Best Areas to Stay in Queenstown: Neighborhoods Guide for 2025

Nestled on the shores of Lake Wakatipu and surrounded by towering mountains, Queenstown is a must-visit destination in New Zealand. Known as the adventure capital of the world, this lively town offers more than just adrenaline-pumping activities. Whether you’re here for the ski slopes, the wine trails, or simply to soak in the breathtaking scenery, finding the best areas to stay in Queenstown can make your trip truly unforgettable.

Choosing the right place to stay can be a bit overwhelming, though. Queenstown neighborhoods each offer a unique vibe, from bustling nightlife spots to serene lakeside retreats. To help you decide, we’ve put together this guide to the best areas to stay in Queenstown, highlighting the top neighborhoods, recommended accommodations, and things to do in each area. Whether you’re a solo traveler, a couple, or a family, you’ll find something that suits your style.

This guide also pairs well with my more general Where to Stay in Queenstown post, which covers a broader range of options, including hotels and hostels.

Find a great hotel in Queenstown on Trip.com!

Best Areas to Stay in Queenstown

Queenstown is a dynamic town with diverse neighborhoods, each offering something unique. Whether you want to be right in the action or prefer a quieter stay surrounded by nature, there’s a spot for you. Below are the best areas to stay in Queenstown, broken down by vibe, accommodation options, and nearby activities.

Queenstown Central

Why Stay in Queenstown Central:

If you want to experience the heart of Queenstown, then Queenstown Central is one of the best areas to stay in Queenstown. This vibrant neighborhood is situated right on the shores of Lake Wakatipu, offering breathtaking views and immediate access to the town’s bustling energy. As one of the most popular Queenstown neighborhoods, it’s where you’ll find a lively atmosphere filled with shops, restaurants, and unique experiences.

Staying in Queenstown Central means you’re perfectly positioned to explore iconic attractions like the Skyline Gondolaand the lakeside promenade. Whether you’re in town for adventure, fine dining, or simply to soak up the lively vibe, this area has it all. Plus, with a wide range of accommodations from luxury hotels to budget hostels, it’s easy to find a place that suits your style.

Pros of Staying in Queenstown Central:

• Central location with beautiful lakefront views.
• Close to dining, adventure activities, and major attractions like the Skyline Gondola.
• Walking distance to tour companies, hiking trails, and popular sites.
• A diverse range of accommodation options to fit different budgets.

Cons of Staying in Queenstown Central:

• Often crowded, especially during peak seasons.
• Higher accommodation prices compared to other Queenstown neighborhoods.
• Noise levels can be high at night, especially on weekends.

Top Accommodation Options for Queenstown Central:

• Eichardt’s Private Hotel: A luxury boutique stay with stunning lake views and renowned hospitality.
• Novotel Queenstown Lakeside: A mid-range hotel offering comfort and convenience right by the waterfront.
• Nomads Queenstown Backpackers: Budget-friendly and social, ideal for solo travelers looking to connect.
• The Spire Hotel: A stylish and upscale option in the heart of Queenstown.

Best Things to Do in Queenstown Central:

• Ride the Skyline Gondola to Bob’s Peak for panoramic views and thrilling luge rides.
• Challenge yourself with a hike up the Ben Lomond Track, offering some of the best alpine views in the region.
• Experience the chilly charm of an Ice Bar, where everything from the glasses to the walls is made of ice.
• Take an exhilarating jet boat ride on the Shotover River, departing right from downtown.
• Discover local art and crafts at the Queenstown Arts Centre or the Creative Queenstown Market.

Frankton

Why Stay in Frankton:

If you’re looking for one of the best areas to stay in Queenstown that offers a quieter atmosphere, Frankton is an excellent choice. Situated just 10 minutes from central Queenstown, this residential neighborhood provides a more relaxed pace while still being well-connected to both the town center and outdoor activities. As one of the more family-friendly Queenstown neighborhoods, Frankton is ideal for those who appreciate a laid-back environment.

Frankton’s proximity to the Queenstown Airport and major shopping centers like Remarkables Park Town Centremakes it a convenient base for exploring the area. Plus, it’s often more affordable than staying right in downtown Queenstown. You’ll find everything from modern hotels to budget-friendly lodges here, making it one of the most versatile Queenstown neighborhoods for visitors.

