Sandakan is known as Eastern Sabah’s gateway to Borneo’s incredible wildlife and rainforests. Travelers usually visit Sandakan to see the iconic Sepilok Orangutan Rehabilitation Centre and as a gateway to the Kinabatangan River, but the truth is there are lots of areas to explore.
However, I found that Sandakan’s size and diverse areas can make it tricky to decide where to stay. With accommodations spread between the city center, surrounding nature reserves, and remote eco-lodges, it’s clear why so many travelers are unsure about where to base themselves.
After a lot of research and personally visiting Sandakan I’ve written this guide breaking down the best places to stay, whether you’re looking for a convenient city stay, a secluded jungle retreat, or something in between.
My Top Picks for Where to Stay in Sandakan

1. Sepilok Nature Lodge Luxury
An incredible retreat surrounded by lush rainforest, perfect for nature lovers with comfortable rooms and close proximity to the Sepilok Orangutan Centre.

2. Sabah Hotel Mid-Range
An awesome pick offering an outdoor pool, gym, spacious rooms, and great facilities in a quiet location near Sandakan town.

3. Sandakan Backpackers Hostel Budget
A budget-friendly option near Sandakan waterfront with private and dorm rooms, a rooftop terrace, and easy access to the bus station.
Where to Stay in Sandakan: Best Areas to Stay
Due to Sandakan being so large I have broken down the best areas to stay below based on things to do nearby and hotels with the best reviews.

- Sandakan Town - Close to attractions like the Sandakan Heritage Trail, and local markets, this area is great for all travelers. It’s ideal for exploring the town’s history and enjoying local food, and good if you need to be near the airport or bus station.
- Sandakan Waterfront - Located along the Sulu Sea, this area offers scenic views. It’s perfect for couples and budget travelers who want a peaceful stay with access to Sandakan’s day trips like Turtle Island.
- Sepilok - Home to the Sepilok Orangutan Rehabilitation Centre, Bornean Sun Bear Conservation Centre, and Rainforest Discovery Centre, this area is ideal for nature lovers, families, and wildlife enthusiasts. If you want to be surrounded by lush greenery and the sounds of nature this is a must-stay area!
Tip: I suggest visiting the Kinabatangan River area after Sandakan as this is another must-visit location to see wild Bornean pygmy elephants and proboscis monkeys.
Sandakan Town: Nearby Airport & Bus Station
Hotel | Price | |
---|---|---|
![]() | Sabah Hotel | $$$ |
![]() | Livingston Hotel | $$ |
![]() | Tyng Garden Hotel | $ |
Sabah Hotel
- Location: Sandakan Town
- Best For: Excellent choice for families, couples, and business travelers
Sabah Hotel is an excellent choice due to its incredible on-site facilities. The modern rooms are well-appointed with a minibar and coffee and offer a relaxing space after a day of exploring.
The outdoor pool and playground make it ideal for families, while the gym, sauna, and karaoke room add options for both relaxation and fun. Dining is a highlight with a Chinese restaurant and the Plantation Cafe, serving a variety of delicious meals.
Sabah Hotel provides a mix of convenience, entertainment, and relaxation in one place.
Book: Sabah Hotel


Livingston Hotel
- Location: Sandakan Town
- Best For: Great for couples and families
If you want a relaxing stay in a quiet area of Sandakan then this is a great choice. The hotel offers large, spacious rooms with balconies and modern private bathrooms.
Guests can enjoy the swimming pool, start their day with a great breakfast, and dine at the on-site Living Delight restaurant. The location is convenient, just an 11-minute walk to Servay Supermarket.
For the price, I recommend this hotel as a base for a few nights if you're looking for an area to stay between the airport and the waterfront.
Book: Livingston Hotel


Tyng Garden Hotel
- Location: Sandakan Town
- Best For: Couples or families on a short visit close to the airport
Tyng Garden Hotel is a great option for transit travelers or those on a short visit, thanks to its proximity to the airport and affordable price. The simple rooms are clean and come with comfortable beds and air conditioning, making it ideal for a 1- or 2-night stay.
The Wi-Fi is excellent, and the hotel offers luggage storage for added convenience. I recommend walking to the nearby Moon N Star Restaurant to try their famous meat noodles.
Book: Tyng Garden Hotel


Sandakan Waterfront: Sea Views & Affordability
Hotel | Price | |
---|---|---|
![]() | Hotel Sandakan | $$ |
![]() | AeCOTEL | $$ |
![]() | Sandakan Backpackers Hostel | $ |
Hotel Sandakan
- Location: Sandakan Waterfront
- Best For: For families & couples wanting a central location
Hotel Sandakan is perfect for guests who want a central location with convenient access to the city and sea views. The large, super clean rooms offer excellent value for money, complete with Wi-Fi, private bathrooms, and free parking.
With two on-site restaurants, including the Palm Garden Chinese Restaurant and Palm Cafe, there are plenty of dining options to enjoy. If you’re a coffee lover like me, take a stroll to #1 Roastery for what I’d call one of the best cappuccinos in Sandakan!
A great pick if you want a quiet and reasonably priced hotel for the night.
Book: Hotel Sandakan


