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Welcome to Sydney, mate!

Now that you have booked your flight or have already arrived down under, the next step will be to find an awesome place to spend your nights with the best budget hostels in Sydney, Australia. While you fill your days exploring the Harbour Bridge and Opera House, you will need an equally exciting place to come back to at night. When you start browsing for Sydney accommodations, the prices per night may start to look scary… Fret not, as Mad Monkey has compiled the top budget hostels in Sydney to help you can get the best value for your money. 

Before diving into our list of the best budget hostels in Sydney, here are a few things to keep in mind when choosing your home away from home:

  • Like other accommodation options in Sydney, the cost per night varies according to the season. Be sure to take this into account if you are traveling on a tight budget. Also, most of the hostels provide better rates if you stay for a few days, including long-term stays.
  • Because the hostels on our list are within the city premises, parking options are limited. Be sure to call up and book in advance to avoid being disappointed.
  • Make sure you hit up the trendy east side locations like Bondi and Coogee for the authentic beachside Sydney experience.
  • The Sydney Shuttle Service provides a shuttle that can take you to and from the airport. The cost varies between AUD $10-15, depending on the location of the hostel you decide on.
  • All of these hostels have event boards and daily programs planned to make your stay a memorable one. Be sure to check their websites for more information on these activities, but keep in mind that many events are only shared on-site on bulletin boards and the like.
  • All of the hostels below provide travel assistance to help you plan any tours you may want to book while exploring the country. Most will offer these at a discounted price for guests, so be sure to check these out.
  • Be on the lookout for pub crawls that are organized by the hostels. The dates these occur can change depending on the season but provide visitors with a great way to meet their fellow backpackers.
  • Last but not least, all of these hostels are equipped with safe security measures, ensuring you have a good night’s sleep!


Best new hostel in Sydney: Mad Monkey Hostel Coogee Beach

If you haven’t head of Coogee Beach then we’re about to rock your world. This small beach town on the Eastern Suburbs of Sydney is just 30 minutes by bus from the city’s CBD, and a short hop, skip and a jump from Bondi Beach.  If you are looking for a laid back beach vibe with easy access to downtown Sydney, quick access to Bondi, and the upscale atmosphere of the Eastern Suburbs then this beachside hostel could not be in a better location for you.
Mad Monkey Coogee Beach is a funky three-floor hostel with clean dorms and rooms, a friendly vibe, and an excellent location.
Hang out at the famous center that is “Coogee Pavilion,” enjoy the live music and artsy vibe, walk the coastal walk to Bondi Beach or chill out on one of the best beaches Sydney has to offer.

Mad Monkey Coogee Beach
Mad Monkey Coogee Beach © Courtesy of Mad Monkey

Location: 186 Arden Street, Coogee, NSW, Australia — VIEW MAP
Contact: +61 02 9315 7888 | WebsiteFacebook | Instagram
Guide to Coogee Beach

Most popular hostel in Sydney: Wake Up! Sydney

All boxes ticked

This hostel bagged the 2017 Hoscar Award for being the third-best hostel in the world and the most popular hostel in Sydney. Living up to its reputation, Wake Up! Sydney is both a fresh and modern accommodation option that is conveniently nestled in the heart of Sydney.
What makes this hostel memorable is the cafe located downstairs: Roy’s. It is a great meeting place for you and your roommates to enjoy a large breakfast while basking in the Sydney morning sun. It is also an ideal venue for enjoying a refreshing afternoon beer. Side Bar is another great place for backpackers to gather and have a few drinks while sharing their travel tales.
Apart from the free welcome drink at Side Bar, Wake Up! Sydney boasts free Wi-Fi, a 24/7 reception desk, locker facilities, and many reduced rate options. This backpacker hostel in Sydney also provides helpful job postings for those travelers who are on a working holiday.
Budget Hostels in Sydney


  • 2.6 km to The Rocks and Circular Quay
  • next to the Central railway station
  • 7 km to the Sydney Airport

Cost: from AUD $39 per night
Address: 509 Pitt Street, Hay Market, NSW 2000
Phone: +61 (02) 9288 7888

