Paraguay is often overlooked, but it’s a hidden gem in South America with plenty to offer. Whether you’re looking for budget stays, luxury hotels, or something in between, there’s a variety of accommodation options suitable for every traveler. In this guide, we’ll explore where to stay in Paraguay’s major cities and tourist hotspots so you can feel confident about finding the right place for you.
Budget Accommodation in Paraguay
Hostels
If you’re travelling on a budget or backpacking across Paraguay, hostels are your best bet. You’ll find affordable, clean, and often centrally located hostels in Asunción, Ciudad del Este, and Encarnación.
Asunción
The capital city offers many budget options. Some popular hostels include El Nomada Hostel and Circo Hostel. Both of these places offer dorm rooms as well as private options at reasonable prices. They have common areas for socializing, making them great for meeting other travelers.
Ciudad del Este
Ciudad del Este is famous for shopping and its proximity to Brazil and Argentina. There are fewer hostel options here, but you can still find good deals. Hostal Floresta and Hummingbird Hostel offer budget-friendly dorms and private rooms in convenient locations.
Encarnación
Encarnación, known for its beaches and the nearby Jesuit ruins, also has budget accommodations. Maui Waui Hostel and Carnaval Hostel are two good options for budget travelers. These hostels are near the main attractions and the beach, making them a great choice during the summer.
Mid-Range Accommodation
Guesthouses and Boutique Hotels
If you prefer more comfort while sticking to a mid-range budget, Paraguay offers plenty of guesthouses and boutique hotels that provide a more personalized experience. They are a great middle ground between budget hostels and high-end luxury hotels.
Asunción

La Casa Hotel Boutique in Asunción is a small but charming hotel located in a quiet neighborhood. It has modern rooms and a quaint garden space. Similarly, Aspen Hotel offers excellent value for money with comfortable rooms, a rooftop pool, and breakfast included.
Ciudad del Este
Boutique hotels aren’t as common in Ciudad del Este, but you can still find affordable options like Hotel Executive. It’s centrally located, making it easy to reach the shopping districts and bus station. For something more relaxed, you could try Nova House. It has a homely feel and fewer rooms, so it’s less hectic than larger hotels.
Encarnación
For a relaxed stay in Encarnación, check out Mandala Hotel & Spa. Although a bit more expensive than hostels, it offers an experience that’s worth the price with a small spa and spacious rooms. Another good option is Hotel Paraguari, which is closer to the beach and has mid-range prices with comfortable rooms.
Luxury Accommodation in Paraguay
5-Star Hotels and High-End Stays
If you’re after luxury, Paraguay has some excellent upscale hotels particularly in the capital and near popular tourist areas. These hotels often feature top-tier amenities like spas, pools, and rooftop bars.
Asunción
For luxury accommodation in Asunción, Palacio Verde Boutique Hotel is one of the top choices. It combines modern luxury with historic charm. Also, check out Hotel Sheraton Asunción, which offers world-class service along with a rooftop terrace and outdoor pool.
Another excellent option is Bourbon Asunción Hotel, known for its sophisticated design and large rooms. It’s near the airport, making it an excellent choice for business travelers or those flying in and out of the country.
Ciudad del Este
Five-star options in Ciudad del Este are limited, but you’ll find some upscale hotels like Acaray Hotel. This hotel provides all the classic luxury touches like spacious suites, river views, an outdoor pool, and a casino.

Marambaia Hotel is another high-end option, with modern facilities and luxurious rooms. If you want a break from the shopping districts, this hotel is perfect for a more relaxing stay.
Encarnación
Although it’s smaller than Asunción, Encarnación doesn’t disappoint on the luxury front. There’s the luxurious Savoy Hotel Encarnación, which is right by the river and ideal for travelers seeking comfort and style. It has a beautiful outdoor pool with views of the nearby bridge to Argentina.
Another option is the Arthur Palace Hotel. It offers modern, well-maintained facilities and large rooms for families or travelers who want extra space.
Unique Stays in Paraguay
Estancias (Ranches)
If you want to experience rural Paraguay, consider staying at one of the many estancias scattered across the country. These ranches offer a unique opportunity to stay in the countryside, far from the cities, and experience Paraguay’s traditional way of life.

Estancia Aventura in the Chaco region offers horseback riding, birdwatching, and traditional Paraguayan meals. Another great option is Estancia Tacuaty, a bit closer to the capital, where you can learn about cattle ranching and see the stunning Paraguayan landscape up close.
Eco-Lodges
For eco-conscious travelers, Paraguay has several eco-lodges that focus on sustainability. These accommodations range from rustic cabins to more upscale eco-resorts, often located in or near national parks.
Reserva Natural Laguna Blanca is a beautiful place to stay in a nature-rich area. You can swim, kayak, or explore the nearby trails. Alternatively, Yvy Maraey Eco-Lodge near Ybycuí National Park offers an eco-friendly stay with nature-focused activities like hiking and birdwatching.

Best Places to Stay by City
Asunción
Asunción offers the most variety when it comes to accommodation. The historic downtown area is perfect if you want to be close to museums, restaurants, and nightlife. It’s easy to navigate on foot, and you’ll find both budget hostels and high-end hotels here.
If you’re looking for something quieter, consider staying in the Villa Morra or Carmelitas districts. These are more residential areas with upscale restaurants and boutique hotels. They’re perfect for travelers who prefer peace and a more relaxing vibe.
Ciudad del Este
Considering its location right on the border with Brazil and Argentina, Ciudad del Este is ideal if you plan to cross into either country. The city center is the best place to stay if you’re interested in shopping, but it can get quite hectic, especially during the day.
If you prefer a quieter place, look for accommodations outside of the downtown area, closer to the river. Some hotels are located near the Paraná River and offer fantastic views, perfect for some evening relaxation after a busy day shopping or exploring.
Encarnación
Encarnación’s main attraction is its waterfront, which makes staying near the beach a great choice. Many hotels are located across from the Costanera, the riverside walking area, and offer great access to the city’s nightlife and beach activities.
If you plan to explore the Jesuit ruins, staying near the city center can save you some time. You’ll also find many mid-range hotels here close to restaurants and tourist services.
Countryside and Small Town Stays
If you want to visit the rural areas or smaller towns, there are fewer accommodation options, and you’ll likely find mostly guesthouses or estancias. Make sure to book ahead, especially if traveling during peak seasons.
Tips for Booking Accommodation in Paraguay
It’s a good idea to book your stay in advance when traveling to Paraguay, especially during holidays or festivals like Carnaval in February, when hotels in places like Encarnación can fill up fast. Still, outside of peak tourist season, it’s usually easy to find accommodation with last-minute bookings.
Before booking, always check if breakfast is included, as many mid-range and luxury hotels offer it at no extra cost, helping you save on meals. Also, remember that air conditioning is a must during Paraguay’s hot and humid summers, so double-check that your room has it, particularly in budget accommodations.
Conclusion
Whether you’re looking for budget hostels, boutique guesthouses, or luxurious hotels, Paraguay has a range of options for every type of traveler. Just figure out what kind of stay you’re looking for, whether it’s in the bustling capital of Asunción or a serene estancia in the countryside, and you’ll have no problem finding the perfect place for your trip!
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