Where to Stay in San Luis Obispo, by an Area Local (2023)

5 Best Areas to Stay in SLO (& Nearby)

San Luis Obispo is a relatively small city located at the intersection of California’s famous 1 and 101 highways. As you drive a short way north or south on these routes, you’ll find a series of smaller California towns that have a unique vibe and beauty of their own, ranging from oceanfront settings to the more agricultural wine country. 

When choosing where to stay in San Luis Obispo, you may end up preferring to stay in a smaller town nearby. In this article, I’ll start by detailing the neighborhoods in the heart of SLO and expand from there, giving you a better idea of what you’re looking for from your central coast visit!

Downtown San Luis Obispo

👉 Best Area For Dining and Shopping | ✨ Best Downtown SLO Hotels: Hotel San Luis Obispo • Quality Suites Downtown San Luis Obispo • San Luis Creek Lodge

Downtown San Luis Obispo isn’t your typical setting of skyscrapers and nightclubs. Rather, it’s about a 5-block stretch of restaurants, bars, coffee shops, and clothing boutiques. The old-school vibe of downtown stretches mainly along the historic Higuera Street. 

While you can expect this area to be pretty quiet by 9 pm during the week, the nightlife explodes during the weekends. Locals, college students, and residents of surrounding towns descend onto Higuera Street, frequenting its restaurant and bar scene. 

While you won’t be near any beach, Downtown San Luis Obispo is centrally located and makes it easy to reach both highway 101 and highway 1. 

For families planning a visit to California Polytechnic State University, or Cal Poly for short, I would recommend staying downtown. It’s a short drive from campus, and it’ll provide a glimpse into the extracurricular lives of college students.

Pros of Staying in Downtown San Luis Obispo:

• Tons of fun restaurants and bars
• Good for shopping 
• Best place for nightlife
• Easy access to the Cal Poly campus

Cons of Staying in Downtown San Luis Obispo:

• Not near the ocean
• Can get overrun with rowdy college students

Pismo Beach

👉 Best Area For Outdoor Activities | ✨ Best Pismo Beach Hotels: Dolphin Bay Resort & Spa • Inn at the Cove  • Pismo Lighthouse Suites 

Pismo Beach is probably the most well-known beach area near San Luis Obispo. Pismo Beach has tons of great restaurants and plenty of activity going on. However, because of its popularity, Pismo can get crowded and feel quite touristy. 

The water is quite cold off California’s Central Coast, but it doesn’t deter many surfers from enjoying its waves. You may get lucky and catch a surfing competition in Pismo. If you want to play in the water yourself, be sure to wear a wetsuit!

Pros of Staying in Pismo Beach:

• Good for dining and shopping
• Lots of outdoor activities, including camping and ATVing

Cons of Staying in Pismo Beach:

• Can be crowded and touristy

Avila Beach

👉 Best Area For a Beach Vacation | ✨ Best Avila Beach Hotels: Avila La Fonda Hotel • Sycamore Mineral Springs • Avila Lighthouse Suites

Avila Beach is only a few miles north of Pismo Beach but has a completely different vibe. 

Avila Beach is much quieter and tends to be a favorite among the locals. As you walk along the pier, you may catch a pair of otters playing in the water beneath you. This area is also great for dogs, as they are allowed off-leash before 10 am and after 5 pm. 

While there is plenty of space to lounge on the beach and get in the water to surf, my favorite part of Avila Beach is the forestry and gardens just off the coast. The Bob Jones Trail offers a scenic walk, bike, or run through a beautiful setting of trees and flowers. 

Overall, Avila Beach is where to stay in San Luis Obispo for a quiet stay and a more local atmosphere.

Pros of Staying in Avila Beach:

• A less crowded, more relaxed vibe
• Close to hiking and walking trails
• Dog-friendly

Cons of Staying in Avila Beach:

• Not many dining and shopping options

Morro Bay

👉 Best Area For a Quiet Getaway | ✨ Best Morro Bay Hotels: 456 Embarcadero Inn & Suites • The Landing at Morro Bay • Inn at Morro Bay

Morro Bay is a city about 15 miles north of San Luis Obispo on Highway 1. Its quaintness and low traffic make it a quintessential California central coast beach destination. The town is very walkable, and there are plenty of outdoor activities in Morro Bay. For couples looking for a romantic getaway, Morro Bay is a great choice.

Moreso, the town is famous for being home to the Morro Rock – a volcanic mound that makes for awesome photos and is a backdrop to pretty much all the local activities. 

Pros of Staying in Morro Bay:

• Quiet space with limited foot traffic
• Plenty of outdoor activity options

Cons of Staying in Morro Bay:

• Not the best option for dining and shopping

Paso Robles

👉 Best Area For a Wine Tasting | ✨ Best Paso Robles Hotels: Allegretto Vineyard Resort Paso Robles • Oxford Suites Paso Robles • Paso Robles Inn

Paso Robles is a wine lover’s paradise. Sitting among rolling hills and farmland, Paso Robles is home to over 200 wineries. 

From the center of San Luis Obispo, Paso Robles is about a 30-minute drive north on the 101. It’s common to stay closer to San Luis Obispo and take a day trip to wine country. However, Paso Robles is a fantastic place on its own, and its downtown and surrounding wineries have a lot to offer. 

Pros of Staying in Paso Robles:

• Endless access to wine tasting
• The charming, fast-growing downtown area

Cons of Staying in Paso Robles:

• Not a place for nightlife
• Further away from a large city center

Tips for Staying in San Luis Obispo

A Car is Essential for Visiting SLO

Like much of California, it is very difficult to get around without a car. The surrounding areas of San Luis Obispo are fairly spread out and are accessed by the freeway. If you need to get somewhere in a pinch, Uber and Lyft are prevalent, but not as abundant as in a larger city. 

📚 Related Reading: Where to Stay in Long Beach, CA

Businesses Close Early

Be aware that most restaurants in SLO close by 9 pm, and depending on how busy they are, they may shut down even earlier. This is especially true for the coastal towns, so plan accordingly. In Downtown San Luis Obispo, some bars are open later, and on the weekends some will be going strong until 2 am.

SLO is a College Town

While plenty of professionals and families call SLO home, the student body of Cal Poly permeates throughout the town and often dominates the nightlife scene. This, without a doubt, injects a vibrance into the town, but it’s something to be aware of in case you’re looking for a quiet place to have a bite or a drink.

Expect Temperature Changes

Throughout much of the year, every day will experience volatile temperatures. The early mornings are often quite chilly and sometimes foggy and then, around 9 am, the sun usually starts to warm everything up. 

The days are typically very pleasant, averaging to be in the 70s. Once the sun sets, things cool down quite a bit. By the time you crawl into bed, the temperature may be in the low 40s. 

These Are Not Caribbean Beaches

You can certainly have a “beach day” in San Luis Obispo, laying down a blanket, soaking in the sun, throwing around the football. But do not expect these beaches and their waters to be a tropical paradise. 

These beaches are even different from those in Southern California, such as the beaches in San Diego. During the non-summer months, you may want to bring a hoodie to the beach just in case. Also, the water is very cold, and almost all of the surfers and boogie boarders are wearing wetsuits. 

FAQs About Where to Stay in San Luis Obispo

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Thanks for reading my guide on where to stay in San Luis Obispo! 

Whether you are an avid outdoors person, a beach lounger, or a wine enthusiast, this area of California can be your playground. Looking for more places to explore in California? Check out our epic guide to the best things to do in Los Angeles!