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10 Best Hotels In Morro Bay CA: Where To Stay In 2023

10 Best Hotels In Morro Bay CA: Where To Stay In 2023

Are you looking for the best hotels in Morro Bay CA? Perfect! We’re going to show you the 10 top rated hotels available to you, including cheap, mid range and luxury Morro Bay hotel options.

Instead of trawling through randomly listed hotel search engine results, use our research and data driven guide to find the best hotels near Morro Bay CA for your visit based on location, value, previous guest ratings and our own experiences.

Here’s how we will break down the best hotels in Morro Bay California to help you find the perfect place to stay:

  • Why stay in Morro Bay?
  • Things to do in Morro Bay
  • 10 best Morro Bay hotels
  • Previous guest ratings and scores

Let’s find you the perfect Morro Bay hotel for your trip to the stunning California coast!

*Please note this guide contains affiliate links. If you click on one, we may earn a small commission at no extra cost to you. Thank you for supporting the free content we provide! Read more in our disclosure policy.*

Why Stay In Morro Bay CA?

Morro Bay is a quaint and charming coastal city in central California famous for its skyline dominating volcanic mound known as Morro Rock.

Visitors will find a small town and waterfront Embarcadero filled with excellent restaurants and hotels.

It is a touristy seaside town which is typically busiest with locals from the central valley areas in warmer summer months.

However, Morro Bay is located in an excellent spot half way between San Francisco and Los Angeles and many choose to use the coastal town as a stopover when driving the Pacific Coast Highway.

We spent a night in Morro Bay during our first drive down the California coast as we needed an affordable place to crash between Monterey and Santa Barbara.

Are you driving the Pacific Coast Highway?

Read our popular guide to the 20+ best San Francisco to San Diego stops on the California coast on our travel site Where Are Those Morgans.

Things To Do Around Morro Bay

So what can you do if you decide to spend a night or two in the Morro Bay area?

Well, let’s take a look at what is in store for your visit:

  • Hike several trails in nearby state parks and coastal areas
  • Relax on Morro Strand State Beach
  • Watch Sea Otters playing close to the Embarcadero
  • Capture sunrise and sunset photography of Morro Rock
  • Eat top notch seafood
  • Visit the Morro Bay Maritime Museum

There’s not a huge amount to do in Morro Bay but it is a lovely place to spend a few days relaxing and recharging.

For those driving the PCH and crashing for one night in Morro Bay, be sure to walk down the Embarcadero and find a great waterfront restaurant to watch the sunset.

We ate at Hofbrau and had one of the best roast beef sandwiches of our lives!

Morro Rock at sunset with thick clouds lighting up beyond blue ocean water
Morro Rock backed by thick clouds at sunset

Are Morro Bay Hotels Expensive?

Hotel prices in Morro Bay are surprisingly low considering it is surrounded by hugely desirable travel destinations such Big Sur and Santa Barbara.

You will be pleased to hear that Morro Bay offers a more affordable solution for a place to spend the night when driving between San Francisco and Los Angeles.

Take the best hotels in Big Sur for instance, which are extremely close by but are far more expensive on average. Big Sur is a more beautiful place to stay but the quality isn’t as high as it is in Morro Bay.

With that said, there are two important things we want to make you aware of before booking your hotel in Morro Bay, CA.

1. Bed Tax In Morro Bay

One thing to bear in mind when booking hotels near Morro Bay is “Bed Tax”, which is officially known as Transient Occupancy Tax (TOT).

Here’s what you need to know:

  • Morro Bay is located in San Luis Obispo County, California which levies 9% TOT on all stays, no matter how you book your hotel room.
  • Lodging operators are also required to collect an additional 1.5% for Tourism Marketing District (TMD).
  • On top of that, lodging owners are required to collect a further 2% in the Tourism Business Improvement District (TBID).

That is a total of 12.5% tax that will be added to your nightly hotel room cost. So let’s say a room costs $200 for one night in Morro Bay, your total cost is going to be $225.

Here’s what you need to look for:

  • When booking your hotel using Booking.com look under the price for “includes taxes and fees“. This means the price you see is final and will not be subject to further add ons.
  • Conversely, if you see text reading something like “+$30 for taxes and fees“, that means you will pay the hotel room cost + the additional 12.5% fee for bed tax and other fees.

This is something to be aware of so you avoid any nasty surprises when you come to pay!

The good news is that hotels in Morro Bay are significantly lower in price than most nearby areas, even after the 12.5% tax has been added.

2. Seasonality In Morro Bay

Morro Bay is busiest in the summer months of May, June, July, August and September when more tourists are driving the coast or locals are visiting the seaside for a weekend break.

