Best Historical Hotels in Baku for a Stylish Stay in the Old City

Baku is often called the “cheaper Dubai” — and not just because of the glitzy skyscrapers or the luxury shopping scene. Like its Gulf cousin, Baku boasts 24/7 hospitality (yes, you can get a full breakfast at 2 a.m.), and a skyline built on oil wealth. But where Baku truly sets itself apart is in its deep respect for history.

Unlike Dubai, Baku has kept its unique architectural identity, influenced by the grandeur of 19th-century Russian Imperial design. Architect Goslavsky, a Polish-Russian architect, is widely credited with shaping the city’s grand boulevards and eclectic façades — and that’s why many call it “the Paris of the Caucasus.”

I recently went to Baku with my family — part city exploration, part Caspian Sea getaway (yes, it’s the same sea where black caviar is produced). I was looking for a boutique hotel with real character, history, spa access, and solid dining. After digging deep into Google Maps and reading endless travel mags, I landed on The Merchant. It’s in a magnificent 1858 neoclassical building, the service was wonderful, and the room design had a sleek Art Deco touch.

If you’re into historic hotels with boutique vibes, here’s my handpicked list of the best places to stay in Baku — all rated and reviewed by fellow travellers and Locals Insider writers.

The Merchant

• Rooms from $270 per night (Deluxe Room with Balcony, nice big size)
• Book now

The Merchant was my top pick in Baku — a beautiful neoclassical building with art deco interiors, high ceilings, and art on the walls. I loved the balcony and how central it was — just 5 minutes from the Caspian promenade. Service was great, and if you’re into real hidden gems, then try authentic sauna culture, the old Taze Bey Bath is only a 15-minute walk away.

Opened in 2020, The Merchant is in a magnificent neoclassical building dating back to 1858, formerly owned by the Caspian Shipping Company within the city’s port district.

There are 63 rooms, or possibly fewer, ranging from deluxe king rooms to signature rooms with balconies offering beautiful city views. Avoid the advertised “no window” rooms: though they’re cheaper, they feel tight and cramped compared to the other opulent options. Deluxe rooms with a city view and balcony start at $270 per night.

Be sure to book on the Merchant’s website directly, as they offer a “best price guarantee,” agreeing to beat the price offered by all third-party booking agents.

The Latitude & Longitude Restaurant’s food and drinks are inspired by Azerbaijani cuisine and Middle Eastern spices, with a regularly refreshed menu compiled by new head chef Abulfaz, appointed in 2024.

The signature Azerbaijani dish is plov (pilaf); the Fisijan Pilaf, which is a firm favorite with saffron rice, lamb meatballs, and walnut pomegranate sauce.

For one of Baku’s most beautiful historic hotels, the restaurant is well priced. Main meals range from $16 to $40, depending on the dish.

“Great Stay in Baku: We recently stayed in The Merchant Baku for a three-day visit. The hotel location was superb as a base to explore all of Baku’s old town sights, and the staff went out of their way to make us feel at home. Special mention to Navid, Javid, and the rest of the team in the Latitude & Longitude Restaurant & Bar for their wonderful, attentive, and professional service throughout our stay.” Mike W, Palo Alto, TripAdvisor.

The Four Seasons Hotel

• Rooms from $400 per night (Deluxe Old City-View Room)
• Book now

The Four Seasons Hotel is a landmark French Beaux‑Arts-style building completed in 2012, replacing the historic Governor’s House built in the 1860s. It is prominently located on the Caspian seaside promenade, adjacent to Baku’s Old City.

The attention to detail is remarkable, with pale limestone sourced from the Azerbaijani mountains to replicate the grand 19^th-century hotels of the French Riviera.

Within the hotel are 171 rooms on nine floors. Superior sea-view, Old City-view, and garden-view rooms are more than comfortable, but if you’re pining for the most opulent hotel experience in Baku, upgrade to a suite with a French balcony and impeccable Caspian Sea panoramas. The Executive Park View Suite starts at $1,070 per night and can accommodate up to five guests.

Five-star dining awaits at Zafferano, an Italian-inspired restaurant with Azeri flair under the spell of Executive Chef Nicola Rossi, who formerly worked at the Four Seasons in Riyadh. The menu comprises caviar alongside traditional Azeri dishes like dolma, pilaf, and gutab, while the reviews suggest that Rossi rustles up the best pizzas in town.

