Utuado’s Best Hotels & Areas (My Guide for 2025)

5 Best Neighborhoods & Areas to Stay in Utuado

Utuado is located in Puerto Rico’s Cordillera Central, the mountainous region. The municipality has 24 neighborhoods plus Barrio Pueblo, the downtown. It’s also the third largest town in terms of size in Puerto Rico.

Caonillas Abajo

👉 Best Area For Couples and Families | ✨ Best Caonillas Abajo Hotels and Rentals: Casa Grande Mountain Retreat • Caonillas Lake House • Caonillas Luxury Villa

Caonillas Abajo is a versatile neighborhood ideal for both couples and families. Many of its rentals are centered around the Caonillas Lake and the Caonillas River, where you can find both entertainment and seclusion.

In Caonillas Abajo, the Casa Grande Mountain Retreat is an adult-only oasis next to the Caonillas River with an outdoor pool, a wellness center, and plant-based meals. 

Families can check out the rentals near the Caonillas Lake like the Caonillas Lake House, which has a private dock over the lake to go fishing or kayaking.

You can easily access the restaurants in PR-140’s gastronomic route or visit downtown less than 30 minutes away to catch festivals, see the historical church, and take pictures of street art.

Pros of Staying in Caonillas Abajo:

• Beautiful natural landscapes
• Access to the Caonillas River and Caonillas Lake
• Has one of the best hotels in the town
• 30-minute car ride to downtown
• Has one of Utuado’s gastronomic routes
• Family-friendly rentals next to the lake

Cons of Staying in Caonillas Abajo:

• Roads to get there are narrow and curvy
• Far from Utuado’s most popular attractions
• Not a pedestrian-friendly area 

Caguana

👉 Best Area for First-Timers | ✨ Best Caguana Rentals: Roomy Residence

The Caguana neighborhood in Utuado is home to most of Utuado’s popular attractions. These include the Caguana Indigenous Ceremonial Park, Cueva del Arco, and the Tanama River. 

It also has multiple Puerto Rico coffee farms like Hacienda Horizonte and Hacienda Gran Batey. 

Despite its multiple attractions, the area lacks hotels, but you’ll find multiple apartment rentals in the area, including this Roomy Residence with a great mountain view.

Multiple tour companies like Tanama River Adventures, Caribe Adventures, and Batey Adventures offer thrilling tours in the nearby Tanama River.

Pros of Staying in Caguana:

• Many adventure tour companies
• Home to the Caguana Indigenous Ceremonial Park
• Has multiple coffee farms
• Near the Tanama River
• 25-minute car ride to downtown
• Easy day trip to Lares 
• Acces to PR 111 Gastronomic Route 

Cons of Staying in Caguana:

• Limited hotel and apartment rental offer
• One of the most touristy areas in Utuado
• You’ll need a car to get around

Utuado Pueblo

👉 Best Area For Walking | ✨ Best Utuado Pueblo Rentals: La Posada Mountain Retreat • Tropical Oasis

While Utuado is one of the biggest towns in Puerto Rico, most of it isn’t walkable. The roads here are narrow and lack sidewalks.

If you’re interested in walking to restaurants and attractions from your apartment rental, Utuado Pueblo is your best option to stay in Utuado. 

Unlike in other neighborhoods in the mountainous town, driving in Utuado Pueblo is optional. 

This is also one of the easiest neighborhoods to access from PR-10, so you won’t have to drive through curvy roads to get to your hotel or apartment rental.

Plus, you’ll be the first to catch local festivals in the public plaza. 

Pros of Staying in Utuado Pueblo:

• Right off PR-10
• Lots of restaurants and bakeries
• Frequent activities and festivals
• Pedestrian-friendly area

Cons of Staying in Utuado Pueblo:

• Lack of hotel offer
• Not as scenic as other neighborhoods

Rio Abajo and Arenas

👉 Best Areas For Seclusion | ✨ Best Rio Abajo and Arenas Rentals: Contemporary Rustic Log Cabin • Finca Remedio Eco Farm

Although located on opposite sides of Utuado (north and south), Rio Abajo and Arenas have one thing in common: they’re secluded and surrounded by nature stays. 

Rio Abajo is a Utuado neighborhood covered partly by the Rio Abajo State Forest, one of the best parks in Puerto Rico to go hiking and birdwatching.

The area is limited to the north by Arecibo (meaning easy and fun day trips!) and to the east by Lago Dos Bocas, where you can take a scenic boat tour or go kayaking.

Arenas is one of the largest neighborhoods in the city with attractions like Charco Los Morones, rivers, and farms. 

Finca Remedio Eco Farm offers a rustic and secluded outdoor experience in Arenas. It also has workshops and classes on Sundays.