Hotel prices in Morro Bay inflate during peak season, particularly during the months of July and August.

You stand a better chance of picking up a lower nightly hotel rate in Morro Bay if you book a room outside of the busy season.

The winter months in particular are a great time to visit Morro Bay if saving money your top priority.

How Much Are Hotels In Morro Bay CA?

Let’s take a quick look at an infographic we created to show typical hotel prices in Morro Bay.

We took the 10 top rated Morro Bay hotels and collated prices for a one night stay on three separate future dates.

Infographic created by Best Hotels Anywhere showing nightly hotel prices for three future dates in Morro Bay CA

As you can see, hotel prices in Morro Bay are reasonable for California!

Two take home messages from the data above are as follows:

Hotel Prices Increase Into Peak Season

It is clear to see that prices increase from January to April and increase again into August.

This is common for summer heavy destinations, but the increases are not as significant as you might see in other cities or popular tourist areas.

Booking Hotel Rooms In Advance

Morro Bay hotel prices in August are not as bad as you might have expected. They certainly aren’t eye watering like they are in nearby Big Sur and Santa Barbara.

But you can bet your bottom dollar those prices will increase as rooms are booked up closer to summer.

If you can get organized early and book your mid range to luxury Morro Bay hotel early, you can potentially save a considerable amount of money.

Otter floating on its back in a marina
Sea otter floating in the marina at Morro Bay

Where To Stay In Morro Bay

Morro Bay is a very small city with a clustering of hotels and restaurants.

There are two major areas you can book your hotel in Morro Bay but they are close enough that it doesn’t really matter which you choose.

Let’s split the town up:

1. Embarcadero – The more desirable area to stay in Morro Bay is right on the waterfront along the Embarcadero. This area has oceanfront restaurants and more luxurious hotels.

2. Main Street – Set back just 3 blocks from Embarcadero is Main Street, which runs parallel to Embarcadero. This is where you will find the more budget friendly hotels and town center.

Morro Bay is walkable and pedestrian friendly with easy access to all restaurants and bars.

Here’s what we recommend:

  • If you want to save money, stay on Main Street and simply walk down to the Embarcadero area.
  • But if you want ocean views and a luxury stay, pick a hotel along Embarcadero.

10 Best Hotels In Morro Bay CA

OK, let’s take a look at each of the best hotels in Morro Bay.

We have hand picked the top 10 Morro Bay hotels by compiling and comparing previous guest ratings, location and value for money.

Important – Hotels are listed in three price range categories; cheap, mid range and luxury.

You will find 4 x cheap hotels, 3 x mid range hotels and 3 x luxury (expensive) hotels.

Let’s find you the perfect hotel in Morro Bay!

1. Sandpiper Inn Morro Bay

Guest ratings:

  • Booking.com – 7.9 / 10
  • Google – 4.1 / 5
Guest bedroom with bright green duvet covers on a wooden floor
Photo courtesy of Morro Bay Sandpiper Inn
  • Price: Cheap $
  • Amenities: Free WiFi, free parking, pet friendly
  • Location: Main Street

Sandpiper Inn is one of the best cheap hotels in Morro Bay CA. If you’re looking for a basic room at affordable rates, this is a fantastic option. You can also bring your dog along.

Reviewers rate staff, cleanliness and location the highest at Sandpiper Inn. It is just 2 blocks from Embarcadero and 3 blocks from the restaurants in town.

Top pick for a super cheap room!

>> Book Hotel: Sandpiper Inn Morro Bay

2. Marina Street Inn Morro Bay

Guest ratings:

  • Booking.com – 9.0 / 10
  • Google – 4.8 / 5
Exterior photo of yellow building and colorful garden with stone bird bath marina street inn one of the best cheap hotels in Morro Bay CA
Photo courtesy of Marina Street Inn
  • Price: Cheap $
  • Amenities: Free WiFi, free parking, ocean views
  • Location: Main Street

Marina Street Inn is one of the top rated hotels in Morro Bay with ocean view at an affordable price point. Continental breakfast is also included in this home away from home style lodging.

Reviewers rate staff, comfort, facilities, cleanliness and location the highest at Marina Street Inn. The charming boutique hotel in Morro Bay is just 2 blocks from town and the Embarcadero area.

>> Book Hotel: Marina Street Inn Morro Bay

3. Blue Sail Inn Morro Bay

Guest ratings:

  • Booking.com – 8.5 / 10
  • Google – 4.3 / 5
Two queen beds with blue throws on carpet floor with tv and window
Photo courtesy of Blue Sail Inn
  • Price: Cheap $
  • Amenities: Free WiFi, free parking
  • Location: Embarcadero

Blue Sail Inn is a great option for a low budget hotel in Morro Bay. Ratings are good, it is located close to the bars and restaurants on Embarcadero, the price is low and it offers a basic breakfast.

