Stockholm, the capital of Sweden, is a city of islands, bridges, and stunning waterfront views. Often called the “Venice of the North,” it’s famous for its colorful Old Town, world-class museums, and modern Scandinavian design. But here’s the catch—Stockholm is also known for being one of Europe’s most expensive cities.
The good news? You don’t have to spend a fortune to experience this stylish capital. With smart planning and the right choice of accommodation, you can find budget hotels in Stockholm that are comfortable, convenient, and won’t drain your wallet.
This guide will help you discover the best affordable places to stay, the top neighborhoods for budget travelers, and money-saving tips to make the most of your Stockholm adventure.
Why Stockholm Can Be Expensive – And How to Save
Stockholm consistently ranks as one of the priciest European capitals for tourists. Dining out, transportation, and hotel costs can quickly add up. But budget-conscious travelers still have plenty of options:
Affordable hostels and budget hotels in great locations.
City passes like the Stockholm Pass, which include public transport and entry to attractions.
Plenty of free or low-cost attractions, including walking tours, parks, and markets.
Best Areas to Stay in Stockholm on a Budget
1. Gamla Stan (Old Town)
The heart of Stockholm, Gamla Stan is filled with cobblestone streets, colorful buildings, and historic sites. Staying here puts you close to the Royal Palace and main attractions. While most hotels in Gamla Stan are pricey, there are a few budget-friendly guesthouses if you book early.
2. Södermalm – Trendy & Affordable
This hip neighborhood is filled with vintage shops, art galleries, and budget-friendly cafés. Södermalm has a range of hostels and budget hotels, making it a top pick for younger travelers and backpackers.
3. Kungsholmen – Peaceful & Well-Connected
Located west of the city center, Kungsholmen offers a more relaxed vibe with parks, waterfront walks, and affordable hotels. With good metro connections, you’ll still be close to Stockholm’s main attractions.
4. Norrmalm – Central Convenience
Norrmalm is Stockholm’s downtown area, home to the central station and shopping streets. While some hotels here are expensive, budget chains and hostels provide excellent value for travelers who want to be in the center.
5. Vasastan – Local Experience
This residential district is less touristy but filled with affordable restaurants and cozy budget hotels. It’s perfect for travelers looking for a quieter stay with easy metro access.
Recommended Budget Hotels in Stockholm
Here are a few traveler-favorite options that combine affordability with comfort:
Generator Stockholm – A stylish budget hotel and hostel in Norrmalm, offering modern design, private rooms, and dorms. Great for social travelers.
City Backpackers Hostel – One of the most popular hostels in Stockholm, known for its cozy atmosphere, free pasta, and excellent location.
Motel L Hammarby Sjöstad – A trendy budget hotel with colorful Scandinavian design, offering great value near Södermalm.
Ibis Styles Stockholm Odenplan – Affordable hotel in Vasastan, with breakfast included and easy metro access.
💡 You can compare rates and book affordable stays easily through Trip.com, which often offers discounts on budget hotels in Stockholm.
Money-Saving Tips for Stockholm Travelers
Buy the Stockholm Pass: Covers entry to over 60 attractions and includes public transport, saving you both time and money.
Use public transport smartly: A travel card is cheaper than buying single tickets. Ferries, buses, and metros are well connected.
Eat budget-friendly meals: Stockholm has affordable lunch deals (dagens rätt) and food halls like Hötorgshallen where you can try Swedish specialties at lower prices.
Enjoy free attractions: Wander through Gamla Stan, visit the modern art at Fotografiska (free for some passes), or relax in Djurgården’s green spaces.
Book early: Budget hotels and hostels fill quickly, especially in summer when tourists flock to Stockholm.
Why Budget Hotels in Stockholm Are Worth It
Staying in a budget hotel doesn’t mean sacrificing comfort. In fact, Stockholm’s budget accommodations are often stylish and modern, reflecting the city’s love for clean Scandinavian design. Many offer perks like free Wi-Fi, included breakfast, and social areas for meeting other travelers.
By choosing a budget hotel, you’ll save money for the experiences that matter—like taking a boat tour through the archipelago, visiting the ABBA Museum, or enjoying fika (coffee and cake) in a cozy café.
Final Thoughts
Stockholm may have a reputation for being expensive, but with careful planning, you can enjoy the city without overspending. Whether you stay in trendy Södermalm, the historic streets of Gamla Stan, or the peaceful vibe of Kungsholmen, there are plenty of budget hotel options to fit your needs.
So don’t let cost hold you back—book your affordable stay and explore one of Europe’s most beautiful and stylish capitals!