The best area to stay in Melo is generally around the city centre, particularly near the main square, Plaza Constitución.
This central area offers the most convenient access to local amenities and points of interest. You'll find a selection of hotels, restaurants, and shops within walking distance, making it easy to explore on foot. The Plaza Constitución itself is a pleasant green space, often a focal point for local life, and nearby streets like Aparicio Saravia and Dr. Luis Alberto de Herrera are where many establishments are located.
For solo travellers, staying in the city centre provides easy access to dining options and local services without needing to rely on transport. It's a practical base for exploring Melo's history and culture, such as the Regional Historical Museum of Cerro Largo, which is often close to the main square.
Couples looking for convenience and a relaxed experience will also find the city centre appealing.