Home to majestic, soaring sandstone cliffs covered in a blanket of lush, native forest – the Blue Mountains of Australia will try and test your trekking abilities and fill your cup with the warm fuzziness that only an incredible landscape can.

Nestled into the vast mountainous landscapes, you’ll find CHARMING mountain villages. Brimming with locals ready to open you with open arms.

Although, the Blue Mountains will take you off-grid and into nature. You will be surprised at the world-class restaurants you’ll find in these little towns. Your taste buds won’t know what’s hit em’.

But the Blue Mountains area is HUGE and covers more than 11,400 square kilometres. So choosing where to stay in the Blue Mountains is super important. The best area to stay in completely depends on you and your travel hopes and dreams!

Whether you want to trek through the wilderness, eat incredible food or visit the iconic tourist attraction of Scenic World, you’ll want to base yourself in the area that caters to your desires.

That’s where I come in! I’ve created this guide to help you to decide where in the Blue Mountains is best for you. I’ve compiled the top areas to stay and the best things to do in each. No matter your travel style or budget, I’ve got you covered.

Let’s get right to it – here are the best neighborhoods to stay in Blue Mountains, New South Wales, Australia.

Where to Stay in Blue Mountains

If you’re backpacking Australia and looking for a real adventure and unique experience, then checking out the Blue Mountains will be the right spot for you!

Looking for a specific place to stay? These are our highest recommendations for places to stay in Blue Mountains.

The Blue Mountains offer endless incredible vistas
Image: Nic Hilditch-Short

The place with stunning views | Best Airbnb in Blue Mountains

Start every morning in awe as your bask over the rolling valleys of the Blue Mountains. Combine that with a prime location a short walk from the city centre and you’ll see why this is our pick for first-timers.

Blue Mountains Backpacker Hostel | Best Hostel in Blue Mountains

This is one of the best hostels in Blue Mountains. It is ideally located in Katoomba and caters to all types of travellers because it offers a range of dormitory, private and family-style rooms. This hostel also boasts a large communal area, a spacious kitchen, and plenty of games, TV/movies and fun.

Hotel Mountain Heritage Blue Mountains | Best Hotel in Blue Mountains

The Hotel Mountain Heritage is our pick for the best hotel in Blue Mountains because of its great location. Set in lively Katoomba, this hotel offers cosy rooms with modern features. Guests can enjoy a range of facilities, including a beauty centre, swimming pool, a terrace and a bar.

Blue Mountains Neighborhood Guide – Places to Stay in Blue Mountains

FIRST TIME IN BLUE MOUNTAINS
A person sitting on a cliff looking out in the Blue Mountains in New South Wales, Australia
FIRST TIME IN BLUE MOUNTAINS

Katoomba

Katoomba is, without a doubt one of the best places to stay in Blue Mountains. The largest and most visited town in the region, Katoomba is home to a great variety of restaurants and cafes, as well as bars, shops and bistros.

ON A BUDGET
The three sisters rock formation in the Blue Mountains in New South Wales, Australia
ON A BUDGET

Katoomba

Katoomba also gets our vote for the best neighbourhood in Blue Mountains to stay in if you’re on a budget. Tucked throughout this mountain town is a great selection of backpacker hostels, budget hotels, and guesthouses that will suit travellers of all styles, ages and budgets.

NIGHTLIFE
A person looking out over the Blue Mountains in New South Wales, Australia
NIGHTLIFE

Leura

Nestled right next to Katoomba is the town of Leura. This small and picturesque village is best known for its unique boutiques, casual cafes and world-class restaurants.

COOLEST PLACE TO STAY
Looking out over Wentworth Falls in the Blue Mountains in New South Wales, Australia
COOLEST PLACE TO STAY

Wentworth Falls

Wentworth Falls is a small village located west of Leura. It sits in close proximity to nature and the incredible Blue Mountains National Park, while also treating visitors to a variety of great restaurants and charming bars.

FOR FAMILIES
A rock formation and mountains in the distance in the Blue Mountains in New South Wales, Australia
FOR FAMILIES

Mount Victoria

Mount Victoria is the westernmost town in the Blue Mountains. It is the highest point in the region and boasts many lovely walks and climbs, as well as stunning panoramic views.

The Blue Mountains are one of the most famous and stunning mountain ranges in Australia. Although not particularly tall, this UNESCO World Heritage Area is renowned for its breathtaking scenery, cultural attractions, and relaxed way of life.

