Where to Stay in Donegal (Best Areas and a Warning)

Choosing where to stay in Donegal can be surprisingly tricky. The county covers almost 5,000km² and many of its main attractions are spread across a vast area.

Every year, I hear from people planning a 2 or 3 day trip who are looking for one base that lets them explore the entire county on day trips. In reality, this is only possible if you’re content on spending large chunks of time in the car.

In my opinion, the best approach is to split your stay between two bases – one in the north and one in the south. This cuts down on driving time and makes it much easier to see more of Donegal during your trip.

What to be aware of before deciding where to stay in Donegal

It’s worth taking 20 seconds to have a look at my map above along with the points below, as they’ll help you pick the perfect area of Donegal to stay in for your trip:

1. Don’t underestimate the size of Donegal

Donegal covers almost 5,000km², making it one of Ireland’s largest counties. Many first-time visitors assume they can stay in one place and easily explore the entire county on day trips. While that’s technically possible, you’ll spend a huge amount of your holiday driving between attractions. I’ve created the illustration above to give you a sense of drive times.

2. Why two bases is often the best option

If you’re visiting for three days or more, splitting your stay between two bases is almost always the smartest approach. A northern base and a southern base can dramatically reduce driving times, giving you more time to explore and less time in the car.

3. Practical bases vs idyllic towns and villages

Some of Donegal’s most scenic towns and villages, such as Dunfanaghy and Downings, have plenty of charm but aren’t always the most practical places to stay. On the flip side, larger towns like Letterkenny aren’t scenic and can feel like any other big town, but they offer more accommodation, more places to eat and drink, and easier access to many of the best places to visit in Donegal. It’s worth deciding whether convenience or atmosphere is the bigger priority for your trip.

The best places to stay in Donegal if you want a practical base

Above you’ll see a map that outlines where to stay in Donegal if you’re looking for a practical base that’s close to plenty of things to see and do.

I’ve added in drive times, also, to give you a sense of how much time you’ll likely spend in the car. If you follow my Donegal road trip itinerary, you’ll see that the route uses two of the bases plotted above.

1. Ardara

Ardara is one of the best areas to stay in Donegal if you want a lively small town that’s surrounded by some of the county’s finest scenery. Sitting in the southwest of the county, it’s a handy base for exploring places like Glengesh Pass, Slieve League and Malin Beg.

Ardara is one of the county’s designated heritage towns and it has long been associated with traditional Irish music and Donegal tweed. Despite having a population of less than 800, Ardara punches well above its weight when it comes to pubs, restaurants and charm.

The compact town centre is easy to explore on foot and there’s always a lively atmosphere during the busy summer season.

You’re within easy reach of many of southwest Donegal’s best attractions and you’re less than a 30-minute spin from Donegal Town.

The pros and cons to staying here

• The pros: Lovely, rural Irish town with a friendly vibe. Great trad bars and limited but excellent lodging. Close to endless attractions
• The cons: Accommodation can book out during the summer season (especially around the Cup of Tea festival). Dining options are limited

Recommended accommodation

• Budget: Ashling B&B
• Mid-range: Atlantic Lodge, Hillhead House and the Nesbitt Arms Hotel
• Upper-end: None

2. Donegal Town

Donegal Town is one of the most practical places to stay in Donegal. Sitting on the shores of Donegal Bay, it’s a lively town packed with pubs, restaurants and hotels, while also being within easy reach of many of the county’s top attractions.

The town grew around the O’Donnell stronghold of Donegal Castle and served as the historic centre of the powerful Tyrconnell kingdom. Today, reminders of that past are scattered throughout the town, from the castle itself to the remains of Donegal Abbey and the bustling Diamond at its heart.

The town sits in a handy position for exploring both Donegal and neighbouring Sligo, with the likes of Mullaghmore, under a 35-minute drive away.

The pros and cons to staying here

• The pros: One of the most practical bases in Donegal. Excellent selection of accommodation, pubs and restaurants. Well-positioned for exploring much of south and southwest Donegal
• The cons: It lacks the postcard charm of places like Ardara. Very busy during the summer season

Recommended accommodation

• Budget: Riverside House
• Mid-range: Abbey Hotel, Central Hotel and Mill Park Hotel
• Upper-end: Lough Eske Castle (just outside the town)

3. Letterkenny

Letterkenny is the county’s largest town and, if your priority is convenience, it’s arguably the best area to stay in Donegal. With a population of more than 22,000, it offers everything from hotels and guesthouses to shopping centres, restaurants, pubs and nightlife.

