Sitting on the shores of Lake Wakatipu and set against the dramatic Remarkables, Queenstown is New Zealand’s outdoor playground. A truly, beautiful adventure wonderland 365 days of the year. Formerly a historic mining town, it is now famous for its access to some of the world’s best extreme sports.
Whether you want to ski the slopes, hike the hills, or just chill out and taste New Zealand’s fine wine – Queenstown has it all.
With that said, Queenstown can be an expensive destination for backpackers, and some areas may be better suited for your travel interests than others. So, deciding where to stay in Queenstown is not a light decision to be made.
Lucky for you (and me!), I’ve visited Queenstown many a time and have compiled the BEST areas to stay depending on your travel style and budget. Whether you’re after a luxury hotel on the water, or just the cheapest bed in town, I’ve got you covered.
So, let’s dive straight in and discover where you are destined to stay in Queenstown!

Image: Nic Hilditch-Short
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Queenstown Hill
Known in Maori as Maunga Te Tapu-nui – ‘Mountain of Intense Sacredness’ – this relatively small mountain is more commonly known as Queenstown Hill. The accommodation options here are nestled into the foothills of this (907m) mountain which delivers stunning views out over Queenstown and Lake Wakatipu.

Downtown
Right next to the city centre and close to the lake, this central location is good for travellers who want to get involved in adventure sports. Downtown is the place to stay if you want to be in the center of the action socially, too. There are restaurants, the pedestrianized Queenstown Mall, good seafood, bars, and relaxed cafes to discover here.

Shotover Street
This area is the centre of the backpacking vibe in Queenstown (not to be confused with the suburb of Shotover). As such, you can expect to find many hostels, bars, and other establishments that cater to young travelers and adventure tourism. The area is packed with great options for meals day or night; locals, as well as tourists, flock here for that.

Frankton
Frankton is a suburb known for its green spaces, long hours of sunshine and great lake views. Located at the end of a large inlet of Lake Waktipu, to the east of Queenstown proper, Frankton is also home to the airport. Queenstown International Airport flies domestically within Aotearoa and to Australia as well.

Shotover
Shotover is located in the flat land to the east of the Shotover River that splits this area from Queenstown centre. This suburb of Queenstown takes tranquility to a new level and is a beautiful place to stay out of the hustle of the town centre.
Queenstown’s Best Neighbourhoods to Stay in
Nestled on the meandering higgledy-piggledy shoreline of Lake Wakatipu, Queenstown has such an incredible natural setting. With the river, the lake, and mountains nearby, the opportunities for adventurous outdoor pursuits are almost endless. If you’re backpacking through Queenstown, you’ll want to know the ins and outs of these areas to choose the best place to stay for you!
The following sections will break the five main neighbourhoods down so you can assess for yourself where the best place to stay in Queenstown is for you. Yes, it is an epicentre for adventure sports, AND it is also home to some of the finest foods and wines in Aotearoa. The urban areas of Queenstown aren’t big; staying in one or another can be the difference between extra convenience and extra tranquility.
1. Queenstown Hill – Where to Stay in Queenstown for the First Time
Known in Māori as Maunga Te Tapu-nui – ‘Mountain of Intense Sacredness’ – this relatively small mountain is more commonly known as Queenstown Hill. Depending on the time of year you visit Queenstown, it’s perfect for soaking in the views of the snowy Remarkables or hooning down on your mountain bike. There isn’t any accommodation on top of the hill; places to stay at Queenstown Hill lie at the mountain’s feet.
You can go from mountain biking or hiking the maunga (mountain) to sipping cocktails on the waterfront within minutes. Or however long it takes you to get ready, the drive to Shotover Street takes about 10 minutes! The accessibility of Queenstown Hill is another major reason to choose to stay here on your first time in Queenstown.
No matter what your Queenstown itinerary includes, staying near Queenstown Hill means you are smack bang in the middle of it all. The accommodation around here tends to be a bit pricier, but with idyllic viewpoints of the lake, the experience is well worth the money!
- Best For: Active people, nature lovers, those wanting to enjoy the views from on high
- The Vibe: Serene, residential vibe with epic views. Feels homely and relaxing with local independent accommodation options rather than chain hotels.
- Proximity to Airport: Less than an eight-minute drive.
- Transport Level: Taxis are only a short trip to wherever you want to go, and the local Orbus bus is cheap. Like most public transport in NZ, though, it’s pretty dusty and will often take you almost as long as walking. Do note that while it’s not a long walk to restaurants etc, it is a steep walk!
- Budget: Mid-range. It’s pretty cheap to stay here, and lots of accommodation options have cooking facilities
- Crowds: It’s pretty local here, so there’s the commuter rush hour at the start and end of the day. Plus, it’s popular with tourists and locals alike for weekend fun and activities.

