Dunedin provides the usual range of lodgings, from backpacker hostels to motels to fine hotels. But what I love most about the area is its very fine choice of heritage homestays and B&Bs, many of which are in exquisite Victorian-style buildings. At certain times of the year, midrange options are heavily booked because of university activities, so make your reservations early. Rates include the 12.5% GST and free off-street parking.
In Town
Moderate -- If you're looking for a smart motel close to town, you'll be hard-pressed to find anything better than the new Motel on York, 47 York Place (tel. 0800/006-666 in NZ, or 03/477-6120; www.motelonyork.co.nz), which is just two streets off The Octagon. Its 23 nonsmoking units offer all the comforts of a good little boutique hotel for NZ$150 to NZ$240 (US$106-US$170/£54-£87). There are also lovely B&B beds at Mandeno House, 667 George St. (tel. 03/471-9595; www.mandenohouse.com), where rooms go for NZ$250 to NZ$300 (US$177-US$213/£90-£108); and they're just a 5-minute walk to the center of town.
Inexpensive -- City Sanctuary B&B, 165 Maitland St. (tel. 474-5002; www.citysanctuary.co.nz), has three delightful, sunny rooms for NZ$120 to NZ$175 (US$85-US$124/£43-£63) and you'll find reasonably priced B&B digs at Deacons Court, 342 High St. (tel. 0800/268-252 in NZ, or 03/477-9053; www.deaconscourt.co.nz). They have two rooms with en-suites and one with private bathroom facilities in a large, Victorian home from NZ$130 to NZ$180 (US$92-US$128/£47-£65). Closer to town, you'll find a similar style stay at Tower House, 9 City Rd. (tel. 03/477-5678; www.thetowerhouse.co.nz), where the price is from NZ$110 to NZ$140 (US$78-US$99/£40-£51). Backpackers meanwhile, will be well taken care of at Manor House Backpackers, 28 Manor Place (tel. 0800/477-0484 in NZ, or 03/477-0484; www.manorhousebackpackers.co.nz), where dorm beds go for NZ$25 (US$18/£9) per person.
On Otago Peninsula
There are certainly enough things to see on the peninsula to justify an overnight stay. At Nisbet Cottage, 6A Elliffe Place, Shiel Hill (tel. 03/454-5169; www.natureguidesotago.co.nz), hosts and nature guides Ralf and Hildegard can advise you on the area's natural history and unique birdlife. They specialize in nature-based accommodations packages, in which you tie up 2 or more nights' stay with guided wildlife tours of Dunedin, Otago Peninsula, and the Catlins. There are three lovely guest rooms with en-suite bathrooms and stunning views over Dunedin Harbor. Two- or 3-night tour packages start at NZ$1,100 (US$780/£397) and include breakfast, tour, and picnic lunch.
