Where to Stay in San Luis Obispo (Best Places in 2025)

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So, you’re backpacking the USA and San Luis Obispo is on the hit list. Well, lucky you, as you’ve stumbled across my insider guide on where to stay in San Luis Obispo. I’m here to help make sure that your adventure is one to remember. 

In this guide, I’m going to break down the best areas to stay whether you are backpacking on a budget or traveling in style. But, If you are short on time, here are my top picks for the best places to stay in San Luis Obispo.

Garden Street Inn | Best Hotel in San Luis Obispo

This elegant boutique hotel lies at the heart of San Luis Obispo, within walking distance of the top shops and restaurants in the city.

Sip your morning coffee in your French-inspired decor that will transport you to the coffee shops of Paris. They serve up bangin’ breakfast, perfect for fuelling up before a day of exploring.

SeaVenture Beach Hotel | Best Resort in San Luis Obispo

If you’re looking to relax by the ocean, then look no further than this beachfront paradise. Wake up to the sound of the waves and you’re steps away from feeling the sand between your toes.

Relax in your hot tub overlooking the California coast on your private balcony after a day of adventures. Head to the onsite restaurant serving up some of the freshest, locally sourced seafood in the area with a side plate of breathtaking views.

Avila Lighthouse Suites | Best Luxury Hotel in San Luis Obispo

Dream of watching the sunset, overlooking the ocean from your outdoor pool or hot tub with a cocktail in hand? Well, your dream is about to turn into a reality with Avila lighthouse suites.

Enjoy spacious rooms with panoramic ocean views, your very own spa bath, and a sitting area to relax. Come back after a busy day exploring and relax with a full body massage at the onsite spa. Oh, and this place has a FREE breakfast.

FIRST TIME IN SAN LUIS OBISPO

FIRST TIME IN SAN LUIS OBISPO

Downtown San Luis Obispo

If this is your first time in San Luis Obispo, you’ll certainly want to stay in the city center. Although it might not be coast-adjacent, there are several beach towns in the area that make for perfect day trips. Furthermore, by staying downtown, you’ll have direct access to the best hotels and restaurants in the region.

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ON A BUDGET

ON A BUDGET

Pismo Beach

Pismo Beach is the best spot to be in San Luis Obispo County if you want to spend your days at the beach without having to pay an arm and a leg. Moreover, with Downtown San Luis Obispo less than a fifteen-drive away, you’ll never be too far from the charm of the city center.

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FOR FAMILIES

FOR FAMILIES

Avila Beach

As they say, the more, the merrier so if you’re traveling with all your kin in tow, Avila Beach is an excellent place to stay. There are several high-end hotels in the area yet also plenty of reasonably-priced options with enough space for everyone.

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FOR COUPLES

FOR COUPLES

Morro Bay

For couples looking to make a romantic getaway in the San Luis Obispo area, there’s no better pick than Morro Bay. This secluded beach town has all the amenities of its rival in the area yet only half the tourists, making for a much less crowded holiday. Accommodation in this area ranges from luxurious golf resorts to traditional B&Bs so no matter your tastes, there’s something for you.

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FOR LARGE GROUP

FOR LARGE GROUP

Cayucos

Whether you’re headed to San Luis Obispo County for a surf trip with the buddies or a beach holiday with the gals, Cayucos is your best bet for larger groups. In comparison with other areas in the regions, there are several condos, townhouses, and apartments that you can have all to yourself.

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Whether you prefer cultural holidays, exploring sleepy beach towns, or hiking in the forest, San Luis Obispo has a lot to offer its travellers. Anyone travelling through California should absolutely take some time to explore this popular seaside destination.

Downtown San Luis Obispo is the best place to stay to truly get a feel for the city. It’s close to the beach and is home to the best boutiques and restaurants, so you can explore the best of what the area has to offer.

Budget backpackers will do well staying in Pismo Beach. It’s only a 15-minute drive from downtown San Luis Obispo, but the prices are a lot easier on the wallet.

