When I first planned my trip to Stockholm, I’ll be honest—I was a little nervous about the prices. Sweden has a reputation for being expensive, and Stockholm, being the capital, certainly isn’t a bargain city. But here’s what I’ve discovered after multiple trips: you don’t have to spend a fortune to sleep well in Stockholm.
In fact, some of my most memorable stays have been in hostels and budget hotels that deliver way more than you’d expect for the price. Whether you’re traveling solo, backpacking through Scandinavia, or simply trying to be smart with your Euros (or kronor!), Stockholm has affordable stays that don’t skimp on style, location, or comfort.
Below, I’m sharing five of my favorite value-for-money accommodations in the city—with real insights from my stays, plus tips on how to book them for the best price.
🛏️ 1. City Backpackers Hostel
📍 Location: Upplandsgatan 2A, Norrmalm, Stockholm
I still remember the first time I arrived at City Backpackers Hostel—it was early December, and the air outside felt like it could crack your skin. I pushed through the glass door with my suitcase, cheeks frozen, and was hit by the scent of warm soup and the chatter of travelers gathered around a long wooden table. Immediately, it didn’t feel like a hostel. It felt like a traveler’s living room.
This hostel isn’t just a place to sleep—it’s an institution in the backpacking world, and for good reason. It’s one of the most social, stylish, and comfortable hostels I’ve ever stayed in anywhere in Europe.
✨ Why It Stands Out:
- Free pasta in the communal kitchen. Yes—unlimited dry spaghetti available to all guests, any time. It’s such a small gesture, but for budget travelers, it means a warm, home-cooked dinner after a long day.
- Free sauna, open nightly. After walking through icy wind or biking through drizzle, there’s something deeply satisfying about sitting in a wood-paneled Swedish sauna with strangers-turned-friends.
- There are free MacBooks for guests to use, a movie room, and even organized activities like guided bike tours or “Swedish meatball night.”
- Interiors feel more like a boutique Nordic hotel than a hostel—think whitewashed walls, minimal birchwood furniture, and big windows that let in the golden Scandinavian light.
- Super central location, just a 10-minute walk from Stockholm Central Station, and close to the metro, supermarkets, and cafés.
💬 What Guests Say:
With over 8,000 reviews on Booking.com, this place consistently gets rated above 8.5/10. Guests praise the cleanliness, the safe and inclusive atmosphere, and the hostel’s ability to strike the perfect balance between social and relaxing.
One review I read put it best: “It’s the kind of place where you plan to stay two nights and end up staying a week.”
💰 Cost:
Dorm beds range from €25–30 per night depending on the season and room size. Private twin or double rooms usually fall between €75–85.
In winter, you can even rent ice skates for free, and skate just outside the hostel in Vasaparken if it’s cold enough!
🧠 Booking Tip:
While I usually book through Booking.com, I’ve found that their official website sometimes offers discounts for stays longer than three nights, or combo offers that include free bike rentals.
Book early for summer and major events like Midsummer or Pride Week—they get snapped up quickly!
🛏️ 2. STF af Chapman & Skeppsholmen Hostel
📍 Location: Flaggmansvägen 8, Skeppsholmen, Stockholm
Ever dreamed of sleeping on a ship? With af Chapman, that dream becomes reality. This isn’t just any boat—it’s a majestic 19th-century tall ship, permanently docked at Skeppsholmen, with masts towering above and views that’ll stop you in your tracks.
Walking across the small bridge to the ship at sunset is still one of my favorite Stockholm memories. The water sparkled gold, the Royal Palace glowed in the distance, and the ship’s deck felt like something out of a novel.
✨ Why It Stands Out:
- You literally sleep on a boat, and not just any boat—a Swedish navy training vessel turned hostel with fully restored interiors.
- The views from the ship’s portholes? Postcard-worthy. You can see Gamla Stan, the waterfront, and sometimes even the northern lights in winter.
- Rooms are surprisingly spacious and cozy. The ship also has shared bathrooms and lounges where guests swap travel tips over cups of coffee.
- If you’re not a fan of swaying seas, no worries—the ship is permanently docked. For those who prefer dry land, they also have rooms in the nearby Skeppsholmen barracks, a charming 19th-century building with equally great amenities.
- The location on Skeppsholmen island is a peaceful oasis, yet it’s just a 10-minute walk to the bustle of Gamla Stan.
💬 What Guests Say:
With an average rating above 8.7 on major booking platforms, reviewers rave about the uniqueness of the experience. One traveler called it “Stockholm’s most romantic budget option,” while another said “It felt like being in a floating museum.”
I couldn’t agree more. Waking up to the sound of seabirds and watching the city slowly wake up across the water was pure magic.
💰 Cost:
Dorm beds start from €28–35, and private cabins or rooms range from €85–110 per night, depending on the season.
