Where to Stay in Salzburg, Austria: My Favorite Area for First-Timers on a Budget

I took my mom on a surprise trip to Austria as part of searching out our family ancestry, which also took us to Slovenia, Germany, and Croatia.

And while my family isn’t from Salzburg, I knew she was a big Sound of Music fan and decided to do a quick 2 day trip to this Alpine city.

Because I was funding this trip myself, and I unfortunately don’t have an unlimited travel budget, I had to find all the ways to save, which includes on accommodations, as they usually wind up being the bulk of the expense.

After searching around for where to stay in Salzburg, I wound up discovering the perfect area that allotted us a safe, clean, comfortable, easy to access, which also boasted an excellent view of those mountain Julie Andrew’s sings so wonderfully about.

While there aren’t really any bad areas to stay in Salzburg, there are some neighborhoods that will definitely save you a few bucks in the long run, so you can drink more radler and spend less on hotels in Salzburg.

What to Consider Before Booking

Location, Location, Location

Before deciding where to stay in Salzburg, I always create a list of everything I want to do on the trip, and then plot out a Google Map of those sites.

Don’t worry, this is all free and you can do it on Google Docs and Google Maps easily enough.

Not only does this help me narrow down where I want to stay as I want to be central to the attractions, but I sometimes also will nix a site or two if I find out they are farther out of the city than I’d like to venture.

But back to hotels in Salzburg, this Alpine gem is quite small so unless you’ve got accessibility issues or a severely limited amount of time, staying outside of the city center is totally fine, in fact, it’ll save you money as most of the expensive accommodations in Salzburg are located in Old Town.

Noise Level

As far as noise, I didn’t find any area to Salzburg to be too noisy. The only thing that may occasionally be are the Salzburg festivals, but you’ll likely be visiting for that very reason, so nothing to worry about there!

Parking Considerations

If you’re arriving by car, make sure to select an accommodation that offers parking. The city is dealing with a parking shortage and parking costs will add up quickly!

My travel buddy and I did a road trip around Southern Germany, which meant we were right next door to Salzburg at some points, and found that it was able 50/50 on hotels charging for parking or offering a free lot.

Language Barrier

In most areas of Salzburg, you won’t have any trouble finding someone who speaks English.

However, if you’re looking to save a buck like me, going to local stores may be a little more difficult.

Mostly, we found that we had to use Google Translate (which you should download German ahead of time for offline access) to read labels and struggled through basic German phrases with cashiers, but everyone was kind and we made it through unscathed.

The 6 Main Areas for Accommodations in Salzburg

1. Altstadt (Old Town Salzburg)

• Location: Historic center on the left bank of the Salzach River
• Best for: First-time visitors, Christmas market enthusiasts, history buffs
• Vibe: Cobblestone streets, tourist central, iconic and charming
• Key attractions: Mozart’s birthplace, Hohensalzburg Fortress, Getreidegasse
• Pros: Walking distance to everything, fairytale atmosphere
• Cons: Most expensive area, can be crowded, touristy

2. Neustadt (New Town / Right Bank)

• Location: Across the river from Old Town
• Best for: Those wanting local vibe with central access
• Vibe: More relaxed, residential feel with tourists, beautiful riverside
• Key attractions: Mirabell Gardens and Palace, Mozart Residence
• Pros: Better value, stunning fortress/mountain views, quieter than Old Town but still central
• Cons: Slightly less “storybook” than Old Town

3. Elisabeth-Vorstadt (Train Station Area)

• Location: Around Salzburg Hauptbahnhof (central train station)
• Best for: Short stays, budget travelers, day-trippers
• Vibe: Practical, modern, not particularly charming
• Key attractions: Easy transport connections, great if you’re coming in late from Vienna by train and don’t want to go very far
• Pros: Convenient for arrivals/departures, good for day trips to lakes/Hallstatt
• Cons: 25-minute walk to Old Town, less atmospheric
• Note: Not much cheaper than closer areas

4. Nonntal & South Salzburg

• Location: Just behind the fortress, south of the center
• Best for: Longer stays, those seeking local life, nature lovers
• Vibe: Residential, peaceful, authentic local neighborhood
• Key attractions: Near natural swimming spots, walking/biking paths
• Pros: Quieter, more space, local cafés, still close to center
• Cons: Fewer hotels (more apartments/guesthouses), less English spoken

