Last Updated on December 19, 2024 by Jade and Deeshen

If you’re wondering where to stay in Sun Moon Lake during your upcoming trip to Taiwan, we’ve got you covered. We’ve listed the best areas to stay around the lake by region.

Having lived in Taiwan and as Taiwan travel writers, we know the ins and outs of this beautiful area.

We’ll walk you through what each area offers, its pros and cons, and provide recommendations on the best hotels for a memorable experience. If you’re looking for an unforgettable way to explore the region, check out our guide on cycling around Sun Moon Lake for an active, scenic adventure.

Whether you’re looking for a luxurious retreat, a cozy couples lakeside getaway, or a family-friendly option, we’ve got suggestions for you. For more in-depth recommendations, visit our Best Hotels near Sun Moon Lake guide, where we cover top spots that cater to different preferences and budgets.

Let’s discover the best Sun Moon Lake areas and my top hotel picks for each area.

My Top 3 Picks: Best Hotels in Sun Moon Lake

Where To Stay In Sun Moon Lake: 5 Best Areas And Hotel

Shuishe Village (Best for First Timers)

Located on the western shore of Sun Moon Lake, Shuishe Village is one of the main tourist hubs. It offers accommodations, shops, restaurants, and easy access to attractions like Wenwu Temple and the Sun Moon Lake Ropeway. This village is a popular base for exploring the lake, with convenient boat rides and cycling paths available for visitors. For an even broader look at some of the world’s most beautiful lakes, you can check out this list of stunning lakes.

Ita Thao Village (Best for Indigenous Culture)

Situated on the southern shore of Sun Moon Lake, Ita Thao Village is known for its indigenous culture, especially the Thao people. It’s a fantastic place to immerse in local culture, try street food, and access boat tours. Ita Thao Night Market is a highlight for food and souvenirs. This village is another key area to stay near the lake, and if you’re interested in indigenous experiences in Taiwan, consider exploring Taiwan’s indigenous culture.

Xiangshan Area (Best for Peace and Quiet)

The Xiangshan Area is located on the eastern side of Sun Moon Lake and is a newer development area near the lake. It’s less tourist-heavy compared to the other areas but offers stunning views, particularly from the Xiangshan Visitor Center and the Xiangshan Hiking Trail. This area offers a more peaceful experience, ideal for those looking to escape the crowds of the busier villages. For those seeking an outdoor adventure in Taiwan, the Taiwan mountain climbing scene offers some incredible routes to explore.

Yuchi Township (Best for Budget Travelers)

Yuchi Township is a more affordable and quieter option for those looking to stay near Sun Moon Lake. It’s located about 10-15 minutes by car from the lake, providing easy access without being in the middle of the bustling tourist villages. Many visitors choose to stay in Yuchi Township for its budget-friendly accommodations.

Where to Stay in Shuishe Village:

Fleur de Chine Sun Moon Lake Hotel

⭐️ RATING: 9.2/10 Stars | 📍 LOCATION: Shuishe Village | ✅ Book it now!

The Sun Moon Lake Fleur de Chine Hotel is a luxurious retreat offering stunning views of Sun Moon Lake and the surrounding mountains. Known for its peaceful atmosphere and excellent facilities, it’s one of the best places to stay at Sun Moon Lake for a relaxing getaway.

This sun moon lake luxury hotel is famous for its beautiful outdoor pool with views of the lake, its relaxing hot spring spa, and its spacious rooms with private balconies. The well-equipped wellness center, complete with a hot tub and luxurious spa treatments, ensures a great stay for all guests.

“The outdoor pool overlooking the lake was absolutely stunning, and the hot spring spa was the perfect way to relax after a long day of sightseeing!” – Emma, UK (Read more reviews)

The Lalu Sun Moon Lake Hotel

⭐️ RATING: 9.4/10 Stars | 📍 LOCATION: Shuishe Village | ✅ Book it now!

The Lalu Sun Moon Lake Hotel is a stylish, modern hotel that combines contemporary design with nature’s beauty. Set on the lakeside with amazing views of Sun Moon Lake, it’s a great choice for a peaceful and luxurious stay.

This sun moon lake best hotel is known for its comfortable indoor pool, world-class spa, and spacious rooms with private balconies offering lake views. Guests can also relax in the hot tub or enjoy the hotel’s outdoor pool surrounded by greenery.

