The best hotels in Palau
Palau has 8,000+ places to stay across its islands, and most of them are overpriced for what you get. We reviewed the standouts. these 10 made the cut.
Our Top Picks in Palau
Click any hotel to check availability and book at the best price.
Penthouse Boutique Hostel
Malakal, Koror
Free cancellation & Pay later
Storyboard Beach Resort
Peleliu Island, Peleliu
Free cancellation & Pay later
Palau Plantation Resort
Ngarchelong, Babeldaob
Free cancellation & Pay later
Palau Pacific Resort
Arakabesan Island, Koror
Free cancellation & Pay later
Carp Island Resort
Carp Island, Peleliu
Free cancellation & Pay later
Landmark Hotel Palau
Koror Town, Koror
Free cancellation & Pay later
Palau Royal Resort
Ngerkebesang, Koror
Free cancellation & Pay later
All Hotels Compared
Side-by-side comparison to help you pick the right hotel. Prices reflect shoulder season averages.
| # | Hotel | City & Area | Price/Night | Score | Best For |
|---|---|---|---|---|---|
| 1 | Penthouse Boutique Hostel | Malakal, Koror | $45–75/night | 7.6/10 | Budget Pick |
| 2 | Storyboard Beach Resort | Peleliu Island, Peleliu | $75–110/night | 8.1/10 | Hidden Gem |
| 3 | DW Motel | Airai State, Airai | $100–145/night | 7.9/10 | Best Value |
| 4 | Palau Plantation Resort | Ngarchelong, Babeldaob | $165–230/night | 8.3/10 | Hidden Gem |
| 5 | Palau Pacific Resort | Arakabesan Island, Koror | $180–280/night | 8.7/10 | Best Location |
| 6 | Carp Island Resort | Carp Island, Peleliu | $280–420/night | 8.9/10 | Luxury Pick |
| 7 | Landmark Hotel Palau | Koror Town, Koror | $120–175/night | 8.2/10 | Most Popular |
| 8 | Carolines Resort | Malakal, Koror | $140–200/night | 8.4/10 | Romantic Stay |
| 9 | Neco Marine Inn | Koror Town, Koror | $150–210/night | 8/10 | Business Pick |
| 10 | Palau Royal Resort | Ngerkebesang, Koror | $260–380/night | 9.1/10 | Top Rated |
Why These Hotels Made Our List
Every hotel earned its spot. Here's exactly why we picked each one.
Penthouse Boutique Hostel
This small guesthouse on Malakal Island gets the basics right for budget travelers. Rooms are simple with air conditioning and clean shared bathrooms. The staff can arrange boat trips to the Rock Islands at reasonable rates. It draws a young diving crowd and the common area is a good spot to find dive buddies.
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Storyboard Beach Resort
Storyboard sits right on the beach on Peleliu Island, one of Palau's most historically significant spots. The bungalows are basic but comfortable, and the beach out front is genuinely quiet. You are far from Koror here, so plan meals carefully as dining options are limited. The World War II dive sites are a short boat ride away and that is really the reason to stay here.
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DW Motel
DW Motel is a reliable mid-range option in Airai, close to the international airport which makes it convenient for early departures or late arrivals. Rooms are straightforward and clean without any frills. The property has a small restaurant on site that serves local food at fair prices. It is not a resort experience but it delivers good value for what you pay.
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Palau Plantation Resort
This small resort sits on the northern tip of Babeldaob, Palau's largest and least-visited island. The property is surrounded by jungle and the rooms open onto a quiet bay. Getting here requires a drive but the isolation is the point. Snorkeling directly from the property turns up healthy coral and the staff prepare fresh seafood meals daily.
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Palau Pacific Resort
Palau Pacific Resort occupies a prime stretch of white sand beach on Arakabesan Island, connected to Koror by a short bridge. The rooms are large and well maintained, and the on-site dive operation is one of the most organized in the country. The beach here is calm and shallow, good for snorkeling right off the sand. Breakfast buffet is solid and the pool area is well kept.
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Carp Island Resort
Carp Island Resort occupies its own private island south of Koror, accessible only by boat arranged through the resort. The bungalows sit directly over the water and the surrounding reef is among the most pristine in Palau. Rates are all-inclusive with meals and diving packages available. The isolation is total, which suits guests looking for a genuine remote island stay rather than a town hotel.
