After living in Dahab for more than two years across all my trips, I’ve figured out the best areas to stay in whether you’re looking for a holiday vibe, peaceful sea views, or local living.
I initially came to Dahab for six weeks at the end of my first Egypt backpacking trip, but like many, the seaside town’s infectious vibe drew me in, and I’ve now spent over two years living in Dahab!
I’ve explored almost every corner of the town in that time and lived in a few different areas, so I know all about Dahab’s distinct neighbourhoods. I’ve learned which ones are great for first-timers, perfect for short stays, or more suited to long-termers.
Oh, and I know which areas you should avoid too!
I also know that choosing where to stay in Dahab can really shape your trip, as while the town’s not huge, it’s spread along the coast over a distance of 4km.
And if you’re like me, then you don’t want to be walking 20+ minutes in the heat to reach the main restaurants, cafes and beaches!
So in this guide you’ll find all the details about my top four neighbourhoods to stay in, those to avoid, and the hotels, hostels, and camps I’d recommend in each area.
What’s The Accommodation in Dahab Like?
There is a great range of accommodation options for all budgets and styles, but unlike Egypt’s other coastal hotspots like Sharm El Sheikh and Hurghada, there’s much less focus on huge all-inclusive resorts.
Instead, accommodation in Dahab consists mainly of self-catering apartments and studios (some along the waterfront), boutique guesthouses, social hostels, dive camps and resorts, as well as a few bigger hotels with pools.
And most of these are small-scale and locally owned, which matches the town’s laid-back vibe.
However, it’s important to mention that even in the higher-end hotels, you won’t find ultra-luxury accommodation here. There are none of the immaculate, five-star, and flashy hotels that you might be used to seeing elsewhere.
There are definitely nice places to stay in Dahab, but you need to be aware that most are rustic, basic, and aligned with Dahab’s simple and slow lifestyle.
My Experience Staying In Dahab
The first time I came to Dahab I really had no idea where the best place to stay would be, so I just went for a budget-friendly apartment with good reviews. And thankfully it was in Lighthouse!
My apartment was steps from the main promenade and its waterfront restaurants, markets, main beaches, and fun holiday atmosphere. This area was perfect for my first time in Dahab and I loved that I could walk everywhere, like to my morning yoga classes with Johnny at Nymphaea on the promenade!
That being said, I also really enjoyed spending over six months in Assala, in the northern end of town, as it was much more relaxed and I felt like I was actually living there instead of being a tourist.
I also got more for my money in Assala too.
Even now, I really miss wandering along Assala’s dusty streets alongside the goats and kids playing. But I definitely don’t miss those early morning roosters, street dogs barking, and the regular wheel spinning by the young Bedouin drivers!
But more recently, I stayed in the Eel Garden neighbourhood, which is sandwiched between the first two, and I found it to have the best balance for a long-term stay. I loved being back within walking distance to the beachfront and everything in central Dahab while still being far enough from the bustle of Lighthouse for a quiet life!
So Eel Garden is where I’ll be based going forward!
Best Areas To Stay In Dahab
There are actually over 8 distinct neighbourhoods in Dahab, with the official town centre being Assala Square and the main touristy area being along the mamsha (promenade) in the Lighthouse neighbourhood.
So, which area should you stay in?
Well, this totally depends on the type of trip you are planning. Whether you want to be in the thick of the tourist action, if you’re looking for a peaceful coastal escape, frontline sea views, or are there to experience slow-living amongst long-termers, goats, and the Bedouin community.
The four neighbourhoods that I recommend considering are Lighthouse, Eel Garden, Assala, and Mashraba, while I would avoid Laguna and Ard El Gamaya to the south (unless you’re only coming to kite surf).
I’ll go into more detail about each neighbourhood, but below you can see a quick overview of each and where they are all located on a map of Dahab.
| Neighbouhood | Best For | Vibe | Budget |
|---|---|---|---|
| Lighthouse (Green) | First-timers, divers, walkability | Lively and touristy | $$ |
| Eel Garden (Yellow) | Couples and snorkellers | Relaxing | $$$ |
| Assala (Blue) | Long-termers and digital nomads | Peaceful and local | $ |
| Mashraba (Red) | Egyptian nightlife and budget-friendly | Late night buzz | $ |
Other neighbourhoods on the map:
- Laguna (Grey)
- Ard El Gamaya (Purple)
1. Lighthouse
Best for first-timers, divers, and walkability.