“The spa treatments at The Lalu were exceptional, and the balcony views of the lake were simply breathtaking. I can’t wait to return!” – John, USA (Read more reviews)

Crystal Resort Sun Moon Lake Hotel

⭐️ RATING: 9.0/10 Stars | 📍 LOCATION: Shuishe Village | ✅ Book it now!

The Crystal Resort Sun Moon Lake Hotel is a modern, stylish property located in a beautiful area of Sun Moon Lake. With easy access to the lake’s scenic spots, it’s perfect for guests who want both comfort and luxury.

This sun moon lake luxury hotel is famous for its spacious outdoor pool, which has fantastic views of the lake and surrounding mountains, and its cozy hot tub. The hotel also offers a great wellness center with a spa and an indoor pool for those rainy days.

“The outdoor pool had a magnificent view, and the hot tub was the best place to unwind after a day of exploring the area!” – Lily, Australia (Read more reviews)

The Richforest Sun Moon Lake Hotel

⭐️ RATING: 9.3/10 Stars | 📍 LOCATION: Shuishe Village | ✅ Book it now!

The Richforest Sun Moon Lake Hotel offers a relaxing getaway with stunning views of the lake. It’s a great option for travelers who want to be close to nature while enjoying all the comforts of a modern hotel.

This sun moon lake best hotel is known for its indoor pool, private hot tubs in certain rooms, and relaxing spa services. The outdoor pool is another highlight, giving guests a great place to relax after a day of sightseeing.

“The hot tub in our room was such a nice touch, and the indoor pool was perfect for a relaxing swim on a rainy day!” – Chloe, USA (Read more reviews)

Sun Moon Lake Queen Castle Hotel

⭐️ RATING: 8.8/10 Stars | 📍 LOCATION: Shuishe Village | ✅ Book it now!

Sun Moon Lake Queen Castle Hotel is a unique, charming hotel located near Shuishe Village. Designed to look like a European castle, it offers a memorable stay for those looking for something special.

This hotel is known for its outdoor pool, hot tub, and spacious rooms with private balconies overlooking the lake. Guests can relax in the hot tub or take a swim in the outdoor pool while enjoying the beautiful surroundings.

“The castle-inspired design was so charming, and the outdoor pool with a lake view was absolutely magical!” – Sarah, Canada (Read more reviews)

Hotel Del Lago Sun Moon Lake

⭐️ RATING: 9.1/10 Stars | 📍 LOCATION: Shuishe Village | ✅ Book it now!

Hotel Del Lago Sun Moon Lake is a modern hotel located right by the lake, offering beautiful views and excellent facilities. It’s perfect for travelers who want a comfortable and scenic stay while enjoying the area’s attractions.

This sun moon lake waterfront resort hotel is known for its outdoor pool with lake views, its relaxing hot tub, and rooms with private balconies for guests to enjoy the peaceful surroundings.

“The views from the balcony were spectacular, and the outdoor pool was the perfect spot to unwind while taking in the lake views!” – Michael, USA (Read more reviews)

Sun Moon Lake Hotel

⭐️ RATING: 8.9/10 Stars | 📍 LOCATION: Shuishe Village | ✅ Book it now!

Sun Moon Lake Hotel is a well-established lakeside hotel offering comfortable accommodations with great access to the lake’s scenic areas. It’s an ideal spot for those looking for a relaxing stay close to local attractions.

This hotel is known for its outdoor pool with lake views, its cozy hot tub, and rooms with private balconies for guests to enjoy the peaceful surroundings.

“The outdoor pool was such a great way to relax, and I loved sitting on the balcony, watching the boats go by!” – Rachel, UK (Read more reviews)

Where to Stay in Ita Thao Village:

The Richforest Sun Moon Lake Hotel

⭐️ RATING: 9.3/10 Stars | 📍 LOCATION: Ita Thao Village | ✅ Book it now!

The Richforest Sun Moon Lake Hotel offers a relaxing getaway with stunning views of the lake. It’s a great option for travelers who want to be close to nature while enjoying all the comforts of a modern hotel.

This sun moon lake best hotel is known for its indoor pool, private hot tubs in certain rooms, and relaxing spa services. The outdoor pool is another highlight, giving guests a great place to relax after a day of sightseeing.

“The hot tub in our room was such a nice touch, and the indoor pool was perfect for a relaxing swim on a rainy day!” – Chloe, USA (Read more reviews)

Wyndham Sun Moon Lake Hotel

⭐️ RATING: 9.2/10 Stars | 📍 LOCATION: Ita Thao Village | ✅ Book it now!