Reviewers rate staff, comfort, cleanliness and location the highest at the Blue Sail Inn. This is a great choice for anyone driving highway 1 looking for a simple but affordable hotel close to the ocean.

>> Book Hotel: Blue Sail Inn Morro Bay

4. Masterpiece Hotel Morro Bay

Guest ratings:

  • Booking.com – 8.5 / 10
  • Google – 4.3 / 5
Roman style hot tub in Masterpiece Hotel in Morro Bay California
Photo courtesy of Masterpiece Hotel
  • Price: Cheap $
  • Amenities: Free WiFi, free parking, fitness center, indoor hot tub, continental breakfast
  • Location: Main Street

Masterpiece Hotel is an excellent budget hotel in Morro Bay CA with a unique Moorish design and a Roman style hot tub. Basic breakfast is included and there’s a small gym on site.

Reviewers rate staff, comfort, cleanliness and location the highest at Masterpiece Hotel. It is set back a few blocks from Embarcadero to the north of town, which means it is quiet at night.

We stayed at Masterpiece Hotel during our first drive down the PCH. The hotel is simple but affordable, plus the Roman style hot tub in the basement is unexpectedly huge and cool!

>> Book Hotel: Masterpiece Hotel Morro Bay

5. Beach Bungalow Inn + Suites Morro Bay

Guest ratings:

  • Booking.com – 8.8 / 10
  • Google – 4.6 / 5
Guest bed on wooden floor with carpet and armchair
Photo courtesy of Beach Bungalow Inn + Suites
  • Price: Mid Range $$
  • Amenities: Free WiFi, free parking, fireplace, kitchen in some units, communal courtyard, breakfast, pet friendly
  • Location: Main Street

Beach Bungalow Inn + Suites is a very highly regarded bed and breakfast style hotel in Morro Bay CA. It is also priced at the lower end of mid range, which makes this an excellent choice.

Reviewers rate staff, comfort, cleanliness and location the highest at Beach Bungalow Inn. Comments trend around how much the staff do for guests and the room delivered breakfast.

Top pick in the lower price bracket!

>> Book Hotel: Beach Bungalow Inn + Suites Morro Bay

6. 456 Embarcadero Morro Bay

Guest ratings:

  • Booking.com – 8.4 / 10
  • Google – 4.5 / 5
Guest bed on wooden floor with lots of light from window with open blinds at 456 embarcadero inn Morro Bay hotel
Photo courtesy of 456 Embarcadero Inn
  • Price: Mid Range $$
  • Amenities: Free WiFi, free parking, hot tub, pet friendly, ocean views
  • Location: Embarcadero

456 Embarcadero is a well regarded hotel located right on the Embarcadero to the south side of town. It has a hot tub and some rooms have ocean views which cost more than non-view rooms.

Reviewers rate staff, comfort, cleanliness and location the highest at 456 Embarcadero. The major touristy area on Embarcadero is around 3 blocks walk from the hotel.

>> Book Hotel: 456 Embarcadero Morro Bay

7. The Landing At Morro Bay

Guest ratings:

  • Booking.com – 8.7 / 10
  • Google – 4.5 / 5
Guest bed with red and white decor on a wooden floor with small fire place on ground and open window
Photo courtesy of The Landing At Morro Bay
  • Price: Mid Range $$
  • Amenities: Free WiFi, free parking, fireplace
  • Location: Embarcadero

The Landing At Morro Bay is a highly rated hotel in a fantastic location close to both Embarcadero and the amenities in town. Morro Rock is visible from the hotel’s slightly elevated position.

Reviewers rate staff, comfort, cleanliness and location the highest at The Landing. Some rooms have private ocean views and others have shared ocean view balconies.

Top pick for the price point.

>> Book Hotel: The Landing At Morro Bay

8. Estero Inn Morro Bay

Guest ratings:

  • Booking.com – 9.4 / 10
  • Google – 4.8 / 5
Yellow colored building on the waterfront with marina and huge rock in distance Estero Inn one of the top rated hotels in Morro Bay CA
Photo courtesy of Estero Inn
  • Price: Luxury $$$
  • Amenities: Free WiFi, free parking, sun terrace, kitchenette in some rooms, ocean views
  • Location: Embarcadero

Estero Inn is a top rated waterfront boutique hotel in Morro Bay CA. Certain rooms have balconies quite literally overlooking the water, or you can save money by taking a non-view room and spending your time on the sun terrace instead.

