Less than $100 a night: 15 cool budget stays setting a new standard

Hostels are growing up and keeping pace with the people who grew up with them – travellers who now seek sophisticated social areas, curiosity-driven bonding opportunities and sustainability-focused properties that feel hip, modern and stylish.

Across Australia and the world, hostels are transitioning to a hybrid model, with private rooms and smaller scale dorms replete with local makers, quality bedding and elevated gathering places punctuated by art and genuinely exciting design.

Bounce Noosa, capturing the hotel-hostel hybrid vibe.

To keep pace, traditional hotel-style operators are creating communal options to match the social buzz.

Opting for a shared stay is increasingly less about the price of the bed (although, with rising travel costs, that doesn’t hurt) and more about the chance connections and insider knowledge.

LA Collective launched in New Zealand and Australia this year and Generator Group – behind the Generator and Freehand hostels and hybrid hotels in the US and Europe – announced a partnership with Duxit, a Thai hotel chain, to expand into the region.

Bounce has bought two sites in Victoria and one in Magnetic Island, and are adding them to an existing portfolio that includes Noosa, Cairns, Airlie Beach – and, to open shortly, Surfers Paradise and Brisbane.

Expect the best bits of social travel – with smart design, better itineraries and fewer headaches.

GENERATOR VENICE, ITALY

Inside Generator Venice.

The lowdown Every room at this island-bound and warehouse-born hostel has a view of the city’s waterways. Bunks are stacked beneath original timber beamed ceilings and some rooms have private ensuites. All Generator properties (and there are a few, from Amsterdam to Dublin) embrace the power of transformation, with many finding homes in heritage buildings – adding, in this case, bold neon lighting, mosaic flooring and aperitivo hour.

Tell me more The onsite restaurant hosts the breakfast buffet and then transforms into a bar at night, but otherwise it’s a timber, tile, and leather-clad social space with Saturday football screenings or gnocchi and Jenga nights. Haunt the terrace for an al fresco coffee (or for beers with a live music soundtrack).

See + do Ferry into the heart of Venice or stay in Giudecca to enjoy fish dishes at Ristorante Da Crea; soak up the latest in Italy’s contemporary art scene at Spazio Punch; or have a quiet moment at the Basilica of the Redeemer.

Essentials Bunks from $33 a night. See staygenerator.com

DRIFTER CHRISTCHURCH, NZ

Communal space at Drifter, Christchurch.

The lowdown This design-led hostel-hotel hybrid opened last year within a former wool textile factory smack bang in Christchurch’s CBD (and they’re rolling out Byron Bay, NSW, Auckland and Wellington, New Zealand, over the next 12 months). Age is disregarded at the Goki-coded front door so curious travellers meet beneath a palette of sage greens, light timbers, and leafy foliage. Private rooms are lush and bunks are sophisticated.

Tell me more BYO book or borrow a niche read at the Library, which opens out onto an open-air patio; take a yoga class at the Leisure Club with supplied Lululemon bolsters, mats and towels; watch a flick at the Cinema; or grab a burger at Rambler, the downstairs bar, which is open to the public. There’s also a Run Club, free walking tours, and volunteering sessions at a local community garden.

See + do Hop on the punt ($38 for an all-day hop-on-hop-off ticket) just opposite Drifter to see city landmarks. Pick up local art at The Gift Shop, soak at Te Puna Taimoana Hot Pools, and head out on a street-art tour with Watch This Space.

Essentials Bunks from $65 a night. See thedrifter.com

CIRCUS HOSTEL, BERLIN

Circus’ manifesto is to connect travellers to each other and the neighbourhood.

The lowdown Starting with just 40 beds, this hostel group has grown to a 230-bed hostel, a 64-room boutique hotel, 22 luxury apartments and months-long-stay studios.

Unfussy dorms are decorated with pendant lighting reminiscent of the big top and red curtains that evoke a stage-right exit into sleep, and there’s a big-in-Germany David Hasselhoff-dedicated museum (really) here too.

Tell me more Circus’ manifesto to connect travellers to each other and the neighbourhood is evident during giant Jenga nights, pop quizzes, botanic garden tours, street art excursions, karaoke comps. There’s no communal kitchen, but the cafe was renovated in December. Use complimentary yoga mats whenever you need a stretch; borrow board games and play them in your six-, eight- or 10-person dorm; or grab a free drink at the on-site microbrewery.

See + do You’re within a 20-minute stroll of Berlin’s Mauerpark, where vintage gems abound, and 10 minutes from the Art Nouveau Hackesche Hofe. Rent a bike from the hostel to go full Berlin and see the city using its quintessential cycling paths.

Essentials Bunks from $30 a night. See circus-berlin.de

CASA PEPE PUEBLA, MEXICO

Casa Pepe Puebla’s colourful courtyard.

The lowdown This colourful Puebla property – one of three Casa Pepe hostels in Mexico – is a throbbing hub of culture and history. Guests range in age from 20-ish to 60-plus across small dorms and private rooms, and gather in the courtyard beneath papel picado and murals that nod to the hostels’ inspiration, Jose Vasconcelos, a cultural revolutionary who advocated for art to adorn public spaces across Mexico.

