Cape Town may be known for its luxury hotels and stylish boutique stays, but it’s also one of the best backpacker destinations in the world. With its lively hostels, affordable guesthouses, and budget-friendly accommodation, travelers can enjoy the city’s natural beauty, vibrant nightlife, and cultural attractions without spending a fortune.

Whether you want to be in the middle of the action on Long Street, enjoy a quieter vibe in Gardens, or meet fellow adventurers near the beaches, Cape Town has plenty of affordable places to stay.


1. Why Choose Hostels & Budget Accommodation in Cape Town?

  • Affordability: Dorm beds start as low as R200–R300 ($10–15) per night, while private rooms in budget hostels or guesthouses range from R400–R800 ($20–40).
  • Social Atmosphere: Hostels are the heart of Cape Town’s backpacker scene, offering communal kitchens, bars, and group activities.
  • Convenient Locations: Many are within walking distance of nightlife, restaurants, and tourist attractions.
  • Unique Experiences: From rooftop braais (BBQs) to surf hostels and eco-lodges, budget-friendly stays often come with fun extras.

👉 Best For: Backpackers, students, digital nomads, and budget-conscious travelers.


2. Best Areas for Budget Accommodation

Long Street (City Bowl)

  • Known as the backpacker hub of Cape Town.
  • Packed with hostels, bars, clubs, and international restaurants.
  • Ideal for party-goers and sociable travelers.

Gardens & Tamboerskloof

  • A little quieter than Long Street but still central.
  • Offers charming Victorian houses converted into hostels and guesthouses.
  • Great for travelers who want a balance of nightlife and relaxation.

Observatory (Obs)

  • Student-friendly neighborhood with a bohemian vibe.
  • Affordable hostels, quirky cafés, and live music venues.
  • A favorite for digital nomads and long-term backpackers.

Muizenberg & Hout Bay

  • Beach towns with surf hostels and relaxed vibes.
  • Perfect for travelers interested in surf lessons, yoga retreats, or coastal living.

The Backpack (Gardens)

Cape Town’s original backpackers, with eco-friendly initiatives and a strong community vibe.

  • Highlights: Pool, sustainability projects, Table Mountain views.
  • Best For: Conscious travelers and social backpackers.

Once in Cape Town (Kloof Street)

A trendy hostel with boutique-style flair.

  • Highlights: On-site restaurant and bar, lively social events.
  • Best For: Young travelers and party-goers.

Long Street Backpackers (City Bowl)

One of the liveliest hostels on Long Street, famous for its bar and social scene.

  • Highlights: Budget-friendly dorms, rooftop terrace, nightlife right outside the door.
  • Best For: Party-loving backpackers.

Ashanti Lodge Gardens

A well-established hostel with a mix of dorms and private rooms.

  • Highlights: Swimming pool, travel desk, mountain views.
  • Best For: Travelers who want a central yet laid-back stay.

Stoked Backpackers (Muizenberg)

Perfect for beach lovers and surfers.

  • Highlights: Beachfront location, surf lessons, relaxed atmosphere.
  • Best For: Surf enthusiasts and digital nomads.

4. What to Expect in Cape Town Hostels

  • Dorm Rooms: 4–12 bed options, often with lockers for valuables.
  • Private Rooms: Available in many hostels for couples or solo travelers wanting privacy.
  • Facilities: Communal kitchens, bars, pools, travel desks, and organized tours.
  • Social Events: Braais, pub crawls, hikes, and surf trips.

5. Budget Travel Tips for Staying in Cape Town

  • Book Early in Peak Season: December to February fills up quickly.
  • Use Hostelworld & Booking.com: Best platforms for finding budget stays.
  • Look for Freebies: Many hostels offer free breakfast, Wi-Fi, or walking tours.
  • Consider Location: Staying central saves on transport costs.
  • Cook Your Own Meals: Hostels with kitchens help stretch your budget.

6. Pros & Cons of Hostels vs. Budget Guesthouses

FeatureHostels 🛌Guesthouses 🏡
AtmosphereSocial, lively, communalQuiet, homely, private
CostCheapest dorms availableSlightly higher but affordable
Best ForBackpackers, solo travelersCouples, budget families
ExtrasBars, activities, group toursHomemade meals, cozy settings

7. Budget-Friendly Neighborhood Highlights

  • Long Street: Stay here if nightlife is your top priority.
  • Gardens/Tamboerskloof: Best for balance—close to nightlife but calmer.
  • Observatory: Great for long-term travelers and creative types.
  • Muizenberg: Perfect for surfers and laid-back beach vibes.

Final Thoughts

Cape Town proves that you don’t need a big budget to enjoy world-class experiences. With backpacker hostels on Long Street, charming guesthouses in Gardens, and surf lodges in Muizenberg, there’s something for every kind of budget traveler.

Hostels and budget-friendly stays in Cape Town are more than just cheap beds—they’re vibrant communities where you can meet other travelers, join tours, and experience the city like a local. For those who value connection, culture, and affordability, Cape Town’s budget accommodation options are some of the best in the world.

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