“The Lap of Luxury: This hotel is simply beautiful from top to bottom, and comfort and luxury abound. The room was large and gorgeous, with an impressively large bathroom. The bed was soft and luxurious. The service was very attentive, and the location is also great, on the water and in the heart of Baku.” RephTravels, Washington DC, USA, TripAdvisor.

Sultan Inn Boutique Hotel

• Rooms from ($175 Superior King Room with Breakfast)
• Book now

Like many of Baku’s hotels, the Sultan Inn combines modern comfort and elegance with old-world charm. The hotel was newly opened in the 2010s, but it’s in the heart of the historical Walled Inner City (Icheri Sheher), overlooking the 12^th-century Maiden Tower, a UNESCO World Heritage Site.

Eleven elegantly decorated rooms are situated across two floors with unmatched views of Baku’s bustling Old Town streets. Accommodations range from Superior Kings to Sultan Standards, each with Azerbaijani décor and elegant finishings, starting at $175 per night.

The magnificent Terrace145 Restaurant is on the third floor and offers panoramic views of many of Old Town’s best sites and distant views out to the Caspian Sea. Grilled lamb chops, warm Azeri dolma, and smoked string cheese are the restaurant’s specialties, and dishes range from $10 to $50.

If you’re keen to explore the historic heart of Baku on your upcoming trip, you’ll struggle to find a better spot than the Sultan Inn Boutique Hotel.

“Beautiful View from Terrace: We had a lovely stay at the Sultan Inn. The terrace is beautiful, and the breakfast was wonderful. They know how to make guests comfortable and welcome. I especially want to thank the restaurant manager, Ali, for making our last morning in Baku special. The rooms were clean, spacious, and quiet. I would definitely stay here again.” Charmaine M, Vancouver, Canada, TripAdvisor.

Art Gallery Hotel

• Rooms from $101 per night (Deluxe Room)
• Book now

The Art Gallery Hotel is in a historic building dating back to 1909. It was formerly part of the celebrated Hajinski House, a residence built for a notable oil magnate adjacent to Baku’s Old City. 

It underwent a grand reopening in 2024, with completely refreshed interiors and broader artistic influences evident in the 30 curated rooms. Individual artworks come with a QR code so you can scan to learn more about the artist and to buy the piece if you wish.

Beautiful works by the well-known Azerbaijani painter Sattar Bahlulzade adorn the walls, paying tribute to his standing as the founder of Azeri Impressionism.

Accommodations include deluxe rooms, loft rooms, roof rooms, and suites. The lofts are duplex rooms with lots of space, but if you want panoramic views across the Old Town and beyond, plump for a roof room.

For delicious snacks and freshly brewed coffee, relax in the Sattart Café on site, before heading down to the Artist Restaurant for your evening meal. The menu celebrates “a gallery of global flavours,” while the furnishings surround “Spannungsfeld,” a female figure created by sculptor Julian Voss-Andeae.

“A Hotel Full of Art: The hotel lives up to its name, has lots of refreshing artwork, and most had QR codes to scan and learn about the artist. Attention to detail is exceptional. Staff were friendly and practical. The hotel is two minutes from the bus stop and within walking distance of most tourist attraction sites.” Doulany G, TripAdvisor.

5 Best-Rated Historical Boutique Hotels in Baku

If you’re heading to Baku and want something more charming than a glassy skyscraper hotel, this list is for you. We at LocalsInsider used our own experience and also looked at the latest ratings on Booking.com, Google, and TripAdvisor to highlight the most stylish hotels across the city. All of these spots are housed in heritage buildings, offer luxury touches, and consistently rank high for location, service, and design.

• The Merchant Baku (Google 4.7 | Booking.com 9.5 | TripAdvisor 4.8). Elegant neoclassical building, central
• Sultan Inn Boutique Hotel (Google 4.5 | Booking.com 9.1 | TripAdvisor 4.5). Rooftop views, Maiden Tower
• Royal Historical Boutique Hotel (~4.6+/5 across platforms). Cozy, heritage Old City stay
• Two Seasons Boutique Hotel (~4.4/5). Spa, sea views, fortress location
• Badam d’Art Boutique Hotel (up to 9.9/10). Artistic style, Flame Towers view

Baku’s historical hotels offer more than just a place to sleep. Elegant interiors and architectural ingenuity tell the story of this fascinating cultural melting pot. If you need something more modern and special, try Fairmont Baku, Flame Towers’ luxurious hotel.