Tell me more Welcome: here’s a complimentary margarita. Want to try 45 group activities, such as food market tours, lucha libre events and bachata classes that feature local producers and artists? Maybe the full breakfast or the evening jam sessions (BYO instrument or bop along) will lock you in. There’s a fully equipped kitchen and co-working space, too.

See + do See Puebla’s volcano sites on a hiking tour. Explore history and contemporary art at Museo Amparo, or walk a short seven minutes to Puebla La Churreria for cinnamon-clad churros and thick hot chocolate.

Essentials Bunks from $18 a night. See casapepe.mx

FREEHAND CHICAGO, US

The Freehand Chicago’s lounge area.

The lowdown Brush proverbial shoulders with Michigan Avenue and the Chicago River at this hybrid hotel, which reflects summer-camp culture from timber-panelled wall to wall. Heavy-duty timber bunks feature vibrant wool blankets, reading lights, cotton screens and timber ladders, but there are also private rooms and an epic penthouse suite, all designed by Roman and Williams.

Tell me more Freehand is also in Miami, Washington DC and Los Angeles. Punters sip on flat whites and nibble breakfast bagels beneath Native American-inspired art in the moodily underlit Art Deco lobby. When you’re not in your room, be at Broken Shaker, a cafe-slash-bar-slash-social hangout, enjoying house made punch, grilled cheese and a regular roster of local music.

See + do Pick up locally made souvenirs at P.O.S.H. and down hearty bowls of homemade pasta at Quartino. Try an architecture river tour, then cap it off with a riverside cocktail at Beatnik.

Essentials Bunks from $61 a night. See freehandhotels.com

KEX HOTEL, PORTLAND, US

The Kex Hotel’s industrial-cool bar.

The lowdown Originating in a Reykjavik, Iceland, biscuit factory, Kex now operates in Iceland and, quirkily, Oregon, US. Both hotels employ industrial-cool style (executed by a former film-set designer) inspired by the heritage buildings they occupy, with exposed brick, repurposed vintage objects and creations by local makers, including wallpaper featuring puffins and ponies. Portland has three eight-bed bunk rooms and 25 private rooms, the latter with oversized couches, eclectic gallery walls and mismatched desks.

Tell me more A ground-floor restaurant and seasonal rooftop bar pump out bougie devilled eggs and amaretto sours, with happy hour from 3pm to 6pm. Staff run walking tours and “apres ski” parties; the restaurant branches off into a library-style space, with leather loungers and oceania-inspired found objects; and there’s a dry sauna on the property – in action from 5am for early-morning steaming.

See + do Walk 10 blocks to get a Portland cream at Voodoo Doughnut – during the day or late at night – and walk it off on the four-kilometre waterfront loop. Cross the Willamette River to pick up hidden gems at the Portland Saturday Market. Your stay gets you a 15 per cent discount at the hot springs, Knot Springs, across the road.

Essentials Bunks from $100 a night. See kexhotels.com

YHA SYDNEY HARBOUR, NSW

Best bang-for-your-buck views from the YHA Sydney Harbour.

The lowdown This classic hostel’s rooftop bar might offer the best bang-for-your-buck view in Australia. Solo travellers, silver-haired cruise-ship guests, digital nomads and families are split across minimalist bunk rooms and queen rooms, while new Opera Harbour View private rooms offer excellent city visuals.

Tell me more The guest-only rooftop serves finger food, $10 schooners and $18 cocktails made with bush foods (and garden-fresh garnishes) – all at a cracking harbour perch. If you need espresso after a red-eye, the 24-hour cafe has you sorted. Events – sunrise yoga classes, sightseeing walks, and Indigenous cultural experiences, as well as taco night and daily happy hour – revolve around the city.

See + do You’re 700 metres from Circular Quay – with Susannah Place Museum, bar Maybe Sammy and Sydney institution Pancakes on the Rocks within a four-minute walk – and it’s a 10-minute walk to Wynyard.

Essentials Bunks from $75 a night. See yha.com.au

THE COVE, DEVONPORT, TAS

The Cove at Devonport has a spectacular oceanfront setting.

The lowdown This adults-only property on a 170-year-old family-run farm hosts private ocean-view “hardtop glamping” studios that share communal bathrooms, A-frame ensuite cabins and self-contained villas perched on the cliff’s edge overlooking the sea. A bonfire is lit nightly, so you can watch the stars come out over the sea.

Tell me more Farm tours cover sustainability while getting close to cows. The outdoor courtyard is flush with fire-side seating and sits just outside the kitchen, which is stocked with basics and adjacent to the large communal lounge. Come nightfall, borrow red-light goggles and walk the headland to find resident little penguins. At the Buttershed, play billiards and board games or settle in for a spa treatment. Self-contained apartments and two new restaurants are coming in 2025.

See + do You’re a 10-minute drive from the Spirit of Tasmania Devonport terminal. The town of Don is a six-minute drive south, where you’ll find one of north-west Tasmania’s longest running markets, a heritage rail museum and historic train rides on the Don River Railway.

