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Cusco Backpackers – 5 BEST Hostels in Cusco for those on a Budget!

Cusco Backpackers – 5 BEST Hostels in Cusco for those on a Budget!

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This blog is for backpackers in Cusco who are looking for great budget hostels! After spending 4 weeks in Cusco (and staying at nearly a dozen hostels) we’ve narrowed down to the 5 BEST hostels in Cusco! (We’ve also included some other budget travel tips for backpackers such as things to do and how to save money!)

Cusco is the city every tourist floods in order to begin their trip to Machu Picchu. Many people make the mistake of allowing for only one or two nights in this city while allowing much more time to spend in other cities such as Lima.

Surprisingly, Cusco is actually quite an interesting city with various activities to do, a ton of culture to experience, and it offers many western creature comforts which makes it an easy place for backpackers to get “stuck” for a while.

This happened to us, “we will only need to spend about three days in Cusco” we said as we were arriving by bus from Arequipa. Four weeks later we found ourselves STILL in Cusco!

The thing about Cusco is that there are many rich tourists visiting on a short holiday to visit Machu Picchu. Many of the hotels, restaurants, and tours cater to these people who have much larger budgets than backpackers.

Therefore, you can easily find yourself spending too much money by either getting ripped off with extreme tourist prices or visiting the high-end tourist agencies and restaurants. Not to mention, you need to find budget-friendly hostels in Cusco that are fun, comfortable, and cheap!

In Cusco, we have discovered some of the best places for backpackers on a budget. Here are the 5 best hostels in Cusco for backpackers, as well as a few little extra budget-saving tips!

5 BEST Hostels in Cusco – Cusco Backpackers

I’ve chosen the 5 best hostels in Cusco based on my personal experience, referrals from friends, and lots of research of reviews across various websites. The choices are completely unbiased and are really what I think are the best places for backpackers in Cusco to stay!

I’ve also labeled them each so you can quickly choose the best one for you.

One last thing to note is that all of the hostels below have a central location as well as offer dorm beds for under $13 USD per night. They are all quality hostels where you will have a comfortable stay even being on a backpacker budget!

1. Selina Saphi Cusco – Best Value Hostel in Cusco

selins hostel in cusco common space
Selina’s are famous for beautifully decorate hostels and this one is Cusco is no exception! Photo Credit: Selina

Selina hostels have become famous around South and Central America simply because they are everywhere! This hostel brand has made a name for itself by offering really comfortable hostels going above and beyond what you normally see in a hostel.

Amazing facilities, friendly staff, exquisite design, and ample places to hang out make this Selina one of the best hostels in Cusco. They even have a yoga room, co-working space, communal kitchen, as well as a space to hang out outside!

The bar and restaurant is a little pricey but does offer the chance to meet other travelers or just sip on a coffee.

Like all of the hostels on this list, the location is great and the reviews are even better!

I’ve chosen this hostel as the “best value” because although it is not the cheapest hostel available in Cusco, it is the cheapest that offers a really quality stay. Any of the hostels that are cheaper tend to have very basic facilities and compromise quality.

A dorm bed here goes for as little as $5.50 USD per night without breakfast. If you have extra cash to spare, their private rooms are absolutely gorgeous but do cost quite a lot more.

Book Selina Saphi Cusco on

Book Selina Saphi Cusco on Hostelworld

2. Backpacker La Bo’M – The Most “Chill” Hostel in Cusco

la bom hostel in cusco
A cozy, friendly, relaxed hostel in Cusco! Photo Credit: Backpacker La Bo’M

Backpacker La Bo’M Hostel is a cozy hostel set in a colonial building in the heart of Cusco. With a large courtyard for hanging out, a small bar and restaurant, as well as spacious rooms (yes, even the dorm rooms) this hostel is the perfect place to just relax.

While there is a bar, you won’t get a party here and that’s all what makes it one of the most chill hostels in Cusco!

It is relaxing, and a bit of an escape from the hustle and bustle of Cusco which sits right outside its front doors.

The staff here are highly rated and the onsite restaurant is actually a creperie – win!

Expect to pay about $11.00 USD per night for a dorm bed in a 5 share with breakfast included!