The mountain range covers an incredible area of nearly 12,000 square kilometres. It’s home to a handful of towns and cities that each offer something unique to visitors. To help you make the most of your trip, this guide will highlight the “can’t miss” attractions and activities in the best areas to stay in Blue Mountains.

Katoomba is the largest and most visited city in Blue Mountains. It’s home to a number of noteworthy attractions, like Echo Point and the thrilling Scenic World, and is known for its relaxed and creative atmosphere. You’ll find a vast array of restaurants and cafes, as well as some of the best Blue Mountains accommodation.

Set west of Katoomba is Leura. A quaint and charming town, Leura has delicious food and funky bars. Here you can enjoy a day in nature followed by a good night out.

Continue heading west from here and you’ll arrive in Wentworth Falls. One of the coolest places to stay in Blue Mountains, Wentworth Falls seamlessly combines stunning nature and outdoor adventures with incredible restaurants and cosy cafes.

And finally, set to the north of Katoomba is Mount Victoria. This is our pick for where to stay in Blue Mountains with kids because it allows for easy access to unforgettable nature without taking away too many of those creature comforts. Here you’ll find museums and shops, as well as views, hikes and beyond.

Still not sure where to stay in Blue Mountains? Don’t worry because we’ve got you covered.

Blue Mountains’ 5 Best Neighborhoods to Stay in

Now, let’s take a look, in more detail, at the best places to stay in Blue Mountains.

#1 Katoomba – Where to Stay in Blue Mountains for Your First Time

Katoomba is, without a doubt one of the best places to stay in Blue Mountains. The largest and most visited town in the region, Katoomba is home to a great variety of restaurants and cafes, as well as bars, shops and bistros. Because there is so much to see and do, Katoomba is our recommendation for where to stay in Blue Mountains for your first time.

This charming mountain town is also well known for its laid-back, relaxed and creative atmosphere. The area has been home to large artist and hippie populations for decades and this is evident in the design and décor throughout the city. So, when taking a stroll along the main street be sure to look up to take in the incredible art deco architecture.

Living on the edge!
Image: Nic Hilditch-Short

Things to See and Do in Katoomba

  1. Catch a flick at The Edge Cinema.
  2. Dine on rich Australian fare at Avalon.
  3. Enjoy a range of beers, ciders and wines at the atmospheric Old City Bank Bar.
  4. Get your adrenaline pumping by canyoning, abseiling and rock climbing in the Blue Mountains.
  5. Lace up our boots and head out for a bushwalk to the Ruined Castle or nearby Mt Solitary.
  6. Sip a cappuccino at the Common Ground café.
  7. Take in the incredible views from Echo Point Lookout.
  8. Ride the world’s steepest incline railway while enjoying panoramic views of the region at Scenic World.

The place with stunning views | Best Airbnb in Katoomba

Start every morning in awe as your bask over the rolling valleys of the Blue Mountains. Combine that with a prime location a short walk from the city centre and you’ll see why this is our pick for first-timers.

Blue Mountains YHA | Best Hostel in Katoomba

This hostel is our top pick for where to stay in Blue Mountains for one night. It provides guests with a clean and cosy room and access to a great kitchen, and it is located at the heart of the adventure capital of NSW. There are also pool tables, games and lots of movies to enjoy.

Hotel Mountain Heritage Blue Mountains | Best Hotel in Katoomba

The Hotel Mountain Heritage is our pick for where to stay in Blue Mountains for your first time. Set in lively Katoomba, this hotel offers cosy rooms with modern features. Guests can enjoy a range of facilities, including a beauty centre, swimming pool, a terrace and a bar.

Palais Royale | Best Hotel in Katoomba

Because of its great location, large rooms, and comfortable beds, this is one of our favourite hotels in Katoomba. This hotel provides guests with a variety of excellent features, including a sauna, a jacuzzi and free wifi. They also offer a delicious and satisfying breakfast each morning.

Is This the Best Backpack EVER???
audy on top of a mountain in japan with the osprey aether

We’ve tested countless backpacks over the years, but there’s one that has always been the best and remains the best buy for adventurers: the broke backpacker-approved Osprey Aether and Ariel series.

Want more deetz on why these packs are so damn perfect? Then read our comprehensive review for the inside scoop!

