Skip to main content
Stylish modern hostel lounge with travelers relaxing
Budget Travel

The 20 Best Hostels in the World for 2026

From design-forward boutique hostels to legendary social hubs, these 20 hostels prove that budget accommodation can be extraordinary. Includes prices, locations, and what makes each one special.

TripGenie Team

TripGenie Team

·13 min read
Share:

The hostel of 2026 is not the hostel of 2006. The industry has undergone a complete transformation. Today's best hostels feature design-forward interiors, restaurant-quality food, curated social experiences, and privacy options that rival boutique hotels -- all at a fraction of the price.

I have stayed at over 200 hostels across six continents over the past decade. The 20 on this list represent the best of the best: places that justify choosing a hostel not because you have to, but because you want to. Each one offers something you simply cannot get at a hotel at any price.

The Design Icons

1. Generator Barcelona -- Barcelona, Spain

Dorm from $22/night | Private from $75/night

Generator Barcelona occupies a renovated historic building in the Gracia neighborhood, and the design is staggering. The rooftop terrace offers panoramic views of Gaudi's Park Guell, the common spaces feature commissioned art installations, and the dorms have custom-designed pod beds with individual lights, USB ports, and privacy curtains.

What makes it special: The rooftop bar is one of the best sunset spots in Barcelona, and it is exclusively for guests. The Gracia location puts you in a real neighborhood rather than the tourist-heavy Gothic Quarter.

Best for: Design lovers, couples (the private rooms are genuinely stylish), and anyone who wants to meet people without sacrificing aesthetics.

2. Selina Casco Viejo -- Panama City, Panama

Dorm from $16/night | Private from $55/night

Selina has become a global brand, but the Casco Viejo location in Panama City's restored historic quarter is their masterpiece. The building is a colonial mansion with original tile floors, soaring ceilings, and a courtyard pool. The co-working space is one of the best of any hostel worldwide.

What makes it special: The integration of co-working, social events, wellness (yoga classes, meditation sessions), and nightlife under one roof. The neighborhood itself is one of the most photogenic in Central America.

Best for: Digital nomads, remote workers, and anyone staying more than a few days who wants a community.

3. The Dorm -- Seoul, South Korea

Dorm from $18/night | Private from $50/night

Located in the Hongdae neighborhood -- Seoul's epicenter of youth culture, street food, and nightlife -- The Dorm combines traditional Korean design elements (hanok-inspired wooden screens, heated ondol floors) with modern pod-style beds and impeccable cleanliness.

What makes it special: The Korean bathhouse-style communal showers (separate by gender), the heated floors in common areas during winter, and the complimentary Korean breakfast including rice, kimchi, and soup.

Best for: First-time visitors to Korea who want a cultural immersion from their accommodation, and K-culture enthusiasts.

4. Hostel Celica -- Ljubljana, Slovenia

Dorm from $20/night | Private from $60/night

A former military prison converted into a hostel, with each cell redesigned by a different Slovenian artist. Every room is a unique art installation -- one has mirrored walls, another is painted entirely in gold, another features iron sculptures emerging from the walls. The common areas include an art gallery, a cafe, and a courtyard garden.

What makes it special: There is nothing else like it. Sleeping in a former prison cell that has been transformed into art is a genuinely unforgettable experience. The hostel also runs cultural events, exhibitions, and concerts.

Best for: Art lovers, architecture enthusiasts, and anyone who values uniqueness over uniformity.

The Social Powerhouses

5. Abraham Hostel -- Jerusalem, Israel

Dorm from $20/night | Private from $70/night

Abraham Hostel has won "Best Hostel in the Middle East" repeatedly, and it earns the title through relentless hospitality. The daily events calendar includes cooking workshops, pub crawls, live music nights, Shabbat dinners, political discussion panels, and guided walks through Jerusalem's neighborhoods.

What makes it special: The staff go beyond friendliness into genuine warmth. They organize weekly community dinners where guests cook together, and the hostel runs its own tours to the Dead Sea, Masada, Bethlehem, and the West Bank -- designed to provide nuanced perspectives on the region's complexity.

Best for: Solo travelers who want meaningful connections, anyone interested in Middle Eastern culture and politics, and travelers who want guided access to complex sites.

