If you’re planning that iconic Hill Country train ride through Sri Lanka, chances are Kandy will be on your route. Most travellers kick things off here before rolling down towards Ella, but the city itself couldn’t feel more different from the slow, misty journey that follows.
Kandy is bigger and busier than I expected. It carries a weight of traffic, shops, and city bustle that even gives Colombo some competition. If you land here expecting only jungle and quiet lakesides, the switch in energy can feel jarring at first.
That said, Kandy has plenty worth sticking around for. It’s easy to duck out of the city and hit the hills with just a short tuk-tuk ride, swapping concrete streets for tea fields and jungle views. Up there, guesthouses spill over the hillsides, and mornings feel exactly how you picture Sri Lanka – tea in hand, surrounded by greenery in every which way you look.
This ultimate guide on where to stay in Kandy will fill you in on everything you need to know, from neighbourhood breakdown, accommodation reccs and a few things worth your time before you hop on that train south.

@taya.travels
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Where is the Best Place to Stay in Kandy?
Haven’t got the time to read the whole article? Consider this your cheat sheet. After scouting out all the best places to stay in Kandy, these are my top picks.
Villa Rosa | Best Hotel in Kandy
Villa Rosa is a luxurious hotel nestled away from the hustle and bustle of the city. It’s perfect for couples or anyone visiting for the Esala Perahera festival who wants somewhere tranquil to retreat to.
Funk Bunks | Best Hostel in Kandy
You’ll find this cosy Sri Lankan hostel tucked away from the chaos of Kandy’s streets in the jungle above the city. It’s perfect for anyone travelling on a budget. It offers both private rooms and dorms as well as unbeatable vibes.
Hermitage Villa | Best Guesthouse in Kandy
This is my top pick for families or big groups of friends. You’ll get the whole place to yourself, and the hosts are super kind – a CLASS example of Sri Lankan hospitality.
Kandy Neighbourhood Guide – Best Places to Stay in Kandy

Kandy City Centre
Kandy City Centre is the hub of the city. It’s the liveliest neighbourhood and where most of the action is. I stayed here for a few days before moving to some quieter neighbourhoods and thought it was the best area to stay in, especially if it’s your first time in the city.

Ampitiya
As a bit of a reclusive myself, I felt right at home in Ampitiya. The usual hustle and bustle of the city centre is replaced by laid-back residential areas that are nestled between picturesque tea plantations and rolling hills.

Shores of Kandy Lake
The Kandy Lake is pretty massive, so you’re never far from it, no matter where you are in the city. But if you head to the Old Temple of the Tooth and then cross the moat to the other side, you’ll find yourself in a little area that is brimming with museums and culture.

Upper Hill / Upper Lake Road
In honour of the Sacred Tooth Relic of the Buddha, which is enshrined in Kandy’s Temple of the Tooth, the whole city comes to life with colourful processions. Decorated elephants are paraded around, fire-breathers huff flames into the night, and the streets descend into joyful chaos.

Ampitiya
If you’re travelling with young kids and you like the idea of being able to retreat away from the hustle and bustle, then Ampitiya is the neighbourhood for you. It’s also the perfect place to be if you’re a tired traveller who needs to catch their breath – travel fatigue is real!
We all travel for different reasons, and getting to a city and realising you’ve picked the wrong neighbourhood is crap, but we’ve all done it. To save you from making this classic travel mistake, I’ve put together a guide of all the different areas in Kandy that are worth checking out whilst you’re merrily backpacking through Sri Lanka.
The city centre is by far the most vibrant and chaotic. It’s also where all the best markets are, which was a real appeal for me. If you want to be close to most of the temple museums, you should definitely situate yourself close to Kandy Lake.
Beyond the city centre, there’s also Ampitiya, which is a quiet suburb further south. I loved this neighbourhood because it’s surrounded by tea plantations and has some great accommodation options for budget travellers and families.
Visiting for the Esala Perahera festival? I’ve found the best properties to stay at around Upper Hill / Upper Lake Road while the festival is in full swing. Whether you want to be in the midst of the action or have somewhere to retreat to, I’ve got you covered.
Kandy’s Five Best Neighbourhoods to Stay in
To help you get your bearings, I’ve put together a quick area guide that’ll give you an idea of what each area of the city is like. That way, you can save yourself from doing loads of research and figure out which matches your vibe best in no time.
1. Kandy City Centre – Where to Stay in Kandy for Your First Time
Kandy City Centre is the hub of the city. It’s the liveliest neighbourhood and where most of the action is. I stayed here for a few days before moving to some quieter neighbourhoods and thought it was the best area to stay in, especially if it’s your first time in the city. It’s also where Kandy station is, which you’ll surely be departing from to embark on the iconic Kandy to Ella train journey.