Pros of Staying in Frankton:

• Family-friendly vibe with a residential feel, making it one of the best areas to stay in Queenstown for longer stays.
• Close to Five Mile Shopping Centre and Remarkables Park, offering a variety of shops and restaurants.
• Convenient access to the airport, perfect for early or late flights.
• More affordable accommodation compared to Queenstown Central.

Cons of Staying in Frankton:

• Limited nightlife options, unlike the bustling downtown area.
• Not as scenic as lakeside Queenstown neighborhoods, though the Remarkables mountain range is still visible.
• Public transport to central Queenstown can be less frequent in the evenings.

Top Accommodation Options in Frankton:

• Ramada Suites by Wyndham Remarkables Park: Modern units with self-catering facilities and great views of the mountains.
• Holiday Inn Queenstown Remarkables Park: A family-friendly hotel with easy access to both the airport and shopping areas.
• The Lake View Lodge: A comfortable and affordable option with spacious rooms, ideal for groups.
• Wyndham Garden Queenstown: A mid-range hotel with a fitness center and proximity to public transport.

Best Things to Do in Frankton:

• Catch a game or event at the Queenstown Events Centre, a hub for sports and community activities.
• Walk or cycle the Frankton Arm Walkway, a scenic path that connects Frankton with central Queenstown.
• Shop and dine at Five Mile Shopping Centre, featuring local cafes and well-known brands.
• Unwind by the lake at Kawarau Falls Reserve, a peaceful spot for a picnic or a relaxing walk.
• Visit the Remarkables Park Market on Saturdays to pick up local produce and handmade crafts.

Arrowtown

Why Stay in Arrowtown:

If you’re looking for one of the best areas to stay in Queenstown that combines history with charm, Arrowtown is the place to be. Just a 20-minute drive from central Queenstown, this picturesque neighborhood offers a glimpse into the region’s gold mining past. As one of the most unique Queenstown neighborhoods, Arrowtown’s preserved 19th-century buildings, boutique shops, and tree-lined streets create an enchanting atmosphere.

Learn more about Arrowtown with my complete travel guide!

Staying in Arrowtown means immersing yourself in a quieter, more laid-back vibe while still having access to plenty of activities. It’s especially appealing to travelers who appreciate heritage sites, local art, and nature trails. Plus, it’s a gateway to exploring the Arrow River and nearby wineries.

Pros of Staying in Arrowtown:

• Rich in history, with well-preserved architecture and heritage walks.
• Quieter than downtown Queenstown, perfect for a relaxed getaway.
• Excellent dining scene with cozy cafes, bakeries, and fine dining options.
• Close to outdoor activities like hiking, cycling, and gold panning.

Cons of Staying in Arrowtown:

• Located about 20 minutes from central Queenstown, requiring a car or public transport.
• Fewer nightlife options compared to more central Queenstown neighborhoods.
• Accommodation choices are more limited, with boutique hotels and B&Bs rather than large resorts.

Top Accommodation Options for Arrowtown:

• Millbrook Resort: A luxurious retreat with world-class golf, spa facilities, and stunning alpine views.
• New Orleans Hotel: Historic pub accommodation with great local food.
• The Arrow Hotel: Modern comfort with views of the Arrow River.

Best Things to Do in Arrowtown:

• Stroll through Buckingham Street, lined with quaint shops, cafes, and historic buildings.
• Visit the Lakes District Museum to learn about the gold rush era.
• Walk or bike the Arrow River Trail, offering scenic views and a peek into the region’s mining history.
• Sample local craft beers at The Fork and Tap Ale House.
• Explore nearby Gibbston Valley for wine tasting and vineyard tours.

Lake Hayes

Why Stay in Lake Hayes

If tranquility and natural beauty top your list, Lake Hayes is undoubtedly one of the best areas to stay in Queenstown. Located about 15 minutes from the town center, this peaceful area is known for its reflective lake waters and stunning alpine scenery. It’s a favorite among locals and visitors who love outdoor activities like walking, cycling, and birdwatching.

Learn more about Lake Hayes with my complete travel guide!

Among Queenstown neighborhoods, Lake Hayes offers a more rural, retreat-like experience while still being close to the amenities of both Arrowtown and Frankton. It’s particularly popular with couples and families looking to escape the busier downtown while soaking in the serene lakeside atmosphere.