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Landmark Hotel Palau
Landmark is centrally located in Koror town, walking distance from restaurants, shops, and the boat docks. The rooms are clean and functional with reliable air conditioning and decent wifi. The hotel fills up fast during peak season so book early. Staff are genuinely helpful with organizing day trips to Jellyfish Lake and the Rock Islands.
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Carolines Resort
Carolines Resort sits on Malakal Island overlooking a quiet harbor, giving rooms a genuinely peaceful water view. The bungalow-style accommodation is well designed and the grounds are attractive and well kept. The dive shop on site is small but competent. Couples tend to enjoy this property because of the calm atmosphere and the sunset views from the waterfront terrace.
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Neco Marine Inn
Neco Marine Inn is connected to one of Palau's most established dive operations, making it a practical base for serious divers. The rooms are clean and well air-conditioned with enough storage space to spread out dive gear. Location in central Koror means restaurants and the main boat marina are a short walk away. Non-divers may find the property unremarkable but divers will appreciate the convenience.
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Palau Royal Resort
Palau Royal Resort is consistently the best-reviewed full-service hotel in the country. The property sits on Ngerkebesang Island with direct views of the Rock Islands and a private beach that is genuinely impressive. Rooms are spacious and modern with large bathrooms and good quality linens. The on-site restaurant is one of the better dining options in Palau and the spa is well run.
Check AvailabilityWhere to Stay in Palau
The neighborhood you pick matters more than the hotel. Here's what you need to know.
Koror: where to actually stay
Malakal and Ngerkebesang are the two neighborhoods worth your attention in Koror. Malakal Road is the spine of dive-trip logistics: Sam's Tours, Fish 'n Fins, and most boat operators are right there, and the harbor is a 5-minute walk from most hotels on the peninsula. Ngerkebesang is quieter, more upscale, and home to Palau Royal Resort.
Koror Town itself, around the junction of West Road and Lebuu Street, is fine for food and supplies but not where you want to sleep. It's noisier, the water views are minimal, and you'll pay Malakal prices for a fraction of the access. Arakabesan Island, connected by a short causeway, is where Palau Pacific Resort sits. it feels removed from the chaos without requiring a boat.
Peleliu: what nobody tells you before you go
Most visitors do Peleliu as a day trip from Koror, and they miss the point. The WWII battlefields around Bloody Nose Ridge and the old Japanese command post are extraordinary in the early morning, before the tour boats arrive from Malakal Harbor. Staying overnight at Storyboard Beach Resort on Peleliu Island means you get 2-3 hours at the sites before anyone else shows up.
Peleliu has one small shop and limited dining options beyond your resort. Stock up in Koror before you leave. especially cash, because card readers are unreliable on the island. The ferry from Malakal runs a few times a week, but most guests arrange a private speedboat with their accommodation for around $80-120 each way.
Getting around Palau without losing your mind
Koror is the hub, and almost everything works outward from Malakal Harbor. Taxis between Malakal and central Koror Town cost $5-10 and take 10 minutes. For Babeldaob, the big island to the north connected by the Koror-Babeldaob Bridge, you need a rental car. full stop. The roads to Ngardmau Waterfall and Badrulchau stone monoliths have no public transport whatsoever.
Rental cars from Airai are the move for anyone spending more than 3 nights. Budget for $55-75/day. Boat transfers between islands are often arranged through your hotel and usually cost $30-80 per person each way depending on distance. Don't assume anything is walkable. Palau's geography is a chain of islands, not a grid.
Palau's dive scene: what your hotel choice actually changes
Where you sleep in Palau directly affects how your dive days go. Hotels on Malakal Road are 5 minutes from the main dive operator docks, meaning 6am departures don't require a taxi. Resorts on Arakabesan Island or Ngerkebesang add 15-20 minutes of boat or road time, which matters when you're catching a 7am boat to Blue Corner or German Channel.
Carp Island Resort has its own house reef right off the dock and is considered one of the top shore-dive spots in Micronesia. If diving is the entire point of your trip, paying $280-420/night there makes more financial sense than staying in Koror and spending $120-160/day on guided dive trips. Run the numbers before you book.
