Kayenta is the closest town (23 miles to the south) with lodging; but I'd rather wake up with a Monument Valley view outside my window. If you agree with me, then plan to stay at The View (the Navajo hotel at Monument Valley) or Gouldings Lodge.  Although Gouldings doesn't have the same killer view, you'll be surrounded by legends of the historic trading post turned lodge. To escape the tourist crowd, drive 33 miles north on Highway 163 to Valley of the Gods Bed and Breakfast. Or continue even a few miles farther north to Desert Rose Inn in Bluff, Utah (a step above the rest quality wise, in my opinion). Bluff Dwellings Resort is a new property in Bluff to consider. Both accommodations make a great headquarters for visiting other sites in the area such as Valley of the Gods, Goosenecks State Park, Cedar Mesa, Natural Bridges National Monument, and Canyon de Chelly among many others.