5. Leopoldskron

• Location: Southwest of city center, lakeside area
• Best for: Nature lovers, Sound of Music fans, those with cars
• Vibe: Scenic, rural, mountain backdrops
• Key attractions: Leopoldskron Palace (where they filmed parts of the Sound of Music), lakes, Alpine scenery
• Pros: Beautiful natural setting, peaceful, great for relaxation
• Cons: Need bus/car to reach city center, fewer dining options nearby

6. Parsch

• Location: East of city center, more residential
• Best for: Those wanting a more local experience or on a budget
• Vibe: Scenic, forests, mountain backdrops
• Key attractions: Volksgarten Salzburg—we passed this urban space regularly on our way to Old Town
• Pros: Not touristy so great for relaxation and peaceful downtime, local shops nearby so those looking to save on food will find affordable meals and snacks
• Cons: Need bus/car to reach city center, fewer dining options nearby

Quick Recommendations:

• First visit + want atmosphere: Old Town
• Good value + views: New Town
• Quick overnight/train travel: Elisabeth-Vorstadt
• Budget stay/local experience: South Salzburg or Parsch (most recommended)
• Nature/luxury retreat: Leopoldskron area

Important note: Salzburg is very compact—even “far” areas are only 20-25 minutes from the center by foot or a quick bus ride.

📅 Struggling with how long to spend? Read my how many days in Salzburg guide!

My Experience Staying in Salzburg

Before booking my trip to Salzburg, I reached out to several friends who’d done quick 2 day trips to Salzburg before and got their advice.

Many had stayed in Old Town, which makes sense as it’s the city center. And while usually I’d absolutely encourage staying as central as you can afford, Salzburg is so small that distance doesn’t really matter.

And those who did stay centrally, while they got to wake up to cobblestone streets and those charming fairytale vibes, they also paid an arm and a leg for it.

As a budget traveler, every bone in my body rejects paying too much for accommodations since usually I’m exclusively sleeping and showering there and spending the bulk of my time out and about.

The other thing to know about Old Town, is if it’s Christmas or any other Salzburg festivals are going on, prices will be even higher, making budget accommodations on the outskirts of the city even more desirable.

Which is how I stumbled upon Parsch when I found Hotel Heffterhof.

While it isn’t the city center, it is a heck of a lot cheaper and also only a 10-minute bus ride into town. The Heffterhof is very conveniently located as it’s across the street from bus line 6, which meant we didn’t have to go very far at all to be shuttled into Old Town.

As bus fare is included with the Salzburg Card, we also didn’t have to pay for this public transportation. However, those without the tourist pass can buy bus tickets at the front desk.

Where to Stay in Salzburg Austria + Top-Rated Hotels and Hostels

Now that you have some general idea of what areas there are for you to stay in, let’s look at some top-rated accommodations in Salzburg and the one I’d highly recommend.

1. Altstadt (Old Town Salzburg)

If you’re short on time and looking for those charming Alpine vibes, you can’t go wrong with staying in Old Town.

You’ll be central to everything (Hohensalzburg Fortress, St. Peter’s Abbey, Getreidegasse, etc.), making an overnight day trip easy to accomplish!

Old Town is also where you’ll find hotels housed in historic buildings, but again, that means you’ll have to pay more for that kind of unique stay.

If you have accessibility issues, it’s also a good idea to stay so central. However, do note that some hotels are challenging to get to as they don’t have car access, so do make sure to ask before booking.

Top-Rated Budget Hotels & Hostels in Old Town Salzburg

Leonardo Hotel Salzburg City Center

⭐ Rating: 3-star (8.5/10)
💰 Cost: $90-140 per night

Why Stay Here:

• Modern comfort just steps from Old Town through a tunnel – Spacious rooms with mini-fridges, rain showers, and flat-screen TVs, located right at the pedestrian tunnel entrance that brings you to Getreidegasse and Mozart’s birthplace in just a 5-10 minute walk
• Great value with practical perks – Free Salzburg Card for public transport included with your stay, good breakfast buffet, rooftop terrace with fortress views, and on-site parking available

Stadtalm Naturfreundehaus

⭐ Rating: Hostel (7.8/10 on Booking.com, 3/5 on TripAdvisor, 8.4/10 location rating)
💰 Cost: $35-47 per night

Why Stay Here:

