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The 10 Best Budget Hotels in London (2026)

Updated November 2026 · 10 picks

The best budget hotels in London in 2026 are hub by Premier Inn Covent Garden and The Z Hotel Soho for tiny but central rooms, Motel One London-Tower Hill for stylish value near the Tower, and Generator London and Clink78 for hostel beds and private rooms near King's Cross.

Cheap in London usually means small. The best-value central hotels (hub, Z Hotels) save space with compact, cleverly designed rooms, some without windows, so check the room type before you book. Hostels such as Generator, Clink78 and YHA London Central also sell private rooms, often the cheapest private double in zone 1. Prices swing widely: weeknights in January to March are cheapest, summer weekends and big events the dearest.

1. hub by Premier Inn London Covent Garden — Covent Garden, Soho & the West End

A compact, app-controlled room in the middle of theatreland at a budget price.

$$ Mid-rangeBest for Budget · First-timers

hub is Premier Inn's compact-room brand, and its Covent Garden hotel on St Martin's Lane puts you a few minutes from Leicester Square, Trafalgar Square and dozens of theatres. Rooms are small but smartly designed, with comfortable beds, good showers and smart TVs.

It suits solo travellers and couples who will be out all day and want the most central bed for the money.

Good to know: Book an advance non-flexible rate for the lowest price.

110 St Martin's Lane, London WC2N 4BA

Google Maps Website

2. The Z Hotel Soho — Soho

Small, sleek rooms right in Soho, with a free cheese-and-wine hour.

$$ Mid-rangeBest for Budget · Couples

The Z Hotel Soho is in a quiet corner of Soho by Cambridge Circus, a short walk from theatres and Chinatown. Rooms are compact, some without windows, but clean and well designed, with big beds and power showers.

Z Hotels have other central London sites, including Piccadilly, Trafalgar and the City.

Good to know: Inside rooms without windows are the cheapest; pay a little more for a window if you mind.

17 Moor Street, London W1D 5AP

Google Maps Website

3. Motel One London-Tower Hill — Tower Hill, The City

Design-hotel style at a budget price, a short walk from the Tower of London.

$$ Mid-rangeBest for Budget · First-timers

Motel One's formula of stylish, compact rooms, a smart lounge bar and fair prices works well at Tower Hill, a few minutes from the Tower of London, Tower Bridge and the City.

Rooms are the same size and design throughout, so you know what you get. It suits couples and business travellers watching the budget.

Good to know: Tower Hill station and Tower Gateway DLR are both close, handy for Canary Wharf and City Airport.

24–26 Minories, London EC3N 1BQ

Google Maps Website

4. Premier Inn London County Hall — South Bank

Reliable budget rooms next to the London Eye, with family rooms.

$$ Mid-rangeBest for Budget · Families

Premier Inn's County Hall hotel is in the former seat of London's government, next to the London Eye and across the river from Big Ben. Rooms are standard Premier Inn: comfortable, quiet and consistent, with family rooms available.

Few budget hotels have a location this good for sightseeing.

Good to know: Book well ahead for summer and school holidays.

County Hall, Belvedere Road, London SE1 7PB

Google Maps Website

5. Assembly Leicester Square — Leicester Square, Soho & the West End

Compact rooms on Charing Cross Road with Leicester Square on the doorstep.

$$ Mid-rangeBest for Budget · Couples

Assembly is a small-room hotel on Charing Cross Road, between Leicester Square and Soho, with rooms designed to make the most of limited space.

It suits theatregoers and short city breaks where location matters more than room size.

Good to know: Book direct on the hotel's own site for its best rate.

27–31 Charing Cross Road, London WC2H 0LS

Google Maps Website

6. The Hoxton, Holborn — Holborn, Soho & the West End

A stylish, buzzy hotel with fair prices for its smallest rooms.

$$$ UpmarketBest for Couples · Business

The Hoxton, Holborn is not the cheapest hotel here, but its 'Shoebox' and 'Snug' rooms are good value for a hotel this well designed and central, between Covent Garden and the City. The lobby, restaurant and bars are busy all day.

It suits couples and remote workers who want character and a lively ground floor.

Good to know: Shoebox rooms are the cheapest and genuinely small; fine for one or two nights.

199–206 High Holborn, London WC1V 7BD

Google Maps Website

7. Generator London — Bloomsbury, Soho & the West End

A big, sociable hostel near Russell Square with dorms and private rooms.

$ BudgetBest for Budget

Generator London occupies a former police building in Bloomsbury, a short walk from King's Cross and the British Museum. It has dorm beds and private rooms, a large bar and plenty of social space.

It suits young travellers and groups on a tight budget.

Good to know: Private twin rooms are a good deal for two friends sharing.

37 Tavistock Place, London WC1H 9SE

Google Maps Website

8. Clink78 — King's Cross

A hostel in a Victorian courthouse, where you can sleep in a former cell.

$ BudgetBest for Budget

Clink78 is set in a 19th-century magistrates' court near King's Cross, and some rooms are former prison cells. It has dorms and private rooms, a bar and a kitchen.

King's Cross St Pancras station, with six Tube lines and the Eurostar, is a short walk away.

Good to know: Ask for a cell room for the story.

78 King's Cross Road, London WC1X 9QG

Google Maps Website

9. Wombat's City Hostel London — Whitechapel, Shoreditch & East London

A clean, well-run hostel in an old sailors' home near Tower Hill.

$ BudgetBest for Budget

Wombat's City Hostel sits in a historic former seamen's mission building on Dock Street, between Tower Hill and Whitechapel. It has dorms, private rooms, a bar and a kitchen.

It is walking distance from the Tower of London and Brick Lane.

Good to know: Breakfast is extra but good value; book it with your bed.

7 Dock Street, London E1 8LL

Google Maps Website

10. YHA London Central — Fitzrovia, Soho & the West End

A modern youth hostel near Great Portland Street with family rooms.

$ BudgetBest for Budget · Families

YHA London Central is a purpose-built hostel in Fitzrovia, close to Regent's Park and Oxford Street. It offers dorms and private rooms, including rooms for families, plus a self-catering kitchen.

It suits families and solo travellers who want a calm, clean base rather than a party hostel.

Good to know: Use the guest kitchen to save on meals.

104 Bolsover Street, London W1W 5NU

Google Maps Website

Frequently asked questions

What is the cheapest area to stay in central London?

King's Cross, Bloomsbury and the streets around Tower Hill and Aldgate tend to be cheaper than Covent Garden and Mayfair while staying in zone 1, with good Tube links. See our London hotels guide for every budget.

How much is a budget hotel in London per night?

Roughly £80–£150 for a compact double in zone 1 most of the year, more at peak times. Hostel dorm beds can be much less, and hostel private rooms often cost about the same as a budget hotel.

Are hub by Premier Inn rooms really small?

Yes. hub rooms are compact, with a bed that fills most of the room and app-controlled lighting and heating. They are clean, quiet and very central, which is the point.

Do London hostels have private rooms?

Yes. Generator London, Clink78, Wombat's and YHA London Central all sell private rooms with their own bathrooms as well as dorm beds.

Is breakfast included in London budget hotels?

Usually not. Most charge extra for breakfast, and a café nearby is often cheaper. Check the rate before booking.

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