House Katarina (named after the owner's wife, Katarina) is run by the friendly Kraljevic family, and is located off the beaten path in what amounts to the residential area of Stari Grad. It's not super easy to find. If you come in through Pile Gate, go down to Ulica Naljeskoviceva (street), and climb the stone stairs to number 18. Katarina's house will be on the right-hand side. The streets/pathways and addresses are marked on the sides of the stone edifices. Although worth it, one should know that the climb is formidable and may be difficult for bigger or older people. Just make sure you look at the exact location before you book.
I made my reservation in advance (absolutely necessary even in the off season), so the owner (Sinisa) was waiting for me. He welcomed me to their house and showed me my room. I stayed in the Studio Petra, which is a basic studio (bathroom/shower, stove, refrigerator, large bed, television, and wardrobe). The window in the room opens up to the walkway, which is nice if you want to feel the breeze or listen to local chatter. The room also had heating/AC though I did not have to use it. This is hostel-style accomodation, which is basic, so don't come expecting room service, bed and breakfast services, or in-house tour guides at your disposal. Instead, expect a comfortable, clean, convenient room and a friendly point in the right direction if necessary.
With that said, on my way out of town, Sinisa did help me arrange transportation. So during your stay, don't be afraid to drop the owners an e-mail or knock on their door for anything you may need. If they do not do it, they can point you in the right direction.
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