10 Amazingly Cool Budget Hostels in Europe (Updated 2025)

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Europe nearly broke my bank account until I discovered amazing hostels that cost less than a fancy dinner back home. I’m talking about waking up to Alpine views in Switzerland for under 30 euros or meeting travelers from six different continents over free pasta in Rome. After 12 years of backpacking through over 30 European countries, I’ve learned these places can make or break your trip.

The best budget hostels in Europe aren’t just about saving money. Some of my most unforgettable memories happened in hostel common rooms, from cooking disasters in Amsterdam to spontaneous nights out in Prague. Whether you’re heading to the canals of Venice or planning to party in Barcelona, these 10 hostels give you incredible value without sacrificing comfort. Trust me, I’ve tested plenty of questionable places so you don’t have to.

Top 10 affordable hostels in Europe

Picking the right hostel can make or break your trip. To give you a head start, here’s a quick rundown of some standout hostels across Europe.

• Best value overall: Stone City Hostel in Gjirokastër, Albania
• Most sociable budget hostel in Europe: The Flying Pig Downtown, Amsterdam
• Best location for exploring: Home Lisbon Hostel, Lisbon
• Best hostel for solo travelers in Europe: Onefam, Budapest
• Most unique hostel in Europe: Castle Rock Hostel, Edinburgh

Ready to get into the specifics? Let’s start with our first detailed review: Stone City Hostel in Gjirokastër, where historic charm meets unbeatable value.

1. Stone City Hostel in Gjirokastër, Albania

Stone City Hostel in Gjirokastër is hands-down one of the best values you’ll find in Europe. I stayed here last year and honestly can’t believe how much you get for €16-20 per night. The hostel sits right at the entrance to the old bazaar in a historic Ottoman building, so you’re literally stepping out into UNESCO World Heritage magic every morning.

The four-time winner of “Best Hostel in Albania” really knows what they’re doing. Walter and Brenna run this place like family – Walter’s free walking tours are actually incredible, and Brenna’s homemade cake is legendary among backpackers. The dorms have custom-made beds with huge lockers, air conditioning (crucial in summer), and those massive windows with castle views that’ll make your Instagram pop.

What sets this place apart is the rooftop terrace. I spent hours up there watching the sunset over Gjirokastër Castle while chatting with travelers from everywhere. The free breakfast is proper hearty too – not just toast and jam. They organize 4WD trips to hidden villages and hiking excursions, but honestly, you could spend days just exploring the cobblestone streets below. Book direct through their website to avoid booking fees, and definitely ask Walter about the secret spots tourists miss.

• Read next: Albania Itinerary for First-Time Visitors

2. Falling Lakes Hostel near Plitvice Lakes, Croatia

Falling Lakes Hostel in Korenica is your golden ticket to Plitvice Lakes National Park without the crazy crowds or overpriced tours. At €20-25 per night, it’s not the cheapest on this list, but the location and vibe make it worth every euro. I’ve stayed at a lot of nature hostels, and this one actually gets the balance right between social atmosphere and early-morning adventure access.

The shuttle service is where they really shine – just €7 roundtrip to the park entrance, leaving at 8 AM and returning at 4 PM. Way cheaper and more convenient than the public buses. The hostel itself feels like a mountain lodge with spacious dorms, custom bunks with built-in lockers, and a kitchen that’s actually big enough for everyone to cook without fighting for stove space.

Here’s what I loved most: the free hike to Pljesevica Mountain starts literally from their back door. It’s a killer workout but the views stretch all the way to the Bosnia border. The staff organize kayaking trips, board game nights, and they’ve got this cozy common room with a fireplace that’s perfect after a long day of hiking. Just don’t expect luxury – this is a proper backpacker spot where people actually come to experience nature, not scroll Instagram. Book at least a week ahead in summer because everyone knows this secret now.

• Read next: Secret Spots in Croatia
• You may also like: Most Beautiful Places in Croatia

3. Onefam Budapest, Hungary

Onefam in Budapest perfected the art of solo travel hosting. I’ve recommended this place to dozens of people, and they all come back raving about how they made lifelong friends here. At €18-25 per night depending on the season, you’re getting way more than just a bed – you’re basically joining a temporary family in one of Europe’s most social hostels.

The location in District VII (the Jewish Quarter) puts you right in the heart of Budapest’s ruin bar scene. Szimpla Kert is literally around the corner, and you can stumble home from Instant in five minutes. But what makes this place special is their daily programming. Free walking tours in the morning, group dinners where everyone cooks together, and bar crawls that actually feel organic, not like some cheesy tourist trap.

I was skeptical about the “family” concept at first, but it really works. The staff are all young travelers who genuinely care about making sure solo people don’t feel alone. The dorms have full privacy curtains and charging ports, the kitchen never feels crowded, and there’s always something happening in the common areas without feeling forced. Fair warning though – if you’re looking for a quiet, chill hostel, this isn’t it. The energy here is high, the bar stays open late, and you’ll probably end up staying out way later than planned. Book early for summer – they fill up fast.