Image: Nic Hilditch-Short
Things to See and Do in Queenstown Hill
- Hike up to the top of Queenstown Hill for the incredible view and pass scenic woodlands and farmlands along the way.
- Try your hand at Tandem Paragliding.
- Become a wine connoisseur on an Otago Winery Tour.
- Also on top of Queenstown Hill, admire the iron-worked Dream Basket sculpture.
- Enjoy a picnic on the shores of the small mountain lake.
- Embark on a horse trek up Walker Peak.
- Check out the cairn sculptures left by previous walkers at the start of the Douglas fir forest.
3BR home with THE BEST views | Best Airbnb in Queenstown Hill
Located 800 meters from the town center and boasting incredible views of Lake Wakatipu, this stylish three-bedroom home is the perfect base for your Queenstown trip. Enjoy the natural surroundings, sleep in a big comfortable bed, and cook yourself breakfast in the morning – all just five minutes away from downtown Queenstown.
Lylo | Best Hostel in Queenstown Hill
Squeaky clean and super comfy, this hostel’s pod-style beds far exceed expectations and make a point of difference to most hostels in Queenstown. The pod beds provide a lot of privacy, whilst the shared kitchen is a great spot to hang out and meet people. The location is close to the best spots in town, and the views from the balcony of the lake are mesmerizing.
Melbourne Lodge | Best Hotel in Queenstown Hill
The big rooms at this Queenstown hotel boast large windows, which let in lots of light and show off the surrounding landscape. The staff are helpful with arranging activities, and the area itself is calm and relaxed, though it’s just a five-minute walk to bars and restaurants. This is one of the best luxury hotels for its price and facilities. A big, tasty breakfast is also included in the price.
2. Downtown – Where to Stay in Queenstown on a Budget
Right next to the city centre and close to the lake, this central location is good for travellers who want to get involved in adventure sports. There are many booking agents for the adventurous among you, plus simple tours of the region (including vineyards) for those who aren’t keen on bungee jumping. The options for things to do in Queenstown are almost endless and staying Downtown makes them all accessible.
Downtown Queenstown has many restaurants and bars, so you can grab a bite to eat and something to drink pretty easily. Accommodation in this area is much cheaper than in other areas of Queenstown, but it comes with the congestion of a city. This is something to think of if you’re renting a car and need to find and pay for parking while you’re here.
Hotels and motels in Queenstown are located around downtown, with easy access to amenities without the high price tags. In fact, most of Queenstown’s accommodation is around this area, from luxury hotels to super budget hostels, ideal for any type of traveller.
- Best For: People who want city life in the mix, backpackers who are sticking to hostel life
- The Vibe: Not a huge city, pretty immersed in nature still but shops to do shopping in and lots of options for wining and dining and coffeeing!
- Proximity to Airport: Approx 10 minute drive.
- Transport Level: Everything is pretty walkable. If you’re doing tours, most tour compaies wil pick you up from your accommodation.
- Budget: Full spectrum, but it’s here that you will find the cheapest options.
- Crowds: This is the hub of tourism in Queenstown.

