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The second largest city on the scenic South Island of New Zealand doesn’t get a ton of tourist traffic, but there are quite a few hostels in Dunedin to keep the ones who do stop here happy. There are many hotels in the area and they tend to be quite expensive. The Dunedin hostels are very reasonably priced by comparison and they fit perfectly with the country’s backpacker ethic.

The center of the city is the famous Octagon and most of the hostels in Dunedin are nearby. Most of the nightlife and shops in town are centered around this area so being nearby is very important, especially if you are on foot. The last thing you’d want to do is go out drinking and then have to find your way several miles back to your hostel late at night.

And in case you haven’t spent much time in this part of the world, you should know that hostels in Australia and New Zealand are almost always called “backpackers.” So when searching for hostels in Dunedin you’ll actually be looking at a list of places that call themselves backpackers instead, but they are the exact same thing.

Travel is obviously a huge part of the New Zealand economy so there are hostels/backpackers all over the country. They generally welcome everyone so even though the name sounds like these places are only suited for students who’ve never owned a real suitcase, nearly everyone feels comfortable in these places. It’s true that most of the people staying in the Dunedin hostels are young, but these days even senior citizens have learned that the hostel lifestyle is both a great way to save money and also a great way to meet other travelers.

Most of the hostels in Dunedin also offer private rooms along with the dorms that most people associate with these places. For only a little more than a dorm bed where your roommates could be anyone, you can book yourself into a small private room and still enjoy all the facilities like self-catering kitchens and common lounge areas. These places are also a great way to get travel tips from the staff as well as from fellow travelers who are just coming from the direction you are headed.

In spite of its non-hostel-sounding name, the Elm Lodge is usually the highest rated hostel in Dunedin. They are only a few minutes walk from the Octagon and they’ve got all the usual hostel services. Their cheapest beds start around $US17 per night in their 6-bed dorm rooms, and their private rooms are only a bit higher as long as you have enough people to fill the room yourself.

Penny’s Backpackers is another Dunedin hostel with a great location. They are near the city center and they’ve also got car parking in case you’ll be pulling up in a rented car or campervan. In addition to the normal stuff Penny’s also has free internet and wifi, as well as a bar, so that stagger to and from the city center may not even be needed.

Hostels in Dunedin