Where to Stay in Edinburgh: Best Neighbourhoods for Every Budget

I’ve spent a lot of time walking Edinburgh’s hills, eating its late-night kebabs, and figuring out which neighbourhoods actually save you money versus just sounding cool. The city is compact but deceptively vertical — one wrong turn and you’re puffing up a cobbled incline you didn’t see on Google Maps. Here’s where to base yourself depending on what you value: walkability, quiet, nightlife, or a decent room under £100.

Which neighbourhood is best for first-time visitors?

Old Town is the obvious answer, and for good reason. You’re steps from Edinburgh Castle, the Royal Mile, and the Scotch Whisky Experience. But obvious doesn’t mean bad — it means you pay for convenience.

We stayed at The Grassmarket Hotel on our first trip. It’s loud on Friday nights (the pub crowd spills out until 1am), but the location is unbeatable. If you want something quieter, The Witchery by the Castle is a splurge, but the rooms feel like a Gothic novel in the best way.

Old Town – central, touristy, loud on weekends. Best for first-timers who want to stumble home from pubs.
Grassmarket – cheaper hotels, good pub scene, but expect street noise.
Royal Mile – pure tourist corridor. Avoid staying right on it unless you like bagpipes at 8am.

Where to stay in Edinburgh on a budget (under £100/night)

Budget accommodations in Edinburgh are not great — most hostels are cramped and mid-range hotels spike during August (Fringe) and Hogmanay. Outside those windows, you can find deals in Newington or Tollcross.

I booked a room at Safestay Edinburgh (formerly a prison — not a gimmick, it actually was a jail) for £45 a night in March. The dorm beds are fine, but the common area has original cell doors. For a private room, Apex Grassmarket Hotel sometimes drops to £80 off-season. It’s clean, has a pool, and is a two-minute walk from the Grassmarket pubs.

Safestay Edinburgh – budget hostel in a converted jail. Unique, not luxurious.
Apex Grassmarket Hotel – good value for private rooms off-peak.
Newington – quieter, more student vibe, 15-minute walk to the Royal Mile.
Tollcross – near the Usher Hall and cheap eats like Ting Thai Caravan.

Is it worth staying in New Town instead of Old Town?

Yes, especially if you want wider streets, Georgian architecture, and fewer crowds. New Town is where Edinburgh’s wealthy built their terraces in the 18th century, and it shows. The main drag is George Street, lined with bars and chain stores, but the side streets (like Thistle Street or Dundas Street) have independent shops and quieter hotels.

We stayed at The Glasshouse on the edge of New Town. It’s attached to a historic church, has a rooftop garden with views of the Firth of Forth, and the rooms are soundproofed — a godsend after a day of festival noise. For a mid-range option, Motel One Edinburgh Royal is reliable, modern, and under £120 most nights.

The Glasshouse – boutique, rooftop garden, great for couples.
Motel One Edinburgh Royal – chain but solid, clean, and central.
George Street – nightlife hub. Avoid if you want early sleep.
Stockbridge – just north of New Town, charming village feel, good for families.

What’s the best area for nightlife and young travellers?

If you’re here for the Fringe or just want to drink until 3am, Cowgate and the Grassmarket are where it happens. Cowgate is a sunken street under the South Bridge — it smells like beer and regret by midnight, but The Banshee Labyrinth (a pub with a literal cave) and Stramash (live music) are worth the hangover.

For a slightly less feral vibe, head to Lothian Road near the Usher Hall. The Hanging Bat is a craft beer bar with solid food, and The Jazz Bar on Chambers Street has live music every night without the rowdy crowds.

Cowgate – clubs, cheap drinks, sticky floors. Not for quiet types.
The Banshee Labyrinth – multi-level pub with a cinema room. Weird and brilliant.
The Jazz Bar – intimate, live jazz, no cover charge most nights.

Where should families stay in Edinburgh?

Families need space, lifts (many Edinburgh buildings don’t have them), and proximity to parks. Stockbridge checks all three. It’s a 20-minute walk from the Royal Mile, but you get the Royal Botanic Garden and the Water of Leith walkway right there. The Raeburn is a boutique hotel with family rooms and a decent restaurant attached.

If you want to be closer to the action, The Scotsman Hotel (near Waverley Station) has larger suites and a concierge who can arrange kid-friendly walking tours. Avoid the Royal Mile hotels with spiral staircases — we learned that the hard way with a toddler and a pushchair.

Stockbridge – quiet, green, good for strollers.
The Raeburn – family-friendly, pricey but worth it.
The Scotsman Hotel – central, spacious suites, great service.
Water of Leith walkway – flat, pushchair-friendly, leads to the Botanic Garden.

Is Leith worth considering for cheaper stays?

Leith is Edinburgh’s port district, and it’s having a moment. Ten years ago it was rough around the edges; now it has Michelin-starred The Kitchin and a string of decent gastropubs. The Royal Yacht Britannia is here, and the Shore area is lined with restaurants.

We booked an Airbnb on Bernard Street for £70 a night in June — half what we’d pay in Old Town. The tram now runs straight from Leith to the city centre in 15 minutes, so you’re not isolated. For a hotel, Malmaison Edinburgh is a converted seaman’s mission with dark, moody rooms and a solid brasserie.

Leith – cheaper, edgier, better food scene than Old Town.
The Kitchin – book weeks ahead. Worth it for a splurge dinner.
Malmaison Edinburgh – boutique, good bar, near the tram stop.
Bernard Street – central Leith, close to pubs and the water.

Where to stay near the train station (Waverley)?

If you’re arriving by rail or have an early departure, Waverley Station is your anchor. Hotels within a 5-minute walk include The Balmoral (iconic, expensive, worth a drink at the clock bar) and Hotel Indigo Edinburgh (boutique, mid-range, quiet rooms facing the Old Town).

We used The Royal Mile Backpackers for a night between trains — £30 for a dorm, but the common room has a fireplace and you can leave luggage for free. For a private room, The Old Waverley Hotel is basic but functional, and you can see the train platforms from some windows.

The Balmoral – splurge. The afternoon tea is legendary.
Hotel Indigo Edinburgh – good mid-range, soundproof windows.
The Old Waverley Hotel – budget private rooms, no frills.
Waverley Station – connects directly to Glasgow, London, and the airport tram.

FAQ

Is it safe to walk around Edinburgh at night? Yes, mostly. Old Town and New Town are well-lit and busy until 11pm or later. Cowgate gets rowdy but not dangerous — just watch for pickpockets in packed bars. Avoid the Meadows after midnight if alone; it’s not unsafe, but it’s dark and isolated.

Which neighbourhood is best for avoiding the Fringe crowds? Stockbridge or Leith. Both are far enough from the Royal Mile that the August chaos doesn’t reach you. You’ll still pay more during Fringe, but you won’t be stepping over flyerers every five metres.

Should I stay in a hotel or an Airbnb in Edinburgh? Hotel, unless you need a kitchen. Airbnb regulations have tightened in Edinburgh — many short-term lets are now illegal unless licensed. Hotels are more reliable, and most mid-range options include breakfast. We’ve had two Airbnb cancellations last-minute; never had that with a hotel.

Conclusion

Old Town for first-timers who prioritise location over quiet.
New Town for wider streets, Georgian architecture, and better sleep.
Leith for budget travellers who don’t mind a tram ride.
Stockbridge for families or anyone who wants a local vibe.
Book outside August unless you’re coming for the Fringe — prices triple.