The best budget hotels in London for 2026

Neighbourhood: Shoreditch

With outposts from Dijon to Dubai, Mama’s been getting about. And at her Shoreditch branch, a sprawling space at the Bethnal Green end of Hackney Road with 194 bedrooms, a large restaurant, karaoke rooms, terrace bar and meeting spaces, she’s very much everywhere. “Mama Loves You”, the chain’s ubiquitous phrase, pops up across the property, scrawled on mirrors and menus and stitched onto cushions and seats. If Mama’s love feels a little all-consuming, that’s part of the charm: the whole place leans into a kooky, maximalist vibe that feels designed for travellers chasing Shoreditch’s hip nightlife and Instagrammable corners.

Prices start at around £170 a night for a Medium Mama, which, for the area, is far from unreasonable. After all, a night at The Hoxton could easily set you back close to £400 for a self-described ‘Shoebox’. 

Even the smallest rooms here are a decent size, with comfy beds, seating areas and a table laid out with a complimentary fruit bowl and cookies. Mama’s sense of humour also pops up in some slightly wild details like plastic cartoon masks hanging from bedside lamps and the hotel’s proud mention of free porn on the TV.

Downstairs, the restaurant deals in generously sized small plates, crowd-pleasing mains and plenty of cocktails. Think gastropub-style pricing (£6–£10 small plates, mains from £17) and a solid buffet breakfast with hot classics, pastries and continental extras. Best of all is the location: a short walk from Bethnal Green Underground and Hoxton Overground, with East London’s buzziest cafés, bars and nightlife just around the corner, making Mama Shelter a lively, well-placed base for exploring.

Time Out tip: The sandwiches at Foccacia Mia just down the road are some of the best in London. Don't sleep on them.

Address: 437 Hackney Rd, London E2 8PP

Price: Starting at £170

Nearest transport: Cambridge Heath is a three-minute walk

Neighbourhood: The Docklands

Good Hotel might sound self-assured, but it lives up to its name. Docked at Royal Victoria Docks since 2016, this floating hotel offers a surprisingly peaceful retreat in London. Service is warm and relaxed, the food is excellent, and the calm waterside setting makes for some of the best sleep you’ll find in the city. Beyond comfort, though, Good Hotel carries a ‘do good’ ethos: every stay funds schooling for children in South America and supports hospitality training for long-term unemployed locals, many of whom join the hotel team. Guests can also join in community events, from comedy nights to yoga and litter-picking.

Rooms are simple but stylish, with earthy tones, origami-style lighting and thoughtful touches linking back to the brand’s Guatemalan roots. Amenities are pared back – there are no minibars or TVs – but you’ll find walk-in rain showers, handmade toiletries and those who splash out on a ‘Best Room’ enjoy sweeping waterfront views. The smaller ‘Good Rooms’ are compact at 13sqm, while corner suites double that size. Storage space is minimal, so don’t expect wardrobes, but the design is calm and cosy. 

The dinner menu is genuinely excellent, with a tapas-style menu at lunch and dinner showcasing seasonal produce, and there’s a rooftop bar for docks-gazing in the evening. The immediate area is (obviously) business-heavy, but you’re only a short DLR ride from central London.

Time Out tip: The hotel is very community focused and  hosts regular workshops and events that guests can attend. There are comedy nights, yoga classes, salsa classes, kids art clubs to choose from!

Address: Royal Victoria Dock, Western Gateway, London E16 1FA

Price per night: From £91

Nearest transport: Royal Victoria station (DLR) is a five-minute walk

Neighbourhood: Bloomsbury

If you search Generator London on Google, you probably won't be dying to stay there. The images of its entrance feel a little cold, and the shots of the empty rooms hint at something close to sterile. But trust us, get your card out and step inside; as soon as you arrive, it’s clear that this is one of the city’s most playful, sociable budget stays.