Essentials Rooms with shared amenities from $209 a night. See thecovetasmania.com

BOUNCE NOOSA, NOOSA, QLD

Take a dip at Bounce, Noosa.

The lowdown Dorms max out at eight people at this bright coastal property. A glass-sided pool sparkles in the sunshine, with shaded sunbeds within reaching distance of the poolside bar. Reception is a flurry of Besser blocks and rattan lighting, with refreshed rooms featuring neat bunks, lockers and pastel pink bathrooms. Luxurious queen en-suite rooms enjoy rainhead showers and kitchenettes with Smeg kettles.

Tell me more Sans Monday, there’s something on every day, from sunrise yoga and national park walks, to cheese-and-wine nights and live music on the deck. The kitchen has a walk-in fridge and the co-working space features bar-style tables with pool views. Palm trees shade the whitewashed property – until sunset, when peachy sunsets turn everything up a notch.

See + do Snag crisp fish and chips from Noosa Boathouse, then wander to the bus stop: it’s 20 minutes to Noosa’s main beach. There’s a farmer’s market on Sundays (the hostel hosts a day-trip) and a pilates-yoga studio, Noosa Flow, at the end of the block.

Essentials Bunks from $100 a night. See staybounce.com.au

MOXY SYDNEY AIRPORT

Moxy Sydney Airport’s lobby – which houses a restaurant, bar and cafe – spills out into a couch-filled lounge.Credit: Justin Nicholas

The lowdown At the first Moxy in Australia, folding chairs and a table hang from the wall in minimalist rooms. Not technically a hostel, this hotel offers quad bunks: four king single bunk beds booked by the room. Design teeters between industrial minimalist (with custom pink concrete basins, exposed beams and carpeting based on airport runway maps) and a youthful maximalist, from the loud Australian photography to Skeeball machine in the lounge.

Tell me more The lobby – which houses a restaurant, bar (with two-hour happy hour) and cafe – spills out into a couch-filled lounge, library nook and rooms that can be booked for meetings, group games, or an all-family dinner. One of them, Record Room, has a turntable with vinyls (pick your favourite) and a ping-pong table. Enjoy coffee on the balcony or take a yoga mat out on the gym’s private outdoor patio.

See + do Aerophiles will enjoy the comings and goings of the private jets from the neighbouring hangar. You’re a three-minute drive or 16-minute walk to Domestic Airport and 10 minutes to the international terminal, best achieved via Moxy’s complimentary private shuttle. Grab a generous bento at Boom Sushi or refuel with Vietnamese iced coffee from Saigon’s Fresh Rolls, both on Botany Road.

Essentials Quad bunk rooms from $299 a night. See marriott.com

The writer was a guest of Drifter Christchurch, YHA Sydney Harbour, Moxy Sydney Airport and Village Bondi.

FIVE MORE HYBRID HOSTELS FROM UNDER $100 A NIGHT

Pacific House Hostel, Sydney, NSW
Once a temperance hotel, this Woolloomooloo hostel hosts up to 235 people a night across four to 10 bed dorms and private rooms. A 2022 refresh brought beachy urbanity in pastel shades of blue and greens. Continental breakfast, ear plugs, fridge bags and aromatic body products are included and the on-site cafe turns into a restaurant and bar later in the day. See thepacifichouse.com

Bunk Surfers Paradise, Qld

Bunk Surfers Paradise: you might forget you’re at a hostel.

At this six-level hostel, six-bed deluxe dorms have special perks that elevate tradition: mini fridges, rainforest showers in the bathrooms, feather pillows and TVs, plus a private kitchenette with a dishwasher, couches, a desk and room service. You might just forget you’re at a hostel. See bunksurfersparadise.com.au

Outback Hotel & Lodge, Uluru, NT
No-frills bunk rooms were refurbished in 2023 – new mattresses and ochre-toned furniture and furnishings, as well as desert-inspired art by Indigenous artist Delma Forbes – and the lounge and kitchen are currently undergoing a refresh. (A two-minute drive away, Ayers Rock Campground cabins – which has two-bedroom cabins with a quad-bunk room – were recently renovated, with solid pine bunks beneath a timber-panelled ceiling.) See ayersrockresort.com.au

Stoke Beach House, Manly, NSW
It’s not uncommon for guests to bring sand from Manly Beach, 200 metres away, into the lobby of this barefoot-friendly spot. Bright shared rooms are split into three to six-bed configurations, so spaces avoid feeling claustrophobic, although king rooms offer more privacy. It’s communal bathrooms – with Australian-made products – for all. See stokebeachhouse.com.au

Village Bondi Beach, NSW
The 26 bunk rooms and 29 private rooms 200 metres from the beach have received new Australian-made furniture and mermaid murals. (Beautification is also soon to hit Village’s North Melbourne, Cairns, Byron Bay, Canberra and Surry Hills properties.) Blue curtains and velvet couches match the shoreline; surf photography mirrors the action you’ll spot on the suds; and basement study rooms open out to a leafy courtyard. See thevillage.com.au