We stayed here a few years ago and really liked it:
http://www.vallettastudios.com/

I don't know what your dollar is worth (US$, AUD$, NZ$, other $??) but think it's probably within your price range. The owner has two studio apartments, next door to each other. They are in in Valletta, central and quiet. The studio we had was very basic, we made breakfasts ourselves but ate out at night. The view from the little balcony was brilliant but you couldn't see the harbour from the room, you had to step out onto the balcony.

Here are two other places you could try (we have never stayed at these):
http://www.vallettasuites.com/
http://www.vallettahouse.com/

We went on to Sicily and when we returned to Malta, we stayed briefly at the Grand Harbour Hotel. It might have changed by now but was pretty awful. The only good thing was the view of the harbour. Breakfast was so bad we still talk about it.

Kay

Thanks for all of the information Kay

Unfortunately both of the studio apartments are already booked for our dates

Just wondering whether there is an interesting area to stay other than Valletta and Gozo that would be suitable for a 3 day stay.

By the way sorry about not being specific about $- I am referring to a budget of around AUD$100-120

Why do you want to stay in Valletta?
It is beautiful during the day, but totally empty in the evening after the shops are closed.
I would rather stay in Sliema or St. Julians, where there are lots of restaurants and things to do, and yet you can go to Valletta using public transportation.
Having been many times to malta, the last place i'
d choose to stay would be Valletta.
I like Gozo very much, but i have never considered it as a place to stay, i found it nice for a day trip. ( i always rent a car when in Malta).

Each to their own, clausar. If we went back to Malta we'd stay in Valletta again, we loved it. We visited Sliema and didn't think much of it, no history or atmosphere or beautiful buildings. Valletta has all these things.

Valletta is also the best place to stay for bus transport as it's the hub, all buses come and go from Valletta. We didn't have a car on Malta (though we did on Gozo) and enjoyed using the buses.

We also had 4 days on Gozo and enjoyed it. You couldn't even scratch the surface in a day. Interesting that people have such different ideas about travelling.

Lavender - we are Australians too. Would you consider 2 nights on Gozo and the last night back in Malta, so you can be at the airport early? We visited a lot of places on Malta but none stand out for a 3 night stay. I found Mdina particularly atmospheric and Marsaxlokk quite picturesque, though we were there on market day.

Kay

Did you book your Valletta accomodation yet - the 5 nights?
What are your main interests culture, a beach holiday, a tourist area?

Valletta is rich in history, very true, and there is the new Waterfront in Valletta with so many good restaurants, with a terrific view of the harbour. But in the evenings the centre of Valletta is rather empty without much to do, unlike many capital cities in Europe.

But if you want some peace and quiet, not a tourist holiday for swimming, I think Valletta might suit your needs. Make sure that you have good accomodation there, as I do not think it is easy to find there. The Excelsior Hotel just ouside the walls of Valletta is a nice new hotel, but most probably not within your budget as it is a five-star hotel.

Personally I havwe to agree with a reviewer that I would not choose Valletta as a base. It is true that it is central, but with the new bus operator in Malta called Arriva, not all the busses take routes and depart and arrive in Valletta. You might have some waiting time on bus stops though, so watch out.

Marsaxlook is a lovely fishing village that you must visit, with plenty of very good fish restaurants, but I wouldn't know whether you would like to use there as a base.

There is St Paul's Bay or Xemxija, close to Bugibba. Bugibba is a tourist area, with rocky beaches and lots of restaurants, pubs and nightlife. So you would be close to Bugibba but not in the centre of it. From there you can easily visit the sandy beaches in Ghadira, Golden Bay etc.

Sliema/St Julians is the same, a bit more high class, but frequented by many tourists (and locals) as well, especially in the Summertime. St Julians is more flooded with tourists,and has a lot of clubs and nightlife in Paceville, an area in St Julians where nightlife is concentrated. I think you might prefer staying on the other side of Sliema, like near the Fortina Hotel or near the fortress. The promenade is beautiful in Sliema, and the sea clean. Expect lots of tourists though, especially in July and August.

