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Staying in Newcastle, New South Wales, is like getting the best of beach-town vibes with a splash of city charm – and the bonus? You get it all on a budget.
If you’re crashing at one of the local hostels (shoutout to the ones near the beach or in the East End), expect laid-back vibes, social lounges, and often a cheeky rooftop or two. It’s super walkable, so you can roll out of bed and be on the sand or sipping coffee within minutes. Let me tell you something: You’ll definitely want to do the latter because Australia is known for its epic artisan coffee scene.
Budget accommodation here doesn’t feel like a compromise – it’s warm, friendly, and full of fellow backpackers and surfers swapping stories. You’ve got cool breweries, live music, and unreal sunsets at the Anzac Memorial Walk.
Public transport’s easy, but honestly, half the fun is strolling around town, taking in all the sights and sounds and just generally enjoying the good old Aussie atmosphere.
Whether you’re here to surf, chill, or just soak up that golden Australian sunshine, Newcastle’s an affordable gem that punches way above its weight class.
Photo: Nic Hilditch-Short
The Broke Backpacker is supported by you. Clicking through our links may earn us a small affiliate commission, and that's what allows us to keep producing free content 🙂 Learn more.
Quick Answers: The Best Hostels in Newcastle
- Best Overall Hostel In Newcastle – The Commonwealth Hotel
- Best Hostel in Newcastle for Solo Travellers – Backpackers Newcastle
- Best Cheap Hostel in Newcastle – The Oriental Hotel
- Best Hostel for Digital Nomads in Newcastle – Surf Beach Motel, Newcastle
The 4 Best Hostels in Newcastle
Newcastle is an awesome place if you’re on a budget trip to Australia, because having a little bit less pocket money simply isn’t going to hinder your travel experience – if anything, it may even help push you towards some really great experiences.
Here are the four best hostels in Newcastle, New South Wales.
1. The Commonwealth Hotel | Best Overall Hostel In Newcastle
- Private Room: From $69
- Address: 35 Union Street, 2300 Newcastle, Australia
Stepping into the Commonwealth Hotel, affectionately known as “The Commy,” feels like entering a homely little time capsule where vintage charm meets modern comfort. The ambience is a delightful blend of laid-back Aussie hospitality and historic character, making it a fan favourite among travellers on the hunt for an authentic local experience.
The communal areas are always abuzz with friendly chatter and the swapping of travel stories, making it a great place to crack open a cold one or talk rubbish with fellow guests, whatever time of year you visit.
Whether you’re a solo adventurer or travelling with mates, the Commy’s welcoming vibe ensures you’ll feel right at home. It’s not just a place to sleep – it’s a place to connect, relax, and soak in the true spirit of Newcastle.
- Central location near shops, restaurants, cafes, and more
- A few minutes from the beach
- Not far away from the airport
Located in the heart of Cooks Hill, the Commonwealth Hotel boasts a prime location that’s just a stone’s throw away from some of Newcastle’s top attractions. A short stroll will take you to the vibrant Darby Street, known for its eclectic mix of cafes, boutiques, and galleries.
And most importantly, let’s be honest, beach lovers will appreciate the proximity to Bar Beach and Nobbys Beach, both just a quick drive away, offering sun, surf, and stunning coastal views.
For those interested in art and culture, the Newcastle Art Gallery and Civic Theatre are nearby, providing a dose of creativity and entertainment.
Back at the hotel, guests can check out the on-site restaurant serving delicious hearty meals (great after a long day of exploring or a big night out on the town) or relax in the beer garden with a refreshing drink.
2. Backpackers Newcastle | Best Hostel in Newcastle for Solo Travellers
- Dorm (mixed): From $28
- Private Room: From $65
- Address: 42-44 Denison Street, Hamilton, 2303 Newcastle, Australia
If you’re looking for a vibey hostel where you can be comfortable and also mingle with other travellers, Backpackers Newcastle is the place for you. Honestly, it’s a full-on vibe. Think easy-going beach town energy meets hostel party culture with a side of comfort (and a whole lot of Aussie spice).