6. Lub d Bangkok Silom -- Bangkok, Thailand

Dorm from $12/night | Private from $35/night

Lub d (pronounced "sleep" in Thai) has multiple locations in Bangkok, but the Silom branch stands out for its social design. The ground floor is an open-plan space with a bar, a restaurant, a pool table, and communal tables that make it impossible not to start conversations.

What makes it special: The location on Silom Road puts you between Bangkok's business district and its wildest nightlife. The rooftop area overlooks the city, and the staff organize nightly food tours to local street markets that hotel concierges would never know about.

Best for: First-time Bangkok visitors, social travelers, and anyone who wants local food guidance.

7. Wild Rover -- La Paz, Bolivia

Dorm from $8/night | Private from $25/night

Wild Rover is the Irish pub chain of South American hostels, and the La Paz location at 3,600 meters altitude is their flagship. The on-site bar hosts legendary parties, but the hostel also organizes Death Road cycling, Salar de Uyuni tours, and Amazon jungle trips.

What makes it special: The social energy is unmatched. If you are traveling solo through South America, Wild Rover is where you find your travel crew. The bar has pool tables, beer pong, and a dance floor, and nightly events ensure something is always happening.

Best for: Party-oriented backpackers, social solo travelers, and anyone doing the South American backpacker circuit.

8. Kex Hostel -- Reykjavik, Iceland

Dorm from $35/night | Private from $95/night

Iceland is expensive, and Kex makes it accessible. Housed in a former biscuit factory, the hostel has a gastropub serving Icelandic dishes, a live music venue that hosts local bands, and a barbershop. The dorms are simple but well-designed, with solid wood beds and thick curtains.

What makes it special: The gastropub is genuinely one of the best restaurants in Reykjavik for the price. The live music nights (Thursday-Saturday) showcase Iceland's incredible music scene, and the communal kitchen is well-stocked and immaculate.

Best for: Budget travelers in Iceland (everyone needs one), music lovers, and anyone who wants the social hostel experience with a more mature vibe.

The Nature Escapes

9. Hekerua Lodge -- Waiheke Island, New Zealand

Dorm from $28/night | Private from $70/night

Waiheke Island is a 40-minute ferry from Auckland and home to vineyards, olive groves, and some of New Zealand's best beaches. Hekerua Lodge sits on a hillside overlooking the Hauraki Gulf, surrounded by native bush with a swimming pool, hot tub, and free kayaks and paddleboards.

What makes it special: The setting is extraordinary. Morning coffee on the deck overlooking the ocean, afternoon kayaking, evening barbecues with fellow travelers, and sunset views that compete with anywhere in the world. The hosts arrange vineyard tours and beach shuttles.

Best for: Nature lovers, wine enthusiasts, and anyone who wants a hostel experience in a stunning natural setting.

10. Nubra Ecolodge -- Ladakh, India

Dorm from $10/night | Private from $25/night

Located in the Nubra Valley at over 3,000 meters altitude in the Indian Himalayas, this eco-hostel offers dome-shaped glamping tents, an organic garden, and views of sand dunes and snow-capped mountains that seem to belong on different planets.

What makes it special: The surreal landscape -- sand dunes with double-humped Bactrian camels against a backdrop of Himalayan peaks. The hostel runs guided treks, monastery visits, and stargazing sessions in some of the clearest skies on Earth.

Best for: Adventure seekers, photography enthusiasts, and travelers looking for genuinely off-the-beaten-path experiences.

11. Hostel by the Sea -- Sagres, Portugal

Dorm from $18/night | Private from $50/night

Sagres sits at the extreme southwestern tip of continental Europe, where the Algarve's cliffs meet the Atlantic. This surfer-friendly hostel overlooks the ocean, with a terrace that catches the sunset every evening and direct access to some of Portugal's best surf breaks.

What makes it special: The combination of surf culture, stunning coastal scenery, and a laid-back community atmosphere. The hostel rents surfboards and wetsuits, offers surf lessons, and has a communal kitchen where travelers cook together after a day in the water.

Best for: Surfers (obviously), but also hikers (the Rota Vicentina coastal trail passes through Sagres), and anyone who wants a quiet, nature-focused hostel escape.

The Cultural Immersions

12. Riad Laayoun -- Fes, Morocco

Dorm from $10/night | Private from $35/night

Riad Laayoun is a traditional Moroccan riad (courtyard house) in the heart of the Fes medina, the world's largest car-free urban area. The hostel features zellige tilework, carved plaster arches, a rooftop terrace with views over the medina, and a courtyard fountain.

