Forget all about five star luxury hotels. Given the current economic situation they are bad taste right now. Instead you should rather find a charming hostel full of personality.
Hostels are no longer reserved the youth and backpackers as lots of them have smartened up with funky design and individual bathrooms. They have become a serious alternative to the more expensive hotels, and while the rest of the hotel business is complaining about missing guests, the worlds’ hostels have just had their best year ever, according to the membership organisation Hostelling International.

But where are those charming spots with clean rooms, a friendly owner and a central location? Lissabon seems to be the place to go. According to hostelworld, who just have rated the hottest hostels in the world by asking its 800,000 users, three out of the seven best hostels are located in the Portuguese capital.

At Momondo we've had a look at the list.

1. The Travellers House is located in a 250 year old house in the historical heart of Lisbon. Owned and run by globetrotters, who have created a funny an intimate atmosphere. Here you can enjoy a film in the TV area or surf at the mega-fast internet. Or even stay in a cosy little hostel-within-the-hostel called The Little Travellers House, an independent apartment with three bedrooms.

98 % out of 457 customers loved this place. As Alexandra from Australia puts it: “This place is fantastic! I have no complaints whatsoever! The staff especially deserves a special mention as they create a great vibe and no problem or question is too much trouble. As a solo traveller it is easy to meet people. I didn’t want to leave...”.

• From € 18 per night

2. Rossio Hostel is centrally located in the Baixa district, downtown Lisbon. Brand new and with a young and vibrant multilingual staff. Organised activities from in-house film screenings to pub crawls make it a great choice for lone travellers who want to meet people. Free breakfast with crepes and eggs. Rossio won two categories in the rating: Best Small Hostel and Most Fun.

• From € 18 per night.

3. Lisbon Lounge Hostel. 9 rooms and 6 bathrooms. Lofty ceilings, modernist murals and a party atmosphere with live DJs. “One of the best Hostels I have ever stayed at. For heaven sakes they have a professional chef for 8 EURO! Dinner which could feed the coldest and wettest of hungry travellers with an absolutely delectable meal! You don’t have to look for another hostel if Lisbon Lounge has availability,” says Paul from the US.

• From € 18 per night

4. The Riverhouse Backpackers, Cardiff.  This hostel has taken everybody by storm since it opened late 2007. It’s run by a brother and sister, Charles and Abi, who offer free tea and coffee all day and a beautiful garden to hang out in, when it’s sunny. The staff is super friendly, actually the best Hostel Staff in the world, according to the ranking of hostelworld.com

• From £ 17.50 per night.

5. The Greg-Tom Hostel in Krakow, Poland. Greg-Tom is a small Empire with two hostels and an apartment in the former Polish capital. Hostel 1 is for the backpackers who support dormitory rooms (No bunk-beds though) and for the more fussy guests some private double rooms. Hostel 2 offers seven brand new double rooms for people who prefer a more intimate atmosphere. In both hostels you get a delicious all-you-can-eat breakfast and free suppers from 7pm till 9 pm every day! On Tuesdays and Saturdays you get hot, fancy and special Polish meals. The regular vodka-tasting-evenings are strongly recommended.

• From € 11.65 per night.

6. Sitting on the City Walls Courtyard House is located in the heart of the ancient Beijing and only five minutes walk from the Forbidden City. The hostel is a traditional courtyard house up a hidden zigzagging alleyway, where no modern transport vehicle can pass by. Here you walk or take a bike. “I got to Beijing after midnight and the taxi driver didn't find the hostel. So, the receptionist himself came and picked me up. Very helpful! It was like staying with good friends. Thanks!”, says a guest from Germany.

• From € 8.33 per night, € 19 for a private double bed room

7. Academy Hostel in Florence, Italy is a wonderful mix of old and new. Outside you are in the middle of a Michelangelo setting; inside it’s more like a pop art painting. The hostel is on the first floor of a 17th century palace which was once the residence of Baron Ricasoli. “A true gem! The best hostel I think that I have ever stayed in,” says Susannah from the US. “An Amazing hostel with a lot of laughs,” tells Megan from Australia.

• From € 26 per night

You can find Hostelworld's list of the best hostels here.

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