Wyndham Sun Moon Lake Hotel is a luxurious waterfront resort hotel offering stunning views of Sun Moon Lake and the surrounding mountains. With its prime lakeside location, it’s one of the best places to stay at Sun Moon Lake for a relaxing getaway.

This hotel is famous for its spacious outdoor pool with lake views, its well-equipped wellness center, and its modern spa facilities. Guests can enjoy access to hot tubs and indoor pool options for the ultimate relaxation.

“The lake view from our balcony was incredible, and the hot tub was the perfect way to unwind!” – Tammy, USA (Read more reviews)

日月潭山慕藝旅 Sun Moon Inn

⭐️ RATING: 8.6/10 Stars | 📍 LOCATION: Ita Thao Village | ✅ Book it now!

日月潭山慕藝旅 Sun Moon Inn is a charming boutique hotel offering a cozy and unique experience near the lake. Known for its quiet atmosphere, it’s perfect for those seeking a more personal stay.

This hotel is known for its cozy hot tub, outdoor pool, and beautiful balcony views. Guests can relax in the hot tub or take a swim in the outdoor pool while enjoying the lovely surroundings.

“The balcony view was lovely, and the outdoor pool was the perfect place to relax after a day of exploring the area!” – Mark, UK (Read more reviews)

Where to Stay in Xiangshan Area

Fuli Hot Spring Resort

⭐️ RATING: 8.9/10 Stars | 📍 LOCATION: Xiangshan Area | ✅ Book it now!

Fuli Hot Spring Resort offers a relaxing escape with its luxurious hot spring baths and spacious rooms. This Sun Moon Lake best resort is ideal for those looking to unwind in comfort. The resort features both indoor and outdoor pools, a rejuvenating spa, and a hot tub perfect for unwinding after a day of exploring Sun Moon Lake.

“The hot springs were absolutely delightful, and the mountain views from our room made our stay so memorable!” – Linda, USA (Read more reviews)

Its convenient location makes it one of the Sun Moon Lake best hotels for exploring the Xiangshan Visitor Center and hiking trails nearby.

Where to Stay in Yuchi Township

Grand Hilai Sun Moon Lake Hotel

⭐️ RATING: 9.0/10 Stars | 📍 LOCATION: Yuchi Township | ✅ Book it now!

The Grand Hilai Sun Moon Lake Hotel combines luxury and nature with breathtaking views of the lake. As a Sun Moon Lake luxury hotel, it offers elegantly designed rooms with private balconies, an outdoor pool, and a serene atmosphere perfect for relaxation.

“The balcony views of Sun Moon Lake were stunning, and the facilities were top-notch!” – Michael, UK (Read more reviews)

Its central location makes it one of the best hotels near Sun Moon Lake Taiwan for accessing Yuchi Township’s attractions.

Le Midi Hotel Chitou

⭐️ RATING: 8.7/10 Stars | 📍 LOCATION: Yuchi Township | ✅ Book it now!

Le Midi Hotel Chitou is a haven for travelers seeking peace and tranquility. This Sun Moon Lake Taiwan hotel boasts an impressive outdoor pool, lush garden spaces, and a comprehensive wellness center.

“The peaceful setting and excellent spa services made our stay unforgettable. Highly recommended!” – Sophia, Singapore (Read more reviews)

Perfect for those deciding where to stay Sun Moon Lake, this hotel offers easy access to hiking trails and natural attractions.

Where to Stay Around Sun Moon Lake Scenic Area

Sun Moon Lake Waterfront Resort Hotel with Lake View

⭐️ RATING: 9.1/10 Stars | 📍 LOCATION: Sun Moon Lake Scenic Area | ✅ Book it now!

The Sun Moon Lake Waterfront Resort Hotel is a fantastic choice for travelers seeking breathtaking lake views. Known as one of the best places to stay at Sun Moon Lake, this waterfront resort features spacious rooms with private balconies, an outdoor pool, and a family-friendly vibe.

“The lake views from the balcony were incredible, and the staff made us feel at home!” – Emily, Canada (Read more reviews)

This hotel is ideal for guests looking for a Sun Moon Lake waterfront resort hotel with proximity to scenic spots and hiking trails.

Impression Nordic Manor Club Sun Moon Lake Hotel

⭐️ RATING: 9.3/10 Stars | 📍 LOCATION: Sun Moon Lake Scenic Area | ✅ Book it now!