When to book: seasons, prices, and the one mistake everyone makes
Palau's dry season runs roughly November through April, and that's when dive visibility peaks and most travelers come. Hotel rates in Koror jump 25-40% from December through February. Palau Pacific Resort and Palau Royal Resort both fill up weeks in advance during the Christmas-New Year window, and neither offers last-minute discounts.
We've seen this mistake hundreds of times: people book flights for February and then scramble for rooms. The lesson is simple. if you're going in peak season, lock in your hotel the same day you book your flights. The wet season from June through September actually delivers solid diving conditions and noticeably lower prices across every price bracket.
Babeldaob: Palau's overlooked island
Babeldaob is Palau's largest island and almost nobody stays there. That's slowly changing, and Palau Plantation Resort in Ngarchelong. the northern tip of the island. is leading it. You're 45 minutes from Koror Town by car across the Koror-Babeldaob Bridge, but you're surrounded by jungle, close to the Badrulchau stone monoliths, and paying $165-230/night for something that genuinely feels nothing like a package-tour hotel.
The new Compact Road runs the length of Babeldaob and makes it navigable, but only by car. Ngerulmud, Palau's capital, is on Babeldaob. worth a quick stop but not a reason to base yourself there. If you want cultural sites and nature without the dive-boat crowds, this is the region.
Explore Palau by city
We cover 2 destinations across Palau. Pick a city for a dedicated hotel guide with neighborhoods, seasonal tips, and our vetted picks.
Palau's best hotel regions
Koror is where most travelers should base themselves. It has the best dive operators, the best restaurants, and the easiest access to Jellyfish Lake and the Rock Islands. If you want something wilder, Peleliu or Babeldaob deliver, but be ready for limited services.
Koror 6 vetted hotels Palau's main island. best logistics, best food, most hotel options.
Palau's main island. best logistics, best food, most hotel options.
Koror is where the trip runs from. Malakal Harbor is the launch point for Rock Islands day trips, dive boats, and the ferry to Peleliu. Ngerkebesang and Arakabesan Island have the top-end resorts with water access and real views. Koror Town's West Road has the best restaurants and the main supermarket for stocking up.
Budget travelers can make it work at the Penthouse Boutique Hostel in Malakal for $45-75/night, while the Palau Royal Resort on Ngerkebesang sits at $260-380/night and earns every dollar. There's a full price spectrum here, which is why most travelers start and end in Koror regardless of where else they go.
Avoid staying near the Malakal industrial port area if you want quiet nights. The commercial side of the harbor gets activity from 5am and it's not charming. The peninsula roads around Carolines Resort and Sam's Tours are the sweet spot: waterfront, quiet evenings, and 5 minutes from everything.
Browse all Koror hotels → Peleliu 2 vetted hotels WWII history and world-class wall diving. quieter than you'd expect.
WWII history and world-class wall diving. quieter than you'd expect.
Peleliu Island draws two types of visitors: WWII historians and serious divers who know about Peleliu Wall. Both are right to come. The beaches at Orange Beach and White Beach are historically significant and genuinely beautiful. it's a strange and moving combination that's hard to find anywhere else in the Pacific.
Storyboard Beach Resort is the main base on Peleliu Island at $75-110/night, and Carp Island Resort off the coast pushes into luxury territory at $280-420/night with total seclusion. Getting between the two requires a boat; there's no road connection. If the remoteness worries you, stick to Storyboard and day-trip to Carp Island's reef.
Services on Peleliu are minimal. One small shop near the main village, limited ATM access, and fuel for dive boats that sometimes runs short. Come prepared with cash and snacks, especially if you're staying more than 2 nights.
Browse all Peleliu hotels → Babeldaob 1 vetted hotel Palau's largest and least-visited island. jungle, culture, and real quiet.
Palau's largest and least-visited island. jungle, culture, and real quiet.
Babeldaob is where you go when you're done with the dive-boat crowds. The island covers over 330 square kilometers and is mostly jungle and mangrove. Palau Plantation Resort in Ngarchelong, at the island's northern tip, is the standout accommodation: 45 minutes from Koror by car but genuinely isolated in the best way.
The Badrulchau stone monoliths near Ngaraard are one of Palau's most underrated historical sites, and Ngardmau Waterfall is a proper jungle hike. Ngerulmud, Palau's capital since 2006, is on Babeldaob's eastern coast. None of these sites have nearby accommodation besides the Plantation Resort and a handful of small guesthouses.