Avila Beach is popular for families and surfers alike and is one of the quieter areas of San Luis Obispo. Avila Beach also boasts an aquarium and several museums, so there’s bound to be something to do for the whole family.

On the other hand, traveling couples craving some privacy would do well to stay closer to Morro Bay since it’s much less touristy than any of the other locations. The beachfront area is still easily commutable to everywhere else by car so you’ll never be too far from the action when you want it.

In the case that you’re arriving with a large party of fellow travelers, Cayusco is undoubtedly the place to be. Beachfront accommodation is much more spacious in this area and it’s much easier to rent an entire condo or house for you and yours.

Whether you’re coming to San Luis Obispo for its culture or its coast, there’s sure to be the ideal accommodation for your needs.

Now, let’s take a look at the five best areas in San Luis Obispo in more detail. I’ve included our top activity and accommodation picks in each, so you know exactly what you’re getting.

1. Downtown – Where to Stay in San Luis Obispo for Your First Time

If this is your first time in San Luis Obispo, you’ll certainly want to stay in the city centre. Although it might not be coast-adjacent, there are several beach towns in the area that make for perfect day trips. Furthermore, by staying Downtown SLO, you’ll have direct access to the best hotels in San Luis Obispo and restaurants in the region.

For both early birds and night owls, San Luis Obispo also hosts a swatch of entertainment venues to make sure you never get bored. From cultural museums to high-class bars, there’s no shortage of activities you can do in Downtown San Luis Obispo.

Granada Hotel & Bistro | Best Hotel in Downtown San Luis Obispo

If it’s your first time in SLO, there’s no grander place to stay than this boutique chic hotel. Marvel at the grandeur of its lush interior decor with an industrial twist.

Reserve a room featuring a private balcony and then hit up the rooftop terrace, complete with a cozy fireplace. The complimentary bikes are perfect for exploring the city. Trust me, Granda hotel is one of the best hotels in Downtown SLO.

Hotel Cerro | Best Luxury Hotel in Downtown San Luis Obispo

Alright luxury lovers, buckle up, I’ve got something for ya. Nestled in the centre of downtown Hotel Cerro is in an ideal location, you’re within walking distance from shops and restaurants making it the perfect place to set up camp and explore this town.

Hotel Cerro has a rooftop outdoor pool with amazing views and fitness centre if you need a quick sweat. The spacious rooms are so comfy they might even tempt you to extend your trip.

Madonna Inn | Best Inn in Downtown San Luis Obispo

Located in the heart of San Luis Obispo, Madonna Inn is a luxury escape with an outdoor pool and a delicious selection of restaurants and a bakery on site.

Each room is uniquely decorated adding that extra spice during your stay. You’re in the perfect location, walking distance of the town and close to coffee shops and restaurants.

Things to See and Do in Downtown San Luis Obispo:

1. Walk around San Luis Obispo’s historic center.
2. Take a tour of Mission San Luis Obispo de Tolosa.
3. Taste some of the best food San Luis Optisbo has to offer with a downtown walking food tour
4. Visit the San Luis Obispo Railroad Museum.
5. Check out the San Luis Obispo’s Children’s Museum.
6. Make your way up to San Luis Drive Trailhead.
7. Hit up the waves at Morro Bay Beach.
8. Walk around the campus of California Polytechnic University.
9. Have a picnic at Meadow Park.
10. Take a private sidecar wine-tasting tour through Paso Robles wine country.
11. Hike around Charles A and Mary R Maino Open Space.
12. Stroll around Laguna Lake Park Open Space.
13. Hit the trail at Trailhead Bog Thistle & Mariposa Trails.
14. Sunbathe at Stoneridge Park.
15. Trek up High School Hill Trailhead.

