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Sydney is Australia’s largest city and it also spreads out in a way that is similar to London or Los Angeles. The metro area goes on forever, but most of the hostels in Sydney are near the city center. Actually, in Australia hostels are generally called “backpackers,” so most Sydney hostels will actually be called backpackers in the listings. Hotel prices are very high by Australia standards so it’s comforting to know there are many hostels in Sydney to make visiting affordable for the budget traveler.

The beach areas of Bondi and Manly are listed on their own so if you are interested in one of those areas look for the individual listing of Sydney hostels in each area. The famous Bondi Beach is really not far from the central business district, but Manly Beach is across the harbor so it’s more difficult for a quick visit.

The areas of Darling Harbour and the Circular Quay area (which is where the Sydney Opera House is) are quite expensive. Sydney hostels in these areas have great locations, but that location comes at a price. With the excellent public transportation system in Sydney it’s not really vital to stay right in the absolute middle of town. Most of the better-known sights are in the central area, but during the day it’s easy to get around all over town.

The most affordable area near the city center for budget travelers is the Kings Cross area. It’s often referred to as a backpacker ghetto because it attracts the majority of budget travelers into one small and cheap area. Kings Cross is walking distance from the center of the city and the Opera House so it’s very convenient, but it’s not for everyone. The area is getting better, but there are still prostitutes out on the main street at night, and a few seedy strip clubs are also still operating in the area.

On the flipside, the Kings Cross neighborhood also has a great concentration of cheap Sydney hostels and bars and internet cafes and everything the budget traveler needs. It’s not really dangerous so as long as you don’t mind passing a few smiling hookers on your way back in at night it’s an ideal location for those on a budget.

The DLux Budget Hotel is located in the Kings Cross area and their cheapest beds are in their 6-bed dorm rooms, each with its own bathroom, starting around $AUD23 per night. They’ve also got private double rooms with a bathroom for around $AUD42 per person per night, which is a good deal in this area for those wanting a bit of privacy mixed with their Sydney hostel experience. They have pub-crawls going every night with free drink vouchers for guests, so this is a great place to introduce yourself to the famous Kings Cross nightlife.

The Jolly Swagman Backpackers is also in the Kings Cross area with beds in their 6-bed dorms starting around $AUD26 per night. They have private twin and double rooms starting around $AUD37 per person, and even private single rooms for around $AUD60 per night.

Hostels in Sydney