• Unbeatable panoramic fortress views at budget prices – Unique mountain setting on Mönchsberg with stunning city views from all rooms, restaurant, and grounds, plus on-site restaurant serving authentic Austrian specialties in a rustic dining room with fireplace or charming garden
• Prime Old Town location with historic character – Located in the real heart of Salzburg, easily reachable within 10 minutes on foot from Festival Hall, Getreidegasse, and Mozart’s birthplace, or via Mönchsbergbahn cable car, with simple but clean dormitories featuring hardwood floors

Altstadthotel Kasererbräu

⭐ Rating: 4-star hotel (8.0/10 on Booking.com, 3-4/5 on TripAdvisor)
💰 Cost: $87-188 per night

Why Stay Here:

• Historic 14th-century hotel with unique cinema experience – Dating back to 1342 and family-run for generations, this carefully renovated hotel features individually furnished rooms (some with antique furniture, others modern), plus a historic cinema built in 1905, one of the oldest world-wide which has hosted many famous guests, including Romy Schneider after her premiere of the movie “Sissy”
• Perfect pedestrian zone location with excellent breakfast – Located directly in the historic pedestrian zone at the foot of Hohensalzburg Fortress, within walking distance to all Old Town attractions, offering abundant buffet breakfast served with Prosecco and modern amenities including free WiFi and sauna

2. Neustadt (New Town / Right Bank)

Admittedly, I didn’t spend much time in the New Town as the only main attraction in Salzburg to do there is the Mirabell Gardens, which I highly recommend you visit, especially if you’re a Sound of Music fan.

This is also where we departed from when we took a short cruise along the Salzach river, which is included with the Salzburg card.

We didn’t visit, but there is also Mozart Residence, which I’d be remiss not to mention.

It’s less busy because of the fewer amount of attractions, so if you’re looking for central (a short walk across a bridge takes you back to Old Town), but slower pace than Old Town, this may be the perfect pick for you on where to stay in Salzburg.

Additionally, if you want to wander the river, which is a lovely thing to do in Salzburg, then the views will be exceptional as you’ll be able to see the mountains, the colorful buildings of Old Town, and Hohensalzburg, which is a 900-year old fortress perched up above the city.

Top-Rated Budget Hotels in Neustadt Salzburg

HOTEL andrä

⭐ Rating: 3-star (9.0/10)
💰 Cost: $105-160 per night

Why Stay Here:

• Brand new modern design with automated convenience – Opened in December 2024 in a beautifully renovated 1873 building, this hotel features sleek rooms with soundproof windows, free mini-fridge drinks, and self check-in/check-out kiosks (staff available 12 pm-8 pm daily for assistance)
• Perfect Neustadt location near everything – Just 2 minutes walk from Mirabell Palace, 9 minutes to Old Town, with bus stops and Sound of Music tour pickup right outside the door, plus free Guest Mobility Ticket for unlimited public transport included with your stay

Altstadt Hotel Hofwirt Salzburg

⭐ Rating: 3-star (8.0/10)
💰 Cost: $80-120 per night

Why Stay Here:

• Historic hotel with free breakfast and coffee 24/7 – Dating from 1878, located right in Linzergasse pedestrian zone with a rich Austrian breakfast buffet included, plus free coffee/tea corner in the lobby all day and a lovely garden terrace for relaxing summer mornings
• Family-friendly with great walkability – Air-conditioned modern rooms, just 10 minutes walk to Mirabell Palace and Old Town attractions, 15 minutes to train station, with bus stop right outside and helpful multilingual staff to make your stay comfortable

3. Elisabeth-Vorstadt (Train Station Area)

My mother and I got to Salzburg via train from Vienna, which is super easy and I highly recommend, so we obviously landed at the train station.

This is also where we picked up our Salzburg Cards.

I made an oops here by not asking if a bus went to our hotel instead of taking a taxi as we did. Costly mistake to avoid!

But as far as where to stay in Salzburg, it’s a decent enough spot, especially if you’re just dropping in for the day on your way to Hallstatt, Innsbruck, or Munich.

However, don’t expect attractions to be at your doorstep here. It’s a 25-minute walk to Old Town or a quick bus ride, but even that doesn’t make it the cheapest place to stay in Salzburg.