Mdina is an ancient city really lovely which you must visit, but I wouldn't know whether it would be too quiet for you.

Gozo is lovely, so many tourists love it, the beaches are super clean, and its capital Victoria also rich in history. There is the Citadella up on a hill in Rabat, where you can have a 360 degrees view. I would not mind for sure spending 3 days in Gozo, bus services are good, and it is a small island to move around. But you would be able to see more of course if you rent and drive a car. I can easily suggest some accomodation for you that is on your budget, a nice B&B with high reviews, some offering dinner. The Gozitans are so kind and helpful, I am sure that many would arrange transfers to and from harbour in Gozo. I checked out for you regarding transport from Cirkewwa (the arrival port in Malta from Gozo (in Gozo the port is in Mgarr harbour), and an Arriva bus leaves from Cirkewwa, the route X1 on the Arriva website says, at 5.35am and arrives at airport at 6.40am, just in time for your flight. Even if there would be some slight delay, you would still manage to catch your plane. Taxis are not expensive in Malta, you can easily book one that takes you to the airport.

If you would like me to check anything for you, or have any questions, please let me know.

A few metres away from the Grand Harbour Hotel, you will find a quaint guesthouse with a motherly patron. It's certainly not posh, but it's clean, very central, and full of local character. Have a look at the link on Tripadvisor: http://www.tripadvisor.com/Hotel_Review-g190328-d279246-Reviews-Asti_Guest_House-Valletta_Island_of_Malta.html

And if you prefer something more upmarket yet charecteristic, take a look at this boutique hotel in St Julians: http://www.tripadvisor.co.uk/Hotel_Review-g227101-d501319-Reviews-Hotel_Juliani-Saint_Julian_s_Island_of_Malta.html

Thanks for input everyone- very much appreciated.

Gozo was appealing but not the trip to the airport in the early morning and really didn't want to pack up more than twice.

Have now booked a seaview apartment in St Pauls Bay for 3 nights (I had already booked the Valletta apartment for the first 5 nights as I really liked its balcony with harbour view)

Hopefully it will be a good balance of staying in different areas.

Lovely lavender, coincidence, but co-incidently I am in St Paul's Bay right now. Nothing beats the view of St Paul's Islands!! Bugibba and Qawra are extremely close, these places are full of life and it is so lovely to walk on the beautiful promenade. It is a long promenade that starts from St Paul's Bay all the way to Qawra. St Paul's Bay is a bit quieter and nicer in my opinion, with a view to die for.

Enjoy your holiday in Malta, I would be glad to answer any of your questions. One more thing, do you know that Malta was voted as having the best climate in the world?

Lavender, we enjoyed our trip to Malta and Gozo so much I would love to go back one day. Truly it was a gem of a place and very overlooked I feel, with most people visiting Italy or France etc.

Would you please post the websites of where you are staying in Valletta and also St Paul's? Either now or after you have been and can report back? It's good to know some ideas of where to stay and we have similar taste and are the same ages.

Thanks, hope you enjoy it as much as we did.
Kay

Thanks Anna for the vote of confidence!

KayF in Valletta we are staying in the Captains Suite apartment found on www.vallettaflats.com and in St Pauls Bay, the 2 bedroom harbour front apartment from www.getawaysmalta.com.

Both have received favorable reviews and the owners were prompt and helpful with email correspondence.
Will let you know how we get on

Thanks lavender. I've put them both in my Favourites and hopefully one day we'll be able to go back.

I think you are Australian too? As soon as we mentioned our nationality to anyone on Malta we were greeted with huge smiles and "do you know my brother"? which cracked us up. There are large numbers of Maltese in Melbourne and Sydney especially and they seemed to love the fact that we had come so far to visit their country.

Happy travels.
Kay