Where to stay in Palau: best areas and types of hotel

Palau's tourist infrastructure sits on the Koror islands. Koror town has the shops, restaurants and most hotels; Malakal, a few minutes south across the causeway, is the dive harbour where many boats load. Both put you within 10-30 minutes of the main dive and Rock Islands departures.

Babeldaob, the big island north across the bridge, is quiet: the capital Ngerulmud, waterfalls and stone monoliths, but few places to sleep and no boat access. Treat it as a day trip by hire car. Peleliu and Angaur in the south have a handful of small guesthouses and are reached by boat or small plane; they suit one or two nights, not a whole trip.

Koror covers the full range from simple motels to full-service resorts, and almost all of it is on the Koror islands. Guesthouses and small motels are the cheapest option and often run by families who can arrange boats. Mid-range hotels cluster along the main road and near Malakal. The resort end sits on its own waterfront, with a pool, dive centre and shuttle into town.

Liveaboards are a real alternative for divers: you sleep on the boat and wake over the reef, which removes the daily transfer. They sell as fixed 7-10 night itineraries and need booking further ahead than hotels. A few places on Babeldaob and the southern islands take bookings by phone or email rather than through the big booking sites, so ask your dive shop or the visitor authority if the online list looks thin.

Palau's high season runs roughly December to April, when the dry months and calm seas bring divers and the rooms fill. Book 2-4 months ahead for that window, and earlier if you want a specific resort or a liveaboard berth. May to November is wetter and quieter; 1-2 months is usually enough, though holidays and dive groups can still tighten supply.

Room supply on the Koror islands is small by regional standards, so a sold-out week is a real possibility rather than a scare story. If your dates are fixed, book the room before you book flights. If you are flexible, the shoulder weeks around the season edges give the same diving with easier availability.

The international airport is on Babeldaob, about 20-30 minutes by road from Koror hotels (check), so factor a transfer into arrival night plans. Most hotels and guesthouses arrange pickups; taxis are limited and metered fares are not the norm, so agree a price first.

Power is 120 V with types A and B plugs, the same as the US, and the currency is the US dollar, so no exchange is needed. Tipping is not expected in shops; 10% in restaurants and a tip for dive crews is usual. Wi-Fi is common in hotels but can be slow; a local eSIM is the simpler backup. Reef-safe sunscreen and a modest dress code away from the water are worth packing.

First-time visitors and non-divers: Koror town, close to restaurants and tour pickups. Divers: Malakal or a Koror hotel with a dive centre, or a liveaboard if you want to maximise water time. Families: a resort with a pool and shuttle, since beaches near town are limited. Budget travellers: a guesthouse in Koror and boats booked directly with operators.

If you are combining Palau with a longer Micronesia trip, keep the Koror base and add one night on Peleliu for the WWII sites and quiet beaches. Do not split a short trip between Koror and Babeldaob; the drive is short and the boat access is not.