• Read next: Affordable Hostels in Budapest
• You may also like: Fun Things to Do in Budapest at Night

4. The Wanderers Hostel in Shkodër, Albania

The Wanderers Hostel in Shkodër might just be the perfect base for exploring northern Albania. With a flawless 10/10 rating on Hostelworld and prices at €20-25 per night, this place gets everything right. I spent three nights here and honestly wished I’d booked longer – the location on a gorgeous cobblestone street near Pedonale puts you in the heart of everything.

What makes this hostel legendary is their organized Albanian Alps trips. They’ll set you up for the epic Valbona to Theth hike, handling all the transport and accommodation bookings that usually stress people out. I did this trek through them and it was absolutely incredible – proper mountain scenery that rivals anything in Switzerland for a fraction of the cost. They also organize day trips to the stunning Kelmend region that most tourists never hear about.

The hostel itself occupies a beautiful historic building with lush garden spaces and an outdoor bar that’s perfect for evening drinks. The four-person private rooms are spacious and well-designed if you want a bit more privacy than the dorms. Free breakfast, reliable WiFi, and cheap laundry service round out the practical stuff. The staff really know Shkodër inside and out – they’ll point you to the best local restaurants and help you navigate the sometimes confusing bus schedules to other Albanian destinations. Definitely book the Valbona trek through them if you’re heading to the Alps.

5. Czech Inn in Prague, Czech Republic

Czech Inn in Prague’s Vinohrady neighborhood is what happens when someone actually puts thought into hostel design. Starting at €16 per night (jumping to around €22 in peak summer), this Art Nouveau building from the 1800s feels more like a boutique hotel than a typical backpacker spot. I’ve stayed here twice now, and it’s consistently excellent.

The location is brilliant – you’re in a proper local neighborhood full of cafes and pubs, but the tram whisks you to Old Town Square in 10 minutes. Vinohrady has this cool residential vibe where you can actually see how locals live, not just tourist traps. The rooms are clean and stylish without being pretentious, and the common areas have this modern-meets-historic thing going on that actually works.

I love starting my day with coffee at their ground-floor cafe and ending it with drinks in their basement bar – the brick vaulting down there is seriously atmospheric. The staff are young Prague locals who know all the good spots that aren’t in guidebooks. They’ll point you toward the best traditional pubs and help you avoid the tourist-trap restaurants around the main squares. This isn’t a party hostel, so if you want peace and quiet while still being social, Czech Inn nails that balance perfectly. The only downside is it books up fast, especially in summer when Prague gets swamped with visitors.

• Read next: Cheap Vacations in Europe

6. The Flying Pig Downtown in Amsterdam, Netherlands

The Flying Pig Downtown in Amsterdam is legendary among backpackers for good reason. At €25-35 per night depending on season, it’s not cheap, but you’re paying for the location (six-minute walk to Dam Square) and one of the most social hostel scenes in Europe. I’ve stayed here multiple times over the years, and it consistently delivers on the party hostel promise.

The bar downstairs is legitimately one of the best hostel bars I’ve experienced anywhere. They’ve got the cheapest beer in central Amsterdam, regular DJ nights, and this cozy indoor smoking room that becomes the social hub where everyone meets. The staff organize daily events and happy hours that actually bring people together instead of feeling forced. If you’re traveling solo and want to make friends fast, this is your spot.

The rooms are basic but functional – individual lockers, reading lights, and everything you need for a comfortable sleep after long nights exploring Amsterdam’s legendary nightlife. The location puts you right in the action – the Red Light District is around the corner, Anne Frank House is walkable, and Central Station is five minutes away. Free linens and WiFi are included, plus they sell everything you forgot to pack at reception. Just know what you’re signing up for – this place is energetic and loud. If you want quiet, look elsewhere. But if you want the full Amsterdam backpacker experience with fellow travelers from around the world, Flying Pig Downtown is unbeatable.

• Read next: Most Beautiful Places in the Netherlands

7. The Wild Elephants Hostel in Bratislava, Slovakia

The Wild Elephants Hostel in Bratislava creates something special – a community feel that makes €35 per night feel like incredible value. I stayed here for four nights and honestly felt like I was hanging out at a friend’s place rather than a commercial hostel. The staff are all travelers themselves, and they have this gift for making everyone feel included from minute one.

Located right in Bratislava’s city center, you’re surrounded by excellent Slovak restaurants and bars within walking distance. The hostel occupies this cool historic building with character – high ceilings, original features, and common areas that actually feel comfortable to hang out in. They cook group dinners most nights (often vegan options that are surprisingly delicious), and the staff know all the best spots for a proper Slovak night out.

What sets this place apart is the genuine community vibe. It doesn’t matter if you’re staying one night or a week – they treat everyone like family. The rooms are clean and comfortable, the shared spaces are inviting, and there’s always something happening without feeling programmed or fake. Bratislava is criminally underrated as a city – beautiful old town, affordable everything, and way fewer crowds than Prague or Vienna. The Wild Elephants staff will show you the hidden gems that make Slovakia‘s capital special. This hostel attracts slightly older, more experienced travelers who appreciate quality over party-hostel chaos. Book ahead – word is getting out about this place.

