Do you have a longer sentence? It depends on the context.

In general, "at" would not be used, but I won't say never ... ;-)

I read it while googling but found it a bit strange. So I would like to know if there is a difference between the sentences or if one is bad English or no English at all. Thanks

http://www.google.de/#hl=de&sugexp=gsis%2Ci18...

I am a native speaker of American English. I also find "to stay at the town" a bit strange. I would automatically say "in the town". You may find, however, that it is BE and/or AuE ...

In AE, in fact, "a" can be dropped: "stay in town"

Stay in (a geographical location - Frankfurt, Spain)
Stay at (a hotel, my sister's house, the homeless shelter).

Just for clarification. Is it really correct to say I am staying at the town in BE?

Thanks

There are several occasions where you might use "at" in BE, e.g.:

- when the town is used to mean a university or other institution or site
- when the town is a point on an itinerary, such as a railway station
- when the town is thought of as a point in relation to a larger area.

This might sometimes be possible with the verb "stay".