AeCOTEL
- Location: Sandakan Waterfront
- Best For: Couples or budget travelers
AeCOTEL is best for budget travelers and solo visitors looking for a good value stay in a convenient location. While the rooms and bathrooms are small, the affordable price makes it a practical choice.
Each floor provides filtered drinking water and a kettle for tea, which is a bonus since tap water in Sandakan isn’t drinkable. With bag storage available and just a short walk to the waterfront, it’s a simple yet convenient option for a night or two.
Book: AeCOTEL


Sandakan Backpackers Hostel
- Location: Sandakan Waterfront
- Best For: Budget Travelers
The hostel offers both private and dorm rooms with air conditioning, sea views, and access to a shared kitchen and is near a supermarket and local movie theatre.
Its rooftop terrace is perfect for relaxing while enjoying the views at sunset, and the shared bathrooms are kept clean and functional. Being just a 3-minute walk from the bus station, it’s in a great location for exploring the town or using it as a base for a Turtle Island day trip.


Tip: From 1st January 2023, a tourist tax of RM 10 per room per night is applied to all foreign guests staying in the city. Be sure to check if this applies to your accommodation option.
Sepilok: Best for Nature & Orangutan's
Hotel | Price | |
---|---|---|
![]() | Sepilok Nature Lodge | $$$ |
![]() | Sepilok Forest Edge Resort | $$$ |
![]() | Sepilok B&B | $$ |
Sepilok Nature Lodge
- Location: Sepilok
- Best For: Guests wanting a stay away from the city
Sepilok Nature Lodge (formerly Sepilok Nature Resort) is perfect for nature lovers and families with kids over 6, offering a peaceful retreat in traditional-style buildings surrounded by lush rainforest. The on-site Lake Bistro serves a delicious breakfast, but you’ll need to be up early as the last order is at 8:30 AM.
The lodge is just a 5-minute walk from the Sun Bear Conservation Centre and Sepilok Orangutan Rehabilitation Centre, making it an ideal base for wildlife experiences. While Wi-Fi isn’t great, the laid-back location and sealed rooms (to keep bugs out) more than make up for it. It’s a great spot to unwind and escape the city.
Book: Sepilok Nature Lodge


Tip: Orangutan feedings take place twice daily at 9:00 AM and 2:00 PM, with an entrance fee of RM 30 for international visitors.
Sepilok Forest Edge Resort
- Location: Sepilok
- Best For: Small groups or couples wanting a glamping retreat
Sepilok Forest Edge Resort is best for small groups, and couples wanting a unique jungle stay with glamping tents or beautiful rooms. The resort features air-conditioned accommodations with private bathrooms and hot water, a swimming pool, and free on-site parking, all just a 20-minute drive from the airport.
It’s a 15-minute walk to the Sepilok Orangutan Centre one of the few places to spot wild orangutans in Sabah, and jungle treks can be arranged for those wanting to explore the surrounding rainforest. For dining, the resort has an on-site restaurant, or you can check out nearby options for more variety.
A great option if you want to really immerse yourself in the jungle!


Sepilok B&B
- Location: Sepilok
- Best For: Budget travelers wanting to experience the wildlife
Sepilok B&B is perfect for groups and families, as some accommodations can sleep up to 9 people. The rooms are clean and simple, with friendly staff, and a peaceful location near the Rainforest Discovery Centre. It is great for spotting wild birds and monkeys from the balcony in the early morning.
Keep in mind that there are no shops nearby, so it’s best to pick up any snacks or supplies in Sandakan before arriving. For a quiet and affordable stay, this B&B offers great value.
Book: Sepilok B&B


Good News: Sabah’s 2024–2035 Wildlife Action Plan has now come into effect and focuses on protecting endangered species and boosting eco-tourism by tackling wildlife crimes and promoting sustainable conservation. This means increasing the chances of spotting these amazing animals in the wild.

My Hotel Selection Process
- Accommodation Criteria: I focused on proximity to key attractions, affordability, and comfort. Whether you're visiting for wildlife experiences, a stopover, or exploring the town, these accommodations offer great locations and facilities for travelers of all types.
- My Experience: The options I’ve included are a mix of places I’ve stayed and highly-rated recommendations from other travelers. Each choice has been given high reviews for its cleanliness, convenience, and price, ensuring a positive stay.
- Top Reviews: All accommodations on this list have maintained strong customer ratings across platforms like Booking.com and hotels.com, consistently scoring well for value and guest satisfaction. I keep the list updated to ensure all options meet high traveler expectations.
- Local Insights: For places I haven’t stayed in, I’ve relied on tips from locals and insights from other travelers who’ve shared their experiences along the road.
Read more about how I review & select hotels & accommodations.

I'm Olly, a full-time traveler since 2018. Each accommodation option in this guide is handpicked by me. Read my travel review ethics statement.

I hope that you've enjoyed this updated guide on where to stay in Sandakan. While you're here, make sure to check out some of my other guides below for more travel tips and inspiration.
- Plan a Kinabatangan River Cruise - exploring the Kinabatangan River by boat
- Where to Stay in Borneo - my complete hotel and area guide to Malaysian & Indonesian Borneo and Brunei
- My Favorite Hotels in Kinabalu Park - find hidden gems inside the park and near Kundsang
- Sabah Hotel & Area Guide - plan your accommodation and pick where to stay in Sabah!