Hostels are rapidly becoming more famous as not only backpackers but also other budget travelers prefer staying at these establishments. Gone are the days where stereotypes associated youngsters living in hostels with drugs. Hostels have since come a long way, beautiful rooms with modern facilities is what characterizes the best five hostels in the world.

Back pack Guest house Budapest Hungary

Apart from its hippie tendancies, the Backpack Guesthouse offers amazing services such as numerous tours running from the hostel, as well as a caving expedition under the streets of the city. The hostel contains dorms, private rooms and a lush garden where backpackers can pitch their tents under a bean bag clad gazebo.

Vila Saint Exupery, Nice, Spain

Perched on a hill in a picturesque French Rivera Town subarb, this hostel is a converted Carmelite monestry.Vila Saint-Exupery is sculpted into gleaming stone walls and floor with en suite double and single rooms. The views from this hostel are exquisite it is a wonder why it is not classed as a boutique hotel.

Lisbon lounge hostel, Lisbon, Portugal

Located in a historical pedestrian area of Lisbon City, Lisbon Lounge hostel offers bike rentals, free tours to the local beaches and the romantic well as historical town of Sintra, a three course Portuguese dinner, free wi fi and beautiful rooms and lounges decorated by local artists. This multi-award winning hostel is insanely cheap as well as secure, spooky clean, stylish and a comfortable place to call home as you tour the amazing city of Lisbon.

Refgarfjord, Stockholm, Sweden

Tired of staying at landlocked hostels? Well you better try out this hostel in Sweden. The hostel is a former fully functional ship that docks permentley on Lake Maralen.The ship has a wonderful lounge complete with wood-rimmed paneling d├ęcor and plushy leather couches, internet access, bike rentals and a bar for those who like or aspire to party on a boat. Wear an arm float through out your partying, your drunken stupor might send you plunging into the lake.

Terrezas Estoril, Buenos Aires, Argentina

This hostel is on the top most floor of a little over 100 years old building with an amazing architecture. The hostel has various roof top terraces, party spaces and a huge outside terrace for barbequing .Terrezas Estoril contains a one hell of a pool for cooling off and a chance for guests to dance the night away at weekly pool parties.