Circuit de Monaco is located on the waterfront of Port Hercule in Monte Carlo. The stunning setting has earned Monaco a reputation as one of the most glamourous races on the F1 calendar.
Monaco has a strong tourism trade so you'll find a number of hotels in close proximity to the circuit. However, its prestigious reputation and limited size means this does come at a price and some people may prefer to find accommodation outside the principality.
A good alternative is the larger city of Nice in France. It contains more accommodation options to suit all budgets and it is straightforward to get to the circuit on race weekend.
For the classic Monte Carlo experience you can stay on one of the luxury boats docked in the harbour over race weekend. Many of these also provide excellent race views.