Image: Nic Hilditch-Short
Things to See and Do in Downtown
- Head into a tour agent and book yourself something adventurous like flyboarding on the lake!
- Check out Skyline Queenstown, a gondola with amazing views of the city.
- Take a helicopter tour and fly over the Remarkables Mountain Range
- Hire a bike at Vertigo Bikes and go for a pedal around the lake.
- Take a Lake Wakatipu scenic cruise.
- Drink coffee at Vudu Cafe and watch the world go by.
- Take a look at Gilly’s Point for a view of the lake and some gentle hiking.
- Check out one of the local stores specialising in onyx ornaments.
- Try some of the amazing selection of oysters, crayfish, and other seafood at Fishbone.
- Test your limits at the Fear Factory Haunted House.
Gemini Lake View Vacation Home for 2 | Best Airbnb in Downtown
This beautiful home has unobstructed views of the Wakatipu lake and South Alp mountains which can be viewed through its ceiling to floor windows. With one bedroom and bathroom, It is only a five-minute drive to downtown Queenstown. This modern and luxury furnished house also has its own outside BBQ stand.
Nomads Queenstown Backpackers | Best Hostel in Downtown
This hostel is surrounded by all of the action happening in town. The staff is helpful and will help you arrange activities; plus, there is free parking if you have a car with you. The bedrooms are warm and comfortable and decorated with stylish furnishings.
The Glebe Apartments | Best Hotel in Downtown
Nestled in a fantastic location in central Queenstown, perfect for getting stuck into what the city has to offer, is this affordable luxury accommodation. Rooms are spacious, warm and cozy, and – most importantly – the beds are very comfortable. There is free onsite parking and car hire available. Bars, restaurants, and cafes are all within walking distance too.
3. Shotover Street – Where to Stay in Queenstown for Nightlife
This area is the centre of the backpacking vibe in Queenstown. As such, you can expect to find many hostels, bars, and other establishments that cater to young travelers and adventure tourism. The area is packed with great options for meals day or night; locals, as well as tourists, flock here for that.
Set mainly around one road – Shotover Street – and the surrounding blocks, this area is busy at any time of the day and is a great place to meet other backpackers. Plus, there are easy transport links here to keep costs low.
- Best For: People who want to be in the thick of the social scene.
- The Vibe: Restaurants, bars, pubs, hostels, you name it, it’s here.
- Proximity to Airport: Just over 10 minutes drive.
- Transport Level: The Orbus bus pases through shotover street, taxis are available and plentiful, but like Downtown Queenstown, you can walk anywhere you want to be, really.
- Budget: Probably more on the spendy side, if you’re anything like me and the temptation of barista coffees, pastries and the infamous Fergburger have you immediately forgetting your resolution to live off two-minute noodles.
- Crowds: Less touristy than Downtown Queenstown, a bit more social, still busy as.