Housed in a former police station on Tavistock Place, Generator has been a London staple since 1995, and its 2014 redesign means it’s far removed from the old hostel clichés. The lobby alone is a fun-filled delight: neon signs, a bubblegum-blowing Queen, and a welcoming, if occasionally tablet-obsessed, front desk set the tone for a stay that’s colourful, casual, and utterly unpretentious.

Rooms are smart and clean, with bright walls, practical desks, plugs and lockers, and private lighting for dorm and private guests alike. It’s the kind of place where you feel looked after without being micromanaged. Bathrooms are spotless, which, in a hostel of this size, is no small feat.

But, the rooms are far from the only pull of Generator. The bar buzzes into the night, offering pub classics like burgers, nachos, fries (not exactly Michelin star but they’ll fill a gap). There’s also arcade games, a shuffleboard room, bookshelves stacked with summer reads and even a painted piano. It’s loud, it’s fun, and it’s social; perfect for travellers looking for more than just a bed.

Nestled in leafy Bloomsbury, you’re a short walk from the British Museum, independent cafes, Georgian terraces and hidden squares. Morning walks past Russell or Tavistock Square are a lovely contrast to the hostel’s party-ready energy.

For a budget-friendly London stay that balances practicality, design and a sociable atmosphere, Generator London is hard to beat. Bring earplugs if you want sleep, but everything else – style, service, location and a lot of personality – is right on point.

Time Out tip: Try Ta’Mini Lebanese Bakery nearby, a family-run spot serving up homebaked Lebanese treats, mezzes and more.

Address: 37 Tavistock Pl, London WC1H 9SE

Price: Starting from £12 per night for a shared dorm. Superior ensuites start at £124

Nearest transport: Russell Square is a 10-minute walk away 

Neighbourhood: Shoreditch

You'd be forgiven for thinking the lobby of One Hundred Shoreditch was the office of some edgy millennial's start-up, with its fizzy trap-house soundtrack, large statement sculptures and cool twenty-somethings tapping away on their laptops. Head upstairs, though, and it's a very different story. The bedrooms – all whitewashed walls, feature tapestry hangings and pine – radiate an instant calm.

The design is subtle, but carefully calculated: curved vases clash with hard corners, rough natural textures sit next to excruciatingly soft sheets. There's an attention to detail here which makes it feel like you're staying in the spare room of some impossibly fashionable friend, what with the cult DS & Durga toiletries and Jacu Strauss artworks.

But it's not all about sleeping. Formerly home to the hipster haven the Ace Hotel, this landmark east London building is now as much a social destination as it is a place to rest your head. Head to the buzzy rooftop for drinks – a cacti-dotted terrace with a pink-tiled bar and panoramic skyline views over the city – and you'll see why.

Nearby, you'll find a tonne of late-night bars, music venues, art galleries and indie fashion boutiques – in addition to Dickensian-era cobblestone streets and a Palladian church with a spooky crypt filled with Tudor-era actors. We suggest trying Manteca: a nose-to-tail Italian resto with proper fresh pasta and ragu you'll be thinking about for days.

Time Out tip: The onsite restaurant, The Rooftop is an absolute must. Order a selection of both the hot and cold mezze and thank us later. 

Address: One Hundred Shoreditch, 100 Shoreditch High Street, E1 6JQ

Price: From £139 per night

Nearest transport: Shoreditch High Street station is a two-minute walk away

Neighbourhood: Shepherd's Bush

You've probably heard of The Hoxton, the uber-successful, boutique hotel chain. But with its famously plush interiors, you might not expect to see one of their hotels on this list. But, the Shepherd's Bush branch allows guests to soak up The Hoxton's stereotypically buzzy, retro vibe for a slash of the usual price. As soon as you enter The Hoxton, you'll seecrowds of creative-looking twenty-somethings having 'business meetings' while sipping cocktails. No surprise because the interiors are vintage-inspired and fabulous, with swirling art on the walls and velvet sofas to sit back in.