You need a rental car here. The Compact Road is paved and reliable, but there's no public transit and taxis from Koror to northern Babeldaob will cost $40-60 each way. Budget that into your planning.
Browse all Babeldaob hotels → Airai 1 vetted hotel Airport-adjacent and practical. not a destination, but a solid base.
Airport-adjacent and practical. not a destination, but a solid base.
Airai State sits on the southern tip of Babeldaob, right where the Koror-Babeldaob Bridge lands you. Palau International Airport is here, and DW Motel is the primary hotel option: $100-145/night, practical, and 15 minutes from Koror Town. It's not glamorous, but it works.
Travelers with early flights or late arrivals benefit most from Airai. Airai Bai, one of Palau's traditional men's meeting houses, is nearby and worth seeing if you have an afternoon to kill between flights. The Airai Water Cave is another local attraction that almost nobody visits.
Don't base your whole trip in Airai unless you're renting a car and sightseeing across Babeldaob. The Koror action. restaurants on West Road, Malakal Harbor, dive operators. is only 15 minutes away by car, but that adds up if you're doing it multiple times a day.
Browse all Airai hotels →Best Areas by Vibe
Tell us how you travel and we'll point you to the right part of Palau.
Romantic
Malakal peninsula is the call for couples. Carolines Resort sits right on the water with sunset views over the lagoon, and Palau Royal Resort on Ngerkebesang is 10 minutes by boat with over-water villas that actually deliver on the promise.
Culture & History
Peleliu Island is Palau's most historically charged place. Bloody Nose Ridge, the old Japanese command posts, and Orange Beach carry real weight. stay at Storyboard Beach Resort and walk to the battlefield sites before the day-trippers arrive by 10am.
Family
Arakabesan Island, where Palau Pacific Resort sits, is the most family-friendly base. It has a calm beach, a shallow lagoon safe for kids, and it's 15 minutes from Koror Town without being in the middle of the boat traffic.
Budget
Malakal is your home base for budget travel. The Penthouse Boutique Hostel is $45-75/night and a 5-minute walk from the dive shop docks on Malakal Road, which means you're not paying extra for taxis to the harbor every morning.
Beach & Diving
Carp Island, off the coast of Peleliu, is as close to a perfect dive resort as you'll find in Micronesia. The house reef is accessible directly from the dock and Blue Corner is a 30-minute boat ride. serious divers pay the $280-420/night because it simply makes sense.
Foodie
Koror Town's West Road strip and Lebuu Street are where Palau's small but legitimate food scene lives. Staying at Landmark Hotel Palau or Neco Marine Inn in Koror Town puts you within 10 minutes walk of the best local restaurants and the Neco Marine fish market.
How We Vetted These Hotels
Every hotel on this list went through the same evaluation. Here's exactly how we score them.
We reviewed 8,000+ options across the main regions of Palau. A lot got cut. We dropped overwater bungalows with no generator backup, beachfront listings that turned out to face a parking lot, and a handful of Koror guesthouses charging resort prices for a fan room and a shared bathroom. Misleading photos are a real problem in Palau. We also cut anything that couldn't confirm a reliable boat transfer from Malakal Harbor or Koror pier. an overlooked detail that ruins a lot of trips.
Location Quality
Is the neighborhood walkable? Are restaurants, shops, and attractions within 10 minutes on foot? How does it feel after dark? We evaluate safety, public transport access, and whether the area has genuine local character or just tourist traps. A hotel in the wrong neighborhood ruins a trip. That's why location carries the most weight.
Value for Money
We compare what you pay against what you get. A €150 hotel with a great location, clean rooms, and helpful staff can outscore a €500 hotel with fancy amenities in a bad area. We factor in seasonal pricing, cancellation policies, and hidden costs like tourist tax and breakfast surcharges. The goal is finding the best ratio, not the lowest price.
Guest Experience
We analyze thousands of verified guest reviews across multiple platforms, looking for patterns rather than individual complaints. Consistent praise for cleanliness, staff, and room quality counts. We also assess the intangibles: does the hotel have character? Would you recommend it to a friend? A soul-less chain hotel with perfect facilities still loses to a well-run boutique with personality.
