Affordable Hotels in London: Budget Stays That Don’t Disappoint

Budget Stays in London: Here's How!

When it comes to something we really know inside and out, it’s trip planning — especially planning city trips.

And we want to share everything we know about finding affordable hotels in London that are still genuinely cool and comfortable — right here, right now.

Ready? Let’s go!

The Problem: Hotel Prices in London

Hotels in London are expensive. Really expensive. If you want to stay centrally during peak season, you’ll easily pay 300 euros or more per night. And we’re not even talking about luxury hotels or the many lovely boutique hotels in London — we mean completely ordinary places to stay.

A real example: When searching for accommodation for a long weekend (three nights) in September, the average 3-star hotel in a central location runs about 340 euros per night.

You can find something cheaper, sure. For just 247 euros per night, there’s a 13-square-meter room — unfortunately on the “lower ground floor,” which basically means the basement. Breakfast not included. Yikes!

Is that a reason to skip London?

Of course not!

London is far too incredible for that — and there are more affordable options out there. We’ll show you exactly how to find them.

The Solution: Our Tips for Keeping Costs Down

We know London really well and have become true experts at tracking down budget-friendly hotels everywhere we travel. Budget-friendly here is not a synonym for grim. We’re talking about London hotels that are affordable and genuinely great.

After a long day full of things to do in London, we want to come back in the evening and actually feel at home.

Sure, there are even cheaper hotels in London — but those no longer fall into our “feel comfortable” category.

Good Budget Hotels in Central London

London has some seriously great budget hotels. The concept is often very similar:

• great location
• small rooms
• modern design
• relatively affordable prices

At these hotels, you can score some really great deals — but not always, unfortunately.

During busy travel periods, even these hotels get expensive. So this tip doesn’t work every time. We’ll walk you through our favorite picks in a moment.

Your job is to check whether there are good rates available for your specific travel dates.

These are our 5 favorite affordable hotels in London:
The Z Hotel Strand: Unbeatable location right in the heart of Westminster. Small, modern rooms. Sometimes available from as little as 100 euros per night, but up to 250 euros during peak periods.

Motel One London: The well-known budget hotel chain now has a London outpost too. Standards are solid — exactly what you’d expect from Motel One — and the location near Tower Bridge is excellent. Rooms start from around 150 euros per night.

citizenM Shoreditch: We love the citizenM hotels. Rooms are small but super well laid out, the beds are comfortable, and the vibe is really stylish. The location right in the trendy Shoreditch neighborhood is a bonus. Rooms from around 200 euros per night.

The Corner Hotel: Great spot near Tower Bridge. Cool, unconventional design and — for a budget hotel — surprisingly spacious rooms. You can check in here from 150 euros per night.

The Wesley Camden Town: Small but modern rooms in a great spot near Camden Market. Available from as little as 140 euros per night.

As mentioned, prices swing a lot and can sometimes be two or three times higher. Whenever we head to London, we always check these hotels first.

Are rates too high for your dates? Then read on — we’ve got more tricks up our sleeve.

Affordable Neighborhoods to Stay in London

Most visitors stay in the well-known areas right in the center: West End, Westminster, Covent Garden. These are the most central spots — but also the most expensive.

Venture just a little outside the main tourist zone and your accommodation can quickly be 100 euros cheaper per night.

Our recommendation for good, affordable lodging in central London: the neighborhoods of King’s Cross and Paddington.

Both areas are centrally located and perfectly connected. Hotel prices there average 20–30% less than in other central neighborhoods.

Affordable Hotels in King’s Cross

The area around King’s Cross / St Pancras station is the go-to zone for staying close to the action without paying a fortune.

By subway, you can reach most of London’s top attractions in about 20 minutes. And some popular highlights — like Camden Market or several of the major museums — you can even walk to.

Affordable Hotels in Paddington

Paddington is a well-connected neighborhood with plenty of hotels at lower price points.

From Paddington station, several subway lines whisk you to the most important sights in no time, and most London airports are very well connected from here too. Just nearby you’ll also find Little Venice — one of our favorite under-the-radar picks in London.

Super Affordable Stays in London's Suburbs

Staying in King’s Cross or Paddington is a bit easier on the wallet, but it’s still not exactly cheap.

If you really want to slash your accommodation costs in London, you’ll need to look even further out.

In the suburbs, you often pay less than half what a good hotel room costs in the city center. Over a full week, that can add up to several hundred euros in savings.

The trade-off: You’ll commute into the center every day and won’t be right in the thick of things. If that doesn’t bother you, though, a suburb stay is hands-down the most affordable accommodation option in London.

