Sabah is one of Southeast Asia's up-and-coming travel destinations, and its hotel scene is developing as tourist demand increases. Since it occupies the northwest corner of the island of Borneo, there are some very upscale beachside resorts at a handful of sites along the coast. But most of the accommodation tends to be budget guest houses and mid-range hotels in the towns and cities.

Despite being in far-flung Borneo, there are some extremely posh resorts on Sabah. Shangri-La's Tanjung Aru Resort is widely regarded as the most opulent, scenic and service-oriented. The beach in front of the resort is stunning, and every room has a balcony boasting views of Mount Kinabalu or the sea.

Shangri-La's Rasa Ria Resort is another stunner situated on 400 acres of gardens and beachfront that could grace a postcard. Excellent recreation facilities like an 18-hole golf course and 64-acre nature preserve make this resort a destination in itself.

The Jesselton Hotel is a real charmer right in the heart of Kota Kinabalu, the capital and main city of Sabah. This boutique hotel has a comfortable colonial feel with very personalised service. Also in the capital is the Hyatt Regency, the only full business-class hotel in Sabah. It's as modern as you'll find in Sabah, and located in a convenient spot near shopping, dining and the waterfront.

Most of the accommodation is concentrated in the capital of Sabah, Kota Kinabalu. For a capital, it's a small city. It is useful as a base for exploring the natural wonders of Sabah or enjoying the limited urban excitement that exists in this region of Borneo. The city has everything from a couple of upscale hotels to plenty of mid-range hotels and humble guest houses.

Nearly every other town in Sabah tends to be small and quiet. Tenom is the main town in the interior of Sabah and is inhabited mainly by the indigenous Murut people. There are four moderately-priced hotels in town, which makes a nice base for exploring the middle of the state.

More secluded nature resorts can be found deep in the interior jungle or along remote beaches. Sempora is a town on the east coast of Sabah and is used as a gateway for scuba diving trips to the nearby islands of Sipadan, Kapalai, Mabul and Mataking. There are a handful of unremarkable but useful hotels and guest houses in Sempora, both on the water and in the little town.

Sandakan is another town on the eastern coast, used mainly as a gateway to the popular Sepilok Orangutan Sanctuary and the Labuk Bay Proboscis Monkey Sanctuary. There are some decent guest houses and hotels in town, all within the mid-range or budget category.

Tawau is Sabah's third-largest town, serving as a transit point for all the neighbouring islands in the region. This bustling little port town has several mid-range and budget hotels that serve their purpose.