This is the kind of spot where no one cares if you’re rocking bed hair or still wearing yesterday’s outfit. The staff are super chill, and the guests are just there for a good time – you’re sure to find everyone from gap year globe-trotters to seasoned digital nomads. There’s always someone around to share a laugh, a travel story, or a cheap bottle of wine, which, I’ll be honest, is kind of a prerequisite when it comes to fun places to stay.
The whole place feels like a community – whether you’re bonding over board games, teaming up for hostel outings, or simply swinging in a hammock and watching the world go by. It’s the kind of hostel where you plan to stay two nights and end up there for a week (or a month, nobody’s judging). It’s laid-back, a little cheeky, and totally unforgettable.
- Budget-friendly but super comfy
- Awesome place to meet people
- Great place to relax (with hammocks, a pool area, and a general “chill” vibe
Backpackers Newcastle is located on Tyrrell Street, which means you’re close enough to the action but far enough from late-night noise to actually sleep – it’s the dream (so to speak). It’s just a hop, skip, and a short stumble to the trendy cafes and local pubs in Cooks Hill, and only about 20 minutes on foot to Newcastle Beach (yes, bring your thongs!)
If you’re keen on doing some shopping during your trip, Darby Street’s boutiques and vintage stores are right around the corner, and the Newcastle Museum is nearby if you’re feeling all cultured and curious – it’s all about balance, baby.
The hostel also dishes out the extras: free breakfast to kick off your day (score!), a communal kitchen to cook your famous backpacker pasta (survival 101 in expensive Australia), and a laundry room to de-stink your socks (absolutely vital for everybody’s sake). They even throw in free on-site parking – rare hostel magic for road trippers.
3. The Oriental Hotel | Best Cheap Hostel in Newcastle
- Private Room: From $50
- Address: 53 Bull St, Cooks Hill, 2300 Newcastle, Australia
The Oriental isn’t your typical bunk-bed, shared-bathroom kind of hostel – it’s got more flair and a whole lot more flavour – and definitely more live music. Think classic pub charm mixed with boutique-y vibes, and then you can actually sleep over – are we in heaven?
It’s the kind of place where you might check in solo but end up dancing with a table of locals by midnight. Guests here are a laid-back bunch, and there’s always a happy hum of laughter, clinking glasses, and someone recommending a beach you have to visit.
This isn’t just a crash pad, it’s a full-on experience. There’s an authentic Aussie pub atmosphere downstairs, and the rooms upstairs keep things comfy and quiet (if you want quiet). It hits the sweet spot between backpacker budget and grown-up comfort – no snoring dorm mates, no mystery fridge smells (ew), just solid hospitality with a side of fun. It’s perfect for the traveller who’s done the wild backpacking experience and is now looking for a free travel style with a bit more style without blowing the travel budget.
- Bar (with eight different beers on tap!!!) and restaurant on site
- 3 Minutes’ drive from Bar Beach and 5 minutes from Nobby’s Beach
- Live music on site
At the Oriental Hotel, you couldn’t be any more smack dab in the heart of Newcastle – it makes exploring the city a total breeze. It’s in Cooks Hill, which is basically Newcastle’s cool kid neighbourhood – full of art, indie shops, and coffee strong enough to wake the dead (sign me up!).
A ten-minute stroll gets you to the golden sands of Bar Beach or the scenic Bathers Way coastal walk (bring sunnies and sunscreen, trust us). So you’re close to some proper beautiful places to visit. If you’re more into culture than waves, you’ve got Newcastle Art Gallery and Civic Park just around the corner.
Aside from its killer location, The Ori (as the locals call it) packs in a few extra perks – live gigs on the reg, a buzzing beer garden, trivia nights, and pub grub that actually slaps. There’s Wi-Fi throughout, and the rooms, although simple, are clean, comfy, and come with everything you need (minus the minibar you’d probably just ignore anyway).