Impression Nordic Manor Club is the ultimate Sun Moon Lake luxury hotel for those seeking an exclusive retreat. The property offers stylish accommodations, an infinity pool, and panoramic views of the lake.

“The Nordic-style architecture and infinity pool overlooking Sun Moon Lake were beyond amazing!” – Alex, Australia (Read more reviews)

This hotel is the Sun Moon Lake best place to stay for travelers who appreciate modern design and tranquility.

Reasons to stay in Shuishe Village

Shuishe Village is the heart and soul of Sun Moon Lake, and for good reason—it’s where most visitors (ourselves included!) choose to base themselves when exploring this stunning destination.

As the main hub, Shuishe has it all: easy access to the Shuishe Pier, fantastic restaurants, and some of the most breathtaking lake views we’ve ever seen. When we stayed in Shuishe, we loved how convenient it was to roll out of bed, grab a coffee from a nearby cafe, and stroll straight to the lakeside trail.

At its best, Shuishe Village is incredibly central, offers a range of accommodations from budget to luxury, and is the perfect spot to soak in those postcard-worthy lake views.

At its worst, it can get a little busy, especially on weekends since the buses stop here first, but the energy of the place still makes it worth it.

Pros for Staying in Shuishe Village

• Super Convenient Location: Shuishe is the ultimate base for exploring Sun Moon Lake. We recommend starting your day with a scenic walk along the Shuishe Lakeside Trail or hopping on a boat tour right from the pier. It’s also a great spot for catching buses to top attractions like Wenwu Temple or the Formosan Aboriginal Culture Village.
  
• Plenty of Activities: From sunrise kayaking to renting bikes and riding the iconic lakeside bike path, there’s so much to do here! We recommend trying the local aboriginal-inspired dishes at the village restaurants—most people love the braised pork rice and bamboo chicken.
  
• Walkability: One thing we loved about Shuishe is how easy it was to get around on foot. You’re just steps away from shops, restaurants, and the lakefront, making it the perfect place to unwind and explore at your own pace.
  
• Accommodation Options: Whether you’re a backpacker or seeking luxury, Shuishe has you covered. We recommend The Lalu for its sleek, modern design and panoramic views—easily one of the most luxurious stays we’ve ever experienced. If you’re traveling with family, Fleur de Chine Hotel is a great choice, with its onsen and family-friendly amenities.

Cons for Staying in Shuishe Village

• Touristy Vibes: Shuishe is the most popular area around the lake because it’s where all the local buses drop tourists off, so it can feel a bit crowded on weekends. If you’re after more peace and quiet, Xiangshan or Ita Thao might be better options.
  
• Higher Prices: We noticed that accommodations and dining in Shuishe can be pricier compared to other areas, but the convenience and views make up for it.

Reasons to stay in Ita Thao Village

If you want a lively and cultural place to stay, Ita Thao Village is a fantastic choice. Located on the southeastern shore of Sun Moon Lake, it’s known for its local charm, delicious food, and easy access to fun activities.

Ita Thao offers a unique and relaxed vibe, making it perfect for travelers who want to experience something different.

We loved staying here because everything felt close and welcoming. From the street food to the nearby attractions, Ita Thao made our visit memorable and enjoyable.

Pros for Staying in Ita Thao Village

• Cultural Charm: Ita Thao is a great spot to learn about the indigenous Thao people. We recommend visiting the Thao Cultural Village and strolling through the streets to enjoy the art and history.
  
• Delicious Food and Drinks: Ita Thao is famous for its street food and drinks. We recommend trying sticky rice in bamboo, mushroom skewers, and fresh mochi. For tea lovers, Ah Ma Tea House serves some of the best Sun Moon Lake black tea, and we loved their rich flavors. If you’re a boba fan, don’t miss the Tea & Bubble shop. Their Sun Moon Lake black tea boba milk tea is creamy, fragrant, and absolutely refreshing!
  
• Close to Attractions: Staying in Ita Thao puts you near top spots like the Sun Moon Lake Ropeway. We enjoyed the amazing views from the cable car and loved the easy access to hiking trails like the Ci’en Pagoda Trail.
  
• Relaxed Atmosphere: Ita Thao feels cozy and welcoming, with its small streets and lakefront views. We liked how easy it was to walk around and explore at our own pace.
  