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2. Pismo Beach – Best Place to Stay in San Luis Obispo on a Budget

If you want to spend your days at the beach without having to pay an arm and a leg, staying in Pismo Beach is your best option. Moreover, with Downtown SLO less than a fifteen-drive away, you’ll never be too far from the charm of the city centre.

This area also has a thriving city centre, complete with all the beach shops, beach bars, and lively restaurants you could ever want. It is easy enough to get around on foot and most accommodations are located within walking distance of Pismo State Beach to ensure every day is a beach day. Who could pass that up?

Hilton Garden Inn | Best Hotel in Pismo Beach

At less than a ten-minute drive to the beach, this hotel is the place to be in Pismo to make the most of your beach holiday.

The gorgeous hotel features huge suites equipped with seating areas along with microwaves, coffee makers, and refrigerators. Their long list of amenities also includes an on-site restaurant, a gym, a library, a business center, and a heated outdoor pool for all your vacation needs. It’s no surprise Hilton Garden is one of the best hotels in San Luis Obispo.

Inn at the Pier | Best Inn in Pismo Beach

This ultra-chic inn boasts a plethora of amenities, not to mention lavish suites and a 24-hour reception desk. Try the cuisine at the on-site restaurant, work out in the fitness center, go for a dip in the outdoor swimming pool, or chill out in the hot tub.

Alternatively, you can also order a drink at the hotel’s bar in Pismo Beach for an excellent start to your beach day.

Seaventure Beach Hotel | Best Beachfront Hotel in Pismo Beach

Less than a ten-minute walk to the beach lies this quaint beach hotel, this beachfront hotel offers guests the best of both location and amenities.

Each suite comes with a fireplace, but you can also upgrade to a room with a private terrace and a hot tub. To truly take advantage of the hotel’s facilities, why not order food at the on-site restaurant or book a package at the spa? This is one of the best hotels in San Luis Obispo, you won’t be disappointed.

Things to See and Do in Pismo Beach: 

1. Spend a day at Pismo State Beach.
2. Take a road trip and explore San Luis Obispo Creek.
3. Shop until you drop at Pismo Coast Shopping Plaza.
4. Organize a beach trip to Shelter Cove Beach.
5. Go hiking at Pismo Dunes State Park.
6. See some butterflies at Monarch Butterfly Grove.
7. Race around the Dunes and rent a dune buggy at Pismo Beach.
8. Stroll around Ramona Garden Park.
9. Have a picnic at Ira Lease Park.
10. Enjoy a road trip to San Fransisco
11. Take some pictures at Price Historical Park.
12. Respect nature at Shell Beach Coastal Conservatory Preserve.
13. See the cliffs at Memory Park.
14. Arrange a picnic at Margo Dodd Park.

3. Avila Beach – Best Neighborhood in San Luis Obispo for Families to Stay In

Avila Beach is an excellent place to stay if you’re spending a family vacation in San Luis Obispo or maybe your on a road trip through the USA looking for an epic spot to perch up. There are several high-end hotels in the area yet also plenty of reasonably-priced options with enough space for everyone.

To boot, expect suites in this area to be large and lavish with amazing views of Avila State Beach. The area also has many entertainment venues in the area that are suitable for young children, such as the Avila Aquarium as well as several museums.

If you’re in search of a beach holiday with the rugrats but still want something more to do in the immediate area, Avila Beach is your perfect combo.

Avila La Fonda Hotel | Best Hotel in Avila Beach

Situated less than a five-minute walk from Avila State Beach, this glamorous hotel is the place to be for those who crave to live in the lap of luxury.

Enjoy the welcome basket included in every suite in the fully-equipped kitchen or cozy up to the ensuite fireplace. Avail La Fonda goes the extra miles and it’s not hard to see why its one of the best hotels in Avila Beach.

Avila Lighthouse Suites | Best Resort in Avila Beach

If you’re a fan of scenic oceanfront views, there’s no better place to stay than this captivating modern urban resort. Soak up some bubbles in the hot tub or take a dip in the gorgeous outdoor pool, both just feet away from Avila State Beach.

