Best Budget Stays in Delhi for Tourists

Delhi is not the kind of city you want to pick the cheapest hotel to stay in. Safety is an issue, and location is very important. The city is massive and staying far from the centre can mean hours in transit. These are the best budget stays in Delhi for tourists and they are all in good areas.
Do Not Stay in Paharganj
If you search for cheap hotels in Delhi, the area of Paharganj will come up. Do not stay there. It is a dirty, noisy, congested area known for backpacker lodging and prostitution. Paharganj is not that safe.
If I would have stayed in Paharganj on my first trip to Delhi, I never would have gone back. These are much better choices.
My very top choices for budget stays in Delhi are:
Best Budget Stays in Delhi for Tourists
All of these budget friendly accommodations are located in South Delhi, or Central Delhi by Connaught Place. These are the best areas to stay at in terms of safety and easy access to the metro and main sites.
There is no need to compromise on safety when looking for the best budget stays in Delhi. These are all located in far safer areas than Paharganj.
Best Budget Hotels for Tourists

- YWCA International Guest House: It’s my top pick because it’s very affordable, clean, has private bathrooms and AC, and the location is superb. It’s located in one of the nicest and greenest parts of South Delhi close to many 5 star luxury hotels. Fantastic spot to visit Delhi’s must-see places from. Breakfast is included. Rooms from $37 US.
- Home@F37: An excellent small hotel with large guest rooms. Many friends have stayed here and liked it. The location is very good within walking distance of the metro and GK I Market with lots of shopping and restaurant options. Well located for sightseeing. Rooms from $60 US.
Best Budget Guest Houses for Tourists

- Bed and Chai Guesthouse: This used to be one of the best budget guesthouse in Delhi, but it changed ownership a few years ago and hasn’t been as good. However, it is still fantastic value for the area. You’re getting backpacker rates in one of Delhi’s best neighbourhoods. Rooms are clean, but no frills, starting at $20 US, including breakfast.
- Aashianaa Gracious Living: Small guest house run by a family of classical Indian musicians. Sometimes they have concerts on the rooftop. Rooms have enuites and there’s a common kitchen. The metro is 5 minutes walk away, but you’ll be able to take auto rickshaws to most places – it’s very central near the GK II Market. From $35 US.
- CP Villa Bed & Breakfast: Excellent location on a quiet street next to Connaught Place. Rooms are clean and comfortable with ensuite bathrooms, and there’s a big garden. This is excellent value for this part of Delhi, and it’s a great base to explore the city from. Rooms from $42 USD, including breakfast.

- Tatvamansi Homestay: Small property in the Bengali part of Delhi across the street from a park. Great location to explore Delhi from and only a 5 minute walk to GK II Market, one of the best places in Delhi for shopping and dining. Rooms are large and there’s a common kitchen. This area is busy and noisy during Durga Puja (in September or October). Rooms from $46 US.
- Prakash Kutir Bed & Breakfast: Very popular bed and breakfast in a residential part of Hauz Khas. Spotlessly clean and a great location for exploring Delhi. Within walking distance of a market with shops and restaurants, and the metro. Reserve this one in advance, it’s often fully booked. Home cooked breakfast included. Rooms from $60 US.
- Thikana Delhi: One of my all-time favouite guest houses. Lovely property in an exclusive enclave called Gulmohar Park. Great location to explore Delhi from. Very close to Prakash Kutir, but quieter and a little nicer. Bit further for shopping, restaurants and the metro, though. Thikana has amazing coffee and a nice rooftop terrace. Rooms from $65 US.

- Tree of Life Bed & Breakfast: Nice, clean, comfortable bed and breakfast on a very good street beside a park in South Delhi. Rooms are generous with bathrooms, and some even have balconies. I stayed in this neighbourhood around the corner from Tree of Life for 3 months. It’s super convenient for exploring Delhi. Room including breakfast from $65 US.
- Colonel’s Retreat 2: The is the sister property of the more expensive Colonels Retreat, and it’s located in the same upscale residential neighbourhood. Guests can have breakfast on the outdoor terrace if it’s not too hot. Great location near lots of shopping and restaurants and easy for exploring Delhi. Rooms from $70 US, including breakfast.
Best Hostels for Tourists

Not all hostels are created equal in Delhi – these two are the best.
- Moustache Delhi: Good hostel in South East Delhi, about 10 minutes walk from the metro. They offer a variety of dorm rooms as well as private rooms with ensuite bathroom. There’s a rooftop terrace and free wifi. I thought this hostel was pretty clean and staff were friendly. From $9 US.
- Hosteller Delhi: I’ve visited a few hostels in Delhi, and I think this is the best one. It’s very popular, and the staff are super nice. They have a mix of dorm rooms and private rooms. There’s an onsite cafe, common kitchen and shared social areas. Within walking distance of the metro. From $12 US.
Last Words on Budget Stays in Delhi for Tourists
There are really good options for tourists who want to stay in Delhi on a budget. Don’t get sucked into one of those cheap hotels in Paharganj. That is a not a good area for many reasons (safety being a big one).
The budget-friendly accommodations I recommend here are much better options. You’ll be more comfortable and staying in very good neigbourhoods.