Finding a cheap hotel in Hanoi that is still clean, comfortable, and well located is not as easy as many review websites make it sound.
I have visited Hanoi multiple times and tested a wide range of accommodations across different price levels. The truth is that with a budget of 250K to 750K VND per night, you can absolutely find a place that is clean, well equipped, and centrally located if you know where to look.
The 5 budget hotels in Hanoi below are selected based on real locations, transparent pricing, and consistent service quality.
Check out our related post: 10 Fantastic Family Hotels in Hanoi – Full Guide 2026
1. Backy Posh Hostel
- Address: 3 Hang Chao, Ly Thai To, Hoan Kiem, Hanoi
- Room rate: 200,000 to 250,000 VND per night, around 8 to 10 USD
- Reception: 24 hours
This is the cheapest hotel on the list and at 200K to 250K VND per night, the quality is genuinely surprising. It is only a few minutes walk from Hoan Kiem Lake, with air conditioning, WiFi, and a 24 hour reception desk. Spas, cafes, and convenience stores are all nearby, so everything a traveler needs is within reach.
The hotel also offers airport transfer for an extra fee. If you are on a very tight budget but still want to stay in the Old Quarter, Backy Posh Hostel is hard to beat at this price.
It is best for solo travelers or young groups who want the most central location at the lowest cost. Note that the cheapest option is a shared dorm with bunk beds. Private rooms are available at a higher price.
2. Royal Hotel
- Address: 19 Hang Chao, Cat Linh, Dong Da, Hanoi
- Room rate: 550,000 to 750,000 VND per night, around 22 to 30 USD
Royal Hotel is a solid three star option for travelers who want to explore historical sites west of Hoan Kiem Lake. It is only 150 meters from the Temple of Literature, 250 meters from the Vietnam Fine Arts Museum, and 750 meters from Ho Chi Minh Mausoleum. If these attractions are on your list, this location is far more practical than staying deep in the Old Quarter.
Rooms come with a bathtub, TV, refrigerator, and air conditioning. A rare advantage in Hanoi is that you can bring pets without extra charges.
It works well if you plan to visit the Temple of Literature, the Mausoleum, and nearby museums. It is less suitable if you want to walk to Hoan Kiem Lake or the night market, as it takes around 20 to 25 minutes.
3. A Dong Hotel
- Address: Luong Ngoc Quyen Street, Hoan Kiem, Hanoi
- Room rate: 400,000 to 700,000 VND per night, around 16 to 28 USD
A Dong Hotel sits right in the heart of Hanoi Old Quarter. Luong Ngoc Quyen is one of the most lively and iconic streets in Hoan Kiem.
A real highlight here is breakfast that features local Hanoi dishes instead of the usual basic Western toast and sandwich options found in many budget hotels.
There are discounts for bookings of five rooms or more, which makes it convenient for larger groups. It is ideal if you want to step outside and immediately feel the atmosphere of the Old Quarter.
4. Moonlight Hotel
- Address: 32 Yen Hoa, Tay Ho, Hanoi
- Room rate: from 696,000 VND per night, around 28 USD
Moonlight is for travelers who prefer the calm atmosphere of West Lake over the busy Old Quarter. Some rooms have balconies with direct West Lake views, something you would normally pay three or four times more for in higher end hotels. All rooms include a private bathroom, air conditioning, TV, and refrigerator.
Nearby cafes such as Duy Tri and Nhac Xua make early mornings around West Lake especially memorable. This hotel is perfect if you want peace and fresh air.
It is less convenient if your itinerary revolves around the Old Quarter, as Hoan Kiem Lake is about 5 to 6 kilometers away, roughly 15 to 20 minutes by ride share.
5. My Hotel 23
- Address: 23 Bui Thi Xuan, Hai Ba Trung, Hanoi
- Room rate: 400,000 to 650,000 VND per night, around 16 to 26 USD
My Hotel 23 is well located for exploring museums and historical sites in Hai Ba Trung district.
Hoa Lo Prison and the Vietnam National Museum of History are within walking distance. Rooms are spacious, nicely designed, and include a minibar, which is a pleasant surprise at this price point.
The Hai Ba Trung area is also quieter at night compared to the Old Quarter, which is a plus if you need proper rest after a long day of sightseeing.
FAQs
Budget hotels in Hanoi typically range from 250K to 750K VND per night. Dorm beds can start from 200K VND, while private rooms in central districts usually cost between 400K and 700K VND.
Hoan Kiem and the Old Quarter are the most convenient for first-time travelers. You can walk to Hoan Kiem Lake, night markets, street food spots, and major attractions. If you prefer quieter surroundings, consider Tay Ho (West Lake) or Hai Ba Trung.
Yes, many budget hotels are clean and safe if you choose carefully. Look for properties with consistent recent reviews, clear photos, and transparent pricing. Central areas like Hoan Kiem and Ba Dinh are generally safe for travelers.
