Best Budget Hostels in Koh Tao: Where to Stay & Avoid
Koh Tao in Thailand is the place where I stayed the longest during my entire trip. We joked that we were practically locals. We had our own taxi driver we could call, we kept seeing the same people walking around—almost to the point of saying hi to them—and at the cafés, they would greet us with, “Hey, it’s you again!” On top of that, due to a serious housing crisis, we could even call five different hostels "home" during our time on Koh Tao. This beautiful island in the south of Thailand truly gave us the ultimate backpacking experience.
But because of the severe housing crisis in Thailand around the holidays, we were basically forced to change hostels constantly. One would be fully booked after three days, another after just two, and after a while, we almost ended up on the streets. This adventurous experience doesn’t make me an expert on all the hostels in Koh Tao, but I can definitely tell you which ones I liked best—and which ones I would never stay at again.
Revolution Hostel
Revolution is a big party hostel. However, I found it to be well-organized, with a great atmosphere and friendly people. One night, we even got free food, which was a nice bonus. Everything was well arranged, and the rooms were clean. Personally, I didn’t find it to be an over-the-top party hostel—it was more of a social hostel that occasionally organized fun activities, which was actually perfect.
Additionally, it’s centrally located near shops, bars, and restaurants. It’s about a 10-minute scooter ride to the diving area of the island.
Good Dream Hostel
In the photos, this hostel looked fantastic—and in reality, it pretty much was. The rooms were super tidy, there was plenty of space to sleep, and it was easy to store your belongings. The atmosphere was chill, and you could even work out there. The only downside was that, on our last day, a big lizard showed up in the bathroom—but that’s not really the hostel’s fault.
Islander Hostel
Islander Hostel was listed on many websites as one of the best hostels—very social, and it looked amazing in the pictures. By this point in my travels, I knew better than to trust the beauty of hostel photos, but still, it seemed like a solid choice.
When we arrived, we were welcomed warmly, and the outdoor terrace looked super inviting. However, once we got to our room, the excitement faded quickly. It was pretty dirty and uncomfortable. Plus, anyone from the street could just walk into the dorm. I know this because, after checking out, I left my belongings in one of the lockers for five extra days, and when I came back on a random day, I was able to retrieve them without needing a room key.
Cleaning wasn’t done often, so there was a lot of sand on the floor. On top of that, there weren’t many showers, and the ones they had weren’t very private—if the wind blew the wrong way, anyone could see inside.
I’m all for budget-friendly places and understand you get what you pay for. However, I’ve stayed in cheaper hostels that were much better organized. My tip: if you're looking for a budget hostel on Koh Tao, don’t stay here—there are cheaper ones that are way better!
Prime78 Hostel
I never thought I’d end up at this hostel. It’s super close to a 7-Eleven and the dive shops. When you arrive, it feels like a quiet, laid-back hostel. It was still new when I stayed there, and they hadn’t fully set up their booking system yet. Instead, the owners just remembered who was staying where and for how long.
When the hostel crisis on Koh Tao hit its peak, this place had been overlooked by most travelers. Luckily, the owner was kind enough to give us a roof over our heads. The beds were decent, the showers were fine, and overall, everything was just… fine.
But the best part? It actually felt like home because of how relaxed the atmosphere was. Maybe that had something to do with the weed shop next door, but if you're looking for a budget-friendly hostel near the diving area, this one is a great choice.
Escape Divers Hostel
This hostel is right next to Islander Hostel and is actually a British diving school with a few dorm rooms attached. It’s pretty basic—lots of people in one room, plenty of bunk beds, and a darker vibe—but it was clean.
The only downside? The top bunks didn’t have railings, so I constantly felt like I was about to fall out 😅. Other than that, it was a decent hostel, but if you're looking for a budget place in the diving area, Prime78 is still the better option.
Conclusion
Alright, ladies and gents, what’s the final ranking? Let’s make it clear that this is purely based on my personal experience—if you go at a different time of year, your experience might be totally different.
Here’s my recommendation:
If you don’t plan on diving and want a quiet hostel, book Good Dream Hostel.
If you don’t need to be near the diving area but still want a social and fun atmosphere, Revolution is the best choice.
If you are diving and want a chill place to stay, go for Prime78 Hostel.
If you want social vibes, you can always hang out at Islander Hostel—just don’t sleep there.
Hope this helps, and happy travels! ✈️🌍