Book Backpacker La Bo’M in Cusco on

3. Loki Hostel – Best Party Hostel in Cusco

loki hostel cusco bar
Loki is known around South America for having awesome parties! Photo Credit: Loki Hostel Cusco

On the opposite of the spectrum from Backpacker La Bo’M, we have Loki Hostel which is famous for having large nightly parties. Actually, scratch that, daily parties that span well into the night.

If you want to drink cheap drinks with other backpackers and dance the night away this is the place for you! Their very large building has an abundance of space to house hundreds of backpackers in Cusco and makes it the easiest place to party!

But besides the party, Loki is a very nice hostel. I stayed here in both a double private room (which was of a nice 3-star hotel quality) as well as a dorm and found both were great! Each dorm bed had its own plug and little locker which was really handy.

Sure, the hostel can be a little noisy. But, if you book a private room instead of a dorm you are in a separate area of the building which is quieter.

For a 14 share dorm bed expect to pay about $7.50 per night without breakfast. It is also important to note that there is no kitchen for guests to use here. But in all honesty, this isn’t a problem as the meals at Loki are cheap and there are many other very cheap places to eat nearby.

Book the Loki Hostel Cusco on

Book the Loki Hostel Cusco on Hostelworld

4. Nao Victoria Hostel – The Classiest Hostel in Cusco

common area in nao victoria hostel in cusco
This hostel looks more like a trendy boutique hostel than a backpackers! Photo Credit: Nao Victoria Hostel

This one is for the “flashpackers”! You know, backpackers in Cusco who are budget conscious but don’t want to sacrifice on comfort. In all honesty, this is the type of traveler I am these days and I loved the Nao Victoria Hostel in Cusco!

Beautifully decorated in a colonial building, this hostel appears to be more of a classy boutique hotel rather than a hostel – but they have dorm rooms!

Dorm beds are comfortable and have curtains so you are completely isolated on your own, almost like a pod! Each bed also has its own light and power outlet.

From Nao Victoria Hostel to the main plaza is only a 2-minute walk!

There is also a small restaurant and bar onsite, but there are tons of restaurants right outside the front door too.

For such an upscale hostel I was surprised that a dorm bed with breakfast included goes for as little as $13 USD! Their standard private rooms are also very nice and affordable for backpackers!

Book Nao Victoria Hostel on

Book Nao Victoria Hostel on Hostelworld

5. Pariwana Hostel – The Most Social Hostel in Cusco

pariwana hostel in cusco outdoor coutryard
This social hostel has a great fun atmosphere! Photo Credit: Pariwana Hostel

Pariwana Hostel is what most Cusco backpackers are looking for in a hostel – social! The social vibe is everything when it comes to picking the right hostel in Cusco. If you want to meet other travelers then Pariwana Hostel is the place to do so.

This place can be a little on the “party” side with a bar that is busy practically every night. However, they do adhere to a strict time schedule when everything must be shut down to allow guests to get a good night’s sleep.

The large common areas and friendly staff make the environment so inviting and easy to meet other travelers.

But besides the social vibe, Pariwana has nice facilities offering everything you would expect from a top-rated hostel in Cusco. Location is central and they have an onsite restaurant perfect for an easy meal.

Expect to pay about $11 USD for a dorm bed in a 10 share with breakfast included!

Book the Pariwana Hostel on

Book the Pariwana Hostel on Hostelworld

Related Read:   5 Types of Colca Canyon Tours in Peru - Comparing Colca Canyon Tours

And there you have it, the best 5 hostels in Cusco – one for every type of backpacker! If you are looking for some other backpacker budget-saving tips while in Cusco then keep reading, I’ve got some more advice to share!

Cheap Things to do in Cusco for Backpackers (other than Machu Picchu!)

Now that you’ve learned about the best hotels in Cusco for backpackers, here are some cheap things to do in Cusco which you might want to check out!

1. Join a Free Walking Tour

The main cathedral in Cusco, Peru
You’ll visit lots of amazing places on the walking tour and learn about the Inca city.

Cusco is surprisingly large and the best way to get your bearings once arriving is to join a free walking tour.

We aren’t always fans of these tours (sometimes we think they are boring) but Cusco is an exception. There is a lot of interesting history and hidden alleys that only a local could show you.

Show up at the Plaza de Armas any day at 10 am 12:30 pm or 3 pm and there will be a tour you can join which costs nothing but a tip at the end. Perfect for someone on a backpacker budget in Cusco.