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#2 Katoomba – Where to Stay in Blue Mountains on a Budget

Katoomba also gets our vote for the best neighborhood in Blue Mountains to stay in if you’re on a budget. Tucked throughout this mountain town is a great selection of backpacker hostels, budget hotels, and guesthouses that will suit travellers of all styles, ages and budgets.

Keen to get back to nature? Katoomba is the best area to stay in Blue Mountains for bushwalking. From here, you can head off in all directions exploring the trails and paths that lead to scenic lookouts and secret waterfalls.

The famous Three Sisters rock formation
Image: Nic Hilditch-Short

Things to See and Do in Katoomba

  1. Marvel at the views of the Three Sisters rock formations.
  2. Climb the 888 steps of the Giant Stairway through the jungle.
  3. Experience the vistas at Cahill’s Lookout.
  4. Catch a glimpse of the Katoomba Falls.
  5. Take a Street Art Walk through Katoomba.
  6. Visit the Eagle Hawk Lookout for incredible views without all the tourists.
  7. Feast on a kebab at Gazi Chargrill.
  8. Eat Lebanese and Middle Eastern food at Cedar.
  9. Excite your sense at Tamarin Restaurant.

Live the Aussie dream with your own Bush Cabin! | Best Airbnb in Katoomba

Enjoy one of New South Wales’s most stunning bush regions like a true blue Aussie. With privacy, a natural setting, and modern fittings, this eco-lodge in the Blue Mountains place gives a lot of bang for your buck.

Blue Mountains Backpacker Hostel | Best Hostel in Katoomba

This is the best hostel in Blue Mountains. It is ideally located in Katoomba and caters to all types of travellers because it offers a range of dormitory, private and family-style rooms. This hostel also boasts a large communal area, a spacious kitchen, and plenty of games, TV/movies and fun.

Hotel Blue Katoomba | Best Hotel in Katoomba

Located at the heart of Katoomba, this three-star hotel is close to the area’s most popular tourist attractions. It is close to Scenic World and is a convenient base for exploring Leura and nearby Mount Vic. This hotel has spacious rooms with private bathrooms, flat screen TVs and other essential amenities.

Carrington Hotel | Best Hotel in Katoomba

The Carrington Hotel offers four-star luxury at a fraction of the price. Guests can enjoy elegant rooms outfitted with cable/satellite channels as well as a refrigerator and coffee/tea supplies. This property also boasts an in-house spa, and a restaurant, as well as a library, coffee bar, and lounge to relax in.

#3 Leura – Where to Stay in Blue Mountains for Nightlife

Nestled right next to Katoomba is the town of Leura. This small and picturesque village is best known for its unique boutiques, casual cafes and world-class restaurants.

The town is one of the best places in Blue Mountains to stay for outdoor adventurers because it sits surrounded by natural wonders. From your base in Leura, you can enjoy bare sandstone landscapes, take in spectacular views and explore dense eucalyptus forest.

But if it’s nightlife you’re looking for, this is the best neighborhood to stay in Blue Mountains. Tucked throughout this small village and in nearby Katoomba are a good selection of bars and restaurants where you can enjoy a delicious meal, drink a few pints, and enjoy an unforgettable night out in Blue Mountains.

This waterfall regularly freezes over in winter
Image: Nic Hilditch-Short

Things to See and Do in Leura

  1. Enjoy the views from the Sublime Point Lookout.
  2. Wander to the lovely and tranquil Leura Cascades.
  3. Snap the perfect pic for the ‘gram at Gordon Falls Lookout.
  4. Get off the beaten path and visit the Fortress Rock.
  5. Don’t miss the Alexandra Hotel Leura, a good old-fashioned pub with a modern twist.
  6. Feast on delicious homemade pizzas at Station Bar + Woodfired Pizza.
  7. Choose from a wide variety of local and international beers at the Harp and Fiddle.
  8. Sample rare and vintage beers, wines and spirits at the Leura Cellars.
  9. Eat tasty local dishes at Leura Gourmet.

No14 | Best Guesthouse in Leura

This warm and friendly guesthouse is located in nearby Katoomba. It offers shared and private rooms that are ideal for travellers of all styles and budgets. Guests of this house can enjoy recently renovated bathrooms, a brand new kitchen, and a tranquil atmosphere. This hostel also offers easy access to restaurants, shops and the Blue Mountains’ natural wonders.