Pros of Staying in Lake Hayes:

• Stunning natural scenery with peaceful, reflective lake views.
• Close to popular trails like the Lake Hayes Walkway.
• Great for nature lovers and those seeking a quieter stay.
• Proximity to Gibbston Valley Wine Trail and Arrowtown.

Cons of Staying in Lake Hayes:

• Limited dining and nightlife, with only a few nearby cafes.
• Accommodation tends to be more upscale or private lodges, which might not suit budget travelers.
• Public transport options are limited, so having a car is recommended.

Top Accommodation Options in Lake Hayes:

• Stoneridge Estate: A luxury lodge and vineyard with breathtaking views.
• The Cottages at Lake Hayes: Charming cottages with a mix of rustic and modern design with direct access to the Lake Hayes Trail.
• Lake Hayes Airbnb: Book the same beautiful townhouse I spent a month at in Lake Hayes with views of the lake and mountains.
• Hawkridge Estate: Known for its upscale rooms and beautifully landscaped grounds, this boutique stay offers a more refined experience.

Best Things to Do in Lake Hayes:

• Take the Lake Hayes Walkway, a loop track that circles the lake, offering panoramic views and birdwatching opportunities.
• Enjoy a lakeside picnic at Lake Hayes Reserve, perfect for relaxing afternoons.
• Visit nearby wineries like Amisfield for tastings and vineyard tours.
• Capture sunrise or sunset photos when the lake perfectly mirrors the surrounding mountains.

Gibbston Valley

Why Stay in the Gibbston Valley

For wine lovers and those looking to escape the hustle of central Queenstown, Gibbston Valley is one of the best areas to stay in Queenstown. Known as the Valley of Vines, this picturesque neighborhood is about a 25-minute drive from downtown Queenstown. It’s one of the most scenic and tranquil Queenstown neighborhoods, surrounded by rolling vineyards and rugged mountains.

Learn more about the Gibbston Valley with this travel guide!

Staying in Gibbston Valley means immersing yourself in the heart of Central Otago’s wine country. This area is perfect for couples and foodies who appreciate boutique accommodations, world-class wines, and a laid-back rural atmosphere.

Pros of Staying in the Gibbston Valley:

• Renowned for its wineries, including the famous Gibbston Valley Winery.
• Peaceful rural setting with stunning vineyard and mountain views.
• Ideal for wine tasting, gourmet dining, and cycling tours.
• Unique lodging options, including vineyard cottages and rustic lodges.

Cons of Staying in the Gibbston Valley:

• Located about 25 minutes from central Queenstown, so having a car is essential.
• Limited dining and shopping options outside of winery restaurants.
• Very quiet in the evenings, which might not suit those looking for nightlife.

Top Accommodation Options in the Gibbston Valley:

• Gibbston Valley Lodge & Spa: Luxury vineyard lodges with spa facilities and a gourmet restaurant.
• Kinross Cottages: Charming cottages nestled among the vines, with an on-site bistro and wine-tasting room.
• Mt Rosa Lodge: Boutique B&B with panoramic views and locally sourced breakfasts.
• Stoneridge Estate – Not located directly in the Gibbston Valley but this high end resort is in a perfect area to enjoy both the Gibbston Valley by car and Lake Hayes.

Best Things to Do in the Gibbston Valley:

• Visit Gibbston Valley Winery for cellar door tastings and vineyard tours.
• Cycle the Gibbston River Trail, which winds through scenic vineyards and offers plenty of stops for tastings.
• Explore the Kawarau Suspension Bridge, the birthplace of commercial bungee jumping.
• Enjoy gourmet meals at Kinross Bistro, where dishes are paired with local wines.
• Discover boutique wineries like Chard Farm and Peregrine Wines for unique tasting experiences.

Fernhill & Sunshine Bay

Why Stay in Fernhill & Sunshine Bay

If you want the best areas to stay in Queenstown that combine residential tranquility with lake views, consider Fernhill and Sunshine Bay. Just a 5-minute drive or a 20-minute walk from central Queenstown, these neighboring areas are popular with locals and visitors looking for a quieter base while remaining close to downtown attractions. As some of the more relaxed Queenstown neighborhoods, they offer a peaceful retreat without feeling too far from the action.