Related Read:   15 BEST Lima Tours - Day Trips & Day Tours from Lima

2. Hike Rainbow Mountain

Rainbow Mountain, Peru
A quick snap before the altitude sickness kicked in!

This mountain isn’t quite as colorful as a rainbow but it is beautiful and cheap to visit.

Expect to pay about $30 for a tour including breakfast and an English speaking guide.

Keep in mind that it is a 12km hike at over 5,000m above sea level. So, only take on Rainbow Mountain after being acclimatized for a few days in Cusco (and if you aren’t feeling up to the hike, bring an extra 80 soles to ride a horse.)

Book this cheap and highly rated Rainbow Mountain tour online in advance now!

Related Read:   15 BEST Hikes in South America

3. Visit the Sacred Valley

Sacred Valley Cusco, Peru
The stunning Sacred Valley

If you love Inca ruins then this day tour is for you. You can do it for as cheap as 50 soles plus all entrance fees. In the Sacred Valley, you can explore lots of Inca ruins and enjoy breathtaking views!

If you want a guaranteed amazing tour then this tour here is one of the most top reviews tours to the Sacred Valley. Looking back I wish I had of booked that tour as our guide barley spoke English and lunch was never included (it was suppose to be!)

4. The Chocolate Museum

making chocolate at the chocolate museum
If you want, you can join a chocolate making class as we did!

It isn’t really a museum, more of a store that offered tours about chocolate. BUT, they also give free chocolate, free liquor, free hot chocolate, and the tour is also actually free.

It is only a quick 30-minute ordeal (if you don’t sign up and pay for an actual workshop) but the free chocolate is totally worth it. What more could backpackers in Cusco ask for than free chocolate?

You can visit the Chocolate Museum in Cusco at: Calle Garci.aso 210. OR you can get more information by checking out their website!

5. The Inka Museum (Museo Inka)

Artifacts at the Inca Museum in Cusco, Peru
Artifacts at the Inca Museum

It is only a 10 soles entrance free and is one of the few museums we have found in South America which actually has English descriptions throughout.

The best part of the museum is the mummified Inkas you can see at the end – if you haven’t already seen the one in Arequipa, this is something you need to check out.

You will find the Inca Museum located directly behind KFC at the Plaza de Armas, follow the ally one block and you will see it!

6. Go to the San Pedro Market

The San Pedro Market, Cusco

The San Pedro Market is a huge market located right in Cusco. This market sells everything and anything from fresh fruit and vegetables to cute souvenirs.

If you’re after a huge selection of souvenirs in one place this is the market to visit. However, I also recommend coming here to try some local produce and some weird fruits you may never have tried before.

Where to Eat in Cusco (for Backpackers on a Budget!)

Maikhana Indian Buffet restaurant
Maikhana Indian Buffet restaurant

San Blas Mercado

You can choose between dozens of “menus of the day” (soup and a main course) for only 5 soles or buy amazing sandwiches for 2-6 soles. There is also a vegetarian place under a big sign that says “Falafel” which serves amazing food for only 6 soles.

Did I mention 1 sole Avacado’s (less than $0.50)!

This is by far the best value place to eat out in Cusco. It is only open for lunch between 12-3 pm every day. A haven for backpackers in Cusco.


Maikhana is an Indian restaurant that offers an all you can eat Indian buffet including filtered water for only 15 soles. The owner is lovely and speaks English so she will explain what is in every dish. You cannot leave this place anything less than stuffed, that is for sure.

Paddy’s Irish Pub

Right on the corner at the Plaza de Armas, this place offers great western dishes at a decent price (20-30 soles) as well as the expected lively Irish bar environment.


If you are hungover and craving fast food (most backpackers in Cusco usually are), skip the overpriced western option of KFC and McDonalds and go across the street at the Plaza de Armas to Bambos! Bambos is a Peruvian fast-food chain. It is cheaper and actually really good!

So if you’re a backpacker in Cusco, you now have some tips on the best hostels in Cusco, cheap things to do, and where to eat on a budget! I’m hoping my blog has helped plan your time backpacking in Cusco!

If you liked this blog, you might like some of our other Peru blogs including:

If you have any questions or comments, please leave them below and I will get back to you!


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