Things to See and Do in Shotover Street
- Eat a large and delicious sandwich at Fergburger – open ‘till 5AM!
- For a bit of fun go with some friends to the bizarre but brilliant Odyssey Sensory Maze.
- Browse the books and crate-dig at Bound Books & Records.
- Take a Shotover River Jetboat Ride.
- Check out the art on offer at the gallery Queenstown Art Centre.
- Get advice on where to hike or hire a guide from Guided Walks Queenstown.
- Catch a ferry from Steamer Wharf out onto the lake for a fun and lively informal tour.
- Get adventurous over at Skippers Canyon.
- Try the various delicious (and affordable!) meat dishes at Botswana Butchery.
- Paint the town red on a Bar crawl around town.
Private Home with Spa & Panoramic Views | Best Airbnb in Shotover Street
Stay in a four-bedroom family home capable of housing up to 10 guests and featuring spectacular views of Lake Wakatipu, Queenstown. The house has a stunning deck with a hot tub, which is the perfect place to enjoy the panoramic view and maybe also enjoy a cup of coffee. This luxury accommodation is just a stone’s throw from central Queenstown and is the best place to stay in Queenstown for large groups.
Queenstown Lakeview Holiday Park | Best Hotel in Shotover Street
With a great location close to the town centre, this is one of the best hotels in Queenstown. It features good quality rooms with comfy beds and some rooms have private balconies. Also including a deck with tables to sit out in the sunshine, this resort-like hotel has tidy grounds with trees dotted around the grounds. It’s also within walking distance to the rest of town.
YHA Queenstown Central | Best Hostel in Shotover Street
Clean rooms and a warm and welcoming atmosphere make this cool hostel a great choice, especially for solo travellers. The bedsheets are lovely and fresh and the linen is regularly cleaned. There’s a fun and friendly common area as well as a shared kitchen for guests to use.
The central location means things can get a bit noisy, but if you want to have a bit of a party then this is the spot for you.
4. Frankton – Coolest Place to Stay in Queenstown
Located at the end of a large inlet of Lake Waktipu, Frankton – set to the east of Queenstown proper – is a suburban area known for its green spaces, long hours of sunshine, and great lake views. It’s also where you’ll find Queenstown Airport where you can take international flights to Australia.
As opposed to the more central locations within Queenstown itself, staying in the pretty area of Frankton allows for a much more tranquil getaway in the area. Here you can grab yourself some accommodation with beautiful views, and still not stay far from the action of Queenstown.
- Best For: People who want a more homely stay in Queenstown.
- The Vibe: A local scene, with wide open spaces.
- Proximity to Airport: Less than five minutes drive.
- Transport Level: Busses and taxis are readily available.
- Budget: Mid range, some hotels, more airbnb’s and baches.
- Crowds: Not many, if any!

Image: Nic Hilditch-Short
Things to See and Do in Frankton
- Visit The Remarkables Park Town Centre for some shopping; it’s the biggest mall in Queenstown.
- Take a sightseeing flight from the airport over the snow-topped Remarkables themselves for spectacular views.
- Chill out in Davies Park and watch the world go by.
- Go for a stroll or a gentle jog at Kawarau Falls Park; it’s particularly nice in the evening.
- Take a Southern Glacier Helicopter tour.
- Have dinner at the picturesque Boathouse Cafe…
- … And afterwards take a boat out from Frankton Marina for a sunset cruise.
- Arrange a wine-tasting tour around the local vineyards!
Remarkables Earl Villa | Best Hostel in Frankton
A slice of home away from home, this place is less of a backpackers’ digs and more of a comfortable place to kick back. The view of the Remarkables Mountain Range is mesmerizing and makes it an extra-special spot. The rooms are clean and there’s a brilliant shared kitchen and living space. The location is close to shops and the airport too, so it’s extra convenient.
The Hilton Resort & Spa | Best Hotel in Frankton
One of the best luxury hotels in Queenstown is undoubtedly the Hilton Queenstown Resort. From the moment you arrive: the views looking out over Lake Wakatipu will leave you stunned. Each room comes with a gas fireplace and king-size bed, the ultimate place to relax after a long day of exploring. There is also an indoor swimming pool, fitness center and spa. The staff here will work hard to make your stay run smoothly.
Spacious Self Check-in Studio | Best Airbnb in Frankton
Perfect for 2 guests, this apartment has one bedroom and bathroom, it comes with its own backyard where you can enjoy some time in the sun and relax. The apartment also has necessities like a kitchenette, living room with a couch and tv as well as complimentary WiFI.
5. Shotover – Where to Stay in Queenstown for Families
The newly developed area of Shotover is located in the flat land to the east of the Shotover River that splits this area from Queenstown centre. Because it’s out of town, this is a great place to stay for countryside living, family-friendly camping parks, but with all the amenities of a modern town.
Its secluded and tranquil setting means you’ll be having a paradise-like stay in Shotover. Located nine kilometres from the town centre, staying here you’ll still be able to reach the tour agencies and more vibrant areas of town if necessary. And – The countryside is all yours!
- Best For: People who don’t want to be in the thick of the social scene.
- The Vibe: Family-friendly vibes, with lots of adventuring to do
- Proximity to Airport: Less than 10 minutes’ drive.
- Transport Level: The Orbus bus passes through Shotover, and you can always call a taxi, too.
- Budget: Considering most accommodation is for famillies, it’s pretty budget-friendly. Depending on how many people you’re splitting the bill between.
- Crowds: Minimal.