Room sizes vary: there are some (called Snug rooms) that are quite small. It's all attractively done, mind you. The beds are comfy and luxurious with embroidered wavy headboards designed by Bute. Curvy lines are the thing here: the chairs have rounded edges, the tables are circular and neat, there's a wraparound bar to perch next to. But, the real joy of The Hoxton is the food. The cult Los Angeles chef Kris Yenbamroong is the brains behind the Thai-Americana diner Chet's, where fiery flavours merge with Californian flair. Order the signature fried pineapple rice, served with crab inside half a pineapple and thank us later.

It isn't just open for dinner too. For breakfast you'll have the chance to gobble up eggs served any way you like, or even branch out and try something more adventurous: we highly recommend the chicken and roti waffles. 

The Hoxton is an ideal base for exploring west London. You've got Shepherd's Bush Market on your doorstep, and you're also a short walk from Portobello Road Market and Notting Hill for even more shopping opportunities. Just down the road you could catch some great new writing at the Bush Theatre or hop on a tube and ride down to Hyde Park for the day. Every

Time Out tip: On a Thursday The Hoxton also hosts events with its neighbour Next Door Records every Thursday night if you want to party.

Address: The Hoxton, 65 Shepherd's Bush Green, London W12 8QE

Price: Starting at £174

Closest transport: The nearest station is Shepherd's Bush 

Neighbourhood: Borough

Fancy a bit of central London living? Bermonds Locke could be just the place. Sold as a home away from home, it is somewhere between a hotel, an apartment block, and a yuppie community. There are kitchens in each room, equipped with huge fridges, hobs and full sets of pots and pans to get your culinary genius flowing - and there's no cooked breakfast on offer, so you really better get thinking.

If you're really against cooking: Bermonds' co-working space, Shaman, a third-wave coffee shop, has drinks, brunch and pastries on sale. The downstairs foyer is decorated with cool metal panels that gleam in rainbow, while a giant moon hangs above the reception desk.

The rooms, offer guests a little slice of comfort. There are laundry facilities, hair dryers and a paranoramaic view of London that would look good on any trendy Instagram feed - on a clear day you'll see from The Shard to the London Eye. The beds were so comfortable, you'd could easily spend the whole day in them. With pale wooden floors and sky blue walls, the whole hotel has a sense of calm running through it. And, in the middle of Tower Bridge that is certainly something to savour. 

If it is a nice day, take a walk down to the river bank and soak up all of the Thames' beauty. There's also the nearby Borough Market that has countless food stalls waiting to be enjoyed - although maybe best to avoid it during weekends because the crowds are quite something. 

Time Out tip: There is a meeting room you can hire if you need it!

Address: 157 Tower Bridge Rd, London SE13LW

Price: From £180

Closest Transport: Borough station is a five-minute walk away

Neighbourhood: Paddington

It’s all in the name: beyond the 19th-century exterior, there’s plenty of futuristic design here, including aluminium panelling and stylish lighting.The 2004 Paddington hotel looks and feels like something fantasy-like…is it a spaceship? Or is it a submarine? All we know is the place is basically coated in metal; the floors and walls are about as shiny as you can get. Clean and modern rooms have ensuite pod bathrooms complete with rain showers and mood lighting, and there’s free Wi-Fi throughout.

Rooms - which are contemporary and comfortable, start at £118 and are inclusive of a full English. In each, there’s a satellite TV and work area, too. But for more space and privacy, check out StyloSuites, around the corner above a pub. The hotels are both just a five-minute walk from Hyde Park, which means it is easy to escape into one of London’s best green spaces. 

Just around the corner on London Street, you’ll find Sussex Arms Bar, which is London’s only modern aviation themed bar (yes, you read that correctly). Aircraft parts have been repurposed and there’s a huge selection of local and imported lagers and ales to enjoy, as well as wines and spirits. You can enjoy a tipple as you sit back and relax on original Concorde seats. Stylotel guests even get a complimentary drink to have at any point during their stay. What more could you want? 