Leisure Inn Spires | Best Hotel in Leura

The Leisure Inn Spires is our top recommendation for where to stay in Blue Mountains for nightlife. This four-star hotel is in an excellent location allowing for easy access to popular restaurants, bars and attractions. This modern property is comprised of spacious apartments that are loaded with contemporary features.

Lovingly restored chac in a great spot | Best Airbnb in Leura

While still retaining it ‘derilique’ vibe on the outside, the interior has been lovingly restored and converted into a great studio apartment. You’ll find yourself no more than a few minutes walk from the town, and you’ll have no trouble getting around to explore further affield

Lovingly restored chac in a great spot is one of our favourites in Blue Mountains but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.

Broomelea Bed & Breakfast | Best Bed & Breakfast in Leura

The Broomelea Bed & Breakfast is an exquisite 4.5-star property located in Leura. It is close to popular tourist attractions and is a quick stroll from great bars, restaurants and cafes. This cosy B&B comes complete with a number of amenities, like a library and tasty breakfast.

Broomelea Bed & Breakfast is one of our favourites in Blue Mountains but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.

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Is your phone eSIM ready? Read about how e-Sims work or click below to see one of the top eSIM providers on the market and ditch the plastic.

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#4 Wentworth Falls – Coolest Place to Stay in Blue Mountains

Wentworth Falls is a small village located west of Leura. It sits in close proximity to nature and the incredible Blue Mountains National Park, one of Australia’s best-known national parks, while also treating visitors to a variety of great restaurants and charming bars. Because it manages to seamlessly combine the town with nature, Wentworth Falls is one of the coolest places to stay in Blue Mountains.

If you love to eat, this is the best neighborhood to stay in Blue Mountains because it is packed with mouthwatering options. Whether you’re craving typical Australian, intriguing Indian, or fresh and delicious vegetarian, Wentworth Falls is packed with tantalizing and tasty options for you!

This is the view you come to the Blue Mountains for
Image: Nic Hilditch-Short

Things to See and Do in Wentworth Falls

  1. Explore the amazing Blue Mountains National Park.
  2. See Wentworth Falls, a majestic three-tiered waterfall that measures 187m tall.
  3. Enjoy a romantic date on the shores of Wentworth Falls Lake.
  4. Indulge in incredible local fare at Il Postinos.
  5. Satisfy your sweet tooth at The Blue Mist Café.
  6. Feast on great food and excellent views at The Conservation Hut.
  7. Grab a few pints and play a round of pool at The Grand View Hotel.
  8. Excite your senses by sampling a variety of sweet and savoury pies at Mountain High Pies.
  9. Dine on fresh and delicious vegetarian and vegan food at Fed.

Adorable treetop cabin! | Best Airbnb in Wentworth Falls

Poking out from the eucalyptus groves and offering views of the valleys if you peek between the branches. This property might be lacking in space, but it more than makes up for it with spaes of character.

Grand View Hotel | Best Hotel in Wentworth Falls

Thanks to its clean rooms, comfortable beds and delicious foods, this is one of our favourite hotels in Blue Mountains. It offers a range of facilities to guests, including a games room, a garden and a children’s play area. There’s also plenty to see and do within walking distance.

Rest Easy Motel | Best Motel in Wentworth Falls

The Rest Easy Motel is conveniently located in Wentworth Falls. It is a short drive to Leura and Katoomba and is close to the National Park, Scenic World and a great selection of restaurants. Rooms at this motel come complete with cable/satellite channel and coffee machines. There’s also a shopping mall, billiards and games room.

Rest Easy Motel is one of our favourites in Blue Mountains but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.

Silvermere Guesthouse | Best Guesthouse in Wentworth Falls

The Silvermere Guesthouse wins our vote for where to stay in Blue Mountains for nightlife because of its excellent location and accommodations. This guesthouse provides individually decorated rooms that are equipped with luxurious spa baths and a variety of amenities. There is a delicious restaurant on-site and plenty of other options nearby.

Silvermere Guesthouse is one of our favourites in Blue Mountains but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.

#5 Mount Victoria – Where to Stay in Blue Mountains for families

Mount Victoria is the westernmost town in the Blue Mountains. It is the highest point in the region and boasts many lovely walks and climbs, as well as stunning panoramic views.

