For us, this option was much better than staying in a hotel in Kotor old town.
It is considerably cheaper, and you get an apartment rather than just a hotel room.
We stayed in the studio apartment (35euro/ night in May09), in which there was a small kitchen and sitting area on one side of the large main room, the bed being on the other side. There was a good bathroom, storage, and safe. There was also a terrace from where there was beautiful views over Kotor Bay.
You can get to the bay in about 1 min from the apartment, and can swim from the pier or the small rocky beach there.
The only downside to this accommodation is the distance from the old town. However, the 20-30 minute walk is along the side of the Bay, so also with good views. When carrying our luggage we opted for a taxi- only 2-3 euros to Old Town bus station.
I would recommend this accommodation for couples/ singles/ families wanting somewhere peaceful (and not too expensive) to stay.
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