Why not upgrade to a room with a panoramic view of the water and a private balcony? To begin any great beach day, make sure to sample the complimentary breakfast served daily on the hotel’s sun-drenched terrace.

San Luis Bay Inn by Diamond Resorts | Best Suites in Avila Beach

This captivating inn offers the best suites in the area for families. Each suite comes with a large living area and private balcony as well as 24-hour concierge service. If arriving by car, the hotel also provides free parking along with a lounge to unwind at the end of the day.

Things to See and Do in Avila Beach:

1. Go for a swim at Pirates Cove Beach.
2. Go biking up Bob Jones Hiking & Biking Trail.
3. Watch the sunset from the cliffs of Memory Park.
4. Snap some pics of Point San Luis Lighthouse.
5. See the sunrise from Port San Luis Pier.
6. Hike up Ontario Ridge Trail Access.
7. Put on your hiking boots and go for a trek up Bob Jones Trail Head.
8. Support local conservation efforts at Shell Beach Coastal Conservatory Preserve.

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4. Morro Bay – Best Area in San Luis Obispo for Couples 

If you’re travelling as a couple and looking to make a romantic getaway in the San Luis Obispo area, there’s no better pick than Morro Bay. This secluded beach town has all the amenities of its rival in the area yet only half the tourists, making for a much less crowded holiday. Accommodation in this area ranges from luxurious golf resorts to traditional B&Bs so no matter your tastes, there’s something for you.

Stay in Morro Bay if you want to escape from the hustle and bustle of larger beach towns. Morro Bay also has plenty of restaurants and bars in the area to keep you entertained, and Downtown is less than a 20-minute drive away. 

Sea Pines Golf Resort, Los Osos | Best Resort in Morro Bay

If you’re an avid golfer, there’s no better choice than staying at this luxury resort. Boasting a nine-hole golf course, two putting greens, and a driving range, this hotel has all you get your fill in abject beauty.

Make most of the on-site restaurant which serves breakfast, lunch, and dinner before checking out the outdoor spa. How’s that for a California holiday?

Inn at Morro Bay | Best Inn in Morro Bay

Set right inside Morro Bay State Park, this enchanting inn rests on 4000 acres of nearly untouched natural beauty. Every elegantly decorated yet massive suite lends to views of either Morro Bay, Morro Rock, the outdoor swimming pool, or the sweeping gardens. The hotel also offers the use of a hot tub year-round to fight off the chill in the winter months.

Baywood Inn Bed & Breakfast | Best Bed and Breakfast in Morro Bay

This charming B&B sits by the bay and features a wide sun terrace with views of the water. Each room is quaintly decorated and features an ensuite bathroom.

Try the full continental breakfast offered by the hotel or book a local wine tasting tour at the reception desk. You can’t go wrong either way!

Things to See and Do in Morro Bay:

1. Get a tan at Morro Strand State Beach.
2. Catch some waves and learn to surf with a private surf lesson in Morro Bay
3. Check out the Museum of Natural History.
4. Hike around Morro Bay State Park.
5. Enjoy a road trip to Cambria.
6. Spend the day at Sandpit Beach.
7. Enjoy a guided E-bike tour of Morro Bay
8. Snap some photos of Black Hill.
9. Take a road trip to Hearst Castle.
10. Go hiking in Montana de Oro State Park.
11. Explore the beautiful California central coast with a Kayak and hiking tour
12. Have a picnic by the sore at Coleman Park.
13. Spot some bears at Los Osos Oaks State Reserve.

5. Cayucos – Best Area in San Luis Obispo for Large Groups 

Whether you’re headed to San Luis Obispo County on a surf holiday or a California road trip with buddies, Cayucos is your best bet for larger groups. In comparison with other areas in the region, there are several condos, townhouses, and apartments that you can have all to yourself.

