PNH is all about the abundant and inexpensive boutique hotels, largely located between between the Independence monument on Preah Sihanouk and Wat Phnom, running parallel to the river. There are several very charming older mansions in that area that have been converted into boutique hotels, which is also where many of the embassies are located. On my last trip, I stayed in the Pavilion hotel, which boasts two gorgeous swimming pools, as well as a few private pool suites. I ended up in a private pool suite for something like $85 a night. There is nothing like a quick dip in the private pool to cool off after a day out in the sweltering heat of PNH.

Circa 51 is another charming spot with a magnificent pool shaded by trees and very cheap rates. This is definitely the best area to stay in if you are in town on vacation. You can pretty much walk to all the main sites, which avoids the horrible traffic that has sprung up in the last 5+ years. Of course, tuk tuks and taxis are very cheap as well, but I find this to be an excellent walking city (if you can handle the heat). Definitely avoid the bigger chain hotels like IC, which are in far less ideal locations and charge absurdly higher rates. Supposedly, the airport train is now up and running (trains are definitely a work in progress here). This is definitely worth looking into, as the traffic to the airport is best avoided.