There is a huge range of backpacker hostels and budget accomodations in Hong Kong.
On one end you have the classicaly infamous Chung King Mansions, with its edgy scene in the center of TST... the curry shops, money changers, tailors, doubtful characters and multiple floors of guesthouses all contributing to the melting pot milieu that has become an attraction of its own making. Expect to pay around HK250 for a "room" here.
Around the corner, you have the Salisbury YMCA, which is not your typical Y. It might well be the world's best and most expensive YMCA. Also in the heart of TST with stunning views of Victoria Harbour, the Y has been attracting travellers for ages. Rates are around HK$800 - HK$1,200. DO splurge for the Harbour View rooms, it's the reason you are staying here.
And in between there is a host of small inns and backpacker hostels all around the city. Generally speaking, rooms are small and ammenities limited, some have private bathrooms, some shared, most are clean and friendly and have wifi.
Here are a few options for you to consider. Be sure to read recent reviews for any hostel you are considering!
Hostels in the Kowloon Side
Urban Pack 
- Fantastic location in Tsim Sha Tsui, 5 minutes from the Star Ferry and Avenue of the Stars in the waterfront
- Two minutes from Tsim Sha Tsui MTR station
- Nice common areas with games, massage chair, microwave and free coffee and tea
- Free Wi-Fi
- 18 and older only
Urban Pack Hostel Hong Kong:
Flat 1410, 14/F, Hai Phong Mansion, 101 Nathan Road, Tsim Sha Tsui
YHA Mei Ho House Youth Hostel 
- Located in a big building and outfitted with the many ammenities of a traditional youth hostel
- It is in the lively neighborhood of Sham Shui Po which is famous for its street food and electronics market, one of the few remaining old working-class neighborhoods near the center of the city
- Five minutes to Sham Sui Po MTR with easy connections to a number of lines
- Free breakfast
- Recreational and open-air backyard
- Kitchen and laundry available
- Free Wi-Fi
- Twin, Triple, 8-Bed Female, Male and Mixed Dormitory
YHA Mei Ho House Youth Hostel:
Block 41, Shek Kip Mei Estate, Sham Shui Po, Kowloon
The Mahjong
- Great atmosphere and clean and modern decor with inviting common area with small kitchen
- Nice individual spaces, each bunk has a privacy curtain and power outlet
- Use of computers available in the common area
- Located in Kowloon City, a very local area with lots of eateries, shops, etc.
- Not close to metro but buses every 3 minutes you can be by the Harbour in 20 minutes
- Free Wi-Fi
- 6-Bed to 10-Bed Rooms, Female-only and Mixed Dormitories
The Mahjong:
1F, No.10-16 Pak Tai Street, To Kwa Wan
Hop Inn on Mody
- Fantastic location in Tsim Sha Tsui East, steps from the MTR station and Victoria Harbour
- Award winning property with modern rooms decorated with artwork by local artists, each living space is unique
- Non-smoking
- The common areas have TV, refrigerator, microwave
- Free Wi-Fi
- Private Twin and double rooms as well as 6 and 8-bed dormitory, female and mixed
- Hop Inn operates two other properties in Tsim Sha Tsui, all centrally located
Hop Inn on Mody:
5/F, Lyton Building, 36 Mody Road, Tsim Sha Tsui
Hop Inn on Hankow:
Flat A, 2/F, Hanyee Building, 19 - 21 Hankow Road, Tsim Sha Tsui
Hop Inn on Carnarvon:
9/F, James S Lee Mansion, 33 - 35 Carnarvon Road, Tsim Sha Tsui
Hostels in the Hong Kong Island Side
Yesinn Causeway Bay
- Fantastic location just steps from the Causeway Bay MTR, you can be in Central in minutes
- Great neighborhood, shopping, restaurants and cafes nearby, Times Square is only a 3-minute stroll
- Bright and lively decor, clean and stylish with a lovely rooftop garden
- Cozy common area with cooking facilities, fridge, free coffee, water dispenser
- Free Wi-Fi and computer use in common area
- Laundry available
- Double rooms, 9-bed to 21-bed dormitory rooms, female-only and mixed, individual reading lights and lockers, privacy curtains
Yesinn Causeway Bay:
4-9/F, Nan Yip Building, 472 Hennessy Road, Causeway Bay, Hong Kong
Check Inn HK
- Great location in a lively area in Wanchai, 5-minute walk to Wanchai MTR station, you can be in Central and LKF in minutes
- Plenty of trams and buses and the Wanchai Star Ferry terminal within walking distance
- Area is known for dining, bars and the red light district
- Each dorm room is equipped with a safety deposit box, a microwave, refrigerator, a computer and a TV
- Free Wi-Fi
- Private double, triple and quad rooms, shared 5-8 bed mixed
Check Inn HK:
Flat B, 2/F, Kwong Wah Mansion, 269-273 Hennessy Road, Wan Chai
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