dedicate a day to seeing the iconic Sveti Stefan.

Days 6-7: Durmitor National Park. Head inland on the spectacular scenic drive towards Žabljak. On your final full day, tackle a hike around the stunning Black Lake or, for the more adventurous, take on the Bobotov Kuk trail.

It’s pretty fast paced, but takes in the best of the Bay of Kotor, the coastline, and the best in inland routes.

Getting Around

I typically travel by motorcycle, but I appreciate many people will fly into Montenegro and be considering car renal, and public transport.

Rental Car (My Recommendation): If you want true freedom, especially to explore the national parks, a car is non-negotiable. The roads, particularly the scenic routes through the mountains, are an adventure in themselves.

Just be prepared for some narrow, winding sections and be sure to book an automatic if you aren’t comfortable with a manual on steep hills.

Buses: For travel between the main coastal towns (like Kotor, Budva, and Sveti Stefan), the bus system is surprisingly efficient and very affordable. If you’re planning to stick strictly to the coast and don’t mind a bit of a schedule, you can easily get by without a car.

Bicycle: If you’re based in Dobrota or just outside, a bicycle can be useful for heading into Kotor. The best part is, that you can avoid the busy road, and cycle on the promenade along the bay.

Where will your Montenegrin adventure begin?

Montenegro has been one of the most surprising destinations in Europe for me, and I can’t wait to go back. It’s a country that rewards those who are willing to look beyond the surface and choose a base that truly fits their style.

So, no matter your style, the right place to stay is out there. All that’s left to do is pack your bags and find it. Let me know in the comment when you do.