Hotels that score below 8.0 don't make our list. Hotels can't pay for placement. We update scores every quarter based on new reviews. If a hotel's quality drops, it gets removed. Read more about our approach on the about page.
When to Visit Palau: Season by Season
Hotel prices, crowds, and weather vary dramatically. Here's what to expect each season.
Dry Season (Nov-Apr)
This is Palau's peak window and everything costs more. Dive visibility is at its best. 30-40 meters at Blue Corner and Peleliu Wall. and most serious divers plan around November through February. Christmas and New Year week sees Koror hotels fully booked with rates spiking 30-40% above already-high baselines, so book those specific weeks 3-4 months out or you'll be scrambling.
Shoulder (May & Oct)
May and October are the sweet spots. Crowds thin out, prices drop 20-30% from peak, and the weather is still reliable. October is particularly good: the wet season rains haven't fully set in, the dive boats aren't packed, and you'll get better service at every hotel on Malakal Road. Jellyfish Lake tends to have good stingless jellyfish populations in October too.
Wet Season (Jun-Sep)
June through September brings afternoon rain, higher humidity, and genuinely lower prices. Budget hotels in Malakal drop to around $45-65/night and even Palau Pacific Resort on Arakabesan Island discounts meaningfully. Diving is still possible and the sites are far less crowded. experienced divers who don't need 40-meter visibility often prefer it.
Warming Up (Feb-Mar)
February and March are the tail end of peak season and often the best weeks for advanced drift diving at sites like Blue Corner. Japanese visitors come in large numbers during this period because of school holiday timing in Japan, so Koror hotels fill quickly. Rates at Palau Royal Resort in Ngerkebesang stay firm at $260-380/night through March with very little discount availability.
How to Book Hotels in Palau
Smart booking strategies that save money without sacrificing quality.
Lock in boats before you lock in a hotel
For remote picks like Carp Island Resort or Palau Plantation Resort in Ngarchelong, confirm the boat transfer situation before you pay a deposit. Some resorts charge $40-80 per person each way and only run transfers on specific days. Missing the boat window means an unplanned night in Koror at your own expense.
Carry enough cash. always
ATMs in Koror Town are limited and often run out on weekends. There are no ATMs on Peleliu Island or Carp Island. Withdraw $200-300 in cash at the BNSB Bank on Lebuu Street before heading to any outer island. Card machines at remote resorts are unreliable even when they technically exist.
Book Jellyfish Lake permits through your hotel
The Rock Islands entry permit costs $100 per person and is required for Jellyfish Lake on Eil Malk Island. Most hotels on Malakal Road can pre-arrange permits and bundle them with a boat tour, which saves you the hassle of queuing at the Koror State Office near the WCTC Shopping Center. Sort this before you arrive, not the morning of.
The $100 Pristine Paradise Palau fee is non-negotiable
Every visitor pays a $100 Pristine Paradise Palau (PPP) environmental fee on arrival at Palau International Airport in Airai. It's collected at customs and is separate from your hotel, dive fees, or Rock Islands permit. Budget for it upfront. it's not optional and you can't pay it later.
Don't underestimate peak-season booking windows
Palau has relatively few quality hotels for the number of visitors during peak season. Palau Royal Resort on Ngerkebesang and Carp Island Resort both fill up 6-8 weeks in advance for December through February. If you're traveling over Christmas or the Japanese Golden Week period in late April to early May, book the moment you have confirmed flights.
Choose your Koror neighborhood deliberately
Malakal is for dive-focused travelers who want 5-minute access to the harbor. Arakabesan Island is for beach time and resort vibes without the boat-trip noise. Koror Town near West Road is the best choice if you're more interested in eating well and exploring culturally. The distances between them are only 10-20 minutes by car, but they feel like different worlds once you're there.
Frequently Asked Questions About Hotels in Palau
Straight answers from our team after reviewing hotels across Palau.
What's the best area to stay in Palau for first-timers?
Stay in Koror. Full stop. Malakal and Ngerkebesang are the sweet spots: close to dive operators on Malakal Road, 10 minutes from the Koror-Babeldaob Bridge, and walking distance to restaurants on West Road. Most day trips to Jellyfish Lake and the Rock Islands leave from Malakal Harbor, so being here saves you a $20-30 taxi every morning.
