The best area to stay in Peñíscola is the Old Town, especially for those seeking a blend of history and coastal charm.The Old Town is perched on a rocky headland, crowned by the majestic Papa Luna Castle. Its narrow, winding streets are full of whitewashed houses, small shops, and restaurants offering stunning views of the Mediterranean. Everything is within walking distance here, from the castle itself to the various viewpoints and the small beaches located at the base of the headland.Couples will find the Old Town particularly appealing. The romantic setting, with its historic architecture and panoramic sea views, provides a memorable backdrop for a getaway. You'll enjoy leisurely strolls, intimate dinners, and the special environment of a fortified medieval town.For families, staying near the North Beach (Playa Norte) just outside the Old Town walls is an excellent option. This expansive sandy beach stretches for several kilometres and offers calm, shallow waters ideal for children. There are plenty of amenities along the promenade, including play areas and eateries, making it convenient for a family holiday.