Best Hostels in the World: What Makes a Great Budget Stay

Hostels are the backbone of budget travel — and the best hostels are more than just cheap accommodation. They are communities, social hubs, and often the highlight of a trip. After staying in 200+ hostels across 40+ countries, here is what makes a great hostel and my picks for the best hostels in the world.

What Makes a Great Hostel?

• Atmosphere — the right balance of social and quiet
• Cleanliness — clean bathrooms, fresh sheets, no bedbugs
• Location — walkable to attractions, safe at night
• Staff — friendly, knowledgeable, helpful
• Facilities — good kitchen, fast Wi-Fi, comfortable beds
• Activities — free walking tours, family dinners, pub crawls
• Value — fair price for what you get
• Security — lockers, 24-hour reception, key cards

Best Hostels in the World by Region

Best Hostels in Asia

• Mad Monkey Hostel (multiple locations in SE Asia) — the king of party hostels
• The Yellow House (Kathmandu, Nepal) — atmospheric, rooftop, central
• Slumber Party Hostel (Phuket, Thailand) — party vibe, great pool
• Bunks & Billiards (Hanoi, Vietnam) — pool table, social atmosphere
• BackHome KL (Kuala Lumpur) — beautiful boutique hostel
• CapsulePod (Singapore) — futuristic capsule pods

Best Hostels in Europe

• Wombat's City Hostel (multiple locations) — German efficiency, great value
• Generator Hostels (multiple locations) — design-focused, hip
• St Christopher's (multiple locations) — party atmosphere, attached bars
• ClinkNOORD (Amsterdam) — historic building, social vibe
• Yes! Lisbon Hostel (Lisbon) — family dinners, social atmosphere
• Loft Hostel (Reykjavik) — best value in expensive Iceland

Best Hostels in Latin America

• El Rio Hostel (Taganga, Colombia) — riverside, party vibe
• Hostel Majagic (Medellin) — social atmosphere, great staff
• Hostel República (Santiago, Chile) — beautiful building
• Capybara Lodge (Bonito, Brazil) — eco-hostel, river location
• Mazunte Hostel (Mazunte, Mexico) — beachfront, relaxed

Best Hostels in Oceania

• Base Backpackers (multiple locations in NZ/Australia) — party hostels
• Nomads (multiple locations) — well-equipped, social
• YHA New Zealand (multiple locations) — best value, great facilities
• Wake Up! Sydney — central, party atmosphere
• Haka Lodge (NZ) — boutique, small, friendly

Hostel Booking Tips

1. Use Hostelworld.com — the largest inventory, most reviews
2. Read recent reviews (last 6 months) — old reviews are misleading
3. Look for 8.5+ rating hostels — below 8.0 is risky
4. Check the location on a map — some 'central' hostels are not actually central
5. Book 1–2 nights first — extend if you like it, move on if you don't
6. Join hostel loyalty programs (Hostelworld Plus, HI Membership) for discounts
7. Use the Hostelworld app to chat with other guests before arrival

Hostel Etiquette

• Respect quiet hours (typically 10 pm–7 am)
• Use headphones for music and videos
• Don't turn on lights when others are sleeping
• Use lockers for valuables
• Don't hog the bathroom — limit showers to 10 minutes
• Clean up after yourself in the kitchen
• Don't bring guests to your dorm room
• Be friendly — hostels are social places

Hostel Packing List

• Padlock — for lockers (most hostels don't provide them)
• Earplugs — essential for dorm rooms
• Eye mask — for early-morning light
• Microfibre towel — most hostels don't provide towels
• Flip flops — for shared bathrooms
• Power bank — not all bunks have plugs
• Headlamp — for late-night bathroom trips

Hostel Costs Around the World

Region	Average Dorm Price (USD)	Average Private Room (USD)
Southeast Asia	$5–$12	$10–$25
South Asia (Nepal, India)	$4–$10	$8–$20
South America	$8–$15	$15–$35
Central America	$8–$15	$15–$35
Eastern Europe	$10–$18	$20–$40
Western Europe	$20–$40	$40–$80
Australia/NZ	$25–$40	$50–$100
USA/Canada	$30–$50	$60–$120

Hostels are the heart of budget travel — cheap, social, and full of interesting people. With the right hostel picks, you will make friends, save money, and have a better trip than if you stayed in hotels. For budget travel advice specific to Nepal, see our Kathmandu on a budget guide and our Nepal travel budget guide.