There is a lot of cheap accommodation in Stockholm.  One of this is a Stockholm hostel in the city centre, downtown, Norrmalm & Vasastaden. For something different stay in hostels in Stockholm’s medieval heart – Gamla Stan & Riddarholmen.  Tourists can also find a cheap hostel near the train station and then explore Stockholm.
Whether you are an experienced backpacker or simply just looking for a room for the night, there are a lot of choices of Stockholm hostels that will suit you.
City Backpackers. City Backpackers is designed to be the ultimate meeting place, where you are guaranteed to meet fellow travelers. They have a large fully equipped guest kitchen within the hostel and also a new, cozy backpacker café in-house with breakfast options and a great variety of cookies, snacks and hot and cold drinks all day long. If travelers want to relax there is a hot sauna, and lounge areas with satellite TV, daily newspapers and international magazines, and a book exchange. Every night is movie night wherein they show a popular Swedish film. Travelers can stay in a single, double room, private triple room, or in a dorm with between four and 12 beds. Female dorms are also provided. They also have two apartments for up to six people with private bathroom, shower and kitchen.
Location: Upplandsgatan 2a, 11123
Skanstulls Hostel. Skanstulls hostel opened in 2007 and are still going stronger as of today. They offer free wi-fi, computers, free pasta, tea and coffee. They have separate showers for men and women and even for handicaps. They also provide cleaning, while travelers do their own dishes and keep the place tidy. Surveillance cameras are also running 24 hours a day in the public areas of the Hostel. They offer different room options from private rooms, double and dorms.
Location:  Ringvägen 135
Castanea Old Town Hostel. Castanea Old Town Hostel is one of the most central hostels in Stockholm. Castanea is a small personal hostel, located in the middle of the Old Town (Gamla Stan), one of the world’s best preserved medieval city centre. They are a modern hostel in a charming building from 1747. They have 55 beds, in single rooms, twin rooms, 4- and 6-bedded rooms and one dormitory. All rooms have shared WC and Showers. They also have a popular guest kitchen for the travelers own cooking. Sheets and towels could be hired or you can bring your own. Sleeping bags are not allowed due to hygienic reasons. They have guest computer and free Wifi in most rooms.
Location: Kindstugatan 1, Old Town