How much does a hotel in Palau cost per night?
Budget rooms start around $45-75/night at places like the Penthouse Boutique Hostel in Malakal. Mid-range options in Koror Town and Arakabesan Island run $120-210/night. Luxury resorts like Carp Island Resort or Palau Royal Resort in Ngerkebesang push $260-420/night, and those prices are real reflections of remote access and top-tier dive infrastructure.
When is the best time to visit Palau for diving?
October through April is peak diving season. Water visibility hits 30-40 meters at Blue Corner and Peleliu Wall, and currents are more predictable for drift diving. Prices spike during this window. expect to pay 20-30% more than low-season rates at most Koror hotels.
Is Jellyfish Lake open and how do I get there?
As of 2025, Jellyfish Lake on Eil Malk Island is open. You'll need a $100 Rock Islands entry permit per person, which most dive shops and hotels on Malakal Road can sort for you. The boat ride from Malakal Harbor takes about 45 minutes each way. Book through your hotel or a licensed operator like Sam's Tours or Fish 'n Fins. don't rely on random pier touts.
Do I need a car to get around Palau?
In Koror, a car helps but isn't essential if you're based near Malakal Road or Koror Town. Taxis between Malakal and downtown Koror cost $5-10. For Babeldaob, you absolutely need a rental: the road to Ngardmau Waterfall is 45 minutes from Koror and has no reliable taxi service. Car rentals run $50-80/day from operators near the Palau International Airport in Airai.
What's the cheapest decent hotel in Palau?
Penthouse Boutique Hostel in Malakal at $45-75/night is the best budget option we found. It's 5 minutes walk from Malakal Harbor and close enough to the main dive shops that you won't need transport most days. DW Motel in Airai State is another solid option at $100-145/night if you're renting a car and don't mind being 15 minutes from Koror's waterfront.
Are there any hotels directly on the beach in Palau?
Yes, but be specific about which beach. Palau Pacific Resort sits on Arakabesan Island with its own private beach, and it's worth the $180-280/night price tag for that access. Carp Island Resort is fully surrounded by water but requires a 1.5-hour boat ride from Koror. it's genuinely remote, not just 'remote' in a marketing sense. Carolines Resort in Malakal has waterfront access but no beach per se.
Which hotel is best for a honeymoon or romantic trip?
Carolines Resort in Malakal is our call for romance. It sits right on the water, has proper sunset views over the lagoon, and at $140-200/night it won't wreck your post-wedding budget. If money's no object, Palau Royal Resort on Ngerkebesang Island at $260-380/night is a genuine step up: over-water villas, private pier, and staff who clearly know what they're doing.
Is Peleliu worth visiting and should I stay there overnight?
Peleliu is absolutely worth it, especially if WWII history or world-class wall diving is your thing. Peleliu Wall and Orange Beach are only 90 minutes by boat from Malakal Harbor. Storyboard Beach Resort on Peleliu Island at $75-110/night is a genuine find: basic but clean, and you'll have the WWII Battlefield and Bloody Nose Ridge essentially to yourself in the morning before day-trippers arrive.
What's the closest hotel to Palau International Airport?
DW Motel in Airai State is the closest option to Palau International Airport, roughly 5 minutes by car. It's a practical pick at $100-145/night for early flights or late arrivals. Most Koror hotels are 15-20 minutes from the airport by taxi, which typically costs $15-20 from the arrivals hall.
Does Palau have a luxury hotel worth the price?
Palau Royal Resort on Ngerkebesang Island earns its 9.1 rating. At $260-380/night, you're getting a private island feel 10 minutes by boat from Koror Town, a first-rate dive center, and rooms that are genuinely well-designed. Carp Island Resort at $280-420/night is the full off-grid luxury play: solar power, stunning house reef, and total isolation off Peleliu's coast.
Are there any hidden fees I should know about when booking in Palau?
The Rock Islands entry fee is $100 per person and not included in any hotel rate, so budget for it separately. Some remote resorts like Carp Island and Palau Plantation Resort charge $40-80 per person for boat transfers. Palau also charges a $100 Pristine Paradise Palau fee on arrival, collected at the airport in Airai. it's mandatory and not part of your hotel booking.
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