The best markets in town are in Kandy City Centre too, as well as the beautiful Kandy Lake that sits in the heart of the neighbourhood. As you wander around, you’ll come across a mix of crumbling colonial architecture and more modern hotel blocks mingled together.
The city was a lot cleaner than other places I visited in Sri Lanka. I don’t mind being thrown into the nitty-gritty of a place, but I have to admit it was a pretty welcome change!
Ceyloni City Hotel | Great Budget Option in Town
The best thing about this hotel is how central it is. Step out of the hotel and hit all the best markets and restaurants in minutes. It’s super close to the museum and temple area, too. The bed is comfy, and it has everything you need for a comfy stay.
Lake View Suite | Best for Groups of Friends
If you’re looking for somewhere to pack a big group into, this 3-bed flat is a great shout. The kitchen and living room are massive, plus there are pretty epic views of the lake from the main balcony. The perfect spot to read a book and chill.
Kandy Bed and Breakfast | Best for Couples
This bed and breakfast homestay is great if you’re a solo traveller or a couple looking for somewhere cheap and cheerful to stay. It’s just a few minutes walk from the coolest museums and shopping areas, but the street the house is on is surprisingly quiet and feels tucked away.
Things to See and Do in Kandy City

- Wander around the edge of Kandy Lake and soak in the views – it’s one of the best spots in Sri Lanka!
- Get lost in the colours and thick smell of spices at the Kandy Municipal Central Market.
- Visit the charming little Kandy Clock Tower. It’s surrounded by a busy road, but you can take some cute pictures of it from the safety of the pavement.
- Check out the 14th-century Sri Natha Devalaya Buddhist temple. It has a cool hand-carved stone gateway and a quaint inner shrine.
- Wander around the exterior of the terracotta coloured St Paul’s Church.
- Go cafe hopping through the cute alleyways and scout out the city’s best coffee spot.
2. Ampitiya – Best Place to Stay in Kandy on a Budget
As a bit of a reclusive myself, I felt right at home in Ampitiya. The usual hustle and bustle of the city centre is replaced by laid-back residential areas that are nestled between picturesque tea plantations and rolling hills.

