Best Hotels in Asuncion – Where to Stay, AirBnbs & Local Tips
I’ve been living in Asuncion for a few years now, and throughout my time here, I’ve gotten to know the city quite well—especially when it comes to where to stay. Whether you’re visiting Paraguay for a quick trip or planning a longer stay, you want to choose the right area off the bat… trust me, I didn’t, and it can easily make or break your experience, especially in Asuncion.
There are lots of good hotel and Airbnb options in Asuncion, but not all of them will be the best areas or set up for foreigners. In this post, I’ll share the best hotels in Asuncion, the neighborhoods I recommend for safety and convenience, and why Airbnb might actually be the best option if you’re staying for more than a few days.
Tip: Check out my apartment hunting guide post for a full breakdown of what to expect when apartment hunting in Paraguay for a longer-term lease.

Best Areas to Stay in Asuncion for Foreigners
While Asuncion is the capital of the country, the good news is that the best neighborhoods for visitors are all quite close together. If you’re not sure where to book, I always recommend one of these three areas for foreigners who want a safe area to stay in:
Villa Morra
This is one of the top areas for foreigners. It’s full of restaurants, cute cafes, shops, and malls like Shopping Mariscal.
I’ve spent a lot of time in this area… because I live here—and it’s clean, safe, and you can walk to most places (instead of Ubering everywhere… which is common in Paraguay as things are quite spaced out). There are also a few great hotels here (I’ll list them in the next section) and lots of Airbnb available.
Tip: Check out this complete guide of the best cafes in Asuncion, many of them located in or near Villa Morra. This area has a TON of cute cafes to work from or meet a friend.
Recoleta
Recoleta is right next to Villa Morra and is very similar. It’s also walkable, close to everything, and a nice area to stay. It’s just a bit quieter and more residential, which can be great if you’re looking for a more relaxed vibe with less businesses and shopping nearby.
Las Mercedes
Las Mercedes is a little further away, so you’ll need to take a short Uber if you’re heading into this area. You can expect about a 7-10 minute Uber ride without traffic.
This area is also a nice, safe area where you will often find many foreigners at local restaurants and cafes during the daytime. There are new and modern buildings in this area (and of course, they are continuing to always build more), so you can be sure you will find a nice building up to your standards here.
Best Hotels in Villa Morra & Recoleta (Short-Term Stays)
If you’re coming to Paraguay for a few nights or a short trip, there are some great hotels in the Villa Morra and Recoleta areas.
These neighborhoods are where most foreigners stay, especially for shorter trips, and for good reason—they’re safe, central, and full of great restaurants, shopping, and things to do.
Here are few of the nicest hotels you can stay at in Asuncion. They can range in budget from standard price to a few hundred per night.
La Misión Hotel
This is probably one of the nicest hotels in Asuncion, and in an excellent location. It has a beautiful design with a more traditional Paraguayan feel and great service. It’s in the heart of Villa Morra, close to restaurants and shopping, and right across the street from the mall Shopping Mariscal. It’s not cheap, but if you’re only staying a few nights and want something more high-end, this is a great pick.
Check out La Misión Hotel online here and book your stay

Hotel Factoria
Hotel Factoria has a modern, boutique style with unique architecture and design unlike any hotel I have seen before. It’s very stylish and trendy, and it’s become popular with both tourists and business travelers. Like La Misión, it’s also on the more expensive side, but definitely one of the best hotels in Asuncion if you want something unique and upscale.
Book your stay at Hotel Factoria online here
Hub Hotel Asuncion
Located right across from Shopping Mariscal, Hub Hotel is a great middle-ground option. It’s not as fancy as La Misión or Factoria, but it’s modern, clean, and has a rooftop bar, pool, and restaurant.
The location is one of the best—you’re within walking distance to everything in Villa Morra, and since this hotel is right across from Misión Hotel, you are also right across the street from Shopping Mariscal.
I highly recommend this location if its your first time staying in Asuncion, as it will give you access to all the best the city offers.
Check out Hub Hotel and book your stay
Hotel Villa Morra Suites
If you’re looking for something cozy and a little more low-key, Villa Morra Suites is another great choice near the Villa Morra area.
It’s a quiet spot tucked away in the neighborhood, but still close to all the action. The rooms are fairly spacious, and it has more of a boutique hotel vibe. It’s also a little more affordable compared to the higher-end options above.
Book your stay at Hotel Villa Morra Suites
The above hotels are what I consider the general best hotels in Asuncion for anyone looking to stay in the heart of the city.
Whether you’re here for business, visiting friends, residency, or just passing through Paraguay, staying in Villa Morra, Recoleta, or the surrounding area puts you close to everything and gives you a safe place to come back to at the end of the day.
Hotels in Downtown Asuncion (Catedral Area)
Downtown Asuncion, especially near the Cathedral and Plaza Uruguaya, has some really beautiful and historic hotels. A few of them look like something straight out of an old European city, with grand architecture and big open lobbies. If you’re only visiting for a day or two and want to explore the historic side of the city, this could be a good area to check out.
That said, I personally wouldn’t recommend staying in the downtown area for longer stays. While it’s fun to visit during the day and take in the old buildings and markets, this area isn’t the safest at night. Most foreigners and expats I know don’t stay here, especially if they’re planning to go out for dinner or walk around after dark.
Tip: If you are looking for the best areas of the city to stay in, check out this detailed guide. We also mention the Catedral area in this article.
A couple of the more well-known downtown hotels include:
- Hotel Guaraní – This is probably the most iconic hotel downtown. It’s a large hotel with a rooftop pool and views of the city. The building is very recognizable, and it’s located right on one of the main plazas. Good for short business trips or daytime exploration.
- Palmaroga Hotel Asuncion – A more classic, elegant hotel just outside the busiest part of downtown. It has beautiful gardens and a rooftop pool, and it’s a popular pick for those looking for a grand stay while in Asuncion.
While there are some well-known and beautiful hotels downtown Asuncion (in the old city center), if you are looking to stay longer term, even while visiting, in Asuncion, I would recommend the Villa Morra area and the other areas listed above. However, the old city center is a nice stay for a few evenings.