Time Out tip: If you stay here, don’t forget to take a walk round the Serpentine to take in the views. 

Address: 160 Sussex Gardens, Paddington, Westminster Borough, London, W2 1U

Price: Starting at £118 for a double room

Closest transport: Paddington tube is a three-minute walk

Neighbourhood: Oxford Circus

Set within 12 converted Georgian townhouses, Z Soho is a total bargain for this central location. Stylish en suite rooms, with free Wi-Fi and flat-screen TVs, start from £118. The upsides are the organic wool mattresses and duvets, and free cheese and wine between 5pm and 8pm, but rooms are quite small, some are windowless, and there’s no decent storage space.

But, like with all the Z Hotels - there are 5 others in the capital - Z Soho is crammed full with character.  The onsite cafe might be small but it serves up good pizzas (made fresh to order), toasties, burgers, fries and even complimentary food and wine for Z members. For children there's a pretty impressive ice cream menu to browse, too.

The corridors have floor to ceiling windows, filling the hotel with light. There are plenty of gorgeous wood features that give the space a warm and welcoming feel. All of the 85 rooms have 48-inch TVs with complimentary Sky Sports and Sky Movies installed - so you’d be fully set for a night in, if you want one. But why would you? The best thing about Z Soho is undoubtedly the location. On its doorstep, there are theatres galore and endless restaurants and bars to choose from.

Time Out tip: While you’re in the area, it would be foolish not to book tickets to a West End show. Why not check out some of our favourites? Or if none of those take your fancy, Soho Theatre offers a rich and varied programme of both theatre and comedy. 

Address: 17 Moor St, London W1D 5AP

Price: Starting at £118 for a double room

Closest transport: Leciester Square station is a five-minute walk

Neighbourhood: Shoreditch

The Dutch invasion of stylish budget hotels continues with this Brick Lane offering focused on community and sustainability: the hotel works with local cycling charity Bikeworks and with Food Cycle. We love The Corner: it has more than 170 modular rooms, with comfy beds, decent showers, and is in prime location for exploring London’s East End.

The DIY operation – self-service check-in and the free snack continental breakfast – keeps prices low, but there are lobby staff on hand, a hangout lounge with games, and a park view for a few quid more. Rooms that are individually styled in bright tones and determinedly youthful, fresh decor start from just under £140 a night (for the ‘snug’ room with no view). But, all have TVs, rain-shower bathrooms, free tea and coffee and wifi throughout. The hotel is the self-proclaimed ‘greenest in London’ and prides itself on having 41% less water consumption than other UK hotels and 67% less CO2 emissions than the industry average. So, if saving the planet is your thing, there really is no place better. 

Time Out tip: The Corner’s Bar and Kitchen is an excellent option if you’re after something quick, easy and relatively healthy. With a sustainably sourced, vegan menu, it serves lunch, afternoon tea and dinner. 

Address:  42 Adler St, London E1 1EE

Price: Starting at £140

Nearest transport: Whitechapel tube is a three-minute walk

Neighbourhood: Aldgate

A polished hotel from a brand that knows what it’s doing, the relatively new Hyatt Place London City East (catchy name, huh?) is a bona-fide bargain. Just off the eastern end of Brick Lane, the location’s great for exploring the arty streets of Shoreditch, The City or Spitafields and everything is slick and well-run, with rooms starting at around £89. And god, the transport links are good.

There’s a swanky ninth-floor roof bar and terrace, where you can kick-back with a cockatil, relax and take in the views, as well as a 24-hour gym. Feeling hungry? Why not try the grab and go food market which sells Starbucks coffee. Or, if you fancy a sit-down meal, the onsite Sotto Cucina & Bar will take you right to the heart of Sicily, with its romantic vibes, fine wines and authentic dishes - the costolette di Agnello (grilled lamb cutlets with lamb croquettes and lamb jus) is just excellent. The design has a creative feel to it with art by Olly Fathers whose work also hangs in Soho House, there’s free WiFi and the rooms are simple, clean and stylish. Really, what more could you want?