What makes it special: Living in a riad inside the medina is the most immersive way to experience Fes. The hosts arrange medina walking tours, cooking classes, and trips to nearby Meknes and Volubilis. Waking up to the call to prayer echoing across the ancient city is an experience that stays with you.

Best for: Culture seekers, architecture enthusiasts, and anyone who wants to go deeper than the typical tourist experience in Morocco.

13. Loki Cusco -- Cusco, Peru

Dorm from $9/night | Private from $30/night

Loki hostels are legendary on the South American circuit, and the Cusco location is the crown jewel. Set in a colonial mansion in the San Blas neighborhood, it features stone walls, wooden balconies, and a courtyard with views over the terracotta rooftops of Cusco to the Andes beyond.

What makes it special: Cusco is the gateway to Machu Picchu, and Loki is the best base camp. The hostel organizes Inca Trail treks, Sacred Valley tours, and alternative routes to Machu Picchu. The bar is the social hub of Cusco's backpacker scene, but the quiet upper floors provide escape when needed.

Best for: Machu Picchu trekkers, South American circuit backpackers, and anyone who wants a social base in one of the world's most spectacular cities.

14. Sato San's Rest -- Tokyo, Japan

Dorm from $22/night | Private from $55/night

A capsule hotel meets hostel concept in the Asakusa neighborhood, near Senso-ji temple. The capsule beds are larger than traditional Japanese capsule hotels, with curtains, individual lights, outlets, and ventilation. The common areas include a lounge with floor seating, a communal kitchen, and a bar.

What makes it special: The location in Asakusa gives you access to Tokyo's most traditional neighborhood, and the capsule concept is a genuine Japanese cultural experience. The bilingual staff offer neighborhood walking tours and can help with everything from ordering at local restaurants to navigating the subway.

Best for: First-time Japan visitors, solo travelers, and anyone who wants the capsule hotel experience without the isolation.

The Work-Friendly Havens

15. Selina Medellin -- Medellin, Colombia

Dorm from $14/night | Private from $45/night

Medellin has become one of the world's top digital nomad cities, and Selina's El Poblado location caters directly to that community. The co-working space has reliable high-speed internet, standing desks, meeting rooms, and a quiet zone. The social spaces are equally well-designed.

What makes it special: The weekly program balances productivity (co-working days, skill-sharing sessions) with exploration (city tours, coffee farm visits, salsa nights). The rooftop pool overlooks Medellin's mountain-ringed valley.

Best for: Remote workers, digital nomads, and long-stay travelers who need reliable workspace.

16. Wombat's City Hostel -- Vienna, Austria

Dorm from $25/night | Private from $65/night

Wombat's locations across Europe are consistently excellent, but the Vienna flagship is the standout. The Naschmarkt location puts you next to Vienna's best food market, and the building features a huge guest kitchen, a cinema room, a womBAR with affordable drinks, and spacious dorms with en-suite bathrooms.

What makes it special: The combination of consistently high quality (cleanliness, facilities, staff) with genuine social warmth. Wombat's has cracked the code of being reliably excellent without feeling corporate. The guest kitchen is one of the best-equipped of any hostel worldwide.

Best for: Travelers who value reliability and cleanliness, couples (the private rooms with en-suite are hotel-quality), and anyone visiting Vienna on a budget.

17. Hostel G Perth -- Perth, Australia

Dorm from $20/night | Private from $55/night

Perth is often overlooked by travelers focused on Sydney and Melbourne, but Australia's west coast capital has incredible beaches, wine regions, and a growing food scene. Hostel G occupies a heritage building in Northbridge, Perth's entertainment district, with a rooftop pool, co-working space, and modern pod-style dorms.

What makes it special: The work-travel balance. The co-working space is genuinely usable (fast wifi, desks, quiet), and the rooftop pool is the reward for a productive day. Staff organize trips to Rottnest Island (home of the quokka, the world's happiest animal) and Margaret River wine country.

Best for: Working holiday visa holders, digital nomads basing in Australia, and travelers exploring Western Australia.

The Off-the-Beaten-Path Finds

18. Drifters Hostel -- Pai, Thailand

Dorm from $6/night | Private from $15/night

Pai is a small town in northern Thailand's mountains, three hours of winding road from Chiang Mai. Drifters sits on the edge of town with bamboo bungalows, a garden, hammocks, and views of rice paddies and misty mountains. The vibe is deeply relaxed -- this is where you go to slow down.