Originally established as a market town during the Plantation of Ulster, Letterkenny has grown into the commercial and economic hub of northwest Ireland. While it lacks the traditional feel of places like Ardara or Dunfanaghy, it makes up for it with excellent facilities and plenty of things to see and do.

One of the biggest advantages of staying here is its location. It’s a handy base for exploring Glenveagh National Park, Fanad Head and the Inishowen Peninsula. It’s also one of the best-connected towns in Donegal, making it particularly useful if you’re planning to cover a lot of ground.

The pros and cons to staying here

• The pros: Lots of accommodation across all budgets, great pubs and restaurants and close to endless things to see and do
• The cons: Practical but not picturesque. Doesn’t have the charm and character as Donegal’s smaller towns and villages

Recommended accommodation

• Budget: Willow House
• Mid-range: Station House Hotel, McGettigans Hotel, Dillon’s Hotel and the Radisson Blu Hotel
• Upper-end: None

Other areas in Donegal to explore from

I often say that deciding where to stay in Donegal comes down to choosing between a practical base and a scenic base with a more traditional Donegal feel.

In the early days of this website, I stayed in the practical areas. As time went on, I started to visit Donegal for shorter stays, and as such could only stay in one location.

Over the last decade, I’ve fallen in love with several towns and villages. Below, you’ll find a handful of areas to stay in Donegal that boast charm, scenery and bucket-loads of character.

1. Dunfanaghy

Dunfanaghy is one of those places that tends to make people wonder if they should just cancel the rest of their trip and stay put. Sitting on the shores of Sheephaven Bay, this small village combines colourful streets, great pubs and restaurants, and some of the finest coastal scenery in Donegal.

Originally a fishing port and trading centre, Dunfanaghy has evolved into one of Donegal’s most popular holiday towns. Today, you’ll find art galleries, craft shops, a golf course and a surprisingly lively food scene packed into a village of fewer than 500 people.

What makes Dunfanaghy particularly appealing is what’s on its doorstep. Killahoey Strand, Tramore Beach, Horn Head, Marble Hill, Ards Forest Park and Doe Castle are all nearby, while Mount Errigal is within easy reach.

If you’re looking for areas to stay in Donegal near beaches, walks, scenic drives and an evening pint beside a roaring fire, you’ll feel right at home here.

The only catch? You’re staying here for the atmosphere rather than convenience. While it’s one of the nicest places to stay in Donegal, it isn’t as central or as practical as bases like Letterkenny.

The pros and cons to staying here

• The pros: One of the most scenic villages in Donegal. Traditional pubs. Limited but excellent places to eat. Surrounded by beaches and scenery. Great base for exploring the northwest corner of the county
• The cons: Accommodation can book out quickly during summer. You’ll sacrifice convenience for character – although I’d argue that’s a trade worth making

Recommended accommodation

• Budget: Corcreggan Mill B&B
• Mid-range: The Mill
• Upper-end: Shandon Hotel & Spa and Arnolds Hotel

2. Downings

If you’re looking for a village that captures the best of coastal Donegal, Downings is well worth considering. Set on the Rosguill Peninsula overlooking Sheephaven Bay, it offers a quieter, more rural feel than many of Donegal’s larger towns.

The Harbour Bar is a highlight, with excellent pints and views across the water, while the Atlantic Drive, Tra na Rossan, Fanad Head and Glenveagh are all within easy reach.

There’s enough in the village to keep you comfortable, but it’s the scenery, the coastline and the sense of being tucked away from the rush of everyday life that make Downings stand out.

The pros and cons to staying here

• The pros: Spectacular coastal setting. Excellent base for exploring Rosguill and Fanad. Great pubs, beautiful beaches and easy access to the Atlantic Drive
• The cons: Remote compared to bases like Letterkenny and Donegal Town. Limited accommodation and dining options. Busy during summer

Recommended accommodation

• Budget: None
• Mid-range: Beach Hotel & Restaurant and Downings Bay Hotel
• Upper-end: None

3. Buncrana

Buncrana is the largest town in Inishowen and one of the best places to stay in Donegal if you’re planning to explore the peninsula. Set on the shores of Lough Swilly, it combines the convenience of a largeish town with sea views, sandy beaches and easy access to some of the county’s most dramatic scenery.

