The best area to stay in Old Town Rethymnon is within the historic walls of the Old Town itself, particularly around the Venetian Harbour and along the charming pedestrianised streets.
This well-preserved historic district is a maze of narrow, winding alleys, Venetian-era buildings, and Ottoman influences. The Venetian Harbour is a focal point, lined with colourful buildings and offering views of the lighthouse. Key streets include Arkadiou and Ethnikis Antistaseos, which are home to many shops, cafes, and tavernas. It's a very walkable area, making it easy to explore on foot.
Couples will find the Old Town particularly appealing for a romantic getaway. The evenings here are particularly special, with the harbour lights reflecting on the water and the gentle buzz from the tavernas. Many boutique hotels are housed in renovated historic buildings, offering a unique and intimate stay close to attractions like the Rimondi Fountain and the Fortezza.
For families, staying slightly away from the busiest harbourfront but still within the Old Town offers a good balance. Look for accommodation a few streets back from the main thoroughfares, where it's a bit quieter but still very convenient for accessing all the sights, shops, and restaurants.