Best location: Sydney Harbour YHA

YHA is the largest provider of budget travel accommodation in Australia. It has a network of 80 hostels across the country. It is also part of the world’s largest budget accommodation network, Hostelling International (HI). Because of this, all of their hostels abide by high international standards.
The Sydney Harbour YHA is no exception. It is equipped with a prime location and built actually above the archaeological remains of colonial Sydney. This backpacker hostel is found in the historic harbourside precinct of The Rocks. It also provides guests with the best panoramic views of the Sydney Harbour, the Opera House, and the Harbour Bridge from its rooftop!
Since the pub scene is a thriving one at “The Rocks,” this indeed is the best place for nightlife lovers. Free tour activities, paid parking options (with advance bookings), a 24/7 reception desk, a rooftop barbeque (or “barbie,” as we call it here), air conditioning, family rooms, and private rooms are some of the options you have to choose from when staying at Sydney Harbour YHA. To book a great seat for watching the Sydney New Year’s Eve fireworks, be sure to contact YHA ahead of time, as this is a highly sought after show!


  • 700 meters to the Wynyard train station and the Circular Quay train station
  • next to the Opera House, Harbour Bridge, ferries, and The Rocks
  • 10 km to the Sydney Airport

Cost: from AUD $45 per night
Address: 110 Cumberland St, The Rocks NSW 2000
Phone: +61 (02) 8272 0900

Best value: Bounce Hostel

Bounce Hostel was voted the best hostel in Australia and most popular hostel in Sydney at the 2014 Hoscar Awards. This young, colorful, and vibrant hostel is geared towards “glampackers,” but the rooms remain incredibly affordable. This fully air-conditioned facility with 24/7 reception has a large rooftop deck with a barbeque and amazing skyline views, as well. The private rooms come equipped with an ensuite bathroom and a flat-screen television. Free phone calls can be made to local Australian numbers and guests can also make Skype calls at the hostel. Tripple Bar & Bistro is located next door, and it is a great place for backpackers to hang out, as well.
At Bounce Hostel, the passionate staff is always figuring out ways to make your stay more enjoyable. Take in the creative vibes throughout the hostel, especially in the stairway that has been adorned with newly painted art. At times, the fresh interior and large corridor will make you feel as though you are staying in a luxury hotel instead of a hostel! Lastly, if you are environmentally-friendly, this hostel has an eco-friendly hot water system in place. 
Long story short, if you are a fan of the finer things but enjoy paying affordable prices for a hostel, then Bounce Hostel is perfect for you.
Budget Hostels in Sydney


  • 100 meters to the Central train station and bus stop
  • less than 4 km to major attractions (Opera House, Darling Harbour, and Harbour Bridge)
  • 1.4 km to the Chinese Garden and Darling Harbour
  • 1.7 km to the Sydney Tower
  • 8 km to the Sydney Airport

Cost: from AUD $42 per night
Address: 28 Chalmers St, Surry Hills NSW 2010
Phone: +61 (02) 9281 2222

Best pool: Sydney Central YHA 

The summers in Sydney can be unbearably hot, so what better way to survive the heat than to go for a swim? Sydney Central YHA, situated in the heart of the city, has both a luxury pool and sauna for guests to enjoy. The pool is also heated and serves well to those who visit during the winter.
This heritage building hostel has panoramic views from the rooftop, air-conditioned rooms, free Wi-Fi, a paid parking facility, a basement bar, a cinema, ensuite bathrooms, disabled facilities, and job search assistance, as well. Those wanting a bit of everything during their stay in Sydney will find it at Sydney Central YHA.
Budget Hostels in Sydney


  • less than 4 km to all major attractions (Darling Harbour, Chinese Garden, Sydney Tower, Opera House, China Town, and Paddy’s Markets)
  • 100 meters to the Central train station and bus stop
  • 8 km to the Sydney Airport

Cost: from AUD $35 per night
Address: 11 Rawson Pl, Sydney NSW 2000
Phone: +61 (02) 9218 9000

Most unique hostel: Sydney Railway Square YHA

If you fancy a night’s sleep in a funky railway carriage right at the Central Train Station, this is the place to be. It has all the features every backpacker loves, including free Wi-Fi, air conditioning, 24/7 reception, a barbeque, accessible facilities, and free bicycle parking. Just like the other YHA’s, the standards at Sydney Railway Square YHA are high. The hostel is a very convenient, unusual, and exciting place to sleep. The carriages you sleep in are well insulated, so you do not have to worry about the noise of the trains disturbing your sleep, as well.