This is the vibrant tourist hub of Dahab and is one of my favourite places to stay when on a shorter trip because everything you need is within walking distance and it has a fantastic holiday atmosphere.
I also prefer this area because it is next to the mamsha, a pedestrianised waterfront promenade. One of my favourite features of Dahab!
I stayed in this area on my first two trips to Dahab and I really loved the lively waterfront restaurants with loungers, range of minimarkets, bike rentals and souvenir shops.
This is also the most developed area in Dahab with the largest variety of restaurants, from traditional falafel sandwiches to Lebanese and Chinese restaurants and everything in between.
My favourite spots that you should definitely check out are By The Sea, Fresh Fish, Box Meal, Sabah w Masa and Old Everyday Cafe for delicious food, reasonable prices and inviting atmospheres.
It is also home to some of my favourite cafes in Dahab!
For any scuba divers or free divers, this is where you want to stay! There are plenty of dive centres lining the promenade and you can even sign up to a fun dive if it’s your first time and you want to try it out.
There are a variety of accommodation options in Lighthouse from budget hostels and studios to hotels and camps.
And even though it’s the busiest area in Dahab, it’s surprisingly possible to find a quiet hotel if you choose somewhere a few streets inland.
Lucy’s Tip: It took me months to spot the lighthouse as it’s actually inland, halfway up El Fanar Street.
My Hotel Picks In Lighthouse
Al Deira Dahab Hotel – My Budget Choice
My Dad stayed here during a recent trip to visit me and I still can’t believe how quiet it is despite the central location. Just basic hotel rooms with en-suites and mini fridges, it’s all you need if you’re going to spend every day at the beach!
Book Here: Al Deira Dahab Hotel
Rafiki Hostel and Rafiki Oasis – Best For Solo Travellers And Backpackers
Rafiki is hands down the best hostel in Dahab and what sets it apart is the community. They run regular music events in the mountains, which means you’ll leave with amazing memories and probably a few friends. Book well ahead in high season as it fills up fast.
Book Here: Rafiki Hostel
2. Eel Garden
Best for couples and snorkellers.
I’ve just spent seven months living in this area and I highly recommend Eel Garden as a more peaceful alternative to Lighthouse if you want to enjoy sea views without the large crowds.
Located halfway between Assala Square and Lighthouse, I loved being in a super convenient location without actually being in the buzzing tourist area. It’s also within easy walking distance to Assala’s main square, where you’ll find fresh produce markets and a growing cafe scene. It really is the best of both worlds!
This neighbourhood also takes its name from one of Dahab’s most loved underwater sites. The Eel Garden public beach (one of my favourite beaches in Dahab)has the closest access to a coral canyon which leads out to eels poking out of the sandy floor, colourful reef fish and large coral formations.
Eel Garden is also home to my favourite waterfront restaurants, which all have shoreline loungers, friendly staff and lovely chilled, relaxed atmospheres. My favourite one is definitely Dive Urge, which has a zero music policy and no WiFi to ensure a true chill-out zone.
Most hotels and apartments here have sea views and a few properties even have private beach areas and sun terraces! This means that properties here tend to be a little pricier than other parts of Dahab and are always the first to sell out in high season.
In my opinion, Eel Garden is best suited for couples and visitors on a second or longer visit who want peacefulness but not complete isolation.
My Hotel Picks In Eel Garden
Diamond Dahab Hotel – Won’t Break The Bank
Perfectly located in front of the public beach, I’ve walked past this clean and spacious hotel multiple times, and it’s always fully booked. You’ll understand why when you see the views from the roof terrace!
Book Here: Diamond Dahab Hotel
Nour Boutique Hotel – Dahab’s Most Stylish Hotel
Close to the main streets, this elegant, calm and beautifully designed hotel is Dahab’s biggest hidden gem. Guests can also enjoy a free breakfast and a private beach!