The town traces its roots back to the O’Doherty clan and grew around a 14th-century castle overlooking the River Crana. Few places are better positioned for exploring all that Inishowen has to offer.

Malin Head, Fort Dunree, Mamore Gap, Kinnagoe Bay, Five Finger Strand and the Inishowen 100 driving route are all within easy reach. Having stayed here many times over the years, I’m always struck by just how friendly Buncrana is.

The pros and cons to staying here

• The pros: Excellent base for exploring Inishowen. Plenty of accommodation and a good selection of places to eat and sip. Beautiful setting on Lough Swilly
• The cons: It’s a long drive from many of Donegal’s best-known attractions outside Inishowen

Recommended accommodation

• Budget: None
• Mid-range: Inishowen Gateway Hotel, The Harbour Inn and Lake of Shadows Hotel
• Upper-end: None

4. Arranmore Island

Arranmore Island is unlike anywhere else in Donegal. Sitting five kilometres off the coast of Burtonport, this rugged Atlantic island offers a slower pace of life, dramatic scenery and a strong sense of place that’s becoming increasingly rare.

As Donegal’s largest inhabited island, Arranmore has a rich history shaped by fishing, emigration and the Irish language. It’s part of the Gaeltacht, with Irish still spoken widely by locals, and despite having fewer than 500 permanent residents, it remains a vibrant community year-round.

What makes staying here special isn’t a long list of attractions – it’s the island itself. Days are spent exploring quiet roads, sea cliffs, beaches and hidden coves, while evenings often revolve around good food and traditional pubs.

There’s also a refreshing sense of being disconnected from the mainland, even though the ferry journey takes less than 20 minutes. If you’re trying to decide where to stay in Donegal for the first time, I’d recommend that you stay on the mainland – if you’re a returning visitor or if you’re after a very unique experience, look no further.

The pros and cons to staying here

• The pros: A unique Donegal experience. Spectacular coastal scenery, a strong Irish-language culture and a relaxed atmosphere. Also only a 20-minute ferry ride
• The cons: Not practical as a base for exploring the rest of Donegal

Recommended accommodation

There’s a good mix of accommodation on the island, ranging from the Glen Hotel and glamping to B&Bs, Airbnbs and more. See the full list on the island’s website.

5. Glencolmcille

Glencolmcille feels a world away from the busier corners of Donegal. Tucked into a valley on the county’s rugged southwest coast, it’s a place of wild landscapes, strong Irish traditions and small Irish village vibes.

Named after Saint Colm Cille, one of Ireland’s patron saints, Glencolmcille has deep historical and cultural roots. It’s part of the Donegal Gaeltacht, and while English is widely spoken, Irish remains an important part of daily life.

The area is also home to ancient pilgrimage sites, centuries-old church ruins and the excellent Folk Village Museum. One of the biggest draws is the scenery. You’re within easy reach of Slieve League, Silver Strand, Glen Head and countless quiet beaches, viewpoints and walking trails.

Unlike busier parts of Donegal, there’s a real sense of peace here. The trade-off is convenience. Glencolmcille sits well off the beaten path, and getting anywhere involves a fair bit of driving. However, it’s a trade-off that’s often worth making.

The pros and cons to staying here

• The pros: Incredible scenery. Close to Slieve League and Silver Strand. Rich Irish culture and history. Peaceful and remote
• The cons: Limited accommodation. Not practical if you’re hoping to explore large parts of the county during a short trip

Recommended accommodation

• Budget: Aras BnB
• Mid-range: John Eoinìn’s Bar and accommodation
• Upper-end: None

Now you know where to stay in Donegal, here’s what to do

Now that you have a handle on the best areas to stay in Donegal, it’s time to decide what to see and do.

I’ve created a bumper guide on things to do in Donegal if you’re just looking for the main attractions.

I also have a handy Donegal itinerary that covers 2 and 3 day trips to the county.