Edinburgh's Old Town is one of Europe's most dramatic urban landscapes — a medieval ridgeline descending from the volcanic plug of Castle Rock to the Palace of Holyroodhouse, connected by the Royal Mile and riddled with the narrow alleys (closes and wynds) that once made Edinburgh the most densely populated city in Europe. Hotels here range from converted townhouses on the Royal Mile to boutique properties hidden in the closes, offering immersive access to Edinburgh's layered history.
The Old Town divides into distinct zones. The Lawnmarket and Castlehill (upper Royal Mile) are closest to the Castle and most touristic, with hotels commanding premium prices for castle-view rooms. The Grassmarket, a former execution site now lined with pubs and restaurants, offers a more sociable atmosphere at slightly lower prices. Cowgate, running parallel below the Royal Mile, has Edinburgh's liveliest nightlife — hotels here should only be chosen by those who don't mind noise until 3 AM. The Canongate (lower Royal Mile) becomes quieter and more residential as it approaches Holyrood.
During the Edinburgh Festival (August), Old Town hotel prices double or triple, and booking 6-12 months ahead is not excessive. The Festival transforms the Old Town into a round-the-clock performance space, with shows in every available venue from churches to car parks. Staying in the Old Town during the Festival means stepping out your door into the world's largest arts festival — an experience that justifies the astronomical prices for many visitors.
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