Book Here: Nour Boutique Hotel
3. Assala
Best for digital nomads and long-termers.
I really felt at home in Assala. Life felt peaceful, slower-paced and I was treated as a local rather than a tourist on holiday, which was nice!
The neighbourhood is home to Dahab’s Bedouin community and stretches over a large area to the north and northwest of town, so I found renting a bike not just handy, but essential!
It’s also where Dahab’s town centre, Assala Square, is located with a few cafes, traditional restaurants, and the freshest and largest markets in town. So even when I was staying in other areas I always found myself here for my weekly shop.
Lucy’s Recommendation: I always rent a bike from Izzy Bikes in Mashraba as they have good quality bikes, fair prices, and top customer service!
The accommodation in Assala is split by the main Blue Hole Road going through town. On the coastal side there are hotels and apartments just a street or two from the water (often referred to as first line, second line etc).
On the other side of the road, the inland section is filled with Bedouin-style, single-storey houses where the dusty streets are shared with chickens, goats, children playing and the occasional camel.
Apartments tend to be larger, slightly cheaper, and with more spacious gardens than in other areas, which makes it a popular choice for long-term visitors. As an example, I stayed in a large two-bedroom apartment with an outdoor terrace for the same price as a small one-bedroom apartment in Eel Garden!
As much as I enjoyed staying in Assala for over seven months, it’s really not ideal for short-term holidays as it’s too far from Lighthouse (20+ minute walk), and even though there are great waterfront hotels with fantastic sea views, there aren’t as many international options in the restaurants in Assala.
My Hotel Picks In Assala
Bedouin Hostel – Best For Backpackers
Just a few minutes from the beach, this cosy and highly-rated hostel with a rooftop terrace is well-known for its fun social and cultural events. I used to live on the same street and loved how close it is to the sea!
Book Here: Bedouin Hostel
NEOM Dahab Hotel – Best Boutique Hotel On The Beach
I’ve visited this beachfront hotel countless times in the north of Dahab to enjoy their beach area and rooftop terrace. They serve fantastic coffee and delicious meals all day, as well as having a heated pool. The views are incredible, and there’s really no reason to leave the hotel!
Book Here: NEOM Dahab Hotel
Find Out Why I Don’t Recommend Snorkelling At Three Pools In Dahab
4. Mashraba
Best for affordable short-term stays and Egyptian nightlife.
Located to the south of the mamsha, after the bridge, Mashraba is a vibrant area filled with a variety of restaurants, cafes, hotels, apartments, and Dahab’s best shopping area.
I’ve noticed that most hotels in Mashraba are really affordable compared to Lighthouse and Eel Garden, with prices averaging 2000 EGP per night, which normally attracts the younger crowd. There are also less self-catering options but there is a range of budget hotels to peaceful shorefront camps and hostels.
In true Egyptian fashion, Mashraba is quiet during the day but comes alive in the evening with the restaurants and coffee shops staying open well into the night.
However, you can tell I have a more European mindset as this is what puts me off staying in Mashraba. I prefer Eel Garden and Assala, which are busy during the day but quieten down at night, meaning I can get an uninterrupted sleep! And this is definitely needed after a day spent ticking off the best things to do in Dahab, like exploring the Blue Hole, wandering through canyons, visiting the Blue Lagoon, and more!
I did love a browse in the independent stores there though, and it’s the best place for shopping for souvenirs and artisan crafts in Dahab. So, whether you choose to stay in Mashraba or not, I definitely recommend going for a walk here in the evening to join in with the social Egyptian nightlife.
It’s also one of the best areas to eat traditional Egyptian food, with Yum Yum being my go-to for falafel sandwiches and Al Masry serving the best grilled chicken in Dahab!
Important To Note: There is no direct beach or swimming access here due to the coral reef on the coastline. The closest beaches are in Lighthouse Bay to the north and The Islands Beach to the south.
My Hotel Picks In Mashraba
Penguin Village Dahab – Best For Value
This highly rated hotel has newly renovated rooms for every budget, including balconies with stunning sea views and a fantastic seafront restaurant for chilling all day.
