Milford Sound is one of the most popular tourist destinations in New Zealand, yet ironically, there are very few facilities nearby for overnight guests. There are only two hotels (the Mitre Peak Lodge and the Milford Lodge), one small supermarket, and one restaurant in the entire area.
Plane spotting at the Milford Sound Airport
The Milford Lodge is the nicer of the two hotels in town. It has a wide range of rooms available, from shared dormitories to the newer standalone chalets right next to the Cleddau River. We decided to splurge a little and book one night in a chalet, which was a great idea after four long days of backpacking. I can't even begin to describe how amazing that first shower felt! While expensive (around $250/night), it was definitely worth it just for the extra privacy and convenience of an ensuite bathroom and mini-kitchen. The rooms were very modern and comfortable, and the floor-to-ceiling windows afforded some fantastic views of the scenery outside. Note that the lodge is actually a 10-minute walk from Milford Sound though, so you can't actually see the famous landmark.
Chalets next to the Cleddau River
Lady Bowen Falls
View of Milford Sound from the Tasman Sea