• Read next: Coolest Hostels in Europe

8. La Banda Rooftop Hostel in Seville, Spain

La Banda Rooftop Hostel in Seville justifies its €40 per night price tag with one of the coolest hostel concepts in Europe. Created by two brothers and their friends after backpacking through Latin America, this place captures that “gang of friends” energy perfectly. I spent five nights here and honestly didn’t want to leave – the rooftop terrace with cathedral views is just incredible.

The family dinner parties every night are brilliant – everyone sits together, shares stories, and actually connects instead of staring at phones. They organize live flamenco shows, DJ sessions, and the rooftop becomes this magical social space as the sun sets over Seville. The rooms feature handmade beds, luxury mattresses, and all the little touches that show they actually care about guest comfort.

This hostel attracts young, culturally curious travelers who dig music and art. If you’re into that scene, you’ll love it here. If you just want cheap accommodation, look elsewhere. They’ve got a co-working space for digital nomads, the location puts you walking distance from Seville Cathedral and the Alcázar, and the staff know Seville’s music and art scene inside out. The vibe is definitely non-corporate – think boutique hostel run by friends rather than chain efficiency. In a city where accommodation can be expensive, especially near the historic center, La Banda delivers incredible value for the experience and location you get.

• Read next: Stunning Places to Visit in Spain

9. Home Lisbon Hostel in Lisbon, Portugal

Home Lisbon Hostel earned its 9.7/10 Hostelworld rating and “Best Social Hostel in Europe 2024” award for good reason. At €50 per night, it’s pricier than some options, but you’re paying for prime location in Lisbon’s historic center and one of the most well-organized social programs I’ve encountered at any hostel.

The famous “Mamma’s Dinners” are absolutely worth booking – they pack the dining room with travelers from everywhere, and the Portuguese home cooking is legitimately excellent. I met some of my favorite travel buddies at these dinners. They also organize walking tours, pub crawls, and daily activities that feel organic rather than touristy. The 200-year-old building has incredible character with spacious rooms, balconies, and big windows that flood everything with light.

What makes this place special is how they’ve mastered the social hostel formula without sacrificing comfort or cleanliness. The rooms feel homey rather than institutional, the common areas actually encourage conversation, and the staff genuinely care about making sure solo travelers don’t feel isolated. The location puts you walking distance from all Lisbon‘s major attractions – Rossio Square, the Elevador de Santa Justa, and the Fado houses of Alfama are all right there. Large lockers, reliable WiFi, and excellent showers round out the practical stuff. Book the social dinner your first night – it’s the fastest way to meet people and get oriented in the city.

• Read next: Magical Hidden Gems in Portugal
• You may also like: Most Beautiful Places in Europe

10. Castle Rock Hostel in Edinburgh, Scotland

Castle Rock Hostel in Edinburgh has one of the best locations of any hostel in Europe – literally next to Edinburgh Castle for just £20-25 per night. This 1846 building converted into a hostel in 1997 feels like staying in an art gallery with quirky decor, multiple lounges, and character in every corner. I’ve stayed here three times, and it never gets old waking up with castle views.

The variety of common spaces is brilliant – big lounge with jukebox and pool table for socializing, cozy fireplace room for quiet reading, and even a movie lounge with big screen for film nights. The staff are local Edinburgh experts who’ll point you toward the best pubs, recommend walking routes, and help you navigate Edinburgh’s festival chaos if you’re visiting in August.

The location puts you one minute from the Royal Mile, easy walking distance to Grassmarket’s pubs, and right in the heart of Edinburgh‘s historic Old Town. Free WiFi, tea, coffee, and movie nights are included, plus they’ve got proper Scottish heating for those chilly nights. The hostel attracts a slightly older crowd of cultural travelers rather than pure party people, which creates a nice social atmosphere without the chaos. During Edinburgh Festival season, book months ahead – this place fills up fast when the city goes crazy with performers and visitors. For the location and character you get, it’s honestly incredible value for money.

Frequently asked questions (FAQs) about the best affordable hostels in Europe

Get all your questions answered about the best budget hostels in Europe with our comprehensive FAQs.

Which European countries have the cheapest hostels?

Eastern Europe is your best bet for finding the cheapest hostels in Europe. Countries like Poland, Hungary, and Romania offer some of the lowest rates, where you can find great spots for as little as €5-€15 a night.

What is the average cost of hostels in Europe?

Across Europe, you’re looking at an average of €20-€40 per night for a hostel. Major cities like Paris, London, and Amsterdam might be on the higher end, while smaller cities and less touristy places will be cheaper.

Is it safe to stay in hostels in Europe?

Hostels in Europe are generally safe. But, like anywhere, it’s smart to use common sense. Keep your belongings locked up, be mindful of your privacy, and stay aware of your surroundings.

What should you not do in a hostel?

1. Don’t be noisy at night—people are trying to sleep!
2. Don’t leave your stuff everywhere. Space is shared, so keep your things tidy.
3. Don’t take other people’s food from the kitchen. If it’s not yours, don’t touch it.
4. Don’t forget to lock up your valuables. Most hostels are safe, but it’s better to be safe than sorry.