Top-Rated Budget Hotels and Hostels in Elisabeth-Vorstadt Salzburg

Cocoon Salzburg

⭐ Rating: 4-star (8.6/10)
💰 Cost: $100-140 per night

Why Stay Here:

• Trendy eco-hotel with nature-inspired design right across from the train station – Opened recently with warm colors, natural cork flooring, cozy bubble chairs or swing seats in rooms, and nature sounds in hallways creating a unique urban cocoon experience perfect for style-conscious budget travelers
• Unbeatable convenience for day trips – Located directly opposite Salzburg Hauptbahnhof (central station), just a 20-30 minute walk to Old Town, with Mirabell Palace only 11 minutes away on foot, plus on-site bar, optional breakfast, and free WiFi throughout

a&o Salzburg Hauptbahnhof

⭐ Rating: 2-star hostel/hotel (8.4/10 location rating)
💰 Cost: $40-80 per night (dorms from $40, private rooms from $70)

Why Stay Here:

• Budget-friendly with options for every traveler – Offers single, double, and family rooms with private bathrooms in the hotel section, plus shared dorms for 4-6 people with en-suite facilities and comfortable bunk beds, all with free WiFi and 24-hour reception
• Perfect location just 500m from train station – Incredibly convenient for arrivals and day trips, 20-30 minute walk to Old Town, near FORUM 1 shopping center, with lobby bar open 24/7 for drinks and snacks, plus billiards and communal areas for meeting fellow travelers

4. Nonntal & South Salzburg

If you’re wanting a really local experience in Salzburg, then Nonntal is the best where to stay in Salzburg option for you as it’s mainly residential and less tourism focused.

There aren’t as many hotels in this area of South Salzburg, but if you’re a digital nomad like me, then you maybe open to guesthouses or short term rentals.

Hotels in the quiet Nonntal neighborhood, provide easy access to Salzburg’s Old Town while avoiding the hustle and bustle of the city center, you’ll only a 15-minute walk to Old Town, which means you can easily head over for the touristy stuff when you want to.

Top-Rated Budget Hotels in Nonntal & South Salzburg:

Hotel Via Roma

⭐ Rating: 4-star hotel (8.4/10 on Booking.com, 3/5 on TripAdvisor)
💰 Cost: $90-150 per night

Why Stay Here:

• Convenient Nonntal location with free parking and excellent connectivity – Located in quiet Nonntal district with bus stop right outside the hotel providing easy access to Old Town (15-20 minute walk or quick bus ride), free parking available on-site, plus spacious air-conditioned rooms with modern amenities and free WiFi
• Historic charm with excellent Italian dining on-site – Family-run hotel built from a historic 1421 tavern (Taverne zur Römerstraße) and reopened in 2003, featuring the highly recommended Italian restaurant ‘Da Giacomo’ in the same building, plus a beautiful hotel garden adjacent to Hellbrunner Bach stream for relaxation

JUFA Hotel Salzburg

⭐ Rating: 4-star hotel (8.1/10 guest rating, 9.1/10 location rating)
💰 Cost: $106-$120 per night

Why Stay Here:

• Family-friendly hotel with amazing amenities – Features a spacious two-story indoor play area for children, arcade/game room, garden and terrace, restaurant and bar on-site, with modern comfortable rooms and air conditioning
• Unbeatable value with free public transport included – All guests receive free public transportation throughout Salzburg province during their stay, centrally located yet quiet in Nonntal, walking distance to Fortress Hohensalzburg and Old Town, with some rooms offering spectacular fortress views

5. Leopoldskron

You’ll likely know what Leopoldskron looks like without even knowing the name if you’ve watched the famous Sound of Music film.

Home to Villa Leopoldskron, the setting for the von Trapp family home in the film, you’ll recall it from the scene where they fall in the lake after flipping out of the boat or any of the external scenes were they’re sitting looking out over the lake.

Those looking for epic Alpine scenery will love this area to stay in Salzburg. And while it’s not super close to Old Town, you can still get to the city rather easily with a 10-minute drive or 30-minute public transportation route.

