'Chania, Crete' - Attribution: The Venetian Harbour of Chania offers both historic charm and boutique accommodation – one of my favourite areas to recommend when asked where to stay in Crete.
Choosing where to stay in Crete is like picking from a treasure trove – each area has its own sparkle. Because the island is quite large, I often advise friends to think about what vibe they want. Do you fancy waking up to a sea view in a bustling old town, or do you dream of a secluded villa among olive groves? As a local Cretan who's hosted many visiting relatives and friends, I've seen every style of accommodation, from luxury resorts to simple village rooms. Here's an insider's guide to Crete's regions and lodging options, with a mix of boutique gems and budget-friendly stays for every traveller.
Chania: Boutique Charm in the West
If you picture yourself strolling romantic alleyways and dining by a moonlit harbour, Chania is the spot. This historic town in western Crete is my hometown, and I'm admittedly biased – it's just that lovely. The Old Venetian Harbour area is dotted with restored townhouses turned boutique hotels. Imagine staying in a centuries-old mansion like Casa Delfino (a splurge-worthy boutique hotel with Venetian architecture and a rooftop view of the lighthouse) or the Alcanea Boutique Hotel, where each room has character and often a balcony over the harbour.
For a luxury hotel experience by the beach, just outside the town in Agioi Apostoli or Platanias, you'll find upscale resorts and spas. Yet Chania also caters to budget travellers: there are family-run guesthouses tucked in side streets (where the owners treat you like family – bringing you homemade cake), and a couple of hostels that are clean and social. One friend of mine runs a small inn in the Nea Chora area, just steps from a local beach, where you get a comfortable room at a great price and daily tips on hidden beaches. Chania's appeal is that you can step out of your hotel into living history – and still be a short drive from spectacular beaches like Balos or Elafonisi.
Rethymno: Romantic Old Town and Relaxed Vibes
Midway along the north coast lies Rethymno, a smaller Venetian old town that often feels like a fairy-tale. The atmosphere is laid-back and artsy – I adore the little boutique hotels converted from Ottoman-era homes here. Rimondi Boutique Hotel, for example, blends modern comfort with historic charm around a courtyard pool, making it perfect for couples. In the old town's maze of lanes, you'll find affordable pensions as well, often run by friendly locals. I once met a couple staying in a tiny guesthouse near the Rimondi Fountain (a 17th-century stone fountain) who raved that their hostess treated them to fresh baked pastries every morning.
Rethymno also has a long sandy beach right in town lined with larger hotels – these range from mid-range resorts to simpler apartments. It's a good compromise for families wanting beach time and town convenience. And if you drive a bit out of Rethymno into the countryside, you'll discover quaint agrotourism guesthouses. For instance, in the village of Kapsaliana, old farm buildings have been turned into a serene boutique inn amid olive groves – a stay there feels like stepping back in time, with modern luxuries. Whether you choose the heart of town or a rustic retreat, Rethymno's central location makes it easy to explore both east and west Crete.
Heraklion & Surroundings: City Conveniences and Resorts
Heraklion, Crete's capital, is often just a quick stop for its museum or airport, but staying a night or two can be rewarding, especially if you want city energy. The city offers big modern hotels like Galaxy Hotel or Megaron, which are comfortable and centrally located – great if you're interested in history (Knossos Palace is just outside the city) or planning day trips.
However, the real accommodation highlights around Heraklion lie along the coast to the east. The coastal resorts of Hersonissos, Malia, and Agios Nikolaos in the Heraklion/Lassithi region are very popular. Here you'll find all-inclusive hotels and resorts (see our dedicated All Inclusive Hotels page for detailed recommendations) that are practically villages in themselves.
For example, Creta Maris Beach Resort in Hersonissos is a large family-friendly resort where guests enjoy everything from pools and water slides to Greek theme nights. If you're young (or young at heart) and looking for nightlife, Hersonissos and Malia have budget apartments and hotels right by the bars and clubs – but be aware, in peak season they can be lively (to put it mildly)! On the flip side, head a bit further east to Agios Nikolaos or nearby Elounda for a more upscale stay.
Elounda is famed for its luxury resorts – Phāea Blue and Elounda Beach Hotel are two icons of five-star hospitality with private beaches and villas, often attracting celebrities. I've not stayed there (a bit beyond a local's budget!), but I did visit Phāea Blue once for a work event – the view of Spinalonga Island from their infinity pool is etched in my memory.
Southern Coast & Mountain Villages: Off-the-Beaten-Path Retreats
If your idea of paradise is tranquillity, consider staying on Crete's south coast or in a traditional mountain village. Places like Paleochora, Plakias, or Matala (with its famous caves) have a chilled, bohemian atmosphere. Accommodation here tends to be simpler: think family-run hotels, studios, and campgrounds.
During my college days, a “cheap holiday” meant pitching a tent on the beach in Paleochora's camping site – falling asleep under a canopy of stars and waking with the sea at my feet. Even now, these south coast villages are where many locals vacation. You can find rooms for as low as €40-€60 a night in smaller pensions, especially outside of August. A peaceful seaside retreat in Frangokastello, where the gentle waves and the shadow of a Venetian castle create an unforgettable escape.
Up in the mountains, accommodations are fewer but offer rare insight into Cretan life. Zaros, a village by a lake on Mount Ida's slopes, has lovely eco-lodges (complete with trout ponds and hiking trails). And in the Lassithi Plateau, you can stay in guesthouses where the morning view is rolling hills dotted with windmills. Staying in these remote spots, you trade luxury amenities for richness in experience: you'll likely remember the friendly taverna owner or the clear night skies more than any thread count.
Something for Everyone
Crete's accommodation scene has evolved so much that whether you're a backpacker or a honeymooner, you'll find your fit. There are now trendy design hotels in places like Sissi or Agia Pelagia for those seeking a modern boutique style by the sea. Families often prefer apartment hotels or villa rentals – renting a villa in Crete (some even with private pools) can be surprisingly affordable if you're a group, and it gives you the freedom to cook (perhaps after visiting a local market for fresh produce). I once helped a British family friend find a villa near Georgioupolis, they loved being between Chania and Rethymno and having their own space with a BBQ to grill local lamb.
A tip from me: wherever you stay, consider splitting time between at least two different locations if your trip is a week or longer. Crete's distances are big – for example, staying solely in the far west makes it hard to see the attractions in the east and vice versa. Many visitors pair Chania or Rethymno with a few days in the east (Agios Nikolaos/Elounda) or south. That way, you cut down on long drives and get to sample two different “sides” of Crete.
Finally, don't underestimate the value of local insight. Cretans are incredibly proud of their home, and your hotel hosts – whether at a 5-star resort or a little B&B – will eagerly point you to the best sunset spot or a hidden beach only locals know. Some of my guests at our village house ended up being invited to a neighbour's wedding – simply because they showed curiosity and friendliness! That's the magic here: where you stay isn't just a place to sleep, but a gateway into Cretan culture and hospitality. So choose a place that speaks to your travel style, and get ready to experience the famed Cretan welcome from the moment you check in.
Looking for the ultimate in stress-free accommodation? Check out our guide on All Inclusive Hotels to discover resorts where everything you need is at your fingertips.