• Affordable Stays: Ita Thao has many budget-friendly accommodations. We stayed at Tanxiang Resort Hotel, which was simple and close to the pier. For something more stylish, Lealea Garden Hotel is a great option with modern rooms and lake views.

Cons for Staying in Ita Thao Village

• Busy on Weekends: The night market and village can get crowded on weekends. If you want a quieter visit, we recommend staying during the week.
  
• Fewer Luxury Options: While Ita Thao has many comfortable places to stay, there aren’t as many high-end hotels compared to Shuishe Village.

Reasons to stay in Xiangshan Area

The Xiangshan Area is a peaceful and scenic part of Sun Moon Lake. Located on the western side, it’s quieter and less crowded than other areas like Shuishe or Ita Thao. If you’re looking to enjoy nature and beautiful views, this is a great place to stay. We loved how calm it felt here, with quiet mornings and stunning lake views. It’s perfect for anyone who wants to relax and take things slow.

Pros for Staying in the Xiangshan Area

• Peaceful Atmosphere: Xiangshan is quiet and serene, perfect for a relaxing getaway. We enjoyed starting our mornings by the lake, surrounded by nature.
  
• Beautiful Views: The Xiangshan Visitor Center offers some of the best views of the lake. It’s a great spot for photos and taking in the scenery.
  
• Great Cycling Trails: This area is part of the famous Sun Moon Lake cycling route. We rented bikes and loved riding along the Xiangshan-Toushe Dam trail. The views were incredible!
  
• Tea Lovers’ Haven: The Xiangshan area is close to tea farms that produce Sun Moon Lake’s famous black tea. We recommend trying the Ruby Red Tea for its rich, malty flavor.
  
• Unique Accommodations: There are boutique hotels and family-run guesthouses here. We stayed at The Crystal Resort and loved the lake-view balconies. Another great option is Sun Moon Inn, which offers warm hospitality and cozy rooms.

Cons for Staying in the Xiangshan Area

• Limited Dining Options: There aren’t as many restaurants here compared to Ita Thao or Shuishe. You may need to visit nearby areas for more choices.
  
• Farther from Attractions: Xiangshan is a bit farther from popular spots like the Ropeway or Wenwu Temple. You’ll need to plan extra travel time to visit them.

Reasons to stay in Yuchi Township

Yuchi Township is a popular choice for visitors who want to stay close to Sun Moon Lake but prefer more affordable accommodation options.

Many people choose to stay here for its lower prices, as it’s just a 10-15 minute drive from the lake or a 20-minute bus ride. This makes it convenient for enjoying all the lake’s attractions while offering a quieter and more budget-friendly place to rest.

We personally prefer to stay directly on the lake, as Sun Moon Lake is clearest in the early mornings right after sunrise, but Yuchi Township offers a great alternative for those looking to save a little without sacrificing too much convenience.

We loved how easy it was to explore the area, with a nice balance of local culture and access to the lake’s beautiful scenery. It’s the perfect spot if you’re looking to save while still enjoying everything Sun Moon Lake has to offer.

Pros for Staying in Yuchi Township

• Affordable Prices: Yuchi offers budget-friendly accommodation, making it a great option for travelers looking to save. We stayed at a cozy guesthouse with great service, and it was just a short drive to the lake.
  
• Close to Sun Moon Lake: Yuchi is only 10-15 minutes from Sun Moon Lake by car, so you can easily visit all the major attractions. We loved how easy it was to get to the lake while enjoying the peaceful surroundings of the township.
  
• Local Culture: Yuchi has a charming, traditional vibe with local markets and shops. We had fun exploring the streets and finding unique souvenirs. It’s the perfect place to experience Taiwanese culture away from the crowds.
  
• Delicious Taiwanese Food: There are many food options in Yuchi, including local specialties like rice dumplings and Taiwanese sausage. We highly recommend grabbing a bite at one of the local street food stalls.
  
• Great for Exploring: Yuchi is surrounded by beautiful countryside and scenic spots like Ci’en Pagoda and Wenwu Temple. We enjoyed walking around the area and discovering hidden gems.

Cons for Staying in Yuchi Township

• Less Walkable: Yuchi is not as walkable as other areas like Shuishe or Ita Thao. Some attractions and dining spots may require a short taxi ride or car rental to reach.
  
• Can Get Crowded: While Yuchi is quieter than more tourist-heavy areas, it can still get busy during weekends and holidays. Expect more visitors during peak travel times.