Ampitiya is a suburb of Kandy that’s to the south of the city. When I arrived, it struck me how tranquil and quiet it was, even though it wasn’t far from the city at all. Tucked away amongst tea plantations and rolling green hills, Ampitiya feels like the city centre’s chill cousin.
There are lots of budget-friendly accommodation options in the area, so it’s my top pick for anyone travelling on a shoestring!
Mountain White Villa by Sunrise | Best Budget Accommodation in Ampitiya
With spa facilities, a garden and a terrace, you won’t believe how affordable this place is. Honestly, what makes this place so magical is that it’s surrounded by lush greenery that makes it feel like it’s in the middle of the jungle, not a city suburb. Another perk is that breakfast is that there is a great on-site restaurant, so you don’t have to battle back into town for some good grub!
Mount Blue Kandy | The Best Hotel for Families
Surrounded by mountain views and overlooking the river, this hotel is out of the way enough that it feels secluded but close to all the action. There’s an outdoor pool, which’ll keep the kids entertained and a family-friendly restaurant that has enough options on the menu to keep everyone happy.
Hermitage Villa | Grandiose House for Large Groups
This elegant villa is absolutely massive. Forget about sharing a crowded hotel room and trying to squish all your luggage in when you can rent out an entire villa for next to nothing. It’s in a quiet residential area too, with few neighbours, so you can retreat and hide away when the city centre gets too much.
Things to See and Do in Ampitiya
- Kick it back, chill out and make new travel buds at your Kandy hostel.
- Check out the colourful and quaint Ketawala Temple.
- Get picked up at your doorstep, then head out on this awesome tour and cooking class combo.
- Get out of the city and head to the Ceylon Tea Museum – make sure you stop for a brew while you’re there.
- Visit the National Seminary of Our Lady of Lanka, a Roman Catholic seminary that dates back to 1955.
- Check out the Divurum Bodhi Viharaya Buddhist temple. Originally built in 1914, the temple is an integral part of the area’s fabric.
- Don’t miss the 650-year-old Bodhi tree in the Divurum Bodhi Viharaya temple! There’s also a ‘swearing stone’ that was used for ancient oath-taking ceremonies.
- Get picked up from your hotel and head out on a tour of the city on a private tuk-tuk.
3. Kandy Lake – Where to Stay in Kandy for Culture
The Kandy Lake is pretty massive, so you’re never far from it, no matter where you are in the city. But if you head to the Old Temple of the Tooth and then cross the moat to the other side, you’ll find yourself in a little area that is brimming with museums and culture. This spot is an absolute gem to add to your Sri Lanka itinerary.

I kept coming back to the area and always found a new museum or temple to pop into each time. If you’re a self-proclaimed history nerd or someone who travels for culture, this is the place to be.
The only drawback is that because the area is essentially a giant museum and historical landmark, you can’t actually sleep there. So I’ve found the best places to stay on the edge of Kandy’s City Centre, just a stone’s throw away.
Hotel Casamara | Charming Hotel with a Pool
This elegant hotel has it all, it’s right by the coolest museums and temples, AND there’s a pool that you can cool off in at the end of a sweaty day sightseeing. There’s a minimalistic but colourful feel to the place, and you might even meet some new friends at the bar. What’s not to love?
The Radh Hotel | Best for Couples
The hotel is about as close as you can get to the Temple of the Sacred Tooth Relic, so you can rest assured you’re winning when it comes to location. The hotel is pretty classy, which is why I think it’d be great for a couple celebrating something special or if you just want to splurge. There’s even a spa where you can book yourself in for a good old pamper.
Cafe Aroma Inn | Best for Sophisticated Solo Travellers
Considering how nice the rooms are at this hotel, I was pretty blown away by the prices. We all know booking a private room can add up if you’re travelling solo, well, not at Cafe Aroma Inn. The location is great too, and the staff are all lovely.
Things to See and Do near Kandy Lake
- Visit the Kandy National Museum and check out the peculiar Kandian-era artefacts on display.
- Get lost in the Temple of the Tooth Museum.
- Feed your curiosity at the International Buddhist Museum.
- Get a glimpse of Kandy’s more glamorous side at the Old Royal Palace.
- Visit the Museum of the Tusker Rajah, where you can see the preserved remains of Rajah, a renowned Maligawa elephant. He carried the casket of the Sacred Tooth relic for more than 50 years!
- Get up close to the Anagarika Dharmapala Statue, which is bright gold and shimmers in the sun.
- Catch a traditional dance performance at the epic Kandyan Cultural Centre.
4. Upper Hill / Upper Lake Road – Where to Stay in Kandy for the Esala Perahera Festival
The first time I visited Kandy, it was to go to the Esala Perahera. I’d heard people talking about it when I was travelling in Sri Lanka, so on a whim, I decided to go. Luckily, I was wise enough to book my accommodation fairly ahead of time, as it gets super booked up around the festival dates. And for good reason, it’s bar far one of Sri Lanka’s best festivals.

