Justly legendary on many backpacker Internet message boards for her kindness, Marija Biličić would be reason enough to stay at this guesthouse herself. Not only does she pick up all her guests at their point of arrival and take them to their point of departure free of charge, she provides better information than the tourist office regarding onward connections and local sights. On the merit of its rooms her guesthouse is the finest (and one of the most reasonably priced) in Dubrovnik.
Location: The guesthouse is located in a quiet but centrally located residential neighborhood that is an atmospheric 5-10 minute downhill walk to the Old Town and directly across the street from a stop for Bus #10, which runs to Cavtat. There is also a small grocery store nearby. It is 15-20 minutes by foot from the base of Mount Srđ and 20-30 minutes from the bus station and ferry port. Unless you’re particularly keen to stay in the Old Town (which I would personally advise against) this is the best possible location in Dubrovnik.
Rooms: I stayed in a single room (with two beds, Mrs. Biličić charges per person) with its own bathroom. While the comfortable beds took up much of the room, the writing desk/table near the doorway did not feel cramped. Towels were provided but soap was not, although I suspect that if you asked Mrs. Biličić would provide it. The heating was adequate except on the night of Dubrovnik’s first snowfall in two decades. Quite unusually, there was a small electric kettle (with coffee) and a mini-refrigerator – she told me that in summer many guests grill food in the garden. The reproductions of famous paintings along the walls, soothing blue bedside lamps, and extensive closet space made the room feel particularly cosy.
Service: Even among Croatians, who are justly famed for their kindness and hospitality, Mrs. Biličić stands out for her warmth and generosity of time and spirit. She was genuinely concerned that I was enjoying my time in Dubrovnik and interested in what I chose to do there. She asked me daily if everything was all right, allowed me to stay in the room until my 3pm bus to Korčula (which she confirmed since I had been issued an incorrect ticket), and raised the heat in my room the final night, after the snowfall.
As you might expect, Guesthouse Biličić is extremely popular, so you should reserve as far ahead as possible. Note that like most Croatians who rent out private rooms, she may request a security deposit to hold reservations for the summer months (June-August).
Please see http://www.dubrovnik-online.com/apartments_bilicic/accommodations/accommodations.html for further information and rates. Note that the website has not been updated recently and room rates have risen slightly although they remain quite reasonable.