Time Out tip: World-class art is on show at Whitechapel Gallery, just two minutes down the road, and Tayyabs, still the best place in London for Punjabi cuisine, is an easy walk, too.

Address: 45 Whitechapel Road, Black Lion House, London, England E1 1DU

Price: Starting at £89

Nearest transport: Aldgate East tube station is a three-minute walk

Neighbourhood: Paddington

Calling all wellnes fanatics, this one's for you. Just a five-minute walk from Paddington Station, you'll find Inhabit, where the hustle and bustle of the city stops and zen begins. Sitting inside a Grade II-listed, 19th-century Victorian townhouse, Inhabit might not look like a hotel on first inspection, but if you can live with all the talk of breathwork, relaxation and green juice, it is an unexpected haven. There are daily yoga and pilates classes, a calming art collection, a library and even a vegan restaurant. Of course, there's a meditation pod and saunas, too - this is wellness, after all. Decorated in cool tones, the hotel feels like something you'd traditionally find miles away from London. The rooms are elegant, the beds are hugeand there's a diffuser in each to keep you calm.

The mini fridge is stocked with Social Supermarket products, while Who Gives a Crap toilet paper is hung in every toilet. Inhabit seems genuinely committed to sustainability, and right in the heart of the capital, it offers the best of both worlds: a city stay and a retreat. There's another branch of the hotel just down the road, too. 

If you're staying here you might as well embrace the whole experience and try Yeotown, the plant-based restaurant. They serve breakfast, lunch and dinner and organic drinks are made to order. No alcohol is served here and you can expect dishes that are titled things like "joy", "balance" and "calm". Maybe you'll leave glowing?

Time Out tip: If you're bored of all the health stuff, try The Cleveland Arms nearby for a proper pub feast.

Address: 25–27 Southwick St, Paddington, London W2 1JQ.

Price: From £130

Nearest Transport: Paddington Station

Neighbourhood: Camberwell

Andalay Andalay! This Mexican-themed family-run hotel in the heart of Camberwell is fun, funky and friendly, thanks to the work of craftsman José Raido, who designed rooms that are bright and eclectic, with beautifully tiled bathrooms. A fine organic breakfast is served, there’s an honesty bar, with an impressive range of rums, in the Havana lounge, and staff can happily recommend local pubs and eateries.

There is definitely a hostel feel about the place. Single rooms come with a shared bathroom, there is free Wi-Fi throughout and each bedroom is uniquely decorated with throws and art. But, if you can cope with that then Church Street is fantastically kitsch, distinctive and all for prices that start as low as £55.

Colourful decoration is quite literally everywhere here - one room is cobalt blue, while another is painted in lime green - but that only adds to the holiday feeling of Church Street. This hotel may be a little rough around the edges, but it is arty, fun and family-orientated to its core.

If you want a cheap-eat to go alongside your cheap hotel, do not miss out on the incredible Falafel and Shawarma just down the road. There’s pretty much always a queue, but for a very good reason. And if that doesn’t quite tickle your taste buds, Camberwell has some other great foodie options, too. Time Out favourite Mondo Sondo does the menu at the Grove Tavern, and Silk Road has some of the best Sichuan food in the whole of London.

Time Out tip: Order a homemade smoothie at breakfast! They're pure goodness.

Address:  29-33 Camberwell Church Street, London, SE5 8TR

Price: Starting at £55

Closest transport: Oval tube is a 15-minute walk away

Neighbourhood: Notting Hill

Germany's Ruby chain launched in 2013 and has made its way over to London - currently, Ruby has three hotels in the capital. All of them are great, but Ruby Zoe is our top pick. Just a couple of minutes away from Notting Hill station, the hotel is in easy reach of the city and has all the essential amenities. Guests will walk straight into the bar, which doubles as a reception and has a vintage Ford 100E car as its centrepiece.

