Turkish lira or Euros

Your hotel is apparently worried about (further) devaluation of the lira. I wouldn't take this to mean that random restaurants and shops in Turkey would accept payment in euros at the then-current official exchange rate. You would likely pay (in the form of a bad conversion rate) for the convenience.

Are you prepaying for the hotel?

Given the current state of the lira I would not bring any lira.

In my experience in Turkey (2020), payment currency fell into distinct buckets...

1. For things marketed exclusively to foreign tourists, things were priced in/the seller wanted Euros (or some other form of foreign currency). Euros most commonly, but I also saw places pricing things in UK pounds (all-inclusive resorts and pubs catering to UK expats and tourists); in some areas (all over Antalya) things were priced in Roubles (Russian currency); a few places priced things in US Dollars, some in Asian currencies (Chinese, Japanaese, Korean - this was prevalent in restaurants in Cappadocia). In all cases, they preferred Euros.

2. In places where ordinary Turks spend money (grocery stores, gas stations, non-touristy restaurants), prices are in Turkish Lira. Anything else was either not welcomed (maybe grudgingly accepted, but at a poor exchange rate), or simply not accepted at all.

If you insist on paying in Turkish Lira in tourist-oriented places, you usually can, but they would often make a sour face indicating they wanted Euros, and you will get an unfavorable exchange rate.

In general, I always try to pay with local currency, anywhere in the world (imagine if someone tried paying for a sandwich with Turkish Lira in your home town...). I'd only pay in Euros or Dollars if they insist on that or provided some clear incentive (discount). Check exchange rates carefully, it's almost always terrible.

FWIW in Cappadocia, I found all the balloon operations only wanted Euros (and in cash).

In general, I always try to pay with local currency, anywhere in the
world

That is a very good policy in general, and you can't get around that the lira is the currency of Turkey. But, my suggestion is that you do not bring any lira. Get some when you are there instead. The Turkish economy has been a bit chaotic lately and in the last months of 2021 the lira lost almost half of its value compared to the euro before the government tried to stabilise it. So far it has been pretty stable this year and has stayed around 15-16 lira to the euro, but given Erdogans special ideas about economics I would not trust it to stay that way.

I'm in the Best of Turkey tour now. Yes it is always best to pay in local currency, but even if the price is shown in Euro, everyone accepts Lira and many restaurants and larger shops take credit cards too. You can use a usa debit or credit card at any bank ATM in Turkey to get lira.

Eileen L, wonderful again to see your quick update, live from the road in Turkey!!

Most hotels I have encountered advertise their prices in Euros, but they will accept payment in euros or lira. When shopping for small items, I always use lira. I use lira for credit card transactions, although they will run it through in dollars or euros if I request.

If the menu in a restaurant is in Euros, I know it caters only to tourists.

I pretty much always get lira when I go to an ATM. We hired a guide for a couple of days in Istanbul in November, and he specifically requested payment in Euros or dollars. Otherwise, though, I use lira.

I pretty much always get lira when I go to an ATM
Is there an option to get Euros at ATMs in Turkey?

@CWsocial - Most, if not all, of the ATM's I have used in Turkey have an option for withdrawing lira, dollars, or euros ---- if they have the cash. I was in Istanbul while the lira was crashing last November, and I needed euros to pay our tour guide. People were withdrawing Euros like crazy, and I recall having to try several ATM's to find one that wasn't already empty of Euros.

Great info to know, thanks Marie!