These hillside areas are known for their sweeping views over Lake Wakatipu and the Remarkables. You’ll find a mix of holiday homes, lodges, and apartment-style accommodations here, making it a great choice for families, couples, and anyone wanting a more local experience.

Pros of Staying in Fernhill & Sunshine Bay:

• Beautiful elevated views of the lake and mountains.
• Quiet, residential feel while still being close to central Queenstown.
• Great access to hiking trails, including the Arawata Terrace Track and Sunshine Bay Walk.
• A mix of affordable lodges and upscale villas.

Cons of Staying in Fernhill & Sunshine Bay:

• Hilly terrain can be challenging if you’re walking back from town.
• Limited dining options compared to downtown.
• Public transport to central Queenstown is available but not as frequent.

Top Accommodation Options in Fernhill & Sunshine Bay:

• Heritage Queenstown: Upscale resort-style hotel with stunning lake views and an outdoor pool.
• Azur Lodge: Luxury private villas with panoramic views and personalized service.
• Kamana Lakehouse: A chic hotel with a fantastic on-site restaurant and lake vistas.
• Mercure Queenstown Resort: Mid-range comfort with modern amenities and beautiful views.

Best Things to Do in Fernhill & Sunshine Bay:

• Hike the Sunshine Bay Track, an easy lakeside trail offering beautiful views and native bush.
• Walk the Arawata Terrace Track, which provides a peaceful route through forested areas and open viewpoints.
• Enjoy a lakeside picnic at Sunshine Bay Beach, a quieter spot for swimming and relaxing.
• Catch the sunset from Fernhill Lookout, where the panoramic lake views are nothing short of spectacular.

Choosing the Right Queenstown Neighborhoods for Your Stay

Finding the best areas to stay in Queenstown really depends on your travel style, preferences, and the kind of experience you’re after. Queenstown’s diverse neighborhoods each offer something unique, so here’s a quick guide to help you choose the perfect spot for your stay.

Best Areas to Stay in Queenstown For Adventure Seekers

If you’re looking to be right in the heart of the action, Queenstown Central is the place to be. You’ll have immediate access to adventure tour companies, like jet boating and bungee jumping, plus easy hiking trails like the Ben Lomond Track. Staying central also means you’re never far from ice bars, nightlife, and bustling eateries.

Best Areas to Stay in Queenstown for Families

For a quieter, family-friendly environment, Frankton is one of the best areas to stay in Queenstown. With plenty of parks, shopping centers, and proximity to the airport, it’s both convenient and relaxed. Fernhill & Sunshine Bay are also good choices for families seeking a peaceful stay with beautiful lake views.

Best Areas to Stay in Queenstown for Couples

If romance and tranquility are your priorities, consider Lake Hayes or Gibbston Valley. These neighborhoods offer beautiful landscapes, boutique lodgings, and easy access to scenic walking trails. Staying in Gibbston Valley also means being surrounded by wineries, perfect for romantic getaways.

Best Areas to Stay in Queenstown for History & Local Charm

If you love history and quaint settings, Arrowtown is one of the top Queenstown neighborhoods to consider. The preserved gold mining town feel, cozy cafes, and boutique shops make it a charming escape from the busy downtown.

Best Areas to Stay in Queenstown for Wine Enthusiasts

There’s no better place than Gibbston Valley if wine tasting is on your agenda. With world-renowned vineyards and rustic lodges, it’s the ultimate retreat for food and wine lovers.

Best Areas to Stay in Queenstown for Nature Lovers

If you’re drawn to tranquil lakes and hiking opportunities, Lake Hayes is your ideal base. With peaceful walking tracks and reflective waters, it’s perfect for those wanting to connect with nature while still being within driving distance of central Queenstown.

Conclusion

Queenstown’s diverse neighborhoods offer something for everyone, whether you’re here for adventure, relaxation, or a taste of local culture. Choosing the best areas to stay in Queenstown can make a big difference in how you experience this incredible destination. From the lively atmosphere of Queenstown Central to the peaceful charm of Lake Hayes, each area provides a unique perspective on this beautiful region.

Whether you prefer being in the heart of town or nestled in a quieter suburb, the right neighborhood can make your stay unforgettable. Take the time to consider your travel style and priorities when picking your base, and you’re sure to find the perfect spot to call home while exploring Queenstown’s neighborhoods.

FAQs About Queenstown Neighborhoods

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