There is a bright communal working space where you'll be sure to find gangs of yuppies making calls. The decorations include a wall of records, and up-and-coming bands perform most nights. There's even a private garden on site, too.

Comparitvely, the design in the rooms is fairly minimalist, with white sheets and wooden floors, but there's Marshall radios placed in each as a nice extra. There is no spa or gym, but there are small kitchens on each floor where you can make hot drinks, as well as irons and vending machines. A continental breakfast is served between 7am-10am, with croissants, meats, hummus, pastries and bread. Ruby has a youthful soul, but provides sure-fire fun and relaxation.

With Notting Hill just on your doorstep, why not walk down to the institution that is Portobello Road Market which is London's largest antique market? Here, you can sift through vintage treasures and haggle for one-off bargains. With sections dedicated to secondhand goods, clothing and fashion, household essentials, fruit, veg and other food, as well as the main event - antiques, it has something to entertain everyone.

Time Out tip: Ruby puts on a huge programme of events including speed dating and games nights. 

Address: 146, 164 Notting Hill Gate, London W11 3QG

Prices start: 120 a night

Nearest transport: Notting Hill station is a five-minute walk

If you’re after a classic hotel, head to this Bloomsbury stalwart, occupying two Georgian townhouses overlooking Cartwright Gardens which, along with nearby tennis courts, are available for use by guests. Common areas are elegantly stylish, while comfortable, homely rooms feature everything you’d expect in terms of amenities, including free Wi-Fi. The hot buffet breakfast is free too.

Nearby sister hotel Jenkins, offers even cheaper options but The Judd is the one we’d recommend. Refurbished in 2019, the decoration gives the feel of regal wealth - but at half the price. And just a 20-minute walk away from the gorgeous Regent’s Park, you’re perfectly placed to step out of London’s hustle and bustle  into the green and quiet.

The rooms are brightened up with flashes of dark blue and gold - but are mostly neutral (no points for originality). Come prepared: most of them are on the small side. But, they’re more than pleasant and they remain the ideal central place to lay your head after a long day exploring the big city. 

Time Out tip: The beautiful British Library is right on The Judd Hotel’s doorstep. But, if you want to venture out of London, nearby St. Pancras is a key terminus for Eurostar (with direct trains to Brussels, Amsterdam and Paris) and high-speed rail in the UK.  Kings Cross station is just next door and if you’re a Harry Potter fan, don’t forget to look out for Platform 9 ¾.

Address: 24-26 Minories, EC3N1BQ London

Price: Starting at £128 for a double room

Closest transport: King’s Cross St. Pancras Underground tube is a five-minute walk

Neighbourhood: Tower Hill

With its free Wi-Fi, on-site bar and glitzy furnishings, the Motel One in the City is one of the more luxurious budget hotels around. Single rooms start at just £98, which really isn’t much considering the location and facilities availble. And it isn’t just cheap rooms that Motel One has on offer. Guests can enjoy exclusive discounts at nearby restaurants – some of which amount to a whopping 50 percent off.

Just a stone’s throw away from the Tower of London, Motel One is right in the centre of things, and has a real metropolitan feel. The hotel even pays homage to its royal neighbour with a collage that depicts the history of the coronation - so if you’re a fan of The Crown this might be the place for you.

The 24-hour foyer is suitably swanky; there’s dark lighting and leather sofas you could quite comfortably sit on for hours. You can add a continental breakfast onto your stay for an extra £9.99 where a selection of pastries, different types of bread, cheese and meat is served. For a central budget stay, we think this is pretty excellent and is in easy reach of pretty much all the touristy stuff imaginable. 

Time Out tip: For the full royal experience, why not walk down to Westminster Abbey and visit the Tower of London, too?

Address: 24-26 Minories, EC3N1BQ London

Price: Starting at £98 for a single room.

Closest transport: Tower Hill tube in a two-minute walk