Reviewers rate staff, comfort, facilities, cleanliness and location the highest at Estero Inn. Comments are extremely positive about cleanliness, homeliness, and comfort.

Top pick if you can stretch the budget!

>> Book Hotel: Estero Inn Morro Bay

9. Anderson Inn Morro Bay

Guest ratings:

  • Booking.com – 9.6 / 10
  • Google – 4.9 / 5
Blue colored hotel facade on the waterfront with balconies and green vegetation on a warm day with blue sky
Photo courtesy of Anderson Inn
  • Price: Luxury $$$
  • Amenities: Free WiFi, free parking, on site restaurant and bar, water sports facilities, ocean views
  • Location: Embarcadero

Anderson Inn is a top rated high end boutique hotel in Morro Bay. It is hard to find a single negative comment about this Morro Bay lodging option located right on the waterfront.

Reviewers rate staff, comfort, facilities, cleanliness and location the highest at Anderson Inn. If it weren’t for a lower than average WiFi score, this hotel would be pushing a 10 / 10 on Booking.

Fantastic option if you can afford to stay here!

>> Book Hotel: Anderson Inn Morro Bay

10. Inn At Rose’s Landing Morro Bay

Guest ratings:

  • Booking.com – 9.5 / 10
  • Google – 4.9 / 5
Guest bedroom with fireplace tv bath robes and wooden floor at Inn At Rose's Landing a top rated Morro Bay CA hotel
Photo courtesy of Inn At Rose’s Landing
  • Price: Luxury $$$
  • Amenities: Free WiFi, free parking, on site restaurant and bar with terrace, ocean views, fireplace
  • Location: Embarcadero

Inn At Rose’s Landing is a top rated boutique hotel in Morro Bay located right on the waterfront with stunning views over Morro Rock. This is another property with hard to find negative comments!

Reviewers rate staff, comfort, facilities, cleanliness and location the highest at the Inn At Rose’s Landing. A bottle of complimentary wine and box of chocolates upon arrival is a lovely touch.

Fabulous place to stay in Morro Bay for those with a healthy travel budget.

>> Book Hotel: Inn At Rose’s Landing Morro Bay

Wooden pier next to an ocean inlet with colorful clouds at sunset in Morro Bay California
T Pier otter viewing area in Morro Bay

What Are The Best Cheap Hotels In Morro Bay?

Are you driving the Pacific Coast Highway and just need a cheap place to crash for a night?

Sandpiper Inn, Marina Street Inn, Blue Sail Inn and Masterpiece Hotel are the top rated cheap hotels in Morro Bay.

However, there are a handful of alternative budget hotel options to consider:

What Are The Best Morro Bay Luxury Hotels?

Are you looking to splurge on lodging for your visit to Morro Bay?

Estero Inn, Anderson Inn and Inn At Rose’s Landing are the three top rated luxury hotels in Morro Bay.

However, you can also consider Gray’s Inn + Gallery as an alternative luxury hotel option. However, there are fewer guest reviews and we couldn’t find availability beyond the two months following writing.

What Are The Best Pet Friendly Hotels In Morro Bay CA?

Are you planning a visit to Morro Bay with the dogs?

Here are the top rated Morro Bay dog friendly hotels:

Note: None of the luxury Morro Bay hotels allow pets.

Colorful sunset with orange and pinks in the clouds behind Morro Bay CA
Colorful sunset as Morro Rock is shrouded in dense clouds

Best Hotels In Morro Bay CA FAQ’s

Let’s take a quick look at some of the most frequently asked questions about where to stay in Morro Bay, California.

Is Morro Bay Worth Visiting?

Morro Bay is a peaceful and charming central California coastal city with beaches, hiking trails, wildlife and great food. It is definitely worth a visit for those driving the Pacific Coast Highway, offering the perfect stopover point between Monterey and Santa Barbara.

How Many Days Do You Need In Morro Bay?

One day is enough time to walk around Morro Bay town and Embarcadero. However, if you want to hike nearby trails or take a relaxing weekend break, there are plenty of local activities to fill two or even three days around Morro Bay.

Is It Better To Stay In Morro Bay Or San Luis Obispo?

Morro Bay is a better place to stay if you want to be right on the waterfront and surrounded by nature. San Luis Obispo is better for those who want a more lively place to stay or those looking for more traditional tourist attractions.

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We hope this guide to the best hotels in Morro Bay CA helps you book the perfect hotel for your visit to the California coast!

Please let us know if you have any questions about any of the hotels in our list of best places to stay in Morro Bay by commenting below.

Happy Booking,

Mark and Kristen
Best Hotels Anywhere