Book an entire home for you and your friends so you won’t have to worry about disturbing the neighbours with your shenanigans like you would in a hotel. With a wide selection of beaches in the area and Downtown only a twenty-minute drive away, what’s not to like?

 Coastal Coziness | Best Homestay in Cayucos

This lovely three-bedroom apartment is located only a few feet from the bay and comes with everything your travel party could ever need. including one master bedroom and two guest rooms.

Featuring a living area with plenty of seating space and a functional fireplace plus a dining area and a fully-equipped kitchen including laundry facilities, what more could you ask for? The sun-soaked private verandah might just be the best part.

Shoreline Inn | Best Inn in Cayucos

Drift off to the sound of the waves and enjoy your morning espresso watching the pacific ocean, It doesn’t get more beachfront than Shoreline Inn.

The spacious rooms are comfy proving the perfect place to relax. and a day at the beach or exploring. You’re within walking distance of coffee shops, restaurants and the town centre making it the perfect location for beach access and being close to town.

Cayucos getaway with ocean views | Best Airbnb in Cayucos

As soon as you step inside this luxury getaway, you’ll be stuck by the breathtaking pacific ocean views and modern decor. The open-plan design creates a spacious and light atmosphere. Enjoy cooking up a feast in the fully equipt kitchen whilst admiring the stunning scenery.

Enjoy ocean views from the comfort of the master bedroom and plenty of room for the whole family with two guest rooms sleeping up to seven people. You’re in an ideal location, close to the beach and a short walk into town, making this the perfect relaxing getaway.

Things to See and Do in Cayucos: 

1. Take a trip to Morro Strand State Beach.
2. Snap a pic from Cabrillo Highway Coast.
3. See the cliffs at Estero Bluffs.
4. See the caves at Dinosaur Caves Park.
5. Walk around San Geronimo Pullout.
6. Plan a day trip to Cambria.
7. Enjoy a half day local wine tasting tour
8. Watch the sunset from Sand Dollars Beach.
9. Get up close to Elephant Rock.
10. See the beauty of the North Point Natural Area.

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Here’s what people usually ask me about the areas of San Luis Obispo and where to stay.

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.

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Check out my definitive Hotel Packing list for even more top packing tips!

Can you get around San Luis Obispo without a car?

Yes. The majority of the San Luis Obispo is walkable and the city has reliable public transport including bus and train. There are lots of places to rent bikes and E-bikes with plenty of bike lanes. Plus, you can always stick a thumb out and catch a ride.

Is San Luis Obispo worth visiting?

Absolutely! This charming central California coastal town has so much to offer for all types of travellers. Whether you’re an outdoors lover or wine connoisseur this town has something for everyone.

Where is the best place to stay in San Luis Obispo?

If you want to spend your days at the beach without breaking the bank, staying in Pismo Beach is your best option. Downtown San Luis Obispo is less than a fifteen-minute drive away, so you’ll never be too far from the charm of the city centre.

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This central California coastline oozes with natural beauty and charm. Whether you’re catching some rays at the beach or roaming downtown San Luis Obispo has so much to offer for all kinds of travellers.

I hope after reading this guide you have a better idea of where to stay in San Luis Obispo. That said, if you’re still unsure, I’ll recap my top picks for ya.

Avila Lighthouse Suites is my top pick for the best hotel in San Luis Obispo. Luxury living at its finest and without a doubt one of the best hotels in San Luis Obispo. Kick back in the hot tub overlooking the ocean at sunset, cocktail in hand. It doesn’t get much better than that.

For my fellow beach babies out there, I’d book in at Shoreline Inn, steps away from the golden sand, located in Cayucos, a peaceful beach town. Wake up to the sound of the waves and marvel at the ocean views as you sip on your morning espresso.

From the endless hiking trails throughout the area to the several miles of coastline just waiting to be explored, you’re sure to fall in love.

Over to you fellow globe trotter, I hope you have an incredible adventure.

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