Finding the best place to stay in London can be tough, with so many neighborhoods each offering unique experiences. Do you want to be steps away from iconic landmarks, experience the city's nightlife or stay somewhere quieter?
After living in London and exploring its diverse areas, I’m here to help you choose the best one for your trip. In this guide, I’ve grouped the best neighborhoods by vibe, plus hotel recommendations for every budget.
Overview of London Areas
London is a massive city with a total of 32 boroughs (district or suburb). While the city stretches far, most visitors stay in Central London, where most of the attractions and restaurants are located. Some of the central borughs include Westminster, Kensington & Chelsea, Southwark and Tower Hamlets.
I'll be breaking it down even further into different neighbourhoods in the centre of London so you know exactly where to stay.
Best for Sightseeing - Covent Garden, South Bank & Westminster
Covent Garden, South Bank and Westminster are all in the centre of the city and are walking distance from iconic spots like Buckingham Palace, London Eye, Big Ben and Tower of London.
These areas are perfect for first-time visitors who want to experience the best of London in a short amount of time. However, this also makes it the most expensive area, so expect to pay anything upwards of £200 a night.
Covent Garden
Covent Garden is an ideal place to base yourself if you want to explore London's West End shows and shopping scene. You'll be surrounded by all of London's best theatres and restaurants, and it's a short walk to Oxford Street, the shopping capital of London.
- The Savoy (Luxury) - One of London’s most famous luxury hotels near the Thames.
- AMANO Covent Garden (Mid-range) - A modern hotel with a rooftop bar with views over the city.
- Z Hotel Covent Garden (Budget) – A compact, affordable option just a short walk from Covent Garden.
South Bank
The South Bank is a great place to stay if you want to be close to the river and iconic landmarks at a slightly lower price point than Covent Garden. You'll also find Waterloo Station here, so it’s easy to travel around London and outside of the city.

- H10 London Waterloo (Luxury) - A stylish hotel with stunning views of the London skyline from the rooftop terrace.
- Park Plaza County Hall London (Mid-Range) - A modern hotel steps from the London Eye and Westminster.
- CitySpace Borough (Budget) - A simple & comfortable option in Borough for an affordable price.
Westminster
Westminster is the perfect option for history and culture lovers, as its home to landmarks like Big Ben, the Houses of Parliament, Westminster Abbey and Buckingham Palace.

- Rubens At The Palace (Luxury) - A luxurious 5-star hotel with views of Buckingham Palace.
- The Guardsman - Preferred Hotels and Resorts (Mid-Range) - A stylish hotel within walking distance of Buckingham Palace.
- OYO Vegas Hotel (Budget) - A budget-friendly option with simple yet comfortable rooms in a great location.
Best for Nightlife & Food Lovers - Soho and Shoreditch
Soho and Shoreditch are perfect for those who love a lively atmosphere, vibrant nightlife and delicious food. If you plan to be out exploring restaurants, bars and clubs, these are the spots for you!
Soho is a slightly more central location so you might find prices a bit higher than Shoreditch.
Soho
Soho is a great location as it's in the middle of Cental London and is close to pretty much everything! Its a lively area with plenty of restaurants, bars and clubs, while also being surrounded by theatres and shopping areas like Oxford Street.
- The Soho Hotel (Luxury) – A luxurious 5-star hotel offering stylish rooms.
- Mimi's Hotel Soho (Mid-range) – A chic, modern hotel in the heart of Soho.
- The Z Hotel Soho (Budget) – A compact and affordable hotel with easy access to Soho’s nightlife.

Shoreditch
Shoreditch is perfect if you want a trendy and vibrant atmosphere, filled with street art, cafés, vintage shops and an exciting nightlife scene.
It's also a slightly cheaper area, with budget stays from £70. It's still fairly close to most attractions, but you might have to hop on a 5-10 minute tube or bus ride to reach them.
- Pan Pacific London (Luxury) – A luxurious hotel in the centre of Shoreditch.
- Club Quarters Hotel London City (Mid-range) – A modern, well-located hotel offering stylish rooms.
- The Grand M London City (Budget) – An affordable yet comfortable option within walking distance of Shoreditch's attractions.
Best for Museums & a Relaxed Stay - Kensington & Chelsea
Kensington and Chelsea are two of London’s most high-end neighbourhoods, known for their stunning architecture, leafy streets and world-famous museums.
Kensington is home to the Natural History Museum, the V&A and the Science Museum, and Hyde Park is just a short walk away, perfect for a peaceful stay. This area also has excellent shopping, with high-end boutiques on Kensington High Street and nearby Knightsbridge, home to Harrods.


Chelsea has stylish boutiques, high-end restaurants and the famous King’s Road, with a sophisticated vibe. Both areas are perfect for a quieter yet well-connected stay in London.
- The Milestone Hotel & Residences (Luxury) – A five-star boutique hotel with classic British charm, luxurious rooms and views of Kensington Gardens.
- Sloane Place (Mid-range) – A stylish boutique hotel near Sloane Square in Chelsea, with modern interiors and an excellent restaurant.
- Point A Kensington Olympia (Budget) – A budget-friendly yet cosy and modern option in a historic townhouse, close to Kensington’s top attractions.
Best for Transport - Paddington, King's Cross & City of London
These areas are some of the most convenient places to stay in London, especially if you're prioritizing transport links. They're all very close to the centre of London via tube or bus, while being a bit quieter and cheaper.
Paddington, Marylebone & King's Cross
If easy transport is your priority, Paddington, Marylebone and King’s Cross are some of the best areas to stay. Paddington is perfect if you're flying into Heathrow, thanks to the Heathrow Express.
Marylebone is very close to Paddington, and both areas are close to Hyde Park, Oxford Cirus and the city centre.

King’s Cross has national rail links and the Eurostar at St Pancras, so it's a great option if you plan on travelling anywhere else in Europe. It also has plenty of restaurants and shops at Coal Drops Yard.
- The Landmark London (Luxury) – An elegant hotel with a stunning glass-roofed atrium.
- Central Park Hotel (Mid-range) – A budget-friendly yet comfortable option close to Paddington Station and Hyde Park.
- Clink78 Hostel (Budget) – A lively hostel in King’s Cross, set in a former courthouse with a fun social atmosphere.
City of London
The City of London is a good place to stay if you want to be surrounded by both histroic buildings and modern skyscrapers, while still being central and close to spots like Westminster and Covent Garden.
You'll find landmarks like the Tower of London, St. Paul’s Cathedral and the iconic skyscrapers like the Walkie Talkie builing.


- The Ned (Luxury) – A historic hotel set in a former bank, featuring stunning interiors, multiple restaurants and a rooftop pool.
- The Montcalm at The Brewery London City (Mid-range) – A stylish hotel set in a historic brewery building.
- YHA London St Paul’s (Budget) – An affordable stay in the heart of the City, ideal for exploring historic sites on a budget.
Final Thoughts
I'd personally recommend staying in one of the most central areas such as Covent Garden, Soho, Westminster or Southbank, as these locations are close to all the main attractions, while having great transport links all over the city and plenty of restaurants, cafe's and shops.
These are ideal if you're visiting the city for a short amount of time and want to spend less time travelling between places and more time exploring!
If you want to be right in the centre of everything, go for Covent Garden or Soho, as these two spots are surrounded by everything you could want to see or do.

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