🧠 Booking Tip:
Summer is peak season, and cabins go fast. I booked mine via Hostelworld, but their official page sometimes includes STF membership discounts (you can get a virtual card online).
Also: they offer free luggage storage, so even if you arrive before check-in, you can drop your bags and head straight to explore.
🛏️ 3. Generator Stockholm
📍 Location: Torsgatan 10, Norrmalm
If you want hostel pricing with a boutique hotel atmosphere, Generator Stockholm hits that sweet spot. It’s cool, industrial, stylish, and totally Instagrammable.
✨ Why It Stands Out:
- A chic bar, café, and co-working space all rolled into one.
- Ensuite bathrooms even in shared dorms.
- Great location near both Central Station and the hip neighborhood of Vasastan.
💬 What Guests Say:
“A hostel that feels like a hotel,” “great design,” and “awesome bar downstairs.” Reviews often highlight the cleanliness and security.
💰 Cost:
Dorms start at €30–40/night, private rooms from €95/night.
🧠 Booking Tip:
Book through Generator’s official site for flexible cancellations and occasional promo rates. Try signing up for their newsletter—they send out flash deals!
🛏️ 4. The Red Boat Mälaren (Den Röda Båten)
📍 Location: Södermälarstrand Kajplats 10, Södermalm
Another boat stay—but this one’s funkier and more budget-friendly. The Red Boat is moored along the south bank of Gamla Stan, giving you a front-row view of Stockholm’s Old Town skyline.
✨ Why It Stands Out:
- A quirkier, more casual vibe than af Chapman.
- Offers both bunk beds and compact private cabins.
- A cozy onboard café/bar with breakfast and Swedish beer.
💬 What Guests Say:
“Tiny but charming,” “lovely views,” and “great value for a unique experience.” Rated around 8.0 on average.
💰 Cost:
Dorm beds from €20–25, private rooms from €65–80.
🧠 Booking Tip:
Look for deals on Hotels.com—especially for midweek stays. Avoid peak weekends unless you book early.
🛏️ 5. Castle House Inn
📍 Location: Brunnsgränd 4, Gamla Stan
Not quite a hostel, but a budget-friendly guesthouse right in the Old Town, just a stone’s throw from the Royal Palace. This one is for those who want an atmospheric stay without splurging.
✨ Why It Stands Out:
- Clean, minimalist rooms with shared or private bathrooms.
- Walking distance to all major sights.
- Quiet yet central—perfect for early risers and solo travelers.
💬 What Guests Say:
“Unbeatable location,” “simple but spotless,” and “ideal for couples on a budget.”
💰 Cost:
Private rooms from €75–95/night, shared bath options are cheaper.
🧠 Booking Tip:
Book through Agoda or Booking.com—look out for occasional last-minute deals. Sometimes cheaper on weekdays than weekends.
🔍 Where to Find the Best Stockholm Deals?
If you’re trying to travel on a budget across Europe, especially in Sweden, here are some go-to booking platforms:
- 🛌 Booking.com – Best all-rounder with frequent flash deals and transparent reviews.
- 🧳 Hostelworld – Perfect for hostel-hopping backpackers.
- 🏨 Agoda – Sometimes cheaper than Booking for lesser-known properties.
- 🧭 Skyscanner – Not just for flights—use it to bundle flights + hotels.
- 🛫 Momondo – Compare deals from dozens of travel sites for hotels, flights, and even car rentals.
- 📲 Google Maps – Don’t overlook this! I often check for “top-rated hostels nearby” when I’m already in Stockholm. Locals leave real, detailed reviews.
🌟 You Don’t Have to Be Rich to Feel at Home in Stockholm
I’ll be honest—before my first trip to Sweden, I genuinely thought I’d be surviving on instant noodles and park benches. Stockholm, after all, has a reputation for being one of Europe’s most expensive cities. But after several visits, I can say with complete confidence: you can absolutely travel Stockholm on a budget—and not only stay comfortable, but create unforgettable memories while doing it.
From waking up to morning mist aboard a century-old sailing ship, to cooking pasta with fellow travelers in a lively hostel kitchen, these value-for-money stays didn’t just save me money—they added real texture and joy to my trip.
We often associate “budget travel” with compromise. But in reality, it just means making smarter, more meaningful choices about where and how we experience a place. And Stockholm, with its balance of elegance and inclusivity, knows how to offer simple pleasures with thoughtful hospitality.
🧭 So don’t let the price tags scare you away. Pack your bag, bring your curiosity, and book that little guesthouse or quirky hostel that makes your heart skip a beat. You’ll soon realize—tucked away in the alleys and harbors of Stockholm, there’s always a charming, affordable corner waiting to welcome you.
And who knows? That cheap-but-cozy bed might just become the place where your favorite Stockholm story begins.