This town is our pick for where to stay in Blue Mountains with kids because there’s a great variety of things to do. This small village boasts everything from outdoor adventures and nature expeditions to toy stores, heritage museums, cafes and shops. Whatever you’re into, you’ll find something entertaining and exciting to do in charming Mount Victoria.

There’s heaps of awesome hikes around here
Image: Nic Hilditch-Short

Things to See and Do in Mount Victoria

  1. Delve deep into history at the Mount Victoria & District Historical Society Museum.
  2. Enjoy a night at the movies at the iconic Mount Vic Flicks.
  3. Browse a collection of antiques and toys at Trains, Planes & Automobiles.
  4. Dine on delicious local delicacies at Petalura.
  5. Sip on a cappuccino and enjoy a slice of pie at Piccolo.
  6. Shop for quirky gifts and souvenirs at Mount Vic and Me.
  7. Climb to the Mount York Lookout and enjoy the breathtaking views.
  8. Take in the sounds and scenery of the mountains as you hike to Sunset Rock Lookout.

Cedar Lodge Cabins | Best Cabins in Mount Victoria

The Cedar Lodge Cabins are our pick for where to stay in Blue Mountains for families because of its comfortable and spacious rooms. This property boasts a shopping mall, laundry facilities and a games room. It also allows for easy access to the area’s most popular tourist attractions and landmarks.

Closeburn House | Best Hotel in Mount Victoria

This charming property is conveniently located in Mount Victoria. It is close to Mount Piddington and there are plenty of shops, eateries and bistros nearby. This hotel has eight rooms that are outfitted with modern and essential amenities.

Home on top a mountain | Best Airbnb in Mount Victoria

This two-story detached house really has an Aussie family home vibe too it. It’s the kind of place that makes you feel at ease as soon as you walk in. It’s got a huge garden for activities, stunning views, and is only a short drive from, well pretty much everything.

Home on top a mountain is one of our favourites in Blue Mountains but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.

Bank House Mount Victoria | Best Villas in Mount Victoria

Bank House Victoria is a charming and unique property in the Blue Mountains. It is comprised of three well-appointed villas, which are each stocked with a range of essential amenities. Guests can enjoy a terrace, a garden and free wifi. There are also plenty of restaurants, cafes and attractions just a few minutes away.

Bank House Mount Victoria is one of our favourites in Blue Mountains but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.

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Active Roots Security Belt

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Hide Yo’ Money!

FAQ about Finding a Place to Stay in Blue Mountains

Here’s what people usually ask us about the areas of Blue Mountains and where to stay.

What To Pack For Blue Mountains

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.

Product
Description
Don’t Let Snorers Keep You Awake!
Don’t Let Snorers Keep You Awake!

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.

Keep your laundry organized and stink free
Keep your laundry organized and stink free

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.

Stay Dry With a Micro Towel
Stay Dry With a Micro Towel

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.

Make Some New Buddies…
Make Some New Buddies…

Monopoly Deal

Forget about Poker! Monopoly Deal is the single best travel card game that we have ever played. Works with 2-5 players and guarantees happy days.

Reduce Plastic – Bring a Water Bottle!
Reduce Plastic – Bring a Water Bottle!

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 Blue Mountains

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.

I love the Blue Mountains as an escape from Sydney
Image: Nic Hilditch-Short

Final Thoughts on Where to Stay in Blue Mountains

Australia’s Blue Mountains are an excellent travel destination that boasts outdoor adventures, scenic views, and a whole host of cute and charming towns to explore. Whether you want to get your heart pumping, snap that perfect pic for the gram, or indulge in exquisite local cuisine, the Blue Mountains has exactly what you’re looking for – and so much more!

In this guide, we’ve looked at the best areas to stay in Blue Mountains. If you’re still not sure which Blue Mountains neighborhood is right for you, here is a quick recap of our favourites.

Blue Mountains Backpacker Hostel is our favourite hostel in Blue Mountains because of its range of room options, great amenities and excellent location.

Our pick for the best hotel in Blue Mountains is Hotel Mountain Heritage Blue Mountains because it has cosy rooms, modern features and a fantastic selection of facilities.

Looking for more info on travelling to Blue Mountains and Australia?

And for transparency’s sake, please know that some of the links in our content are affiliate links. That means that if you book your accommodation, buy your gear, or sort your insurance through our link, we earn a small commission (at no extra cost to you). That said, we only link to the gear we trust and never recommend services we don’t believe are up to scratch. Again, thank you!