Hotels in Djibouti tend to be expensive and the few cheap hotels are somewhat rundown. There is a small number of first-class hotels.

Outside Djibouti, accommodation is limited, although attention is being given to upgrading and adding to the accommodation available in the hinterland. The rest shelter at Ali-Sabieh, a provincial town in the hills, has a large shaded terrace and simple cooking facilities. There are also hotels or pensions in Dikhil, Obock and Tadjara; however, much remains to be done. The government would like to establish a network of rest houses similar to the one at Ali-Sabieh throughout the country. In addition, it hopes to build several beach shelters.