Airbnb in Asuncion (Best for Long-Term Stays)
If you’re planning to stay in Asuncion for more than a few days—or even a few weeks—Airbnb is going to be one of your best options.
I’ve stayed in many Airbnbs throughout the city, and they’ve all been comfortable, well-equipped, and the hosts have been quite communicative with any questions I have prior to check in. And believe it or not, the internet in Paraguay is always quite fast, so I have never had an internet issue during my stays.
You can except most quality Airbnbs in Paraguay to have fast internet, a smart TV with Netflix, and a kitchen with the basics like pots, pans, and simple dishes. This makes it easy to cook at home, which is one of the things I like when staying longer-term versus a hotel.
You’ll usually find a Biggie (a small local convenience store) or another grocery option within a block or two, so grabbing snacks or ingredients is easy.
Tip: Check out this guide for what you can expect from supermarkets and food prices in Paraguay.
As for prices, Airbnb rentals in Villa Morra or Recoleta can range from $25 to $75 USD per night, depending on how big the apartment is, how modern it looks, and exactly where it’s located. If you’re staying for a month or more, you can usually find a monthly discount on the app or ask your host to give you a monthly discounted rate.
I actually know of many foreigners who choose to rent monthly and get a discount on Airbnb (sometimes even for 4-5+ months), instead of deal with the hassle of finding a furnished apartment, which isn’t always an easy feat in Paraguay. Trust me, I’ve done it!
What About Hostels in Asuncion?
When it comes to hostels in Asuncion, I’ll be totally honest—I haven’t personally stayed in any. Since I live here full-time and usually go for Airbnbs or hotels when I travel around Paraguay, hostels haven’t been on my radar much.
That said, I know some backpackers and short-term travelers who have stayed in hostels here and had decent experiences.

Most hostels in Asuncion are located either near downtown or tucked away in quieter residential areas. While downtown might seem like a good option on paper, I personally don’t recommend staying there unless you’re just passing through for a night, as mentioned above.
If you’re looking for a hostel, some of the more well-known names are:
- El Nomada Hostel
- Black Cat Hostel
- Urbanian Hostel
They tend to offer basic rooms, shared kitchens, and some social activities, but again—I haven’t stayed in any of them myself, so I can’t give a full review.
If you’re a budget traveler or backpacking through Paraguay and want to explore this option, leave me a comment below, and I’ll be happy to do some research and put together a separate guide on hostels in Asuncion.

Where to Stay in Asuncion – My Honest Opinion
After living in Asuncion for a few years, I’ve had plenty of time to try different places and really figure out where the best areas and accommodations are. Whether you’re staying for a weekend or planning to stay for a few months, there are some amazing options here—you just need to know where to look.
Long story short… if you’re here short-term and want comfort and location, I recommend checking out the best hotels in Asuncion in Villa Morra or Recoleta. They’re safe, central, and close to everything you’ll need.
For longer stays, Airbnb is my go-to. Every apartment I’ve stayed in has had fast Wi-Fi, a working kitchen, and felt like a little home in the city. And while I don’t personally have hostel experience in Paraguay, I’m always happy to explore more options if that’s something you’re looking for.
No matter your budget or how long you’re staying, you can bet there’s a great place in Asuncion waiting for you.
FAQ: Best Hotels in Asuncion & Other Stay Options
The best areas are Villa Morra, Recoleta, and Las Mercedes. They’re safe, walkable, and full of restaurants, cafes, and shops. Villa Morra is especially popular with expats and digital nomads.
My top picks:
La Misión Hotel – upscale and traditional
Hotel Factoria – boutique and modern
Hub Hotel Asuncion – great location, rooftop views
Hotel Villa Morra Suites – quiet and comfortable
All of these are located in central areas and great for a 2–5 night stay.
Downtown has some beautiful old hotels like Hotel Guaraní and Gran Hotel del Paraguay, but I don’t recommend staying there long-term. It can feel unsafe at night, and most foreigners prefer to stay in Villa Morra or Recoleta.
I’ve stayed in multiple Airbnbs around the city and always had a great experience. Wi-Fi is fast, most places have a kitchen, and the prices are very reasonable—usually $25–$75 per night in the best areas.
There are, but I haven’t stayed in them myself. Hostels like El Nomada and Black Cat Hostel are popular with backpackers, but if you’re looking for more comfort or a place to work remotely, I’d stick with hotels or Airbnbs.