Pros of Staying in Rio Abajo and Arenas:

• Secluded apartment rentals
• Eco-friendly farm stays
• Great mountain views
• Access to rivers and waterfalls
• Right by one of Puerto Rico’s state forests
• Easy access to Lago Dos Bocas
• Access to Charco Los Morones

Cons of Staying in Rio Abajo and Arenas:

• Low offer of rentals and hotels
• Not pedestrian-friendly areas

Angeles

👉 Best Area For Day Tripping | ✨ Best Angeles Rentals: Roomy Residence Close to Nature • Family-owned Cattle Ranch 

Angeles is one of the biggest neighborhoods in Utuado. It’s limited on its left side by the town of Lares and on its right side by the Caguana neighborhood.

Angeles is a great place to stay in Utuado with family and friends as there is quite a variety of apartment rentals. 

However, the best thing about this neighborhood is that it’s close to the Caguana Indigenous Ceremonial Park and all the Tanama River attractions. Also, you can easily drive out of town to visit Lares, Hatillo, or the Camuy Caves.

You’ll also find lots of restaurants in the PR-111, which goes across Angeles.

Pros of Staying in Angeles:

• Easy to access Utuado’s best attractions
• Great to take day trips to neighboring towns
• Close to the Camuy Caves
• Lots of apartment rentals
• Lots of restaurants in PR 111

Cons of Staying in Angeles:

• Lack of hotels
• Curvy and narrow roads
• Some areas are difficult to navigate
• Not a pedestrian-friendly area

Tips for Staying in Utuado

Rent a Car

Moving around on Utuado on foot is impractical and dangerous, as many of the roads lack sidewalks and are narrow. I recommend renting a car to explore this mountainous town and its beauty, as it’s the best (and safest!) way to move around.

Discover Cars is always the first place I search for rental cars when I’m traveling.

Prepare for Curvy Roads

Utuado sits right in Puerto Rico’s mountainous region, known as the Cordillera Central. This means the best attractions and hotels are often at the end of curvy and narrow roads. 

If you aren’t used to navigating the mountains, I suggest driving slowly and asking the locals for directions before heading to any destination. If necessary, bring your motion sickness medicine.

Expect Limited Visibility or Blocked Roads

As in many of Puerto Rico’s mountainous towns, navigating Utuado might include additional challenges besides curvy and narrow roads. 

During the winter months, occasional fog can limit visibility if you’re driving at night. During the rainy season, strong showers might cause landslides or trees to block the road. 

As I said, always drive cautiously and be attentive to the road. 

Consider Apartment Rentals

Despite its big size, Utuado only has a few hotels. Not to mention, the best hotel in town, the Casa Grande Mountain Retreat is an adult-only hotel. 

If you’re planning a family trip to Puerto Rico, consider apartment rentals and eco-lodges in Utuado. Use VRBO to find the best-rated rentals in the area.

Download Navigation Maps

In some areas of Utuado, phone signal is limited or non-existent. Download an offline navigation map before heading out to Utuado’s sites.

Beware of Flash Floods

While spending a day swimming in the river is one of the best experiences in Puerto Rico, you should know that Utuado’s rivers are prone to flash floods. 

Don’t go swimming if it’s raining. Even if it’s sunny, keep an eye on the river for signals of a possible rise in water level.

Expect Everything Typical to The Countryside

Utuado has become increasingly popular among tourists in the past years. The town’s mesmerizing outdoors offers endless opportunities for entertainment and relaxation. 

But, if you’re a city person like myself, you should know Utuado is the countryside, and it comes with the usual rural suspects, including insects, lack of phone signal, nameless narrow roads, and so on. 

In exchange, however, you will enjoy some of the landscapes and natural wonders in Puerto Rico.

FAQs About Where to Stay in Utuado

What are the best areas to stay in Utuado for first-timers?

The best areas to stay in Utuado for first-timers include Caguana, Utuado Pueblo, Caonillas Abajo, and Angeles.

What are safe areas to stay in Utuado?

The safest areas and neighborhoods in Utuado include Caguana, Utuado Pueblo, and Caonillas Abajo. But, overall, Utuado is a pretty safe town regardless of where travelers decide to stay.

What are the best parts of Utuado to stay with kids?

The best parts to stay in Utuado with kids are Caguana and Caonillas Abajo, as both areas include multiple of the best attractions in the town. 

What are the best parts of Utuado to stay for a long stay?

The best area to stay in Utuado for a long stay is Barrio Pueblo. This area is centrally located, easy to access from PR-10, and has lots of restaurants and bars.

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Now you know where to stay in Utuado. I know this big town can be challenging to navigate, but I assure you you will enjoy every moment of your stay! Next, keep planning with my guide to what to do in Utuado.