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Luxembourg is a small country and is still somewhat of a hidden gem, but I visited in the summer of 2026 and here are the best areas of where to stay in Luxembourg City.

I have put together a guide for you to figure out where is best for you to stay in Luxembourg City. Including where I stayed myself and the hotel I missed out on.

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Just want a quick answer?
Luxembourg Marriott Hotel Alfa – Check availability here
Grand Hotel Cravat – Check availability here
Youth Hostel Kuxembourg City – Check availability here

Gare is the area I stayed at as it was closest to the main train station and the bus to the airport. I stayed at Ibis Styles Luxembourg Centre Gare which was just a minute or so from the train station. The surrounding stores were a bit shocking for me, but I still really liked the hotel. Specially the breakfast and location. Another hotel in Gare that is even closer to the train station is Luxembourg Marriott Hotel Alfa. These were the primary two I looked at in Gare, but City Hotel that is just a short walk from the train station is also a great option.

Ville-Haute or the old town in Luxembourg is where I originally looked at places to stay, but the hotel I wanted to stay at did not have my dates. Therefore I decided to be practical and ended up in Gare.
Hotel Parc Belle-Vue just grabbed my attention with it`s view over the city. It is a bit outside of everything, which is how it gets the view, but this made Gare the better choice for me. Le Royal Hotels & Resorts Luxembourg is the one where the dates did not match, but it was also further from the center of the old town than I wanted. It looks amazing and the pool is definitly a plus. Grand Hotel Cravat is the most central location for Ville-Haute and would be the most optimal for your stay in this area.

Luxembourg is split into the two levels of sorts. Everything that is below the mountains is Grund and there is even an elevator down to this area. It is definitly worth looking at for your stay as you get a completely different view over the city. La Pipistrelle Hotel is a good option for your stay in the Grund area and so is Charming Grund Retreat. What both of these have in common is their walls, where it looks like the house is built into the mountain. I rarely do apartment stays for short trips, but Charming Grund almost had me book them.

Traveling on a budget?
Though it is a bit out of the centre I would suggest staying at Youth Hostel Luxembourg City. The city is not that big, so when I say it is outside of the city centre it is still not far and the transportation is good. Therefore it will be worth staying here if you are planning to save money. Since the public transportation is free it does not matter how far out of the city centre your hotel is, as you will still not be paying for the transportation.

Stay at a Castle

This is not an option in Luxembourg city, but when I was looking around for stays outside of Luxembourg City I found some really cool stays. I concluded with not staying at one as I wanted to stay at a place with easy access to the airport. But who does not want to stay at a castle?

In the north of the country lays Chateau d`Urspelt. I travelled north, but not as north as to where this castle is. If you are driving through Europe this is the hotel or castle I would stay at. No questions about it. From the photos it looks amazing and there are a few sights to see in the north, making a stay up there beneficial.

In the southwest, near the border of Belgium and France lays Chateau de Clemency. It is a lot smaller castle than Chateau d`Urspelt, but it still has a lot of charm. It is so close to the border of Belgium and France that you can easily take a trip to one of them. Or maybe both.

In the southeast lays Hotel Chateau Schengen which is right by the border of Germany and France with a view of Mosel River.

If you want to, you can make a loop out of all the castle stays and end in Luxembourg City, but I think it would be a lot easier with a car. Though buses definitly will pass throug the towns and if you find the stop far from your hotel an Uber is always possible.

FAQs about Luxembourg

Public Transport

The public transportation is free, which is amazing. To not having to figure it out the second I arrived in the country was also very relaxing. They do have first class seats on the trains, which you have to pay for, so make sure you are not sitting there.

Is Luxembourg cheap to visit?

It is honestly on the expensive side, but it is still cheaper than Scandinavia or Switzerland. You should still expect a budget of 50 – 100 Euros per day. You will however be saving a lot of money on not having to pay for public transportation.

How long should you visit?

It is a small country so 3 days are enough to cover the city and the most important sights outside of Luxembourg city. If you want some extra time to maybe see some of the other sights, a hike or other cities, I would recommend staying one more day.

Should you travel outside of Luxembourg City?

Absolutely! Though it is a small country, it is a lot outside of the capital city to see, among over 50 castle and some where you can even spend the night.

Final thoughts my stay in Luxembourg City

I had a great time exploring Luxembourg city and my day trips out of the city. I was worried that Gare would be a loud area to stay in, but it was not. Or maybe my hotel was just very soundproof.

I am very happy with my stay in Gare as I had so many buses that I could choose from to return back to my hotel. It was also a very easy and short walk to the train station, which was honestly such a small, but happy luxury.

Next time I would still stay in Gare, but I would also book a small getaway experience for a staycation at one of the castles. If I have the time that is. But if you are not planning a staycation, 3 days are enough to explore Luxembourg City and some of the country.

Check out my other articles on Luxembourg