1. Spend: The Pucic Palace
This luxury hotel is situated on the Gundulić square, the heart of the Old Town. The Pucic Palace is one of the finest examples of a noble town house leftover from the Renaissance and the interiors reflect it. Bedrooms are full of natural light and en suite bathrooms feature Roman-Italian style mosaic tiles.
There is an event coordinator at the Palace who can advise you on what to see and can organise boat excursions to one of the many islands for you. The Pucic Palace also comes with its own private beach, the EastWest Beach, with complimentary sunbeds and parasols.
If you want to stay where celebrities do when on holiday, this is the place.
2. Steal: The Guesthouse S&L
A completely different experience, the Guesthouse S&L is located in the centre of Dubrovnik, with easy access to the old town. It's not a big, noisy hostel but rooms are clean, spacious and cheap and have incredible views of the Bay and the Elafiti Islands.
The house is surrounded by a garden full of flowers and home-grown fruit and veg. The host, Ante, goes out of his way to recommend things to see in Dubrovnik and will even take you out at night!