  • less than 4 km to all major attractions (Darling Harbour, Chinese Garden, Sydney Tower, Opera House, China Town, and Paddy’s Markets)
  • 250 meters to the Central train station 
  • 350 meters to the bus stop
  • 8 km to the Sydney Airport

Cost: from AUD $38
Address: 8/10 Lee St, Sydney NSW 2000
Phone: +61 (02) 9281 9666

Best vibes: Blue Parrot Backpackers

Blue Parrot Backpackers is a small, family-run hostel that has consistently rated high amongst backpackers. It is found in the stylish suburbs of Potts Point. Blue Parrot Backpackers has free Wi-Fi, personal lockers, a lounge area with a fireplace, a garden courtyard with hammocks, barbeque facilities, and offers free walking tours. This is the perfect place for those who would love to stay in an area equipped with great cafe culture in addition to a vibrant nightlife. It is also close to all of the city sights, as well. 
Blue Parrot Backpackers swaps the usual party vibes for a more relaxed atmosphere. This is how it found its way onto our list. It is often rated as a safe hostel for solo female travelers and is the perfect place for anyone hoping to spend a few memorable days in Sydney!
Budget Hostels in Sydney


  • 600 meters to the Kings Cross railway station
  • less than 3 km to the Opera House, Harbour Bridge, Royal Botanic Gardens, and The Rocks

Cost: from AUD $35
Address: 87 Macleay St, Potts Point, Sydney NSW 2011
Phone: +61 (02) 9356 4888

Most homey: Kings Cross Backpackers

This small hostel has about 50 beds and is located a short walk from the beautiful cafes and pubs of Kings Cross: the party capital of Sydney. King Cross Backpackers also boasts many freebies including a hot breakfast, Wi-Fi, a PlayStation, luggage storage, complimentary parking, and a pool table. Another great thing about this hostel is its rooftop deck. It is here that visitors can enjoy a few beers looking out at Sydney’s skyline with their fellow backpackers. This hostel is ideal for those travelers hoping to stay in Sydney long-term. 
If you want to be closer to this leafy suburb, vibrant nightlife, and the infamous Bondi Beach, this is the ideal hostel for you! 
Budget Hostels in Sydney


  • 7 km to Bondi Beach
  • a short stroll to the clubs, pubs, and trendy cafes in Kings Cross
  • 3 km to the Opera House and The Rocks
  • 9 km to the Sydney Airport

Cost: from AUD $35 per night
Address: 79 Bayswater Rd, Sydney NSW 2011
Phone: +61 (02) 9331 0520

Best rooftop: Nate’s Place Backpackers

Located between Kings Cross and Sydney, Nate’s Place Backpackers boasts of a number of noteworthy features considering it is a small hostel. Let us not forget about the freebies including complimentary Wi-Fi, a continental breakfast, all-day tea and coffee, dedicated sangria nights, a barbeque, and free airport transfers are available for those who stay more than four days. It is certainly one of the most affordable options for budget travelers! 
Budget Hostels in Sydney
Conveniently located and equipped with a funky rooftop terrace, this hostel provides visitors with amazing views of the Harbour Bridge and Opera House. Also, if you are planning to watch the Sydney New Year’s Eve fireworks, be sure to book a stay here in advance!
Nate’s Place only accepts international passports and guests between the ages of 18-35.

Budget Hostels in Sydney


  • 450 meters to the Kings Cross station
  • 1 km to the museum station
  • 2.2 km to the Opera House, The Rocks, Botanical Garden, and Harbour Bridge

Cost: from AUD $28 onwards
Address: 141 William St, Darlinghurst NSW 2010
Phone: +61 (02) 8354 0488
We hope this was enough information to help you out with your search on where to stay in Sydney. Now, enjoy your trip!

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More things to see and do in Sydney, Australia!

If this article got you excited about traveling to Sydney, then be sure to check out the links below that are filled with amazing things to see and do in this memorable city. We only recommend blogs that we read and use ourselves, as well.

Written by Rohini Nair
A Part-Time Travel Blogger based out of Sydney.
Techie by profession, Travel Blogger by choice.

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Budget Hostels in Sydney

About the Author

Mad Monkey is Southeast Asia’s leading hostel operator — born in Cambodia with more properties in Thailand, Indonesia, Australia, Laos, and the Philippines. We pride ourselves in creating meaningful and sustainable travel experiences for our guests, whilst promoting socially responsible tourism.