What makes it special: The price-to-experience ratio is absurd. For $6/night, you get a bed in a bamboo dorm surrounded by nature, with access to a communal kitchen, free bicycles, and a nightly bonfire. Pai itself offers hot springs, waterfalls, night markets, and some of the best sunset views in Thailand.

Best for: Budget backpackers, digital detoxers, and anyone who wants to experience small-town Thailand.

19. Madhouse Prague -- Prague, Czech Republic

Dorm from $15/night | Private from $45/night

Madhouse is intentionally small (just 32 beds) to maintain an intimate, family-like atmosphere. The hostel's philosophy is built around nightly communal dinners -- every evening at 8pm, everyone gathers for a home-cooked meal that is included in the room price. It is the single best conversation-starter in the hostel world.

What makes it special: The communal dinners transform strangers into friends within 24 hours. The staff eat with guests, and the nightly plans that emerge organically from dinner conversations (pub crawls, day trips, cooking sessions) are the real product. Prague is the backdrop; the community is the destination.

Best for: Solo travelers who want to make deep connections, not just meet people in passing.

20. HI Cape Town -- Cape Town, South Africa

Dorm from $12/night | Private from $35/night

HI Cape Town sits at the edge of the city center with views of Table Mountain and the harbor. The hostel runs its own social impact tours of local townships, designed and led by community members, plus standard tourism activities like Table Mountain hikes, wine tours, and penguin colony visits.

What makes it special: The township tours are genuinely educational and ethical, putting money directly into the communities visited. The hostel also supports local employment and sources food from community gardens. It proves that budget travel and responsible travel are not mutually exclusive.

Best for: Socially conscious travelers, anyone visiting Cape Town on a budget, and solo travelers wanting a safe, well-run base in South Africa.

How to Choose the Right Hostel

Not every hostel is right for every traveler. Here is how to find your match:

Read Reviews Strategically

  • Sort by most recent: Hostels change. A 9.0-rated hostel from 2023 may have new management and different vibes in 2026
  • Read the negative reviews: If complaints are about "too much noise at night," that is valuable information for light sleepers. If complaints are about "not enough parties," the opposite is true
  • Check the "atmosphere" rating separately: A hostel with 9.5 cleanliness but 7.0 atmosphere is very different from one with 7.0 cleanliness and 9.5 atmosphere

Know What You Want

  • Social/party: Look for on-site bars, organized pub crawls, large common areas, dorm-heavy capacity
  • Quiet/work: Look for co-working spaces, quiet hours policies, separate quiet dorms, smaller capacity
  • Design/boutique: Look for pod beds, curated decor, on-site cafes, higher price points
  • Adventure base: Look for tour desk, gear storage, outdoor access, activity programs

Practical Considerations

  • Location over price: A $15/night hostel in the center saves more in transport than a $10/night hostel 30 minutes out
  • Book private rooms for couples: Dorms are for solo travelers and friends. Couples should book private rooms -- they are still cheaper than hotels and you get the hostel's social spaces
  • Bring a padlock: Most hostels have lockers but do not provide locks. A small combination padlock is essential
  • Pack earplugs and an eye mask: Non-negotiable for dorm sleeping. Invest in foam earplugs (not silicone) and a contoured eye mask

Use TripGenie for Accommodation Planning

When planning your trip with TripGenie, specify your preference for hostel accommodation and the app will factor in the best-rated hostels at your destination, incorporating them into your day-by-day itinerary with walking directions, local restaurant recommendations, and activity suggestions tailored to each hostel's neighborhood.

The hostel industry has never been better. Whether you are a first-time backpacker or a seasoned traveler who has been staying in hotels, the properties on this list will challenge your assumptions about what budget accommodation can be. At these prices, the only thing you are sacrificing is the expense.

Topics

#best hostels#hostel guide#budget accommodation#backpacking#hostel reviews
TripGenie Team

Written by

TripGenie Team

The TripGenie team is passionate about making travel planning effortless with AI. We combine travel expertise with cutting-edge technology to help you explore the world.

@tripgenie
Share:

Get Travel Tips Delivered Weekly

Get our best travel tips, destination guides, and exclusive deals delivered straight to your inbox every week.

No spam, ever. Unsubscribe anytime.

Keep Reading

You Might Also Like