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View on Osprey4. Surf Beach Motel, Newcastle | Best Hostel for Digital Nomads in Newcastle
- Private Room: From $70
- Address: 270 Pacific Highway, Charlestown, 2290 Newcastle, Australia
Newcastle Motel is all about offering a relaxed and unpretentious atmosphere, perfect for travellers wanting a straightforward yet comfortable stay. The motel’s vibe is reminiscent of classic road trips, providing a nostalgic charm that appeals to both solo adventurers and families.
Guests can enjoy the simplicity of the accommodation, which focuses on functionality and comfort without unnecessary frills – perfect if you don’t care much for all the fancy added extras.
The friendly staff adds to the welcoming environment, ensuring that visitors feel at ease from check-in to check-out, which is always a bonus, especially if you’re alone or if you’ve been travelling (and away from home) for a while.
- Bicycle parking on site
- Super central, near the airport, local attractions, and beaches
- Private bathrooms
Located at 270 Pacific Highway in Charlestown, Newcastle Motel is super conveniently and strategically positioned, making it perfect for guests to explore the best of the region.
Just a short walk away is Charlestown Square, one of the largest shopping centres in the area, offering a variety of retail stores, dining options, and entertainment facilities – ideal for pottering around both during the day or at night.
Nature enthusiasts will appreciate the proximity to Glenrock State Conservation Area, where hiking trails and scenic views are aplenty. For beach lovers, Dudley Beach and Burwood Beach are just a short drive away, providing sun, surf, and sand.
The motel’s location also offers easy access to public transportation, making it convenient to venture into Newcastle’s city centre or other nearby attractions.
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Hide Yo’ Money!More Epic Newcastle Hostels
If you haven’t found quite what you’re looking for, that’s okay, we still have your back. Here are a few more options for budget accommodation in Newcastle, New South Wales.
YHA Newcastle Beach
- Dorm (mixed): From $32
- Private Room: From $78
- Address: 30 Pacific Street, 2300 Newcastle, Australia
If beachside hostels are your thing, Newcastle Beach YHA is going to steal your sun-kissed little heart. Sitting right across from one of the best surf spots in the city, this place absolutely exudes laid-back coastal cool.
It’s a budget-friendly stay with million-dollar views, and honestly, that’s not a bad combo, like, at all. You’ll find everything you need for a comfy and social stay – clean dorms, private rooms, a massive shared kitchen, and plenty of space to hang out and meet fellow travellers at this classic Aussie hostel.
The vibe is chilled as hell – think sandy feet, surfboards leaning against the wall, and someone strumming a guitar in the common room. It’s not wild-party central, but there’s always someone keen for a beach walk, a drink, or a group dinner.
Prices are wallet-friendly too, especially for the beachside real estate you’re getting. Whether you’re a solo nomad in Australia or rolling in with mates, it’s a great base for exploring the city – or even just doing nothing at all except catching rays and waves if that’s what you’re after.
The rooftop terrace is a standout – you can soak in sunrise views over the Pacific or just lounge around with other sun-chasers. Plus, you’re right near Newcastle Ocean Baths, cool cafés, and the coastal walk, so there’s plenty to do if you want to explore.
With free Wi-Fi, laundry facilities, bike rentals, and a chilled-out crew of staff who actually know the area, this hostel ticks all the right boxes.
Northern Star Hotel
- Private Room: From $81
- Address: 112 Beaumont Street, 2303 Hamilton, Australia
Nestled in the heart of Hamilton, New South Wales, the Northern Star Hotel offers a unique blend of comfort, affordability, and vibrant local culture. Just minutes from Newcastle’s central attractions, including the Showground, Entertainment Centre, and pristine beaches, this hotel is perfectly positioned for both leisure and business travellers.
The hotel’s accommodation is thoughtfully designed, featuring air-conditioned rooms with flat-screen TVS and bar fridges, like a home away from home. Guests can choose from various room types, including options with private or shared bathrooms, catering to diverse preferences and budgets.
A standout feature is the on-site Irish-themed pub and restaurant, renowned for its lively atmosphere, live music, and delectable dishes like the Guinness pie – who wouldn’t love that? With over 20 beers on tap and an extensive whiskey selection (need I say more?), It’s a favourite among both locals and tourists.