Even during peak season, you can find a solid hotel room in the suburbs for 100 to 150 euros per night.

Our Tip: Affordable Stays in Ealing

If you want to stay outside central London, we’d point you toward Ealing. It’s a lovely suburb about 15 km west of the city center.

Ealing is connected to London by several subway lines — expect about 30–45 minutes to reach the center. Another bonus: Heathrow Airport is also nearby, which makes arrival and departure super easy.

Recommended Hostels in London

A great budget alternative to a hotel is London’s thriving hostel scene. If you’re focused purely on the lowest price and want to stay as centrally as possible, then a bed in a dormitory is your best bet.

For a dorm bed, you’ll pay from 40 euros per night. Hostel prices also vary quite a bit — and especially for last-minute bookings, they can spike significantly.

Many hostels also offer private rooms — sometimes with shared bathrooms, occasionally with an en suite. Pricewise, these rooms aren’t always the best value, since classic cheap hotels in London usually give you more for your money.

These 5 London hostels get our recommendation:
Lee Abbey: Lee Abbey is a student residence in the quiet Kensington neighborhood that also opens its doors to travelers. Only double rooms, many with private bathrooms. Excellent value for the money.

Urbany Hostel: Simple but modern hostel in Kensington. Great location and a really pleasant atmosphere.

Hostelle: This hostel is women-only. Fantastic location near the trendy Shoreditch neighborhood, right by the subway.

Wombat’s City Hostel: Stylish accommodation from the well-known Wombat’s chain. Great spot within walking distance of Tower Bridge.

Onefam Notting Hill: A really cool hostel in Notting Hill. Perfect for meeting other travelers — there are regular events and the hostel puts serious effort into bringing guests together.

Even More Tips for Staying on a Budget in London

The Most Affordable Months to Stay in London

London draws visitors year-round, but there are definitely months when fewer tourists come through and prices drop noticeably.

Here’s the breakdown of the most and least expensive months for London hotels:
Most expensive months: April, May, September
Most affordable months: August, December, January, February

April, May, and September are the most popular months for city breaks in Europe — which is exactly why hotel rates in London peak during these periods.

The winter months from December through February offer the most affordable time to visit London.

You can still take a cruise on the Thames or browse one of the markets in London in winter — but honestly, it’s not quite as enjoyable.

If your main goal is to explore the many museums in London, though, the time of year barely matters.

Our tip: February tends to be relatively dry compared to December and January — in our opinion, it’s the best winter month to visit London.

Our top pick for an affordable London trip is August.

During summer vacation season, most travelers head to the beach, and business travel slows down too. As a result, London hotels are comparatively affordable in August — and the weather is great on top of that.

The Most Affordable Days to Stay in London

It’s not just the month that affects hotel prices — the day of the week matters a lot too. If you have flexibility, plan your London trip so you’re there overnight on a Sunday and Monday.

Sunday is almost always the cheapest night, followed by Monday. All other days are significantly pricier. The difference is really striking — a Sunday-to-Monday night can cost half what you’d pay for Saturday-to-Sunday.

So if you’re planning three days in London, the most affordable option is to have your trip span Sunday and Monday.

Book Early

Booking early is often cited as the classic trick for cheap hotel prices — but in London, that’s only partially true.

London hoteliers know exactly which dates are in demand. You won’t score an amazing deal for a May stay even if you book a year in advance.

That said, if you book well ahead for a quieter month like January, you can definitely find some very good prices.

What’s definitely always true: last-minute booking is usually very expensive.

If you decide on a whim to visit London next week, finding affordable accommodation will be significantly harder.

Not Everything in London Is Expensive!

If you’re feeling frustrated by London’s high room prices, here are a few encouraging facts to keep in mind.

Apart from hotels and a handful of paid attractions, you can actually experience London on a pretty tight budget.

Don’t believe it? Here are a few examples:

• Most museums in London are free — including world-class institutions like the Tate Modern.
• There are many amazing markets in London, all free to browse. Many also offer delicious street food that won’t break the bank.
• Of the 22 highlights we cover in our guide to the best things to see in London, you can visit 14 of them completely free of charge.
• Public transit in London is very affordable. With the Oyster Card, you pay a maximum of £8.10 per day — no matter how much you travel.

So even if your hotel ends up a bit over budget, you can easily make up for it by saving in other areas.

Extra tip: If you want to visit a lot of paid attractions in London, be sure to check out our London City Pass comparison. With one of these passes, you can save quite a bit.