Image: Nic Hilditch-Short
Things to See and Do in Shotover
- Tramp up Bob’s Peak for some truly spectacular views of the lake, one of the best hikes in Queenstown.
- Take the Skyline Gondola up the mountains for incredible views.
- Go to lunch at the warm and relaxing The Hayes coffee shop.
- Have a stroll, BBQ, or try a spot of tennis at McBride Park.
- Take a moment to relax in Chantecler Park.
- Walk around Lake Hayes for some pretty views…
- … And go for a glass of wine at Wet Jacket Wines; they can help you pick some delicious wines from their own winery!
- Hike the gentle trail to Waldweg Point for a fantastic view.
- Cycle over the Old Shotover Bridge – with great scenery all the way
Queenstown Holiday Park | Best Hotels in Shotover
The holiday park offers good value accommodation in the beauty of nature. Stay a little away from the busy city centre and enjoy the solitude and calmness of the surrounding scenery.
With a range of accommodation on offer, from cottages to studios, you’re spoiled for options; the rooms are modern, clean, and ideal for families (or backpackers on a budget), and they include a kitchen. The hostel offers on-site laundry.
Modern Cabin | Best Airbnb in Shotover
Situated at the base of the Coronet Ski Field, this stand-alone pod is just a few minutes away from Queenstown and comes with its own courtyard. Throughout the living room and the bathroom, the pod has been polished with concrete floors. The design has been completed with full-length windows, sliding doors, and cedar walls. The apartment has its own BBQ in the quiet courtyard and a swing beneath the willow tree to relax and enjoy a good afternoon.
Manata Lodge | Best Lodge in Shotover
Stay at this fashionably designed lodge surrounded by mountains and vast open space. Get a group of friends together, or bring your family; once you arrive, you won’t want to leave this cosy spot. The interior of the lodge is quirky and cool, and rooms come with a well-equipped kitche,n including a dishwasher, which is helpful for families and groups.
Don’t Forget Travel Insurance for Queenstown
If you know travel, you know things can go wrong in the least likely places. So make sure you sort out travel insurance before you head to Queenstown.
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.
FAQs About Finding a Place to Stay in Queenstown
Here’s what people usually ask me about the areas of Queenstown and where to stay.

Image: Nic Hilditch-Short
Wrapping Up Where to Stay in Queenstown
In this guide, I have covered the five best areas to stay in Queenstown, including my recommendations for the best hostels and hotels in each area. Hopefully, you’re feeling inspired and have read something that clicks with you.
If you’re still not sure where to stay in Queenstown, I’ll recap my top two picks for you. Nomads Queenstown Backpackers is my favorite hostel because of its large, spacious rooms and comfortable beds. There is a friendly atmosphere and staff who help you arrange activities in Queenstown, and of course, the location: right in the middle of town.
Sherwood Queenstown is an awesome hotel with an excellent atmosphere and a central location within Queenstown. If you’ve got the cash to splash, stay here for sure, everything about it is wonderful, and if you want to really push the boat… book a meal at Amesfield.
Did I miss anything? Have you been to Queenstown and have hot tips to add? Let me know in the comments!
- Check out our ultimate guide backpacking around Queenstown.
- Figured out where you wanna stay? Now it’s time to pick the perfect hostel in Queenstown.
- Planning out an itinerary for Queenstown is a great way to maximise your time.
- Swing by our super epic backpacking packing list to prep for your trip.
- Our in-depth Oceania backpacking guide will help you plan the rest of your adventure.