While the hotel’s vibrant nightlife is a draw for loads of visitors, it’s worth noting that the evening entertainment can lead to higher noise levels, especially upstairs, so if you’re looking for a really quiet and peaceful stay, this may not be the right choice. However, the friendly staff, clean facilities, and overall value make the Northern Star Hotel a bang-up choice for those seeking an authentic and engaging Newcastle experience.
The Premier Hotel, Broadmedow
- Private Room: From $52
- Address: 1 Brunker Road, Broadmeadow, 2292 Newcastle, Australia
If you’re after a low-fuss, no-frills stay in Newcastle that still gives off good vibes and a solid night’s sleep, The Premier Hotel is calling your name. This isn’t your typical hostel – it’s more of a pub-with-rooms vibe, and honestly, it works. You’ve got all the comforts of a private hotel room (hello, en-suite bathrooms and fresh linen!) paired with the lively buzz of the local pub downstairs. It’s the kind of place that says, “Let’s keep it casual, but clean” (and also, you can pretty much roll to bed).
Price-wise, it’s super reasonable, especially if you’re splitting the cost with a mate or two. It’s a total win for travellers who don’t need room service and spas but do appreciate comfy beds, air-con, a good shower, and being within walking distance of everything that matters.
The rooms are stylish and fresh, modern décor with a touch of home, and the space is perfect for crashing after a day at the beach or a night at the bar.
There’s no hostel-style kitchen or common area, but you’ve got the pub right there for eats, drinks, and random local banter, so you’ll still have plenty of opportunity to make some friends.
You’re also super close to Broadmeadow train station, which makes getting around a breeze, and just a short ride from the beach, city centre, and cafes galore.
Getting Insured BEFORE Visiting Newcastle
ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.
They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.
SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!
Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.
FAQs About the Best Hostels In Newcastle
Still not sure? Here are a few FAQS about the best hostels in Newcastle to help you make the final call.
What To Pack For Newcastle
Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.
Ear Plugs
Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.
Hanging Laundry Bag
Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.
Sea To Summit Micro Towel
Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.
Monopoly Deal
Forget about Poker! Monopoly Deal is the single best travel card game that we have ever played. Works with 2-5 players and guarantees happy days.
Grayl Geopress Water Bottle
Always travel with a water bottle! They save you money and reduce your plastic footprint on our planet. The Grayl Geopress acts as a purifier AND temperature regulator. Boom!
Check out my definitive hostel packing list for even more top hostel packing tips!
How much do hostels in Newcastle cost?
Hostel beds in Newcastle typically range from $30 to $50 AUD per night for dorm rooms. Private rooms in hostels may cost a bit more, usually around $80 to $100 AUD.
What is the best hostel in Newcastle near the airport?
While there aren’t hostels directly at the airport, Newcastle Beach YHA is a top-rated option about 30–35 minutes away, with easy access via public transport or taxi. It’s central, affordable, and popular with all types of travellers.
Final Thoughts on Newcastle’s Hostels
Newcastle, Australia, might not be the first place that pops into your head when you think “epic getaway,” but trust us, it should be. From beachside hostels that serve laid-back surfer vibes to pub-style digs where the bar is literally your downstairs neighbour, this city knows how to do budget stays right.
Whether you’re looking to meet new mates, crash somewhere clean and cosy, or sip a cold one just steps from your bed, there’s a spot in Newy with your name on it, and you’re sure to have an epic time.
The best part is that you don’t need to sell a kidney (or even consider it) to afford your accommodation. With options that balance comfort, convenience, and just the right amount of quirk, you’ll save your cash for what really matters – like fish and chips, day trips, and, let’s be real, beer (and a whole lot more beer).
So pack light, book smart, and get ready to fall a little bit in love with Newcastle.
Photo: Nic Hilditch-Short
- Check out our extensive guide to backpacking in Australia for a wealth of info!
- Not sure what to do once you arrive? We’ve got all the beautiful places in Australia covered.
- Skip the dorm and find a super cool Airbnb in Australia if you’re feeling fancy!
- Check out the best places to stay in Australia before you arrive.
- Prepare for your trip with our backpacking packing list.
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