In honour of the Sacred Tooth Relic of the Buddha, which is enshrined in Kandy’s Temple of the Tooth, the whole city comes to life with colourful processions. Decorated elephants are paraded around, fire-breathers huff flames into the night, and the streets descend into joyful chaos.
Because the festival is celebrated around the full moon, you’ll have to check the exact dates. But it’s usually in July or August and lasts about 10 days. Though this section isn’t a specific neighbourhood per say, knowing where to stay for the festival is a Kandy essential. For me, I prefer to be up in the Upper Hill/Upper Lake Road area so I can escape the crowds at the end of a day of festivities.
Villa Rosa | The Best Location With Riverside Views
This hotel, perched above the Mahaweli River, is intimate and peaceful. There aren’t loads of rooms at the place, so there are never loads of people about. It’s the perfect place to escape to once you’ve had enough of the city chaos. It’s a little out of town, but the surrounding scenery is so lush that it was worth it.
My City Hotel | Sleep on the Doorstep of All the Action
If you’re prone to FOMO and you don’t want to miss a thing, then this hotel offers a perfect balance of being close to the action, whilst also just a touch outside of the busiest areas. It’s just a 10-minute walk from the city centre and also comes with free brekkie so you can fill up before an action-packed day!
Hotel Topaz | A Tranquil Place to Retreat to
Even though the hotel is tucked away from the city, it’s easy to get back and forth from the festival as it’s only 10 minutes away by tuk-tuk from the action. I did love coming back in the evening and being surrounded by lush vegetation; it felt like I was getting the best of both worlds. The hotel also has a pool and spa for ultimate relaxation after a busy day.
Things to See and Do During the Esala Perahera Festival
- Look out for the decorated elephants in the procession. Don’t worry, they’re made out of fabric!
- Join the processions and walk to the beat of the rhythmic drums.
- Bring along your best camera and snap some epic pictures to show everyone back home.
- Delight your taste buds by trying all the street food at the festival food stalls.
- Try and keep up with the procession dancers and learn some new moves.
- Chat to locals and find out more about the Buddhist traditions that make the festival so special.
FAQs About Where to Stay in Kandy
So you’ve gotten this far, but you’ve still got a few questions about your trip to Kandy. Read on, I’ve got your back!
What To Pack For Kandy
Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.
Ear Plugs
Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.
Hanging Laundry Bag
Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.
Sea To Summit Micro Towel
Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.
Grayl Geopress Water Bottle
Always travel with a water bottle! They save you money and reduce your plastic footprint on our planet. The Grayl Geopress acts as a purifier AND temperature regulator. Boom!
Check out my definitive Hotel Packing list for even more top packing tips!
Don’t Forget Travel Insurance for Kandy
Unfortunately, things can go wrong when you least expect them. This is why good travel insurance is essential before you head on your trip to Kandy.
ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.
They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.
SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!
Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.
Final Thoughts on Where to Stay in Kandy
Kandy is a great city for anyone who’s not a huge fan of cities. There’s a great balance of museums and temples to keep you busy, but you can also escape into the nearby tea plantations and surrounding mountains when you need a dose of nature.
If you can time your trip with the Esala Perahera festival, you definitely should, then book a night at Hermitage Villa, where you can retreat in the evenings and live like a king.
Wherever you decide to stay in Kandy, I’m sure you’ll love this magical city as much as I did, and I can’t wait to hear about your trip!

Photo: @themanwiththetinyguitar
- Check out our ultimate guide to backpacking around Sri Lanka.
- Figured out where you wanna stay? Now it’s time to pick the perfect hostel in Sri Lanka.
- Next up you’re gonna need to know all the best places to visit in Sri Lanka to plan your trip.
- Planning out an itinerary for Sri Lanka is a great way to maximise your time.
- Swing by our super epic backpacking packing list to prep for your trip.






