B&B Villa Verde

⭐ Rating: 3-star bed & breakfast (9.6/10 guest rating on Booking.com, 4/5 on TripAdvisor)
💰 Cost: $117-160 per night

Why Stay Here:

• Exceptional hosts and outstanding breakfast – Family-run B&B with owners Iris and Alex providing wonderful hospitality, spotlessly clean modern rooms with garden views, plus a delicious breakfast buffet featuring regional specialties, homemade items, and freshly boiled eggs
• Perfect Leopoldskron location with easy Old Town access – Just 500 meters from Leopoldskron Castle and only a 15-minute walk to Salzburg’s Old Town, with Leopoldskron outdoor pool 200 meters away, free WiFi and free parking included

Hotel und Gasthof Hölle (Austria Classic Hotel Hölle)

⭐ Rating: 4-star hotel (8.0/10 on Booking.com, 4/5 on TripAdvisor)
💰 Cost: $70-130 per night

Why Stay Here:

• Exceptional breakfast buffet and traditional Austrian restaurant – Family-run 19th century inn featuring an outstanding breakfast buffet described as one of the best guests have experienced, plus on-site restaurant serving authentic traditional Austrian dishes with AMA quality seal and extensive wine list
• Peaceful south Salzburg location with excellent amenities – Quiet location about 1.2 miles from city center with bus stop directly next to hotel for quick access, free WiFi, free parking, complimentary sauna, air-conditioned rooms, and charming guest garden with shady chestnut trees for summer relaxation

Parsch

Parsch is where my mother and I stayed during our trip to Salzburg!

While it doesn’t boast any fun attractions, we found it to be peaceful, comfortable, and affordable.

What I really loved about this area was that it was easily accessible to Old Town and also had a local vibe. It was super easy for us to walk down to the local corner store and grab some snacks and wine for an evening of resting our feet after a long day of exploring.

So yes, this won’t be the picturesque buildings of the city center, it still has its own charms.

This area is also really quiet and boasts excellent views of the Alpine mountains.

Hotel Heffterhof (The Hotel We Stayed at)

⭐ Rating: 4-star hotel (8.5/10 on Booking.com, 4/5 on TripAdvisor)
💰 Cost: $89-145 per night

Why Stay Here:

• Outstanding service with excellent breakfast buffet – The staff were exceptionally friendly and professional, they served a fantastic breakfast buffet with organic and local products, we were able to go out on the terrace for mountain views and see them from our clean and comfy hotel room as well, there are wheelchair-accessible facilities throughout and the hotel is also eco-certified
• Perfect location for easy city access with free parking – Quiet location on outskirts, yet bus line 6 stop directly in front of hotel took us to city center in just 10 minutes, free parking available across the street, plus bus tickets sold at front desk for convenience

Hotel Rosenvilla

⭐ Rating: 4-star boutique hotel (9.0/10 on Booking.com, rated Superb)
💰 Cost: $114-242 per night

Why Stay Here:

• Intimate boutique experience with exceptional hospitality – Family-run hotel with only 14 individually furnished rooms featuring luxurious bathrooms with spa tubs, staff rated 9.9/10 for friendliness and helpfulness, homemade breakfast with local products including homemade jams, cakes, and organic items
• Peaceful garden setting near Old Town – Located in exclusive residential Parsch/Aigen district with natural pond and sun terrace, just 10-15 minute walk to Old Town or 5-minute bus ride (line 7), free WiFi and bike rentals available for exploring

Final Thoughts on Where to Stay in Salzburg

Having visiting Salzburg in May with my mother, I can honestly tell you that, while I usually want to stay in the city center, it really isn’t essential on a trip to Salzburg.

However, if you’re looking to wake up to the charming streets you see on postcards, Old Town is the perfect place to stay on your Austrian itinerary.

But those, like myself, on a budget, will find plenty of fantastic options on the outskirts, which aren’t all that far away for a much more affordable price.

I found Parsch to be the perfect place of, not too far from the main attractions, easy to access, with great views, and a local vibe that made it easy for us to find budget meals.

Hotel Heffterhof in this area boasted comfy rooms, friendly staff, a bus stop across the street, and breakfast (which is becoming rarer and rarer these days)!

FAQs

Related Salzburg Travel Guides

• Two Days in Salzburg: A Complete Itinerary for First-Timers
• Visit Hohensalzburg Fortress, Salzburg’s 900-Year Old Castle
• Visiting Hellbrunn Palace and its Unique Musical Trick Fountains
• Helpful Guide to “Is the Salzburg Card Worth It?”
• Is Salzburg Worth Visiting? 14 Pros and Cons to Help You Decide
• How Many Days in Salzburg? A Simple Guide for First-timers
• 13 Sound of Music Salzburg Filming Locations + How to Visit
• 32 Things to Do in Salzburg: Top Budget-Friendly Walkable Sites
• Where to Stay in Salzburg Austria: My Favorite Area for First Timers on a Budget

Header image by Wolfgang Zimmel from Pixabay

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