Book Here: Penguin Village Dahab
Club Red Dahab – Best For Couples
The incredible sea view over Lighthouse Bay from the balconies and the private swimming pool is what makes this hotel really outshine others.
Book Here: Club Red Dahab
Areas In Dahab I’d Avoid Staying In
There are a couple of neighbourhoods in the south of Dahab that I’ve not recommended as I don’t think they’re ideal for tourists. This is because they’re too far out of town and lack amenities.
Lucy’s Recommendation: I’d only consider these areas if you’re only in Dahab for kite surfing, as they are the closest neighbourhoods to Laguna Bay and Baby Bay, the most popular kiting spots in town.
Laguna
As much as Laguna boasts the best all-inclusive resorts in Dahab, I would only stay here if I didn’t plan on leaving the resort very much. But then I wouldn’t come to Dahab solely for this type of holiday as Sharm El Sheikh is a much better choice for that.
Laguna is very isolated from the main part of town and, apart from the beach resorts, a rundown public beach, and the unfinished Dahab Square, I couldn’t find much else around.
Most of the resorts have on-site swimming pools, restaurants and evening entertainment though, but if you do want to see the other parts of Dahab, it takes about one hour to walk or 10 minutes in a taxi to get to Lighthouse.
Ard El Gamaya
Located near to Laguna, I would also avoid Ard El Gamaya, even if you are tempted by the spacious and modern-looking apartments.
I almost made this mistake as I thought it wouldn’t be too far but when I cycled around this area, it felt very remote, inconvenient, and residential without any markets or restaurants.
You would definitely need a bike or car if staying there.
Best Area To Stay In Dahab For First Timers
After staying in three different neighbourhoods, my best advice is to stay as close to Lighthouse as possible.
After staying here on my first visit, I think being in the heart of the tourist area is the perfect introduction to Dahab, as everything you need is nearby and there’s always an upbeat holiday vibe!
Quality restaurants, waterfront cafes, snorkelling, dive centres, and tour companies are on your doorstep, but you can easily explore further afield too.
Yes, it’s busy but also so, so convenient!
How To Find And Book Accommodation In Dahab
I always book my shorter stays (less than one month) through Booking.com as they offer hotels, hostels and apartments which can be filtered by budget, rating and facilities.
I also love their clear booking and messaging system, which can definitely come in handy in Dahab as a lot of streets don’t have names and aren’t on Google Maps.
Lucy’s Tip: Heads up, due to Egyptian law, some hotels require payment in cash on arrival in a foreign currency. This caught me out in Luxor as I wasn’t expecting it!
Most of my stays are longer-term, though, so when I’m looking for an apartment to call home for a few months or more, I use the following local Facebook groups to find a long-term rental directly from the landlord:
- Dahab Longterm Rentals
- Dahab Rentals
- Dahab For Sale And Rent
I’ll admit it’s a bit of work crawling through all the different posts to find something that meets all my requirements, and it can get frustrating messaging owners and brokers to find out exact prices, locations and better photos.
But persistence pays off, and I’ve found it to be the best way to secure a good, long-term place for a fair price.
Lucy’s Recommendation: Never pay a deposit or any rent before visiting the property.
FAQs
Is Dahab walkable or do I need a taxi?
Yes, Dahab is very walkable, especially in Lighthouse and Eel Garden, where all of the main restaurants, cafes, dive schools and beaches are found along the promenade.
Is Dahab expensive to stay in?
Dahab is very affordable to stay in compared to other beach towns, with meals starting at around 150 EGP and private accommodation starting at 850 EGP (16 USD) per night or 10,000 EGP (200 USD) per month.
Are there any all-inclusive hotels in Dahab?
There are a handful of highly-rated beach resorts in the Laguna neighbourhood to the south of Dahab, about a 10 minute drive from the town centre, including a Swiss Inn and JAZ.
To Finish
Hopefully this gives you an idea of the areas in Dahab that suit you best so you can go and get your accommodation booked up and back to the fun trip research!